A Nonresident Alien Earns $10,000 of Dividends from a Domestic

Multiple Choice

A nonresident alien earns $10,000 of dividends from a domestic corporation, which is the alien's only U.S. source income. Which one of the following statements is incorrect?

A) The nonresident alien's U.S. tax rate is 30% unless reduced by a tax treaty.
B) The domestic corporation must withhold the U.S. taxes from the alien's dividend payment.
C) The 30% tax rate is applied against gross income.
D) The nonresident alien must pay estimated taxes on the dividend income at a 30% rate.