Closer Connection Exception Form

Spring 2001 CSANews Issue 38  |  Posted date : Mar 08, 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 tax because their tax home is a foreign country, i.e. Canada. To meet the substantial presence test, you would have to be in the U.S. for at least 31 days during 2000, and 183 days during 2000, 1999 and 1998. In computing the days, all the days of 2000, 1/3 of the days of 1999 and 1/6 of the days of 1998 count. If that figure adds up to less than 183, you do not need to file. Otherwise, you may be considered taxable in the U.S. on your world income, and would not be permitted to claim the tax home of Canada, if you have not filed the Form 8840. Mail to: Internal Revenue Service Center, Philadelphia, PA 19255 by June 15, 2001 or include with tax form (if filing one).