Upon receipt of a processible Form 8802, a user fee, and all the required supporting statements and/or documentation from the certification applicant, the application will be processed.

All Forms 8802 received with a postmark date after November 1, 2006 will be charged a user fee. These fees were announced in Revenue Procedure 2006-35, IRB 2006–37 dated September 11, 2006, and modified by Notice 2006 - 90, IRB 2006–42 dated October 16, 2006, and modified by Revenue Procedure 2007–22, IRB 2007–10 dated March 5, 2007.

If all certification requirements are met, the appropriate U.S. Residency certification will be issued.

U.S. Residency Certification confirms, to the best of our knowledge, the individual or entity being certified is a U.S. resident that has filed a statutorily required U.S. income tax return as a resident of the United States, or that it is not statutorily required to file a U.S. tax return for a specific tax period.

The process for issuing a certification for tax residency should be completed and final response initiated within thirty calendar days of the earliest IRS received date. Every effort must be made to provide a complete quality response in the shortest time possible.

The Form 8802 is not processible until the user fee has been paid.

Date stamp all Forms 8802 on the day they are received. If Form 8802 is date stamped at a later time, the date stamped on the Form must reflect the actual date the Form 8802 was received by the IRS.

If you are unable to complete the Form 8802 processing within thirty days, you must send an interim letter, letter 3440, and continue to send interim letters (letter 2644C) every thirty days until you issue the certification.

An interim letter must:

If, using the IRM procedures, you are not able to determine the applicant is entitled to U.S. Residency Certification, the case must be forwarded to Headquarters (HQ) through the Planning and Analysis (P&A) staff. You must also notify the applicant or taxpayer (TP). You can contact the applicant via phone or issue the 86C letter.

Generally, processing time limits are specified in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. For additional guidance, see the instructions for correspondence.

Form 8802 is used to request certification of United States Residency for tax purposes. It may also be used to obtain proof of tax status for other purposes; including for use in obtaining an exemption from Value Added Tax (VAT) imposed by a foreign country.

A U.S. Residency Certification Application, Form 8802, must be submitted for all U.S. Residency Certification (Form 6166) requests. See job aid for a copy of Form 8802.

The Form 8802 must be completed (see list of general requirements in 4 below), signed, dated and include all required supporting statements and/or documentation before the application can be processed.

Form 8802 generally requires the following information be included on the form. For specific entity application requirements, See IRM 21.8.4.7.12, Applicant Requirements, Return and U.S. Residency Certification Information.

Issue letter 3428, if the applicant fails to provide the information required by Form 8802. See IRM 21.8.4.6.1.

If applicant fails to provide the certification country, issue letter 3636, or contact via phone.

If the applicant fails to sign the Form 8802, the application is not processible.

The information listed in See IRM 21.8.4.1.3(4) above is not required by law, however, the IRS cannot issue certification if the information is not provided on Form 8802.

Applicants may authorize a third party appointee to request certification for multiple tax years on behalf of the applicant on Form 8802, Form 8821, or Form 2848.

Form 8802 must be signed and dated by the applicant.

Form 8802 should also include the name and title of the signer.

The chart below indicates who has the authority to sign Form 8802.

:

If the Form is signed by an authorized representative, there must be evidence of the authorization (e.g. Form 2848 or similar power of attorney must be attached to the file). Applicants that would like to authorize a recognized individual to sign the Form 8802, thereby representing them before the IRS, must grant the individual power of attorney. A power of attorney is written authorization for the individual to act on behalf of the applicant in tax matters.

Practice before the IRS covers all matters relating to any of the following:

Before an individual can practice before the IRS, he or she must file a written declaration with the IRS stating that he or she is authorized (by the applicant) and qualified (a recognized individual) to represent a particular applicant. Part II of Form 2848 is a declaration that can be used for this purpose. The following is a list of individuals who are recognized to practice before the IRS, and who can be authorized to apply for certification on behalf of a U.S. resident.

An Un-enrolled Individual – the following individuals, due to their special relationship with the applicant, may represent that specific applicant. However, that individual must provide satisfactory identification and, except in the case of the individual described in a) below, proof of the individual's authority to represent the applicant.

A power of attorney is generally submitted to the IRS on Form 2848. However, the IRS may also accept a power of attorney submitted in a different format. A power of attorney not submitted on Form 2848 may be accepted only when it includes all of the information identified below:

Powers of attorney must have a Declaration of Representation attached. The Declaration must include the statements listed in Part II of the Form 2848. In addition to the required statements, the Declaration must be signed, dated, and contain the designation under which the representative is authorized to practice before the IRS.

The authorized representative is the only person, other than the applicant, duly authorized in accordance with Treasury Regulation 301.6011(a)-7 to represent the applicant, unless the authorization specifically states the person may designate other authorized representatives.

A Form 8802 requesting certification for the current year is required to have a statement either in box 10, or as a separate attachment to the Form 8802. The statement must state that the applicant is a U.S. resident for tax purposes and will continue to be throughout the current year (the year should be specified). If the applicant makes the statement in box 10, but there is missing information such as the TIN and the missing information can be identified on the Form 8802, accept the statement. The Form 8802 is signed under penalty of perjury. This allows us to accept all the information on the Form 8802. Do not delay processing the application when there is sufficient information to establish the applicant is a U.S. resident for tax purposes.

Applicants requesting a current year certification can submit Form 8802 as early as December 1st of the prior year. However, early submissions of current year applications that are received prior to December 1st of the prior year must be returned.

When the prior year return has not been filed and isn’t yet required to be filed, the statement must address the applicant's residency status in the prior year, i.e. "Applicant Name, TIN was a U.S. resident for 2009 and will continue to be throughout 2010."

The chart below lists the statements, by applicant type, that must be made under penalties of perjury when the Form 8802 is for a current year residency certification.

A U.S. Residency Certification applicant (individual, partnership, corporation, trust, estate or exempt organization) is certified for the specified tax year or period as a United States resident for purposes of taxation, if the IRS has evidence of the applicant:

Certifications issued based on an extension to file a U.S. tax return require the applicant to have filed his or her prior year tax return as a U.S. resident.

When the applicant submits a copy of his or her tax return with the Form 8802, you must verify that it is complete, or if the return is necessary. If the return is not posted or there is no record of its receipt, the return submitted is necessary for processing the Form 8802 and it must be complete. See chart below:

This IRM sets forth procedures to verify evidence that a U.S. Residency Certification applicant is a United States resident for tax purposes during the tax year or period identified on the Form 8802.

The procedures for determining the type of evidence, which will be required of applicants for proof of residency, is based on the fact that U.S. residents are required by law or regulation to file specific types of income tax returns or forms. Therefore, our primary requirement for proof of residency is a fact of filing a U.S. tax return. Other forms of proof are evidence of:

The Functions and Programs used for this process are:

The user fee must be validated before a Form 8802 can be processed. A single Form 8802 can be used to request multiple Forms 6166. The initial user fee of $35 covers a single Form 8802 requesting up to 20 Forms 6166 for a single Taxpayer Identification Number (TIN), regardless of the country for which certification is requested or the tax period to which the certification applies. An additional $5 covers up to 20 additional Forms 6166 on the same Form 8802. The following example is based on the number of Forms 6166 requested per Form 8802.

The validation process rejects any applications postmarked after November 1, 2006, if the applicant has not made any payment. However, if the application was accompanied with a partial payment or a miscalculated payment, provide the applicant an opportunity to make a complete payment without having his or her application rejected.

Applicants are instructed to send all Forms 8802 postmarked November 1, 2006 or later, and accompanied with a check for the user fee, to a lockbox address. The lockbox deposits the payment and forwards the Form 8802 to the IRS.

If a Form 8802 with a payment is received directly from the taxpayer, send the Form 8802 and payment to the lockbox by the next business day with a completed transmittal Form 3210. Retain the sender's copy in the unit. The lockbox deposits the payment and returns the Form 8802 to the IRS. When all of the payments are deposited and the Form 8802 validated, destroy the sender's copy of the Form 3210.

When validating a Form 8802 received from the lockbox:

Batch these forms and payments daily and send to lockbox. A fillable Form 3210 can be used. Identify the name of the applicant, the amount of the payment, and the check number on the Form 3210.

The IRS started accepting electronic payments on April 2, 2007. Applicants can get additional information about making electronic payments from our web site at WWW.IRS.GOV. The taxpayer should enter e-pay in the search box on our web site.

The web site provides the applicant with information on making electronic payments, and by clicking through the user prompts, directs the applicant to Pay.Gov where the applicant can make his or her payment.

The applicant is prompted for the necessary information to process the electronic payment. The payment is made by either an automated clearing house (ACH) transfer (direct debit) or credit card.

Two numbers are issued immediately after the payment is processed. The applicant can use either the Agency Tracking ID number or the Pay.Gov Tracking ID number as the confirmation number.

The applicant must write the confirmation number on page 1 of Form 8802. If the payment covers more than one application, the confirmation number is written on each Form 8802.

Access Pay.Gov and login using your user name and password. Your manager will supply you with a user name and password.

Select the report list.

Select ACH debit and enter the confirmation number from the Form 8802 and select the ACH Debit Transaction Search Query. If the payment is not located, use the Credit Card Transaction Query.

Follow the procedures to validate the amount of the payment. See IRM 21.8.4.2.6. If you cannot verify the payment, reject the application. See IRM 21.8.4.2.1.

Review page 3 of Form 8802 and verify the number of certifications requested.

Determine the required payment based on the number of certifications requested for each country and for each certification year. The fee is $35 for the first 20 certifications requested on a Form 8802 and $5 for each additional increment of 20 certificates. For example:

If the payment is verified and equals the amount due for the number of certificates requested, place your initials, the date verified and the word "verified" in the upper right corner of page 3 of the Form 8802 next to the amount verified.

If the payment is less than the full user fee, write the date, your initials and the amount owed on the bottom of the Form 8802.

If the payment is greater than the amount of the full user fee, write your initials, the date verified and the word "verified " in the upper right corner of page 3 of the Form 8802. On the bottom of the Form 8802, write the date, your initials, the word "overpaid" and the amount overpaid.

Verify the confirmation number on the Form 6166 search screen, if the payment is more than two weeks older than the submission date of the Form 8802, to confirm the payment was not used for another application.

The payment tracking ID field on the Form 6166 search screen allows the user to find cases with a given ID number. This search field accepts upper and lower case alpha characters, numerics, hyphens, percentage, asterisks, and period. However, the search is not case sensitive.

Check both the closed and open checkboxes on the search screen when searching for the duplicate confirmation number.

The % character is a wildcard that allows for an expanded search.

The applicant's payment must be recorded in the U.S. Certification database for each Form 8802.

Record the confirmation number in the tracking number field on the Form 8802 input screen, if it was an electronic payment.

A partial payment is recorded in the first payment field. A subsequent payment is recorded in the second payment field.

If there is more than one record created to accommodate the number of certifications requested on a Form 8802, only record the payment associated with the Form 8802 on the first record.

If one payment is made for multiple Forms 8802:

You must attempt two calls to the applicant if the payment is less than the amount required. Forms with incomplete payments are not processible.

Prior to making the call, review the Form 8802 to determine:

A complete review of Form 8802 is needed before the applicant is called for the additional payment. This call is intended to decrease the time needed to process the Form 8802. The data from the Form 8802 is input to the database before the call is placed to the applicant. Place the record in 702 status and update the remarks with each contact with the applicant.

When it is necessary to contact the applicant by telephone and you are unable to reach the applicant, place the Form 8802 and attachments in the bin for the applicant to receive a follow up call. Note the date you attempted the original call on the bottom of page one of the Form 8802. Use the following abbreviations to indicate the nature of the call.

If you cannot reach the applicant or authorized representative, leave a message identifying your name, badge number, and that you are calling from the U.S. residency certification department. Do not leave any specific case or application information in your message. Use 215-516-2000 as your call back number. Make a second call attempt within two business days. Do not make second calls the same day unless a person indicates the applicant or authorized representative will be available later the same day. If so, the application may be retained for a call back later the same day.

Place the Form 8802 in suspense filed by the person working the file and by the next action date.

Generally, make follow-up calls within two business days of the initial call. If the applicant indicates they will send in the missing information and payment, direct him or her to mail the information to the lockbox address with the Form 8802 and write the batch or reference number on the top of the Form 8802. Return the Form 8802 with the notations of both telephone calls in the validation suspense wall and note a follow-up within 10 calendar days.

If you cannot contact either the applicant or the authorized representative by telephone, send a rejection letter informing the applicant we have received his or her application and we need additional payment and possibly additional information.

File Form 8802 with a copy of the rejection letter on the suspense wall. File the application by tax examiner, action date (30 calendar days from the day the rejection letter was mailed) and by TIN within date.

If there is no response to this request within 30 calendar days, send the second rejection letter and update the remarks. If there is no response to the second rejection letter after 45 calendar days, purge the application and all notations and attachments from the suspense wall and close the record on the database. Maintain partially paid applications without a response to the second rejection letter for six months from the date of the application.

The applicant may send all, part, or none of the information requested in the telephone conversation. If payment is not received within ten calendar days of the telephone contact, send the Form letter confirming the telephone conversation requesting missing information to the applicant.

Place the record in 702 status and suspend the case for 30 calendar days.

If neither payment nor additional information is received from the applicant, See IRM 21.8.4.2.9.

Generally, we do not refund the user fee. For example, the user fee will not be refunded if the Form 8802 is procedurally deficient and the applicant fails to submit (in a timely manner) the additional information necessary to complete processing the application. Further, do not refund the user fee if the Form 8802 is withdrawn at any time after it is received by the IRS. Likewise, if foreign claim forms are submitted after a certification request has been processed, return the foreign claims to the applicant. These forms must be submitted with a Form 8802 and a new user fee based on the new Form 8802.

We refund an overpayment of a user fee resulting from a mathematical error or mistake. Issue the refund to the payor of the fee. In most instances, this will be the applicant. However, if the fee was paid by a custodian or an appointee for one or more applicants, return the fee to the custodian, appointee, or other entity that paid the fee.

Prepare a memorandum identifying the applicant's name or the appropriate recipient's name and address along with the amount of the refund identified from the U.S. certification user fee.

Bring the memorandum to the Department Manager for signature.

After the Department Manager signs the memorandum, it can be scanned and attached to an E-mail using secure messaging to Ruth Ann Darnell and Patti Blackburn at the Beckley Finance Center for processing. A copy of the E-mail and memorandum is filed by notice date and stored for six months.

If either the scanning equipment or the E-mail system is not available and is not expected to be available by the next business day, fax the memorandum to Ruth Ann Darnell at 304-254-2436 and Patti Blackburn at 304-254-2536. Use an approved fax cover sheet when sending this information.

Inform the applicant of the overpayment using either a 3064C letter or a locally developed letter.

All user fees must be verified before the Form 8802 can be processed.

All documents, applications, and correspondence must be date stamped with the date of IRS receipt and processed as first in/first out, unless it meets the criteria identified for correspondence or telephonic inquiries and responses. See IRM 21.8.4.6.6 and See IRM 21.8.4.6.7.

Forms 8802 with payment must be mailed. However, subsequent information submitted because the application was incomplete may be faxed.

Forms 8802 must have specific application information) and must be signed and dated by the applicant when the Form 8802 is used to give a third party authorization. See IRM 21.8.4.7.12.

Any early submission for Current Year certification received with a postmark date before December 1st must be returned to the sender.

Sort all incoming documents into categories beginning with the earliest received dates, starting with the separation of:

Once the various applications are separated from the correspondence, sort them according to the list below:

Once the applications that were mailed are separated into IMF and BMF, perform the following:

Applications that state "second" , or "duplicate" application or have an indication that it is not an original, may have already been processed.

Applications that have the Additional Request box checked do not require the re-submitting of original documentation, if a certification has been issued for the original application within the last 12 months and there has been no change to the applicant's tax information. A new user fee is required for processing an additional request submitted on a new Form 8802.

Possible duplicate applications must be researched on the 6166 database for the original Form 8802.

When researching possible duplicates, you must first determine if you have a duplicate or an additional request. You will need to pay careful attention to the details of the application, the entity, the year of certification, the countries requested, the volume of certifications, and the type of certification when making your determination. When you have made a determination, use the following chart to process the application.

Correspondence must also be sorted into categories:

Correspondence in response to a specific suspended case, and information required to process a case, must be associated with the original case and given to a Tax Examiner to be worked.

Correspondence specific to an open case, must be associated with the case and given to a Tax Examiner to be worked.

Correspondence specific to a closed case, must be associated with the original case. If the information provided indicates that an error may have occurred or the information was needed during the processing of the original, the give the case to a Tax Examiner to initiate a new case .

Correspondence inquiring about the certification process, or to check on the status of a case, must have a response issued.

Once you have reached the Form 8821 input screen in the 8821 database, you must enter the applicant's authorization information from the applicant's Form 8821, Form 2848, Form 8802 or clone the information, when possible.

Forms 8821 giving authorization for both husband and wife must be entered into the 8821 database as two separate documents.

Prior to entering Form 8821 information, you must verify that the information is not already in the database for your certification application.

Forms 8821 may also be input in bulk by using the Form 8821 TIA/POA Cloning feature. This feature should be used when the TIA information is needed for two or more records. See Job Aid for additional information.

To enter the Applicant's TIN on the Form 8821 database.

Enter the applicant's Name Control.

Entering the Plan Number for all authorizations for the Form 5500, Annual Return/Report of Employee Benefit Plan.

Enter the Applicant's Entity information, see Job Aid for guidelines on applicant's entity.

Enter the Tax Information Authorization Information. This information is taken from line 2 of Form 8821 or Form 2848, or Line 3b of Form 8802.

Verify signature and the date. The applicant must sign and date any form that gives a third party authorization to receive the applicant's information .

Enter the Received Date. This is the earliest IRS stamped date.

Enter the CAF number if it is provided on the Form 8802 and the authorization Form 2848 is not attached.

Check the type of Authorized Tax Form. This must be specified and it must be for the form for which the applicant is requesting certification.

Enter the Authorized Tax Year or Years.

After you have completed this form, click on the SAVE button.

To continue entering Forms 8821, click on the New button.

If you do not wish to continue, click on the Exit button.

Once you have completed entering the batches of authorizations and the system has been updated, a status report needs to be printed and worked.

When Forms 2848, Form 8821, or the disclosure section of Form 8802 are incomplete or required but not attached:

The information on the certification application must be entered in the Form 6166 database.

Once you reach the screen containing the Form 6166, you may begin entering the data.

The Cloning feature is available on the 6166 database. Use this feature when the application information is needed for two or more records or when the Additional application box is checked. The following are cloning restrictions:

Enter the Primary Applicant's Taxpayer Identification Number (TIN), from Form 8802.

Use the chart below to determine what TIN to enter in the Primary Applicant's Tax Identification Number field when the certification applicant is a Nominee, a FASIT, a Single Member LLC, a DRE-LLP, a DRE-LP, a Minor Child, a Q-Sub or a Sole Proprietor.

Enter the Secondary Tax Identification Number (TIN) field when the certification applicant is married and filed a joint return, or is a Nominee, a FASIT, a Q-Sub, a Single Member LLC, a DRE LLP, a DRE LP, a Minor Child or a Sole Proprietor.

Non-spouse Indicator box must be checked when the Primary and Secondary TIN(s) are both SSNs. However, the Primary TIN is used for verification purposes ONLY and the Secondary TIN is printed on the certification.

Enter the applicant's entity information from the applicant box on Form 8802. See exceptions in the IF/Then box below. Use the Job Aid for guidelines on how to enter the entity information.

Enter the applicant's Name Control.

The Name Control is the applicant's unless the applicant is a Nominee, a FASIT, a Q-Sub, a Single Member LLC, a DRE LLP, a DRE LLLP, a Minor Child or a Sole Proprietor. .

Enter the Certification Tax Year Residence, from Form 8802, if different from the address entered in applicant entity field. This field should be the address where the applicant had a Substantial Presence.

This address should include the:

Enter the Certified Name Line, when applicable.

Enter the Year/Period of Certification, Line 7, Form 8802.

Enter the Tax Period Ending from box 8, Form 8802.

Enter the Form Number from line 5 or line 6 of Form 8802.

When certification is for a Q-Sub and the Q-Sub election has been verified, check the QSSS verified box.

Check the Newly Formed Box when the applicant is a newly established partnership, Common Trust, Grantor Trust, Simple Trust or S Corporation which has not been required to file a return.

Check the VAT Certification box when the Form 8802, certification application indicates that the application is for Value Added Tax. You must also enter the supplied North American Industry Classification System (NAICS) Code, when provided.

Check the Current Year Box, when the applicant is requesting a current year certification.

Check the Perjury Statement Box when the applicant is required to provide, and has included, a declaration statement in box 10 of Form 8802 or a separate statement

Enter the Country Code applicable to the country identified on the Form 8802.

Enter the specific Number of certifications requested for each country, see Form 8802.

Enter the IRS Received Date.

Enter the Inquiry Date

Enter the Correspondence Received Date.

Enter the Employee Plan Number, line 4g of Form 8802, when applicable.

Check the Dual Status Box if the application is for a dual status resident.

Check the Tax Information Authorization box. See appointee information on line 3b, Form 8802.

Entering Partnership/S Corporation/Common Trust Fund/Grantor Trust/Simple Trust listings. Partnerships, S Corporations, Common Trust Funds, Grantor Trust, Nominee and Simple trust certifications all require verification of the required return for the tax year for which certification is requested for each partner, shareholder, participant, owner, and beneficiary listed on the list provided with the application.

Enter the information on suspense cases and any other pertinent information received with the certification application in the Remarks Section. See Job Aid for Additional Information.

After you have entered all fields possible, click the Save Button.

Once you have saved the certification application, if you wish to continue inputting certification applications, click NEW .

Once you have completed a batch of work and performed an update, a status report can be printed and worked.

Once the update phase of the Certification Program is run, status reports are generated and can be printed. For instruction on printing status reports, see the Job Aid.

The Status Reports consist of all applications that are validated and ready for certification issuance (099); as well as those in error, requiring additional research.

Once you have printed your status report, you must use Form 8802, Form 8821, the Form 6166 Screen, and the various IDRS Command Codes to research, when necessary, all of the cases in error (those not in status 099).

When working status code 609, you must manually research the TIA and the applicant information on IDRS.

See the Status Code Charts below for a list of the Pre-IDRS Status codes, an explanation and abbreviated correction guidelines. See the instructions for your specific applicant for additional correction procedures.

See the Status Code Charts below for a list of the Post-IDRS Status codes, an explanation, and abbreviated correction guidelines. Prior to working Post-IDRS status codes, using all documentation available, verify that there are no input errors, i.e. misspelling, typing errors, wrong TIN, etc. When input errors are found, correct the record. You can override codes beginning with 5,1, E and 0.

See the Status Code Charts below for a list of the Manually Entered Status codes, an explanation and abbreviated correction guidelines.

If you have attempted to correct the error status, but there is insufficient information to process the application, you must:

When all research has been completed, the status of the cases in error must be updated. The status can be updated to:

The status of a case can be changed from the input screen or status screen. See Job Aid.

While in the status screen, you can complete all status changes within that batch.

When the status report has been worked and all cases have been updated, the batch of work will be printed and mailed by the clerks in the unit.

Use the following procedures for accessing the print screen which will allow you to print the Form 6166, Certifications, Cover Letters, and the Suspense/Rejection Letters.

In order to print Certifications and Cover Letters:

To Access the Reject/Suspense Letter Console:

To select a batch for printing:

To print Interim Letters:

Correspondence is all communication from an applicant or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

All correspondence, IRS initiated and Applicant Correspondence, are handled in accordance with IRM 21.3.3.1.1, Policy Statement P-6–12.

Policy Statement P-6–12 (formally referred to as action 61) was created to improve the quality and timely handling of applicant correspondence. When working replies sent in by the applicant (in response to the IRS notice or letters sent), remember that care must be taken to conform to the Policy Statement P-6–12 requirement.

The certification unit handles various types of telephone calls:

Calls in reference to general information do not require verification of tax authorization.

Calls are answered in the order received.

Calls cannot be transferred to a specific individual. If the caller asks to speak to a specific individual, research the account and respond to the caller. If the caller insists, prepare a Form 4442.

Telephone inquiries are not considered correspondence when responses are provided the same day.

When a call is reduced to writing for future research or referral (Form 4442) to another person/area, then it is considered correspondence.

All U.S. Residency Certification documents must be stored in a retrievable manner. The documents may be kept in date order, alphabetical order, or batch order but they must be in an easily retrievable order.

The filed documents are to be separated into three categories:

Correspondence that has been researched, and the original application case is in suspense, the correspondence must be associated with the original application before the case is worked.

Correspondence that has been researched, and the original application is closed, must be associated with the original application. Once associated, determine if the case needs to be reopened.

Correspondence that requires the reopening of a case as a new case must be processed using a new received date.

Generally, persons/entities that are statutorily required to file a return for a specific period but have not done so, are not eligible for U.S. Residency Certification.

Any person/entity that filed a return as a nonresident, including Form 1040-NR, U.S. Nonresident Alien Income Tax Return, Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents, Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, and Form 1120FSC, U.S. Income Tax Return of a Foreign Sales Corporation, are not eligible for U.S. Residency Certification.

Any other entity that is not liable for tax in the United States at the entity level, such as a partnership or grantor trust, to the extent the owners, partners, participants, etc., of that entity are not themselves eligible for U.S. residency certification. Accordingly, a U.S. LLC owned by a foreign corporation, trust, or estate is not eligible for certification if it is disregarded as an entity separate from its owner (DRE) or if the LLC has elected to be treated as a partnership for federal tax purposes.

Competent Authority provides assistance to any applicant that is required by treaty to seek Competent Authority assistance.

Competent Authority also provides assistance to any applicant that has been declined certification but believes that they are entitled to treaty benefits under a specific treaty article, provided:

The Competent Authority does not make unilateral determinations with respect to residency. Therefore, all requests for residency determination are made by mutual/bilateral agreement between the two Competent Authorities.

Income tax treaties between the United States and foreign countries typically provide for either a reduction in the statutory rate of tax or an exemption from tax for certain types of income received by citizens and/or residents of the contracting countries.

Many foreign countries withhold tax at the source on income flowing out of such country. If the statutory withholding rate exceeds the treaty rate of tax, one of the following methods may be used to adjust for the treaty rate of tax.

The following chart is a list of the most current treaty countries. Use the corresponding country codes when entering the Form 8802, certification application on the Form 6166 database:

Additional information is available in Publication 901, U.S. Tax Treaties, or the international income tax treaty page at United States Income Tax Treaties - A to Z.

Applicants can claim treaty benefits by submitting Form 6166, U.S. Residency Certification, and/or the foreign country's form to the withholding agent or any other appropriate person or office in the foreign country, when applicable.

Applicants that fail to file a claim with the foreign country for treaty benefits and have paid foreign taxes exceeding the treaty rate may suffer the consequences of double taxation. Applicants cannot submit a claim to the IRS (Forms 1116 or 1118) for the amount in excess of the treaty rate.

Refer certifications rejected by Treaty Countries that result in a double taxation to the Competent Authority.

Refer certification recipients that are entitled to a reduction in the foreign statutory rate of tax, or an exemption from foreign tax for certain types of income according to treaty but are denied, to Rev. Proc. 2006–54.

Rev. Proc. 2006–54 can be located on the internet at WWW.IRS.GOV . It explains the procedures for requesting Competent Authority assistance.

The Competent Authority will only address matters covered in the applicable tax treaty.

Competent Authority Claims should be mailed to:

The following chart shows Federal Information Processing Standard (FIPS) codes for Dependencies and Areas of Special Sovereignty. Use these codes when processing certification requests when the applicant specifies one of these dependencies.

When the dependency's FIPS code is not valid, contact the HQ analyst via your P&A analyst.

The U.S. does not have treaties with dependencies. Therefore, an applicant for a certification for a dependency must provide an explanation on Form 8802, Line 9, Purpose for Certification, as to why certification is being requested.

The following are non-treaty country codes. Applicants requesting certification for the following non-treaty countries, or any new non-treaty country, must provide an explanation on Form 8802, Line 9, Purpose for certification, as to why certification is being requested.

Applicants that request certification for a non-treaty country, and later received a refund of all or part of the foreign taxes paid, must amend their U.S. filing when a foreign tax credit was taken for taxes they were refunded. Applicants that fail to notify the IRS of foreign tax refunds or change in the dollar amount of foreign taxes paid, may have to pay a penalty.

When an explanation of why certification is requested for a non-treaty country is not provided, enter the Form 8802 on the database and issue letter 3428.

Procedures have been developed to reduce applicant/practitioner burden as well as reducing the time it takes to resolve applicant cases or inquiries.

The filing of original tax returns via fax is only allowed:

Submission of documentation, forms, letters, and returns related to post-filing/non-filing inquiries and interactions can be allowed via fax, based on taxpayer or IRS request, unless there is a specific prohibition.

Do not acknowledge faxes received from taxpayers in the course of tax administration activities. Exceptions can be made in unusual circumstances as determined by management

The specific forms, documents, and letters listed below can be received by fax. The list is not all inclusive.

When the certification requestor fails to provide the required information for the type of entity needing certification, you must correspond.

The following chart contains the letters established for requesting additional information for the U.S. Residency Certification applications:

If additional information is needed and there is not a letter in the chart above to request the information, submit a request to have one established via your Planning and Analysis Analyst.

When one of the letters in the above chart has been issued, the system generates a letter issue date.

You must allow the applicant 30 days (60 for taxpayers overseas) from the letter issued date to respond to your request for additional information.

The Status Code 702 is an Additional Suspense Status Code - 700 series status codes are suspense codes that cannot be corrected or overridden.

A Status Code 702 is used to hold an application in suspense when it is being forwarded to P&A, HQ, or when awaiting additional information from the applicant. The case stays in this status for 60 days from the Status Date, however, a P&A/HQ analyst usually responds within 45 days.

Certifications should only be issued to U.S. residents that filed a U.S. Income Tax Return as a resident, or to U.S. residents who aren't required to file a return.

Deny certification when IRS records indicate that the applicant is required to file a return but failed to, filed as a nonresident, or claimed a foreign tax home in a country other than:

Deny certification when IRS records indicate the applicant claimed a foreign tax home in Cyprus, Hungary, India, Kazakhstan, Russia, South Africa, or Ukraine, and then requested certification for the same country.

When the certification application needs to be rejected, issue one of the following letters:

When one of the letters in the above chart has been issued, the certification application has been rejected and the case is considered closed. If the requestor provides additional information for your consideration after one of the rejection letters has been issued and the case is closed, then: