If you are an alien individual and you meet the closer connection exception to the substantial presence test, you must file Form 8840 with the IRS to establish your claim that you are a nonresident of the United States by reason of that exception.

What is a form 8840?

Form 8840: The Form 8840 is an International Tax Form that is used as an IRS exception to the substantial presence test. When a person is neither a U.S. citizen nor legal permanent resident, they are typically not subject to tax and reporting on their worldwide income — because they are not a U.S. Person.

What is the due date for filing form 8840 in 2020?

June 15
The filing deadline for IRS Form 8840 – also known as the Closer Connection Exemption – is June 15 for the previous calendar year. The form must be filed annually.

What is closer connection exception to the substantial presence test?

What is the Closer Connection to a Foreign Country Test? This test serves as an additional exception to the substantial presence test. It allows you to be treated as a nonresident alien for tax purposes, even if you already satisfy the conditions to be treated as a U.S. resident under the substantial presence test.

Can nonresident aliens file taxes?

Nonresident aliens are generally subject to U.S. income tax only on their U.S. source income. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

What is a form 8898?

The fillable Form 8898 (Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession) is a federal tax form designed by the Internal Revenue Service to be used for reporting personal information to the IRS for beginning or ending Bona Fide residence in the country.

What is the penalty due for late filed returns if there were no taxes due?

5%
The penalty for not filing taxes (also known as the failure-to-file penalty, or the late-filing penalty) usually is 5% of the tax you owe for each month or part of a month your return is late. The maximum failure to file penalty is 25%.