Understanding Nonresident Aliens

American Nationals vs. Foreign Nationals

After declaring and claiming my status as a “National,” sending out the appropriate notices, and receiving my updated passport, I set out to challenge the IRS and my employer. My goal was to remove myself from the federal tax system and stop federal tax withholding by the IRS through their representative, my employer.

One of the first—and most confusing—challenges I faced was understanding how the IRS views or acknowledges the status of a “National,” also known as an “American National.”

Initially, I was just beginning to feel confident in understanding what a “National” is. But after some research, I discovered a surprising fact: the IRS doesn’t even recognize the term “National.” Instead, it recognizes the status of “nonresident alien.” This raised the obvious question: how does that relate to being a “National”?

Although the IRS doesn't explicitly state the connection, the underlying definitions and intent behind the term “National” align closely with how the IRS defines a “nonresident alien.” Furthermore, when the IRS receives notice as part of the affidavit and notification process, it doesn’t rebut the claim—an important signal. The Affidavit of Citizenship Evidence even cites the IRS and a specific federal regulation on income tax: 26 C.F.R. § 1.1-1(a).

As I continued digging, I noticed that online definitions of “nonresident alien” never mention “American Nationals.” In fact, even search engines and AI tools fail to provide an accurate definition of “National” as defined in 8 U.S.C. § 1101(a)(21)—let alone connect it to “nonresident alien” in the context of an American National.

Then came the “aha” moment: I realized that the IRS’s approach to “nonresident aliens” is primarily geared toward foreign nationals—people who are not Americans, not U.S. citizens, and not residents. But here’s the key insight: American Nationals are also “foreign” to the federal government in terms of jurisdiction. In that sense, both foreign nationals and American Nationals are treated as “nonresident aliens” by the IRS.

So, once you’ve established your status as an “American National” (which aligns with the IRS definition of a nonresident alien) and notify the IRS, you’ll not be distinguished differently from non-Americans that are nonresident aliens that are working in the U.S. As a result, nonresident aliens—including American Nationals—are generally not subject to federal income tax, except in two specific cases covered by 26 C.F.R. § 1.1-1(a)(1), which imposes tax on citizens, residents, and, to a limited extent, on nonresident aliens under sections 871(b) and 877(b).

Keep in mind: American Nationals and foreign nationals are neither citizens nor residents of the United States, which is critical in understanding this framework.

This realization was a major breakthrough. Most of the online information I found did not link the tax treatment of nonresident aliens to American Nationals. The terminology is confusing and often misleading. At first glance, “nonresident alien” sounds like it refers only to foreign, non-American individuals. But in practice, it also applies to Americans who have claimed American National status.

Armed with this understanding, I was able to work with both my employer and the IRS to stop federal tax withholding from my wages. I also removed myself from the federal tax system—as long as I did not fall under the exceptions in sections 871(b) or 877(b).

While Benjamin Franklin famously remarked that “nothing is certain except death and taxes,” this assertion may not be entirely applicable in the context of American Nationals, depending on one’s legal status and the relevant statutory framework.