Question: Are non-U.S. citizen living overseas obligated to pay tax to the IRS on stock dividend  from a U.S. company? 

Answer: Stock dividends are generally not taxable. The following is from the irs web site:\n\nDistributions of Stock and Stock Rights\nDistributions by a corporation of its own stock are commonly known as stock dividends. Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return.
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