IRS Form 8802 Explained
IRS Form 8802 Explained
United States residents who work and reside in a foreign country may be able to benefit from international tax treaty laws that result in lowered withholding tax rates for certain income types for ex-pats. To avoid paying foreign tax rates on their income, taxpayers can provide proof of U.S. residency to access treaty-reduced tax rates by filing IRS Form 8802.
TABLE OF CONTENTS
Key Takeaways:
- IRS Form 8802, Application for United States Residency Certification, is a tax document that is used to request IRS Form 6166, Certificate of Residency, so that U.S. residents can claim income tax treaty benefits and other tax benefits in qualifying foreign countries.
- Filing IRS Form 8802, Application for United States Residency Certification, to take advantage of the income tax treaty benefits between the United States and other foreign countries can significantly lower what these taxpayers owe in taxes at the end of the tax year.
- Taxpayers can apply for a Tax Residency Certificate using a tax form 8802 if they either filed a federal income tax return during the tax year for which they are requesting the certificate, the tax return is not yet due for the year the certificate is being requested, they filed a tax return for the previous year, or if the IRS is not requiring them to file a federal tax return because other documentation will be used for the tax period the certificate is for.
What Is IRS Form 8802?
IRS Form 8802, Application for United States Residency Certification, is an official tax document that is used to request IRS Form 6166, Certificate of Residency, so that U.S. residents can claim income tax treaty benefits and other tax benefits in qualifying foreign countries.
Benefits Of Using IRS Form 8802
Filing IRS Form 8802, Application for United States Residency Certification, to take advantage of the income tax treaty benefits between the United States and other foreign countries can significantly lower what these taxpayers owe in taxes at the end of the tax year.
Due to the fact that each country defines its own rates for tax withholding, often implementing an additional tax on internally-sourced income, U.S. residents in a foreign country may be able to achieve lower tax bills and lessen their financial stress.
Qualifications For Filing IRS Form 8802
- They filed a federal income tax return during the tax year for which they are requesting the certificate.
- If the tax return is not yet due for the year the certificate is being requested, they filed a tax return for the previous year.
- The IRS is not requiring them to file a federal tax return because other documentation will be used for the tax period the certificate is for.
- They failed to file their federal income tax return for the tax period they are requesting the certificate.
- The tax return they filed was as a non-resident.
- The taxpayer is a dual resident who has or plans to give up their residency in the United States to become a resident in another country involved in the foreign tax treaty.
- They are filing as a U.S.-organized fiscally transparent entity, such as a domestic grantor trust, domestic partnership, or domestic LLC that is considered a separate entity from its owner. Additionally, they do not have any partners, owners, or beneficiaries in the United States.
- The exempt entity, institution, business, or corporation is not organized in the U.S.
- The request for certification using IRS Form 8802 comes from a trust that belongs to an employee benefit plan in its initial year of operation. Additionally, the trust is not managed by a qualified custodian bank.
When Must IRS Form 8802 Be Filed?
The application form 8802 should be mailed with the full payment amount of the user fee at least 45 days before the deadline when IRS Form 6166 must be submitted. If there are any delays in the processing of their application, the IRS will contact the taxpayer after 30 days to inform them of the circumstances.
If taxpayers wish to reach out to the IRS to inquire about the status of their application, they can call the number 267-941-1000 and select the U.S. residency option. However, it should be noted that this number is not toll-free, and the individual will be subject to any charges for calling this number.
IRS Form 8802 Instructions
Top Section
In the top section of IRS Form 8802, taxpayers must check any relevant boxes and input details such as their full name and Social Security number (SSN), or taxpayer Identification Number (TIN). If a joint tax return was filed, they must also input their spouse’s information in this section.
Line 1
Line 1 is where taxpayers must input the full name and taxpayer identification number of the applicant exactly as it appears on the certification.
Line 2
On line 2, input the full address of the applicant during the calendar year the certification is being requested.
Line 3
On line 3a, taxpayers should input the best mailing address for the IRS to send Tax Form 6616.
On line 3b, input the appointee’s information, including their name, telephone number, CAF number, and fax number.
Line 4
On line 4, taxpayers must check the boxes regarding their residency status if they are filing as an individual, or their entity classification if they are filing for companies, businesses, or other types of organizations.
Line 5
On the fifth line of IRS Form 8802, taxpayers must check the boxes that are applicable to their situation, detailing if they were required to file any United States tax forms during the tax period outlined in the certification.
Line 6
If the applicant indicated “NO” on line 5, on line 6, they must mark the relevant options indicating whether their parent, parent company, or owner was obligated to submit a tax form in the United States.
Line 7
On line 7, indicate the calendar year for which the certification is being requested.
Line 8
On the eighth line, indicate the tax period for which the certification is being requested.
Line 9
Taxpayers must indicate the purpose of certification on line 9. They can check the box for either income tax, VAT (for which they must specify NAICS codes), or they can specify another purpose that was not listed.
Line 10
The tenth line is where taxpayers must report penalties of perjury statement and any related information.
Signature Section
At the bottom of the page, the applicant must provide the name and title, as well as sign and date the form. If they file a joint application with their spouse, they must also sign and date.
If you have any questions about filing Form 8802 to apply for U.S. residency certification or understanding the options for your account, the pros at Ideal Tax can help you throughout the filing process. Contact us today for a free consultation about your tax case.
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