If you’re an avid traveler who works abroad, you may or may not know how tax treaties can help reduce or eliminate double taxation on certain incomes. Not every country has one with the U.S., so it’s important to research before filing. However, to use this tax treaty you will need to prove that you are a U.S. tax resident by using Form 8802.
What is Form 8802?
Form 8802 is used to prove to another country that you are a legal U.S. tax resident. After filing, it will generate another form called Form 6616. That is the legal certificate from the IRS that says, “Yes, this person/company is a US tax resident.” In combination of this certificate and a valid tax treaty, you can reduce your tax liabilities on:
- Interest
- Pensions or annuities
- Self-employment or contractor income
- Royalties
- Dividends
Who Should File Form 8802?
Anyone who is trying to claim tax benefits in another country should file for a residency certificate. That may include:
- Individuals working or living abroad
- Businesses with income in foreign countries
- Trusts or estates needing to claim treaty benefits
What Do You Need To File?
Just like any IRS form, you’ll need the basic requirements:
- Name and address
- Taxpayer ID number (ITIN, SSN, EIN)
- Tax year(s) you’re requesting certification for
- User fee ($85 for individuals/ $185 for nonindividuals)
- Obtain your filed U.S. tax return(s)
When and How You Should File
It’s best to file as early as possible since it can take 30+ days for the IRS to process it, and possibly longer during busy seasons. The key is to file it before the country you’re in needs it.
While we are used to the new world of technology, this form requires it to be sent via mail or fax to be processed. After filing Form 8802, there are specific guidelines depending on how you provide payment.
Payment Methods
Note that payment can be made by check, money order, or e-payment, and it must be in the form of U.S. Dollars — foreign checks or cash are not allowed.
If you are making the payment by money order or check, you can send the payment and your signed forms via mail, private delivery service or fax to:
Internal Revenue Service
U.S. Residency Certification
Philadelphia, PA 19255
By private delivery service to:
Internal Revenue Service
2970 Market Street
BLN# 3-E08.123
Philadelphia, PA 19104
Fax Numbers:
877-824-9110 (within the United States only, toll free)
304-707-9792 (inside or outside the United States, not toll free)
E-Payment Instructions
If you’re paying by e-payment, be sure to follow these instructions closely.
Go to Pay.gov and enter “IRS Certs” in the search box. In the “IRS Certs” topic, click continue. Follow the on-screen prompts and enter all required information when requested. You will need to have a copy of your completed Form 8802 to submit payment. After receiving your e-payment confirmation number, enter it on page 1 of Form 8802. Once that is done, you can submit Form 8802 and all required attachments by mail, private delivery service, or fax listed above (IRS Instructions).
Receiving Your Certificate
After you complete the payment and submission, you can expect to receive your Form 6616 in about 4-6 weeks. If you have any questions or concerns about filing, it’s best to contact a tax professional to assist. By spending a little more time on paperwork, you can save hundreds of dollars later on!
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