IRS Delays User Fee Charges for Form 8802
IRS Delays User Fee Charges for Form 8802
October 10, 2006
Notice 2006-90 announces that the new user fee will be charged for all Forms 8802, Application for United States Residency Certification, received with a postmark date on or after November 1, 2006.
Form 8802 is used to request Form 6166, a letter that the applicant may use as proof of the applicant’s tax status as a resident of the United States. Generally speaking, the purpose of applying for Form 8802 and subsequent Form 6166 is to avoid double taxation.
When a taxpayer (a U.S. citizen or resident alien) reports and pays tax on his/her worldwide income, regardless of where he/she resides and whether or not he/she pays taxes as a resident of a foreign country, he/she may be entitled to treaty benefits, which may reduce or eliminate foreign taxes paid with respect to income derived from a treaty country such as Switzerland, U.K., etc. Here, Form 8802/Form 6166 is used to claim benefits under an income tax treaty. Besides, a taxpayer can also use Form 8802/Form 6166 to obtain an exemption from a value-added tax (VAT) imposed by a foreign country. Only certain matters in relation to his/her U.S. federal income tax status can be certified.
In the meantime, a taxpayer may not claim a foreign tax credit with respect to foreign taxes that have been reduced or eliminated by reason of a treaty or an exemption. And the foreign tax credit previously claimed should be adjusted by filing an amended return with IRS.
An applicant should file Form 8802 at least 30 days before that date he/she needs the certification of U.S. residency. However, the IRS cannot accept an early submission for a current year certification that has a postmark date before December 1.
Revenue Procedure 2006-35, 2006-37 I.R.B. 452, issued on September 11, 2006, provides that IRS will begin charging new user fee charges for processing Form 8802, and the effective date will be October 2, 2006. Notice 2006-90 now postpones the effective date to November 1, 2006.
The news release is available on IRS website: http://www.irs.gov/newsroom/article/0,,id=161559,00.html, and the instruction of Form 8802 on: http://www.irs.gov/instructions/i8802/ch01.html.
—————————————————————————————————————————————————————————————————————
We hope you found this article about “IRS Delays User Fee Charges for Form 8802” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Strengthen Your Estate Plan by Strengthening Your Marriage
Strengthen your estate plan by strengthening your marriage. Rarely would one go into marriage planning to get a divorce, however right now that’s how almost half of all marriages end. It doesn’t matter if one or both parties are starving students or one or both receive extensive support from their respective wealthy family offices, the…
Is Trump’s Tax Avoidance a Crime?
Is Trump’s tax avoidance a crime? Every Presidential candidate since 1976 has released their tax returns to the public, everyone except for Donald Trump. The New York Times was able to obtain years of Trump’s tax returns, and on September 27th, 2020, launched the following headline across the web: LONG-CONCEALED RECORDS SHOW TRUMP’S CHRONIC LOSSES…
Bodyguards and Panic Rooms- Is Now the Right Time?
Executive Protection, i.e. Bodyguards and Panic Rooms Now may be the right time for bodyguards and panic rooms. Looking several years back, I met an interesting individual during a family office networking event. Based on the crowd in attendance, I expected him to be a successful entrepreneur, but as it turns out he was a…
Can DAFs Maximize Family Office Charitable Dollars?
Can DAFs Maximize Family Office Charitable Dollars? When you hear the name John D. Rockefeller, an image of the first, made in the USA, billionaire may come to mind. Brilliant and extraordinary, yes, but we’re going to discuss his son and only heir to the immense Rockefeller fortune. John D. Rockefeller Jr. who spent much…