Definition
Closer connection exception
An exception to the US Substantial Presence Test for non-citizens with stronger ties to a foreign country. Filed via Form 8840.
Even if you meet the Substantial Presence Test, you can avoid US tax-resident status by claiming the closer-connection exception on Form 8840. Eligibility requires: (1) US presence under 183 days in the current year, (2) a foreign tax home for the entire year, (3) a closer connection to that foreign country than to the US, and (4) no application for or holding of a green card. The IRS examines more than 20 factors and routinely audits closer-connection claims.
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