Rick Rocker, a nonresident alien, is interested in performing a rock concert in Chicago. A promoter from Rockers home country ("Foreign Promoter") has agreed to pay $15,000 to Rocker to perform. Foreign Promoter does not have an office or fixed place of business in the United States. Rocker does not incur any expenses in connection with the concert. Which of the following statements is true?

Question 13 options:

1)	Rocker and Foreign Promoter are subject to U.S. taxation because they have a permanent establishment in the U.S.

2)	Rocker has a U.S. trade or business and, therefore, must file a Form 1040NR that reports $15,000 as effectively connected income.

3)	Rocker is exempt from U.S. taxation under Article 16 of the U.S. Model Treaty.

4)	Rocker is subject to withholding tax on the money received from Promoter.