2016-2025 Form

What is the Form 8840

The Form 8840, officially known as the "Closer Connection Exception Statement for Aliens," is a tax document used by individuals who are not U.S. citizens but may be considered U.S. residents for tax purposes. This form is specifically designed for those who meet the substantial presence test but can demonstrate a closer connection to a foreign country. By filing this form, individuals can claim an exception from being classified as a U.S. resident for tax purposes, thereby potentially avoiding U.S. taxation on foreign income.

How to use the Form 8840

Using the Form 8840 involves several steps to ensure accurate completion. First, individuals must determine their eligibility by assessing their time spent in the U.S. and their ties to a foreign country. Next, they need to gather necessary documentation that supports their claim of a closer connection, such as proof of residency in the foreign country. Once the form is completed, it should be submitted to the IRS by the specified deadline. It is important to keep a copy of the form for personal records and future reference.

Steps to complete the Form 8840

Completing the Form 8840 requires careful attention to detail. Here are the essential steps:

• Review the eligibility criteria to ensure you qualify for the closer connection exception.
• Gather supporting documents, including proof of foreign residency and ties.
• Fill out the form accurately, providing all required information, such as your name, address, and tax identification number.
• Specify the foreign country to which you have a closer connection.
• Sign and date the form to certify its accuracy.
• Submit the completed form to the IRS by the appropriate deadline.

Legal use of the Form 8840

The legal use of the Form 8840 hinges on its compliance with IRS regulations. It serves as a formal declaration of an individual's intent to claim a closer connection to a foreign country, which can affect their tax obligations. To be legally binding, the form must be filled out completely and accurately, and it must be submitted on time. Failure to comply with these requirements may result in penalties or the loss of the exception claim.

Filing Deadlines / Important Dates

Filing deadlines for the Form 8840 are crucial for compliance. Typically, the form must be submitted by June fifteenth of the year following the tax year in question. If an individual is unable to meet this deadline, they may request an extension. However, it is important to note that extensions do not apply to the payment of any taxes owed. Keeping track of these dates ensures that individuals maintain their eligibility for the closer connection exception.

Required Documents

To successfully complete the Form 8840, individuals must provide several supporting documents. These may include:

• Proof of residency in the foreign country, such as utility bills or lease agreements.
• Documentation of ties to the foreign country, including bank statements or tax returns.
• Any previous correspondence with the IRS regarding residency status.

Having these documents ready can facilitate a smoother filing process and strengthen the case for claiming the closer connection exception.