Closer connection exception

The IRS lists the conditions: presence in the United States on fewer than 183 days during the year, a tax home in a foreign country for the entire year, a closer connection to that country than to the United States, and no steps taken toward, or pending application for, lawful permanent resident status. A closer connection to two foreign countries can work in limited cases when the tax home moved during the year.

A closer connection means more significant contacts with the foreign country. The IRS lists facts such as the location of your permanent home, family, personal belongings, social and cultural ties, business activities, driver's license and voting, the country of residence you give on forms, and the forms you file, such as Form W-9 or Form W-8BEN.

The exception is claimed on Form 8840, attached to the return or sent by the return's due date if no return is required. The IRS says that without a timely Form 8840 you cannot claim it unless you show by clear and convincing evidence that you took reasonable steps to learn of and meet the requirement. Filing forms such as Form I-485 or Form I-130 indicates intent to become a permanent resident and rules out the exception. The substantial presence test calculator counts the days but does not apply this exception.

Not to be confused with

• Substantial presence test. The substantial presence test is the day-count rule that this exception can override for a given year.
• Tie-breaker rule. A treaty tie-breaker is a different route that applies under a tax treaty when two countries both treat a person as resident.

Sources

• Closer connection exception to the substantial presence testOfficial guidance
• Substantial presence testOfficial guidance

Related

Countries covered

General

Sources

2 sources

Tax year

Current rules as checked

Review

Not professionally reviewed
Sources checked November 9, 2026