I think that's too risky. I'd like to see if this is lawful or not first, to avoid any potential penalty, as the stock sale payment is large.
The key to my issue is: With my true situation, the stock sale income is not taxable:
- I was nonresident and stayed less than 183 days in US in 2019.
- the stock sale income is not an US income (vested before I came to US)
- the stock sale income is not effectively connected to US trade or business
- According to IRC section 871 (a)(2) the capital tax should be exempted.
But it was my mistake in the process of transaction that I was filing a wrong withhold tax certification forms so that the income appears in 1099-B form. Will it help if I attach a paper explaining my situation in my tax return?
