The second option would be to transfer funds via check. In this case, the nonresident would
draw a check on his bank. In this situation, the check would be considered tangible asset as it
has all the attributes of an item that has physical substance. The check is given physically as
tangible asset and it is under the control of the recipient. At this point, it is important to
determine whether such tangible asset would have US citrus. It strictly depends on where the
check was given. However, if there is no proper evidence to prove that the check was given
outside of the US, it would be important to determine where the check was cashed or
deposited. If it is again outside of the US, there should not be any gift taxes owed. However, if
there is no evidence that the check was given outside of the US and it was subsequently
deposited or cashed in the US, it could be subject to gift tax on the recipient