Closer Connection Exception Form

Winter 2002 CSANews Issue 45  |  Posted date : Apr 12, 2007.Back to list

The IRS form 8840 is required, on an annual basis, by persons who claim that in spite of meeting the 'Substantial Presence Test' as to presence in the U.S., they are exempt from income tax because their tax home is a foreign country, i.e. Canada. Visitors to the United States will have fulfilled the requirements of the Substantial Presence Test if their stay in the United States exceeds 31 days in the year 2002, and 183 days for the years 2002, 2001 and 2000 combined.

If you do not file Form 8840, you may be considered taxable in the U.S. on your world income, and unable to claim that your tax 'home' is Canada. Filing a Form 8840 should cause you to be exempt from income tax in the United States.

Mail your completed Form 8840 to the Internal Revenue Service Center, Philadelphia, PA 19255 no later than June 15, 2003 or include it with your U.S. tax form, if you are submitting one to the IRS.

You or your friends can download Form 8840 from the IRS Web site ( or the CSA Web site (, click on the Closer Connection Tax Form link). Adobe Acrobat Reader is required to view and/or print the document.

The Substantial Presence Test
  • Count all of the days you were in the United States for the year 2002
  • Add 1/3 of the days you were in the U.S. for the year 2001
  • Add 1/6 of the days you were in the U.S. for the year 2000

    If the sum is less than 183, you do not need to file Form 8840. If the sum exceeds 183 days, you should file Form 8840.