What is true regarding the compensation received by Levi for his work in the U.S.?

The compensation received by an individual for work performed in the U.S. is generally subject to U.S. tax laws. Option B correctly states that it is fully taxable under U.S. tax law, as compensation earned by employees working in the U.S. typically becomes taxable regardless of the worker's residency status.

Option A suggests that the compensation only requires reporting, but this does not take into account the tax implications of the income earned; reporting is not sufficient if the income is taxable.

The notion presented in Option D that the compensation is non-taxable because of Levi being a foreign resident is not accurate in most cases, as income earned for services performed in the U.S. is generally subject to taxation regardless of the worker's residency.

Allocation of compensation can be relevant when determining how much income is taxable based on time spent working in various locations or under specific rules, but it does not capture the full scope of the tax obligation Levi has under U.S. tax law. Therefore, stating that the compensation requires allocation does not accurately reflect its taxability; it is more about how the income is treated under tax guidelines rather than an indication of a non-taxable status.