The above section (25.25.01-1b) of the code is a little bit misleading and it should not be taken
as a stand-alone rule of residence. It is the means of initiating the “substantive presence test”
to determine if a person should be treated as resident or nonresident. That is, if a person has
established residence in the U.S., we need to than figure out whether such person meets the
established secondary tests (green card and substantive presence). As we have defined
residents, nonresidents are considered to be an exclusion from the definition of resident alien.