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


Answer: B

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