Guide to Global Payroll Management - 2020 - D-182

Page 7 of 16

Fileid: ... ns/I8802/201811/A/XML/Cycle07/source

14:15 - 6-Nov-2018

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Guide to Global Payroll Management

"M-1," or "Q-1" visa, include the
following with Form 8802.
1. A statement explaining why Form
1040 was filed.
2. A statement and documentation
showing that you reported your
worldwide income.
Note. Nonresident aliens present in the
United States on these visas may be
exempt individuals for 2 or more years,
and are not resident aliens under the
substantial presence test while they are
exempt individuals. See section 7701(b)
(5).

First-year election. If you are an
individual who made or intends to make
the first-year election under section
7701(b)(4) applicable to the year for
which certification is requested, enter
the date (YYYYMMDD) your status as a
U.S. resident for tax purposes will begin.
For more information regarding the
first-year election and determining your
period of residency, see First-Year
Choice in Pub. 519.
* If you have made a first-year
residence election under section
7701(b)(4) applicable to the year for
which you are requesting certification,
attach to Form 8802 the election
statement you filed with your income tax
return for the taxable year of election.
* If, for the calendar year for which
certification is requested, you have not
yet filed a first-year residence election
statement, attach to Form 8802 a
statement that you intend to file such
statement and that you are eligible to
make the election.
Dual-status alien. An individual is a
dual-status alien for U.S. tax purposes if
the individual is a part-year resident
alien and a part-year nonresident alien
during the calendar year(s) for which
certification is requested. Dual-status
generally occurs in the year an
individual acquires status as a U.S.
resident or terminates such status. For
example, you are a dual-status alien if
you are a U.S. citizen or green card
holder and you lost citizenship or green
card holder status during the same
calendar year. You may also be a
dual-status alien if you are a
non-resident alien but due to meeting
the substantial presence test become a
resident alien during the same calendar
year.
The dual-status alien classification
does not occur merely due to a
temporary absence from the United
States, nor will multiple periods of
temporary absence and re-entry into the

Instructions for Form 8802 (Rev. 11-2018)

D-182

United States create multiple periods of
U.S. resident and non-resident status.
For information and examples of a
dual-status alien, and to determine your
period of residency, see Pub. 519.
If you checked the dual-status box,
enter the dates (YYYYMMDD) that
correspond to the period that you were
a resident of the United States during
the year(s) for which certification is
requested.

Partial-year Form 2555 filer. Check
this box if you filed a Form 2555 that
covered only part of a year for which
certification is requested. For each year
that this applies, enter the eight-digit
dates (YYYYMMDD) that correspond to
the beginning and ending of the period
you were a resident of the United
States.

Sole proprietor. Include on line 6 the
type of tax return, name, TIN, and any
other information that would be required
if certification were being requested for
the individual owner that filed the
Schedule C (Form 1040).

Line 4b. Partnership

Partnerships are not considered U.S.
residents within the meaning of the
residence article of U.S. income tax
treaties. A domestic partnership is not
considered a U.S. resident, even if all
partners are U.S. residents. Treaty
benefits are only available to a partner
who is a U.S. resident whose
distributive share of partnership income
includes the item of income paid to the
partnership.
Note. The Form 6166 issued to
partnerships will include an attached list
of partners that are U.S. residents. The
IRS does not certify the percentage of
ownership interest of the listed partners.
It is the responsibility of the partnership
to provide such information to the
withholding agent.

Include the following with Form 8802:
1. The name and TIN of each
partner for which certification is
requested and any additional
information that would be required if
certification were being requested for
each of those partners.
2. Authorization (for example, Form
8821) from each partner, including all
partners listed within tiered
partnerships. Each authorization must
explicitly allow the third-party requester
to receive the partner's tax information
and must not address matters other
than federal tax matters.
-7-

3. Unless the requester is a partner
in the partnership during the tax year for
which certification is requested,
authorization from the partnership must
explicitly allow the third-party requester
to receive the partnership's tax
information. The authorization must not
address matters other than federal tax
matters.
An LLC that is classified as a
partnership follows the above
procedures. Members of the LLC are
treated as partners.

Nominee partnership. Do not check
the partnership box on line 4b. Instead,
check line 4j and attach the information
required by the instructions.

Line 4c. Trust

Domestic and foreign grantor trusts and
simple trusts can be certified for U.S.
residency, to the extent the owner of the
grantor trust or beneficiaries of simple
trusts are U.S. residents. Domestic
complex trusts can be certified without
regard to the residence of the settler or
beneficiaries.
A trust is domestic if a court within
the United States is able to exercise
primary supervision over the
administration of the trust and one or
more U.S. persons has authority to
control all substantial decisions of the
trust.

Grantor trust. Include the following
with Form 8802.
1. The name and TIN of each owner
and any information that would be
required if certification were being
requested for each owner.
2. Authorization (for example, Form
8821) from each owner. Each
authorization must explicitly allow the
third-party requester to receive the
owner's tax information and must not
address matters other than federal tax
matters.
3. Unless the requester is a trustee
of the trust, authorization from the trust
must explicitly allow the third-party
requester to receive the trust's tax
information. The authorization must not
address matters other than federal tax
matters.
4. If the grantor trust is a foreign
trust, also include a copy of Form
3520-A with the foreign grantor trust
owner statement completed.
Domestic complex trust. Unless the
requester is a trustee of the trust during
the tax year for which certification is
requested, authorization from the trust

Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020