4.   Filing U.S. Tax Returns

The information in chapter 3 will tell you if a U.S. income tax return is required for your situation. If a U.S. return is required, your next step is to see if you meet the filing requirements. If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. This chapter discusses:

  • Filing requirements,

  • When to file your return,

  • Where to send your return,

  • How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico,

  • How to make estimated tax payments and pay self-employment tax, and

  • How to request assistance in resolving instances of double taxation.

Who Must File

If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U.S. income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age.

If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U.S. tax return, your filing requirement may be less than the amount in Table 4-1. For details, see the information under Filing Requirement if Possession Income Is Excluded , later.

Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. For more information, see the Form 1040 instructions.

Filing Requirement if Possession Income Is Excluded

If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U.S. tax return, you must determine your adjusted filing requirement. Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction.

Personal exemption.   When figuring your filing requirement, your personal exemption is allowed in full. Do not reduce it for this purpose. Do not include exemptions for your dependents.

Allowable standard deduction.   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:

  
  Gross income subject to U.S. income tax  
  Gross income from all sources 
(including excluded possession income)
 

Example.

Barbara Spruce, a U.S. citizen, is single, under 65, and a bona fide resident of American Samoa. During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U.S. income tax). Her allowable standard deduction for 2013 is figured as follows:

  $8,000 
$28,000
× $6,100 
(regular standard deduction)
= $1,743  

Adjusted filing requirement.   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. You must file a U.S. income tax return if your gross income is at least the amount shown on line 3 of the following worksheet.

  
1. Enter the allowable standard deduction you figured earlier under Allowable standard deduction . If your filing status is married filing separately, enter -0-  
2. Personal exemption. If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900  
3. Add lines 1 and 2. You must file a U.S. income tax return if your gross income from sources outside the relevant possession is at least this amount  

Table 4-1.2013 Filing Requirements Chart for Most Taxpayers
IF your filing status is... AND at the end of 2013 you were*... THEN file a return if your gross income** was at least...
single under 65 $10,000
65 or older $11,500
married filing jointly*** under 65 (both spouses) $20,000
65 or older (one spouse) $21,200
65 or older (both spouses) $22,400
married filing separately any age $3,900
head of household under 65 $12,850
65 or older $14,350
qualifying widow(er)  
with dependent child
under 65 $16,100
65 or older $17,300
* If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013.
** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income.
*** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age.

Example 1.

James and Joan Thompson, one over 65, are U.S. citizens and bona fide residents of Puerto Rico during the entire tax year. They file a joint income tax return. During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U.S. income tax). Their allowable standard deduction for 2013 is figured as follows:

  $6,000 
$41,000
× $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961  

The Thompsons do not have to file a U.S. income tax return because their gross income subject to U.S. tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761).

Example 2.

Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U.S. income tax return because her gross income subject to U.S. tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643).

If you must file a U.S. income tax return, you may be able to file a paperless return using IRS e-file. See your form instructions or visit our website at IRS.gov.

When To File

If you file on a calendar year basis, the due date for filing your U.S. income tax return is April 15 following the end of your tax year. If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day.

For your 2013 tax return, the due date is April 15, 2014.

If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. See your form instructions for a list of designated private delivery services.

Extension of Time To File

You can get an extension of time to file your U.S. income tax return. Special rules apply for those living outside the United States.

Automatic 6-Month Extension

If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file.

Example.

If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file.

Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. You may also be charged penalties (see the Instructions for Form 4868).

How to get the automatic extension.   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return.
  • E-file Form 4868 using your personal computer or a tax professional.

  • E-file and pay by credit or debit card. Your payment must be at least $1. You may pay by phone or over the Internet. Do not file Form 4868.

  • File a paper Form 4868. If you are a fiscal year taxpayer, you must file a paper Form 4868.

See Form 4868 for information on getting an extension using these options.

When to file.   You must request the automatic extension by the due date for your return. You can file your return any time before the 6-month extension period ends.

When you file your return.   Enter any payment you made related to the extension of time to file on Form 1040, line 68. If you file Form 1040A, U.S. Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9.

You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file.

Individuals Outside the United States and Puerto Rico

You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if:

  1. You are a U.S. citizen or resident, and

  2. On the due date of your return:

    1. You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or

    2. You are in military or naval service on duty outside the United States and Puerto Rico.

However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid.

If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. For more information, see Publication 3, Armed Forces' Tax Guide.

Married taxpayers.   If you file a joint return, only one spouse has to qualify for this automatic extension. However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies.

How to get the extension.   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. (See the situations listed under (2), earlier.)

Extension beyond 2 months.   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). Be sure to check the box on Form 4868, line 8, if appropriate.

  In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers).

  To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Send the letter by the extended due date (October 15 for calendar year taxpayers) to: 

Department of the Treasury 
Internal Revenue Service 
Austin, TX 73301-0215 
USA

  You will not receive any notification from the IRS unless your request is denied for being untimely.

Where To File

Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico.

If you are not including a check or a money order, send your U.S. tax return and all attachments to:  

Department of the Treasury 
Internal Revenue Service 
Austin, TX 73301-0215 
USA

If you are including a check or a money order, send your U.S. tax return and all attachments to: 

Internal Revenue Service 
P.O. Box 1303 
Charlotte, NC 28201-1303 
USA

Also send your U.S. return to these addresses if you are attaching Form 5074 or Form 8689.

If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside.

Special Rules for Completing Your U.S. Tax Return

If you are not excluding possession income from your U.S. tax return, follow the instructions for the specific forms you file. However, you may not qualify to claim the earned income credit (EIC).

Earned income credit.   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U.S. tax return. This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U.S. Armed Forces.

U.S. Armed Forces.   U.S. military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days.

Income from American Samoa or Puerto Rico excluded.   You will not be allowed to take deductions and credits that apply to the excluded income. The additional information you need follows.

Deductions if Possession Income Is Excluded

Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U.S. income tax return.

Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U.S. tax return. Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home).

Figuring the deduction.   To find the part of a deduction that is allowable, multiply the deduction by the following fraction.
  Gross income subject to U.S. income tax  
  Gross income from all sources 
(including excluded possession income)
 

Adjustments to Income

Your adjusted gross income equals your gross income minus certain deductions (adjustments).

Moving expense deduction.   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. Likewise, the expenses of a move back to the United States are generally attributable to U.S. earned income.

  If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U.S. tax return. For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession.

  If you are claiming expenses for a move from a U.S. possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. For purposes of deducting moving expenses, the possessions are considered part of the United States. See Publication 521, Moving Expenses, for information about what expenses are deductible.

Self-employment tax deduction.   Generally, if you are reporting self-employment income on your U.S. return, you can include the deductible part of your self-employment tax on Form 1040, line 27. This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax).

  However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income.

  If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. This would happen if, for instance, you have two businesses and only the income from one of them is excludable.

  For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction.
  Self-employment income 
subject to U.S. income tax
 
  Total self-employment income 
(including excluded possession income)
 
The result is your self-employment tax on nonexcluded income. Include the deductible part of this amount on Form 1040, line 27.

Individual retirement arrangement (IRA) deduction.   Do not take excluded income into account when figuring your deductible IRA contribution.

Standard Deduction

The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over.

To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. Then multiply your full standard deduction by the following fraction.

  Gross income subject to U.S. income tax  
  Gross income from all sources 
(including excluded possession income)
 

In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico).

This calculation may not be the same as the one you used to determine if you need to file a U.S. tax return.

Itemized Deductions

Most itemized deductions do not apply to a particular type of income. However, itemized deductions can be divided into three categories.

  • Those that apply specifically to excluded income, such as employee business expenses, are not deductible.

  • Those that apply specifically to income subject to U.S. income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions.

  • Those that do not apply to specific income must be allocated between your gross income subject to U.S. income tax and your total gross income from all sources.

The example given later shows how to figure the deductible part of each type of expense that is not related to specific income.

Example.

In 2013, you and your spouse are both under 65 and U.S. citizens who are bona fide residents of Puerto Rico during the entire tax year. You file a joint income tax return. During 2013, you earned $20,000 from Puerto Rican sources (excluded from U.S. gross income) and your spouse earned $60,000 from the U.S. Government. You have $16,000 of itemized deductions that do not apply to any specific type of income. These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded.

  Medical Expenses
  $60,000$80,000 × $4,000 = $3,000  
(enter on line 1  
of Schedule A)
 

  Real Estate Taxes
  $60,000$80,000 × $5,000 = $3,750  
(enter on line 6  
of Schedule A)
 

  Home Mortgage Interest
  $60,000$80,000 × $6,000 = $4,500  
(enter on line 10 or 11 of  
Schedule A)
 

  Charitable Contributions (cash contributions)
  $60,000$80,000 × $1,000 = $750  
(enter on line 16 
of Schedule A)
 

Enter on Schedule A (Form 1040) only the allowable portion of each deduction.

Overall limitation on itemized deductions.   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions.

Personal Exemptions

Personal exemptions are allowed in full even if excluding possession income. However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040.

Foreign Tax Credit if Possession Income Is Excluded

If you must report American Samoa or Puerto Rico source income on your U.S. tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U.S. tax return. The foreign tax credit is generally figured on Form 1116.

If you have income, such as U.S. Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. You make this reduction for each separate income category. To find the amount of this reduction, use the following formula for each income category.

Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes
Total income subject to possession tax less deductible expenses based on that income

Enter the amount of the reduction on Form 1116, line 12.

For more information on the foreign tax credit, see Publication 514.

Example.

Jason and Lynn Reddy are U.S. citizens who were bona fide residents of Puerto Rico during all of 2013. They file a joint tax return. The following table shows their excludable and taxable income for U.S. federal income tax purposes.

  Taxable   Excludable
Jason's wages from  
U.S. Government
$25,000    
Lynn's wages from Puerto Rico  
corp.
    $15,000
Dividend from Puerto Rico corp. doing business in Puerto Rico     200
Dividend from U.S.  
corp. doing business  
in U.S.*
1,000    
Totals $26,000   $15,200

* Income from sources outside Puerto Rico is taxable.

 

Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. They have gross income of $26,000 for U.S. tax purposes. They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). They figure their foreign tax credit on two Forms 1116, which they must attach to their U.S. return. They fill out one Form 1116 for wages and one Form 1116 for the dividend. Jason and Lynn figure the Puerto Rico taxes on excluded income as follows.

  Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493
  Dividend: ($200 ÷ $200) × $20 = $20

They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend.

Self-Employment Tax

Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed.

A U.S. citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. This rule applies whether or not the earnings are excludable from gross income (or whether or not a U.S. income tax return must otherwise be filed). Bona fide residents of the possessions discussed in this publication are considered U.S. residents for this purpose and are subject to the self-employment tax.

Forms to file.   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States.
  • If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040.

  • If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. Do not file forms 1040-SS or 1040-PR with Form 1040.

  • If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable.

Chapter 11 Bankruptcy cases.   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U.S. Income Tax Return for Estates and Trusts) of the bankruptcy estate. However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment.

  Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax.

  For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040.

Additional Medicare Tax

Beginning in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er).

Medicare wages and self-employment income are combined to determine if income exceeds the threshold. A self-employment loss should not be considered for purposes of this tax. RRTA compensation should be separately compared to the threshold.

Your employer is responsible for withholding the 0.9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments.

There are no special rules for U.S. citizens and nonresident aliens living abroad for purposes of this provision. Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold.

For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www.irs.gov and enter the following words in the search box: Additional Medicare Tax.

You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax.

Net Investment Income Tax

Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3.8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments.

Forms to file.   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. For more information, see Form 8960 and its instructions.

Paying Your Taxes

You may find that not all of your income tax has been paid through withholding by either the United States or the possession. This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. In this situation, you may need to make estimated tax payments.

Estimated Tax

If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. Include the Additional Medicare Tax and Net Investment Income Tax if applicable. If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. Or, you can make your payments electronically and not have to file any paper forms. See the Form 1040-ES instructions for information on making payments.

Double Taxation

Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions.

  • American Samoa.

  • The Commonwealth of Puerto Rico.

  • The Commonwealth of the Northern Mariana Islands.

  • Guam.

  • The U.S. Virgin Islands.

These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses.

Competent Authority Assistance

The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions.

How to make your request.   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I.R.B. 900 available at www.irs.gov/pub/irs-irbs/irb06-49.pdf.

  
Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U.S. competent authority assistance under tax treaties. As noted, an update to Revenue Procedure 2006-23 will be published in the future.

  Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. You (or a person having authority to sign your federal return) must sign and date the request.

  
Send your written request for U.S. assistance under this procedure to:

 
 
Deputy Commissioner (International) 
Large Business and International Division 
Internal Revenue Service 
1111 Constitution Avenue, N.W. 
Routing: M4-365 
Washington, DC 20224 
(Attention: TAIT)

Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency.

Credit or Refund

In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U.S. tax paid on the income in question, you should file a claim on Form 1040X, Amended U.S. Individual Income Tax Return. Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. Attach a copy of the request to the form.

Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax.

See Revenue Procedure 2006-54 (or its successor), section 9, for complete information.


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