The US has a "substantial presence test" that should be used by a non US citizen to establish if they have an obligation to file a US tax return. The rule requires you to have the following calculation be less than 183:
- / 3 + / 6
If you meet the substantial presence test, then you might qualify for an exception under the "closer connection" rule, where you prove that you have a closer connection to a foreign country than to the US.
My questions are:
- I was told that the Closer Connection test requires the IRS to make a ruling on your case. This is a Form 8840. Assuming that the connection to the foreign country is unambiguous and the connection to the US is extremely tenuous, how long does this ruling take? How often does the IRS find against the person making the claim?
- What is the deadline for filing Form 8840 for the 2016 tax year? Can this form be filed before the calendar year end of 2016?
- Is the requirement for the Closer Connection ruling repeated for every tax year in which the substantial presence test is met, or once they rule does that ruling apply for a few years forward?