21.8.4. United States Certification for Reduced Tax Rates in Tax Treaty Countries

(1) Form 8802 must be signed and dated by the applicant.

(2) Form 8802 must also include the name and title of the signer.

(3) The chart below indicates who has the authority to sign Form 8802, and authorization forms (Form 8821 and Form 2848) giving authority to request, receive, and/or discuss the certification:

(4) IRM 11.3.2.4.5, Government Agencies, states that returns and return information of a federal, state, or local government agency may be disclosed to any person legally authorized to act for such agency. Generally, verification that the requestor is a governmental official, such as a Director of Taxation or Personnel, is sufficient to indicate entitlement to returns and return information. The applications must be:

1. Made in writing

2. Submitted on the government agency’s letterhead

3. Signed by a government official, such as, but not limited to a Director of Taxation or Personnel

(5) 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 (POA). A power of attorney is written authorization for the individual to act on behalf of the applicant in tax matters.

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

1. Communicating with the IRS for an applicant about the rights, privileges, or liabilities of the applicant under laws and regulations administered by the IRS

2. Representing an applicant at conferences, hearings, or meetings with the IRS

3. Preparing and filing necessary documents with the IRS on behalf of an applicant

(7) 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 recognized to practice before the IRS, and who can be authorized to apply for certification on behalf of a U.S. resident:

1. An Attorney - any attorney in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS.

2. A Certified Public Accountant (CPA) - any CPA qualified to practice as a CPA in any state, possession, territory, commonwealth, or the District of Columbia may practice before the IRS.

3. An Enrolled Agent - any enrolled agent in active status may practice before the IRS.

4. An Unenrolled Individual - any individual who, due to their special relationship with the applicant, can represent that specific applicant. 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 representing themselves, proof of the individual's authority to represent the applicant.

Unenrolled Individual	Definition
Individual	An individual may represent himself or herself before the IRS without having to file a written declaration of qualification and authority.
Family Member	An individual may represent members of their immediate family. Immediate family means a spouse, child, parent, or sibling of the individual.
Officer	A bona fide officer of a corporation (including a parent, subsidiary or other affiliated corporation), association or organized group can represent the corporation, association, or organized group. An officer of a government entity with authority, during official duties, to bind the organization.
Partner	A general partner can represent the partnership before the IRS.
Employee	A regular full-time employee can represent their employer.
Fiduciary	Trustee, executor, administrator, receiver, or guardian stands in the position of an applicant and acts as the applicant, not as a representative of the applicant.

(8) 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 the information identified below:

1. The applicant's name and mailing address

2. The applicant's Social Security Number (SSN) and/or Employer Identification Number (EIN)

3. The employee plan number, when applicable

4. The types of tax involved

5. The federal tax return form

6. The specific years or periods involved

7. For estate tax matters, the decedent's date of death

8. A clear expression of the applicant's intentions concerning the scope of authority granted to the recognized representative

9. The applicant’s signature and date

(9) 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 have the designation under which the representative is authorized to practice before the IRS.

(10) The authorized representative is the only person, other than the applicant, duly authorized to represent the applicant, unless the authorization specifically states the person may designate other authorized representatives.

(1) Certain applicants may submit a Form 8802 that covers 3 years, beginning with the three-year period. If the applicant checks the box for Line 4d (Estate), Line 4g (Employee Benefit Plan/Trust), or Line 4h (Exempt Organization), then it does not have to provide an original signature on Form 8802 every year. An applicant may only use this procedure if there are no material changes of fact (including name or permanent address).

(2) Year 1 - The third-party designee must submit a complete Form 8802 signed and dated by the applicant along with all other required documentation based on the applicant's entity type, as well as Form 8821 (or other tax information disclosure authorization statement e.g., Form 2848, Power of Attorney and Declaration of Representative) covering a period of up to three years. The applicant's penalties of perjury statement on Line 10 of Form 8802 must include a statement that the applicant will continue to be a resident throughout year one and will continue through years two and three.

(3) Year 2 - The third-party designee will complete a new Form 8802 (which need not be signed) and attach a copy of the signed Form 8802 submitted in year one (including the accompanying documentation and tax information disclosure authorization) along with the correct user fee.

(4) Year 3 - Follow year two procedures.

(1) A Form 8802 requesting certification for the current year must 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 must 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 penalties 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.

(2) 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 received prior to December 1st of the prior year must be returned.

(3) 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. Refer to the table in paragraph 4 below.

(4) 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.

(1) When processing a U.S. Residency certification application, Form 8802, ensuring that the requestor is authorized to discuss, receive and/or request the certification is a very important factor.

(2) IRC 6103(c) provides that an applicant may authorize the IRS to disclose the applicant's return or return information to any person designated by the applicant. IRC 6103(c) distinguishes between authorizations:

1. For purposes not directly related to a tax matter

2. For purposes of having a third-party provide information or help to the applicant in a tax related matter

(3) Treasury Regulation 301.6103(c)-1(c) addresses requests by a taxpayer for the IRS to disclose the taxpayer's return information to a third-party so that the third-party can provide information or help relating to the taxpayer's return or transaction or other contact between the taxpayer and the IRS. This section requires that the written authorization:

1. Be signed and dated by the applicant

2. Has the identity of the person(s) to whom disclosure is to be made

3. Provide sufficient facts fundamental to the request for the information or help to permit the IRS to determine the nature and extent of the information or help requested and the returns or return information to be disclosed to comply with the applicant's application

(4) An applicant can authorize the IRS to disclose the applicant's return information with respect to Form 8802 in three ways:

1. Form 8802, Application for United States Residency Certification. By completing line 3 on Form 8802, the applicant can appoint a person to whom the applicant wants the IRS to send the Certificate(s). This appointee cannot represent the applicant. This appointee cannot request Certifications for countries other than those indicated on the Form 8802, unless the applicant explicitly authorizes this on line 10 of Form 8802.

2. Form 8821, Tax Information Authorization. The applicant can appoint a person to whom the applicant wants the IRS to send the Certificate(s) indicated on Form 8802 using Form 8821. This appointee cannot represent the applicant before the IRS, cannot sign a Form 8802 or a Form 8821 on behalf of the applicant, and cannot authorize the IRS to disclose the applicant's return information to another third-party. This appointee cannot request Certifications for countries other than those indicated on the Form 8802, unless the applicant includes a statement on line 3 of Form 8821 explicitly authorizing an appointee identified on Form 8821 to request Certifications for countries other than those indicated by the appointee. Form 8821 must be signed and dated by the applicant.

3. Form 2848, Power of Attorney and Declaration of Representative. The applicant can authorize an individual to represent the applicant before the IRS. An authorized representative can sign a Form 8802 on behalf of the applicant. However, an authorized representative cannot authorize the IRS to disclose any return information to another third-party unless the applicant explicitly authorizes this on line 5 of the Form 2848. The applicant must sign and date the Form 2848, and the authorized representative must complete Part II.

(5) Use chart in IRM 21.8.4.2.1.1, Who Can Sign Form 8802 to determine who is authorized to sign Form 8802, Form 8821, or Form 2848 giving authority to request, receive, and/or discuss the certification.

(6) Before discussing an application, making corrections to an application, or issuing certification, first determine whether the requestor is the applicant or a third-party (anyone other than the applicant).

(7) Only provide tax information to authorized individuals.

(8) When a third-party requestor indicates a Power of Attorney (POA) or Tax Information Authorization is on file, research the Centralized Authorization File (CAF) using the Command Code CFINK and/or the Form 8821 Database in the U.S. Residency Certification program to determine if there is authorization and the extent of their authorization. See Document 6209for Command Code Instructions.

(9) When the CC CFINK research confirms the requestor as the Power of Attorney (POA) for the applicant needing certification, research the Form 8821 Database to determine if the POA needs to be entered. When confirmed:

1. Enter the POA name and address on the United States Residency Certification (USRC) Database.

2. Enter the POA name on the second name line with either ATTN. or "%"(in care of). Continue processing the application for certification.

3. Ensure the POA's address is entered in the applicant's address field.

(10) When CC CFINK research doesn't confirm POA:

• Research the application, Form 8802, and/or attachments for authorization, Form 2848, Power of Attorney and Declaration of Representative, Form 8821, Tax Information Authorization, or documentation giving authorization to the requestor (e.g., Trust Agreement).

(11) If a signed and dated new Form 2848 or Form 8821 is received with required certification information, process as a new application.

(1) The process for issuing a certification for tax residency must 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.

(2) The Form 8802 is not processable until the user fee has been paid.

(3) 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.

(4) If a Form 8802 cannot be processed within thirty days, an interim letter must be sent. Additional interim letters are to be issued every thirty days until the certification can be issued.

(5) An interim letter must:

1. Identify the reason a final response is delayed.

2. Specify when the final response will be mailed.

3. Include the name, telephone number, organizational code symbols, and the unique identification number of the contact.

(6) If unable to determine whether an applicant is entitled to a U.S. Residency Certification based on IRM procedures, forward the case to the Planning and Analysis (P&A) staff. The applicant or taxpayer (TP) must be notified via phone or by issuance of the proper letter.

1. Place the case in 702 status.

2. Enter in remarks, "Case sent to P&A, TP notified" and an explanation why the case was sent to P&A.

(7) Processing time limits are specified in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates. For more guidance, see the instructions for correspondence.

(1) Applicants send Forms 8802, accompanied with a check or money order for the user fee, to:

(2) The USRC Remittance Clerical unit processes payments using OTCnet following procedures in IRM 21.1.7.10.4.5, Processing Form 8802 User Fee Payments via Paper Check Conversion (PCC).

(3) The USRC Remittance Clerical unit verifies payments following the procedures in IRM 21.1.7.10.4.5.1, Validating Form 8802 User Fee Payments.

(4) Once the check or money order has been successfully processed and payment can be verified, place your initials, the date verified, and the word verified in the upper right corner of page 1 of the Form 8802 next to the amount verified.

(5) If the check or money order was not successfully processed, place your initials, the date and the word rejected, in the upper right corner of page 1 of the Form 8802.

(1) The IRS accepts electronic payments in addition to checks and money orders. Applicants can get more information about making electronic payments on IRS.gov and entering e-pay in the search box.

(2) The web site provides the applicant with information on making electronic payments and by clicking through the user prompts is directed to Pay.gov where the applicant can make the payment.

(3) 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.

(4) 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.

(5) 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.

(1) The payment information must be notated on Form 8802:

• The USRC Remittance Clerical unit notates the amount paid on the Form 8802 application (on page 1).

• Applicants using Pay.gov are instructed to enter their payment confirmation numbers on page 1 of Form 8802. Information on researching payment confirmation numbers can be found in IRM 21.8.4.2.2.2.1, Verifying Electronic Payments.

(2) Determine the correct payment. The fee is $85.00 per application for individuals and $185 per application for non-individuals (e.g., partnership, corporation, trust, estate or exempt organization), regardless of the country, tax period, or number of certifications requested.

(3) If the payment is correct, place your initials, the date verified, and the word verified in the upper right corner of page 1 of the Form 8802 next to the amount verified.

(4) 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.

(5) 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 1 of the Form 8802. On the bottom of the Form 8802, write the date, your initials, the word overpaid and the amount overpaid.

(6) If the payment is more than two weeks older than the submission date of the Form 8802, research the confirmation number on the Form 6166 search screen to ensure the payment was not used for another application.

(7) When a customer submits payment information to the tax examiner, it must be forwarded to clerical for research on Pay.gov, to ensure the status shows "Settled" or "Success" prior to processing the Form 8802.

(1) The applicant's payment must be recorded in the United States Residency Certification (USRC) Database for each Form 8802.

(2) Input the deposit amount in the deposit amount field on the Form 6166 input screen and deposit date in the deposit date field on the Form 8802 input screen.

(3) Input the entire confirmation number in the tracking number field on the Form 6166 input screen.

• For electronic payment, input the 11 digit number first, then one space followed by the 8 digit with letters in all caps; for example, 12345678911 12ABC1DE

• For paper payment confirmation numbers from the US Residency Certification (USRC) Remittance clerical unit, do not enter into the remarks section, but into the tracking number field on the Form 6166 input user fee input screen by inputting the last 8 digits of the IRN, for example, 12345678

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

(5) 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.

(6) If one payment is made (Pay.gov or Paper Check/Money Order) for multiple Forms 8802:

1. Only record the payment and tracking number with the first Form 8802 submitted by the payor in the USRC Database.

2. For the remaining Forms 8802 submitted by the payor record your initials, full paid, deposit date, and the Taxpayer Identification Number (TIN) of the application where the payment was recorded in the remarks section. Use abbreviations for full paid and deposit date. For example, Initials FP dep 01/01/2019 11–1111111. This remark can be copied and pasted to minimize key strokes on subsequent Form 8802 records that came in with one lump sum payment.

(1) If the payment is less than the required amount, a minimum of two attempts to contact the taxpayer must be made. Forms with incomplete payments are not processable. This call is intended to decrease the time needed to process the Form 8802.

(2) Prior to making the call, completely review the Form 8802 to determine:

• If the data from the Form 8802 was input to the United States Residency Certification (USRC) Database

• If a Penalties of Perjury (POP) statement is necessary for a current year application

• If a signature and date is needed

• The amount needed for a complete payment

• Any other missing information that is needed to successfully process the Form 8802

(3) Place the record in 702 status and update the remarks with each contact with the applicant.

(4) When it is necessary to contact the applicant by telephone and the applicant is not available, place the Form 8802 and attachments in the bin for the applicant to receive a follow up call. Note the date of the attempted call on the bottom of page one of the Form 8802. Use the following abbreviations to indicate the nature of the call.

• T = telephone

• POP = Penalties of Perjury

• D = date needed with signature

• $ = additional user fee needed

• NA = no answer

• NI = not in

  Example: A call is placed on January 15, 2019 because a penalties of perjury statement is needed, the date next to the signature is needed, and an additional $15 is needed to fully pay the user fee, but the applicant was not reached, the notation appears as follows: 1/15/19 T (applicant’s name), POP, D, $15, NA (initials).

  Example: A call is placed on January 15, 2019 because an additional $20 is needed to fully pay the user fee, and the applicant stated they would mail the check today, the notation appears as follows: 1/15/19 T (applicant’s name), $20, will mail check today (initials).

Note: The initials of the employee that made the call must be included in the notation.

(5) If the applicant or authorized representative cannot be reached, leave a message stating: My name is (name), badge number (The last seven digits of the PID), and I am calling from the U.S. residency certification department. Please return my call at 267-941-1000. Do not leave any specific case or application information in the message. 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.

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

(7) 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 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.

(8) If the applicant or the authorized representative cannot be contacted by telephone, send a rejection letter informing the applicant we have received their application and we need additional payment and possibly more information.

(9) 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.

(10) If there is no response to this request within 30 calendar days, send the abandonment letter and enter in remarks, "No reply". Purge the application and attachments from the suspense wall then close the record on the USRC Database. Keep partially paid applications without a response to the abandonment letter for six months from the date of the application.

(1) 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.

(2) Place the record in 702 status and suspend the case for 30 calendar days (60 calendar days for applicants with an address overseas).

(3) If neither payment nor other information is received from the applicant, see IRM 21.8.4.2.2.5, Partial Payment.

(1) The user fee is non-refundable. 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 other 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.

(2) The overpayment of a user fee is refunded when it is the result of 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.

(3) Prepare a Form 3210, Document Transmittal, identifying the applicant's name or the correct recipient's name and address along with the amount of the refund identified from the U.S. certification user fee and forward to the clerical function for review.

(4) Once it is confirmed that a refund will be issued, the designated employee(s) will contact the payor to inform them of the overpayment and that a refund will be sent. In the remarks field, leave a note that a refund is being issued and the amount of the refund.

(5) The Form 3210 can be scanned and attached to an E-mail using IRS IT-approved encryption technology to ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for processing. A copy of the E-mail and memorandum is filed by notice date and stored for 12 months. For more information on IRS IT-approved encryption technology see IRM 1.10.3.2.1, Secure Messaging & Encryption, and IRM 10.5.1.6.8, Email.

(6) Beckley Finance Center notifies the designated U.S. Certs manager(s) if a refund check was returned or was not cashed within a year. Research United States Residency Certification (USRC) Database for the payor’s phone number and follow the instructions in the chart below:

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

(2) Refer taxpayers to TAS (see IRM 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) and you can’t resolve the taxpayer’s issue the same day. The definition of “same day” is within 24 hours. “Same day” cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer “same day” cases to TAS unless the taxpayer asks to be transferred to TAS and the case meets TAS criteria. Refer to IRM 13.1.7.5, Same Day Resolution by Operations. When you refer cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), and forward to TAS.

(1) The following script must be used when answering telephone calls:

"Internal Revenue Service, U.S. Residency Certification Department, my name is ______and my ID number is ______. How can I help you?"

(2) Once the caller indicates the issue is not generic, establish if the call is in reference to the caller or someone represented by the caller. Probe, make a statement similar to the following:

"Before I can help you, I need to ask you some questions to protect the privacy of our applicants’ accounts. Is this call in reference to you or are you calling in reference to someone else?"

(3) When the call is in reference to the caller’s own account, then proceed to the appropriate Disclosure Procedure - Applicant Verification, see IRM 21.8.4.3.7.3, Disclosure Procedure - Applicant Verification; refer to IRM 10.5.1.6.9.4, Faxing, if the caller intends to fax in information.

(4) When the call is in reference to an account other than that of the caller, then proceed to the Disclosure Procedure - Third-Party Verification; see IRM 21.8.4.3.7.4, Disclosure Procedure - Third-Party Verification.

(5) Complete all necessary research while the caller is on the line. Do not keep the caller on hold for more than five to seven minutes without giving an explanation and/or apology.

(1) When initiating or returning telephone calls, the following script must be used:

"Hello my name is _______. I am calling from the Internal Revenue Service U.S. Residency Certification Department and my ID number is _______I am trying to contact _______."

(2) When it is determined that the correct person has been contacted, explain the reason for your call.

(3) When handling telephone inquiries, sufficient questions must be asked to establish the identity of the person on the phone.

(4) Prior to revealing any specific tax information, verify the person to whom you are speaking is authorized to receive the information using the Disclosure Procedures outlined below.

(5) When the person to whom you are speaking claims to be the applicant, proceed with the appropriate disclosure procedure, Applicant Verification; see IRM 21.8.4.3.7.3, Disclosure Procedure - Applicant Verification.

(6) When the person to whom you are speaking is other than the applicant, proceed to Disclosure Procedure - Third-Party Verification; see IRM 21.8.4.3.7.4, Disclosure Procedure - Third-Party Verification.

(1) When the person with whom you speak claims to be the applicant, begin probing to ensure that you are speaking with the applicant.

(2) If the applicant is on the phone, follow procedures in IRM 10.10.3.3.6, Identity Proofing for Required Taxpayer Authentication.

(3) If the applicant is not an individual, determine the type of entity to be discussed and follow procedures in Identifying Proofing for Required Taxpayer Authentication, IRM 10.10.3.3.6 (3). Only release information to certain people in the organization or to the organization's authorized representative. Use the following questions in making these determinations:

1. What is your name?

2. What is the legal name of the organization?

3. What is the organization's mailing address?

4. What is the organization's TIN?

5. What is your relationship (position) with the organization?

6. Can you legally bind the company? (Ask if you do not recognize position (title) as binding officer.)

7. Do you have a valid POA or TIA? (Ask when caller is not a representative of the company.)

8. If a pension plan, ask for the name, TIN and address of the sponsor.

(4) Only disclose information to persons authorized to receive it. See IRM 11.3.2.4, Persons Who May Have Access to Returns and Return Information Pursuant to IRC 6103(e) for more information. When in doubt, do not disclose.

(1) Always determine if the third-party is authorized to receive the applicant’s information.

(2) Third-party callers claiming to have tax information authorization, must provide some personal information to verify their authorization.

• The caller's name

• The legal name of organization the caller represents

• The organization's mailing address

• The organization's TIN or Centralized Authorization File (CAF) number

• The name, address and TIN of the applicant.

(3) Once it has been determined the contact is a third-party, verify that the caller is authorized to discuss the account using one of the following:

• Form 8821

• Form 8802

• Form 2848

• Form 8821 Database

• CFINK on IDRS

(4) Verification of the individual listed on the authorization must be completed. Use the individual's name, TIN/CAF number and any other appropriate questions to authenticate the caller. See IRM 21.8.4.3.7.3, Disclosure Procedure - Applicant Verification.

(5) Upon determining that the authorization is valid, proceed with the processing of the request.

(6) If the caller is not authorized, advise the caller that the application must provide authorization for the Service to discuss any specific information concerning the applicant.

(1) Calls in reference to correspondence issued from the Certification Unit must be handled following the telephone procedures. See IRM 21.8.4.3.7.1, Answering the Phones.

1. Ask the caller to provide the reference number that is located at the top of the notice.

2. Using the reference number provided, retrieve the case.

3. When complete information has been received from the caller, determine the type of help being requested.

4. Once a determination has been made that will move the case to resolution, advise the caller what is required to receive certification, and to send the required information to the attention of the tax examiner handling the case.

5. Leave in the Remarks section, the date, the person you spoke with, and the information discussed during the telephone conversation.

   Note: Use the Remarks Procedure when uncertain how to include remarks on the United States Residency Certification (USRC) Database.

(1) When a call is received in reference to a closed case, inform the caller of the date that a certification or a rejection letter was issued.

(2) If the certification or rejection was printed within the last two weeks, inform the caller to wait the two weeks and call back after the two-week period has ended if the certification or rejection was not received.

(3) When it has been more than two weeks, but less than 60 days, and the inventory is current:

1. Reprint the certification.

2. Expedite the mailing of the certification.

3. Inform the caller of the reprinting of the certification and that it will be mailed expeditiously.

4. Note the actions taken in the Remarks section on the United States Residency Certification (USRC) Database. For guidance on entering remarks, proceed to the Remarks Procedure.

(4) When it has been more than 60 days but not more than 120 days since the printing of the certification or rejection, you must notify your manager or lead and process according to their instruction. For example, if the applicant states they haven’t received the certification or have lost it and they haven’t requested another copy during this time, reprint it. If over 120 days, applicant needs to submit a new application.

(5) When a caller asks about a rejection letter, provide the caller with the rejection explanation and what information is needed to qualify for certification.

(6) When an application was rejected but the caller has the information to qualify for certification, inform the caller to fax or mail all the required information, including the original application to the Certification Unit.

1. Explain to the caller that once all required information is received, the Service will issue the certification or correspondence requesting any more information within 30 days from the date the requested information was received.

2. Note the date, the name of caller and the information requested in the Remarks section on the USRC Database. For guidance on entering remarks, proceed to the Remarks Procedure.

(7) When all the required information (including the original application) is received, process it as a new application.

(1) When a call is received concerning a certification that was issued with errors, complete the following activities.

1. Determine the nature of the error.

2. Obtain a TIN/reference number for the application in question.

3. Verify the information issued on the certification.

4. When a discrepancy exists with what the caller states was requested and what was processed, complete further research to determine if the discrepancy was a service error.

   Example: The caller states that the year of certification should have been 2019, but the certification was issued for 2018; research the original application to see if the year processed for certification differs from the certification year stated on the application.

5. Retrieve the Form 8802, if possible, and verify the caller's information.

(2) Applications processed incorrectly must be corrected at the time of the call.

(3) When research shows there is no discrepancy between what is included on the United States Residency Certification (USRC) Database and the Form 8802 submitted, then let the caller know that a new application is required.

(4) If unable to determine where the error originated, such as unable to locate the Form 8802, request substantiation for proof of the error.

(5) When the error is in the taxpayer's name, verify the name on IDRS.

1. Names misspelled on IDRS must be referred to Customer Service at 800-829-4933.

2. Names misspelled on the USRC Database must be corrected at the time of the call.

(1) The U.S. income tax treaties that provide benefits to teachers and/or researchers provide such benefits for a two-year period, except for the treaties with China and Greece, which provide benefits for a three-year period.

(2) The two (or three) year period during which treaty benefits are available begins on the date the taxpayer enters the foreign country to begin teaching or conducting research. Thus, the teacher or researcher may be eligible for a Form 6166 for three (or four) different calendar years.

(1) Generally, an applicant who files Form 2555, Foreign Earned Income, with their tax return is not eligible for Form 6166, U.S. Residency Certification, without providing more information.

(2) Some tax treaties provide an exemption from foreign country income tax on remuneration received in consideration of teaching or research activities if, among other treaty requirements, the individual was a U.S. resident immediately before visiting the foreign country. The treaty benefits are generally available for a period of two or three years. See IRM 21.8.4.4.4.4, Teacher and Researcher Treaty Articles for more information.

(3) Many foreign countries require a U.S. individual to submit Form 6166 to claim a treaty benefit.

(4) A statement made under penalties of perjury must accompany the Form 8802 if the applicant states they are eligible for treaty benefits. The statement must include the following:

• The tax treaty and article that provides such benefits

• The period of time the benefit is available under the tax treaty (i.e., two or three years)

• The beginning and ending dates of the teaching assignment

• That the individual was a U.S. resident within the meaning of the Residence article of the treaty immediately before entering the foreign country. Depending on the treaty, a statement regarding the physical presence in the United States for U.S. citizens and green card holders may be required. See IRM 21.8.4.4.4.4, Teacher and Researcher Treaty Articles, for more information.

(5) Verify the individual’s last return was filed as a U.S. resident.

(6) If the individual’s application includes the statement and falls within the time constraints identified in the tax treaty, issue the Form 6166.

(1) Generally, an applicant filing a Form 2555, Foreign Earned Income, with a tax return is not eligible for Form 6166, U.S. Residency Certification, without providing more information.

(2) Under Article 20 of the U.S. - Japan tax treaty, an individual who continues to be a U.S. resident (within the meaning of Article 4(1)) while visiting Japan for purposes of teaching or conducting research may be exempt from tax on such salary in Japan for a period not to exceed two years.

(3) Japan requires U.S. individuals to submit Form 6166 to claim treaty benefits.

(4) A statement made under penalties of perjury must accompany the Form 8802 if the applicant states they are eligible for treaty benefits. The statement must include the following:

• The person is claiming benefits under U.S. - Japan tax treaty Article 20

• The treaty benefit is available for 2 years

• The beginning and ending dates of the teaching assignment

• That the individual is (and will continue to be) a U.S. resident within the meaning of Article 4(1) of the U.S. - Japan treaty (i.e., he is a U.S. citizen or green card holder).

(5) Verify the individual’s last return was filed as a U.S. resident.

(6) If the individual’s application includes the statement and falls within the time constraints identified in the tax treaty, issue the Form 6166.

(1) This is a chart of treaty countries, the Teacher/Researcher Article number and sample statements needed if a Form 2555 was filed for the year of the requested U.S. Residency Certification.

(1) An individual or organization that acts as a nominee on behalf of another individual or organization is considered the individual's or the organization's nominee.

(2) Nominee applicants must submit:

1. An authorization statement signed under penalties of perjury by the individual or an officer of the organization with legal authority to bind the organization for whom the applicant is a nominee explicitly authorizing the nominee to act on behalf of the individual or organization and to receive the individual’s or organization’s tax information.

   Note: The authorization statement must be for specific tax matters, or it must be rejected.

2. A statement signed under penalties of perjury from an individual with legal authority to bind the nominee applicant, explicitly stating that the nominee is acting as an agent on behalf of the above-named individual or entity for whom the Form 6166 is being requested.

3. A list and the requirements of all the individual(s) or entity(ies) for which the applicant is a nominee.

Example: A nominee for a Partnership must attach the Partnership's list of partners as well as authorization from each partner giving the nominee the authority to receive the Partner's tax information. When the application is for the current year, the nominee must also provide a current year penalties of perjury statement.

(3) When entering a Nominee applicant in the United States Residency Certification (USRC) Database:

1. Enter the TIN of the taxpayer the Nominee is representing in the Primary TIN field.

   Note: If the taxpayer is an individual and an SSN is being entered, the SSN box must be checked.

2. Enter the Nominee's TIN in the Secondary TIN field.

3. Enter the Nominee information in the Applicant field.

4. Enter the Name Control of the taxpayer the Nominee represents. See IRM 3.8.44, Campus Deposit Activity, for more information on name controls.

5. Select the type of taxpayer the Nominee represents in the Applicant Type field. Verify that the Nominee has met all the form requirements, as well as the certification requirements, for the taxpayer the nominee represents.

   Note: Currently, all Nominee applicants are partnerships. If a Nominee application is received and the nominee is not a partnership, contact the Process and Analysis Analyst.

(4) Do not certify the Nominee applicant as a resident. Certify the taxpayer for whom the applicant is a nominee.

(5) When the taxpayer the Nominee represents has its residency status verified, certification will be issued using the paragraph NOM.PTR:

"I certify that the above-named partnership is an agent acting on behalf of the following list of individuals and entities, and to the best of our knowledge, each individual or entity listed below is a resident of the United States of America for purposes of U.S. taxation."

(1) U.S. citizens must file Form 1040, Form 1040-A, Form 1040-EZ or Form 1040-SR and report their worldwide income when their gross income exceeds the minimum dollar amount established for the filing status and the tax year for which the applicant is claiming U.S. residency. The Form 8802 for these applicants must include entries for all lines as outlined in IRM 21.8.4.2.1, Form 8802, Application for United States Residency Certification, with the following item specific to U.S. citizens required to file:

• Line 4, Applicant Entity Type must be box a, individual

(2) U.S. citizens that file married filing joint returns, but need individual certification and are not the primary taxpayer on the joint filed return, must have:

1. CC INOLES verified to ensure that the TIN of the applicant requesting certification is listed on the primary taxpayer's entity screen, and

2. CC IMFOLT verified to ensure that the primary applicant filed a joint return for the tax year being certified.

   Note: Check IMFOLT for the most recent year when processing current year certification.

3. Once the application has been verified utilizing the command codes listed above, the certification application can be processed.

(3) U.S. citizens not required to file a tax return must provide a written statement under penalties of perjury explaining why the law does not require the filing of a tax return for the tax period the treaty benefit is claimed. Check Form 8802 for the statement. The applicant must also supply proof of income such as Form W-2, Form 1099, etc. when applicable. The Form 8802 must also include entries for all lines as outlined in IRM 21.8.4.2.1, Form 8802, Application for United States Residency Certification, with the following items specific to U.S. citizens not required to file:

• Line 4, Entity type is individual

• Line 5, NO box must be checked

• Line 10, Penalties of Perjury statement, indicating why applicant is not required to file and proof of income

(4) For an applicant under the age of 19, a full-time student under the age of 24, or a dependent who is permanently and totally disabled, regardless of age, Form 8802 must include entries for the following items:

• Applicant Information (Child's Name and TIN)

  Note: This TIN must be placed in primary TIN field.

• Line 4, Entity type is individual

• Line 5, NO box must be checked

• Line 6, Parents’ information

• Line 10, Penalties of Perjury statement, indicating why applicant is not required to file and proof of income

• If the applicant’s parents have submitted Form 8814, Parents’ Election to Report Child’s Interest and Dividends, to report the child’s income on their return, a copy of that form must be attached to Form 8802.

Note: A minor/dependent must file their own income tax return if the parents did not file a Form 8814 claiming the minor’s income. A minor can request a certification if he or she did not have to file a tax return because their income fell below the filing requirement. The minor must provide proof of income and a penalties of perjury statement explaining this situation.

(5) When entering information concerning the application of an individual under the age of 19, a full-time student under the age of 24, or a dependent who is permanently and totally disabled, regardless of age, in the United States Residency Certification (USRC) Database:

1. Check the SSN box.

2. Enter in the Primary TIN field, the TIN of the Parent that filed the return which included the income of the minor child.

3. Check the SSN box.

4. Enter in the Secondary TIN field, the Minor's TIN.

5. Check the Non-spouse box.

6. Enter in the Applicant field, the Minor's entity information.

7. Enter in the Name Control field, the name control of the Minor's parent that filed the return which included the Minor's income. See Document 6209, or Document 7071, Name Control Job Aid for Individual Master File Taxpayers, for more information on name controlling.

8. Select Individual as the applicant in the Applicant Type field.

(6) Certification applications for deceased U.S. citizens must include:

1. Proof that requestor is executor or administrator of the decedent's estate.

   Note: Proof includes a court document identifying the executor or administrator.

2. The Form 8802 must include all the information identified in paragraph 1 above.

(7) In addition to the information required above (IRM 21.8.4.4.12.2, Individual Applicants), U.S. citizens and green card holders may attach to their Form 1040, U.S. Individual Income Tax Return, one of the following:

1. Form 2555, Foreign Earned Income

2. Form 1116, Foreign Tax Credit, claiming either a foreign tax credit amount in excess of 5,000 U.S. dollars or a foreign tax credit for any amount of foreign earned income

3. Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)

4. Form 8689, Allocation of Individual Income Tax to the U.S. Virgin Islands

5. Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

(8) Except as provided in paragraph (10) and (11) below, these applicants must include additional information to establish that the taxpayer has sufficient connection with the United States to be considered a U.S. resident for the purposes of the applicable tax treaty with the foreign country for which certification is requested. The type of connection that is required depends upon the language in the specific treaty for which certification is requested. However, treaties usually require the taxpayer to have either:

• A substantial presence within the United States (at least 31 days during the current year and 183 days during the period that includes the current year and the 2 years immediately preceding the current year, counting each day during the first preceding year as 1/3 of a day, and each day in the second preceding year as 1/6 of a day). See Pub 519, U.S. Tax Guide for Aliens, to apply the substantial presence test.;

• A permanent home within the United States; or

• A habitual abode within the United States.

(9) Certification may also be issued to such taxpayer if the Form 2555 was not filed by the applicant (it belongs to the spouse), or if Form 2555 is for a partial year, and the certification year requested is for the remainder of the year.

(10) Exception: U.S. citizens and green card holders living outside the United States who are requesting certification for any of the countries in the below table, are not required to submit additional information (described above in paragraphs (8) and (9)), and may be certified, provided that the individual is not a dual resident of the country for which certification is requested. Use the following chart with CC RTVUE and or TRDBV when processing a Form 8802 from an applicant that has filed Form 1040, with an attached Form 2555 requesting certification for any of the countries in the table below to check the Post of Duty (POD) to ensure that the applicant was not a resident of that same country.

(11) If an individual is a resident of both the United States and the country for which certification is requested, the certification may be denied, unless the individual can establish that the individual is solely a resident of the United States under the tiebreaker provision of the applicable treaty. For example, Article 4(3) of the 2016 United States Model Income Tax Convention, the tiebreaker provision, states that where an individual is a resident of both Contracting States, then the individual’s residency status will be determined as follows:

(12) Once the return has been secured, review the Form 2555, or Form 1116 filed in lieu of Form 2555, and follow the procedures below for processing the certification application:

(13) If the applicant is a resident of a foreign country for the year certification is requested, the applicant is not entitled to treaty benefits, unless approved by mutual agreement between the competent authorities.

1. Issue letter 3425, which explains that, according to our records, the applicant claimed a foreign tax home. Accordingly, it has been determined that the applicant is not entitled to treaty benefits and therefore, a U.S. residency certification can not be provided.

   Note: Applicants from a U.S. possession that did not claim a possession exclusion, or that are requesting certification for other than the U.S. possession for which the exclusion was taken, can be certified as a resident of the U.S.

2. Close the case and indicate in the remarks field "International Return".

(14) U.S. Citizens living in a Foreign Country or Possession are treated as if living in the United States:

• In the U.S. Armed Forces

• In the Peace Corps

• Diplomatic Personnel

Note: These applicants are treated as U.S. citizens living in the U.S. See (1) above in establishing residency.

(15) Resident Aliens are individuals who:

• Have been admitted for permanent residence in the United States (green card holders)

  Exception: Applicants who hold green cards as commuters from Canada or Mexico.

• Have been in the United States at least 31 days during the current year and 183 days during the period that includes the current year and the 2 years immediately preceding the current year, counting each day during the first preceding year as 1/3 of a day, and each day in the second preceding year as 1/6 of a day (See Pub 519, U.S. Tax Guide for Aliens, to apply the Substantial Presence Test.)

• Make an election under subsection 6013(g) or (h) to be treated as a resident alien (See Pub 519, Choosing Resident Alien Status.)

(16) Resident Aliens living in the United States are taxed on their worldwide income in a manner similar to U.S. citizens living in the United States; therefore, follow the guidelines above. See IRM 21.8.4.4.12.2, Individual Applicants.

(17) Resident aliens recently arriving in the United States and have not yet filed a U.S. income tax return, in addition to the requirements listed in IRM 21.8.4.4.12.2, Individual Applicants, must submit:

1. A copy of the current Alien Registration Receipt Card (green card)

   Note: In lieu of a copy of the green card, the applicant may submit a statement from the Bureau of Citizenship and Immigration Services that gives the alien registration number, date and port of entry, date of birth, and classification.

2. Form I-551, or

3. The current Form I-94, Arrival-Departure Record (VISA) must be provided.

(18) First year U.S. Residents who have made, or intend to make, the first-year residence election under IRC 7701(b)(4) must, in addition to the requirements in IRM 21.8.4.4.12.2, Individual Applicants, provide a copy of the election statement required with the 1040 income tax return for the taxable year of the election. See Publication 519, for details about the first-year residency statement requirements.

(19) When the calendar year for which certification is requested has not yet passed and the applicant has not yet filed a first-year residence election statement, the applicant must attach a statement of intent to file an election statement and that the applicant is eligible to make the election signed under penalties of perjury.

(20) Generally, A1, F1, M1, J1 and Q1 Visa Holders and their families (A2, A3, F2, F3, M2, J2, Q2, etc.) are not eligible for U.S. residency certification. If an application is received from one of these type visa holders, who filed a Form 1040, the applicant must provide an explanation as to why the Form 1040 was filed, and provide proof that the applicant's worldwide income was reported on the Form 1040.

1. Place the case in status 702.

2. Forward all applications with documentation to the P&A Analyst for approval.

(21) Treat an individual applicant as Dual Status taxpayers when, during the tax year for which certification is requested, the individual was both:

• A U.S. resident

• A nonresident

Note: A U.S. resident for part of the tax year and a resident of another country for the remainder of the year.

(22) Dual Status situations generally occur in the year an alien first arrives in the United States (the year the alien becomes a U.S. Resident for tax purposes), or the year the alien departs from the U.S. (losing or giving up residency status). The dates of residency, on line 4a of Form 8802, must be entered in the dual resident field.

1. U.S. citizens and green card holders are considered dual status residents when their citizenship or green card holder status was lost during the calendar year.

2. U.S. residents whose residency termination date occurred during the tax year are also considered dual resident aliens.

3. Dual status residents must enter the dates of U.S. resident status on line 4a of Form 8802.

   Note: A dual status taxpayer who gives up U.S. residency during the tax year files a Form 1040-NR. A dual status taxpayer must attach a separate schedule to the Form 1040-NR to show the income tax computation for the part of the taxable year during which the individual was a citizen or resident of the United States. A Form 1040, clearly marked “Statement” across the top, may be used as such a separate schedule.

(23) Individual certification applicants that need certification for the Current year must include a penalties of perjury statement.

(24) Follow instructions in the chart below when a Status Code 508 or 509 is generated.

(25) Once the applicant is verified as a U.S. resident, and therefore entitled to treaty benefits, issue the certification (status code 099). Certify using the proper IND.1040 certification paragraph:

• IND.1040 for basic individuals

• IND.1040.Dual for Dual Residents

• IND.1040.GR for Greece

• IND.1040.SP for Spain

• IND.1040.RS for Russia

(26) When no return has been filed (CFOL status code 012) and the Date of Birth (DOB) field on the entity indicates that the application is for a minor, issue letter 3426.

(27) When an Individual Applicant (Resident Alien or U.S. citizen) appears to have a filing requirement, but has not filed a U.S. tax return (CFOL status code 509), issue letter 3426. Letter 3426 requires one of the following:

• Completion of the penalties of perjury statements in Section I and a signed copy of the return

• Completion of the penalties of perjury statements in Section II and copies of income statements

• A copy of the Form 8814 that was filed along with the parent name and TIN that filed the form, if applicant is a minor child

(1) United States Corporations are incorporated in the United States and are automatically considered resident corporations even if doing business abroad. All such corporations would File Form 1120.

(2) United States Corporations may also include any domestically organized entity that is treated as a corporation for federal tax purposes under the "Check the Box" rules (Treas. Reg. 301.7701-2 through -3).

(3) Corporate applicants not incorporated in the United States must specify their country of incorporation on Form 8802.

(4) As a general rule, a corporation that is not incorporated in the United States is not entitled to U.S. Residency Certification. However, there may be exceptions for corporations that, under the following Internal Revenue Code sections, are treated as domestic (U.S.) corporations:

• IRC 269B

• IRC 953(d)

• IRC 1504(d)

• IRC 7874(b)

(5) Corporations that are not incorporated in the United States, but are treated as U.S. corporations under IRC 269B, IRC 953(d), IRC 1504(d), or IRC 7874(b), must specify on Form 8802 the Code section under which the corporation is treated as a domestic corporation. When certification is requested for the same country in which the corporation is incorporated, the application must be forwarded to the P&A analyst for review.

(6) Corporations neither incorporated in the United States, nor treated as a domestic corporation under IRC 269B, IRC 953(d), IRC 1504(d), or IRC 7874(b) but believe entitlement to U.S. Residency Certification, must seek competent authority help using Rev. Proc. 2015-40 to request certification. In addition, the applicant must:

• Complete Form 8802.

• Attach a detailed explanation, as to their entitlement.

• Submit all documentary evidence.

(7) U.S. corporations must file one of the corporate forms within the 1120 series to qualify for certification. The filing requirements on the Form 1120 filer’s entity module are shown as 1120-01.

(8) The Form 1120-IC DISC, Interest Charge Domestic International Sales Corporation Return, is processed on Non-Master File (NMF). To verify a fact of filing, contact the NMF Accounting Unit.

(9) Certain foreign organized entities that are disregarded for U.S. tax purposes (e.g., a single member LLC) may be certified, provided their income is reported on a consolidated Form 1120 and verified that the U.S. corporation has identified the foreign entity on Schedule N of the Form 1120. See IRM 21.8.4.4.12.10, Limited Liability Company Applicants, for more instructions.

(10) U.S. corporations, in addition to having filed a tax return or obtained an extension, must include entries for all lines as outlined in IRM 21.8.4.2.1, Form 8802, Application for United States Residency Certification, and must provide the following specific to corporations with their certification application:

• Line 4 Entity Type must be Corporate

• Penalties of Perjury statements (when applicable), and

• Form 8802 must have a signature of corporate officer or the corporation's POA.

(11) Current year Corporate applications must also include a penalties of perjury statement from a corporate officer with legal authority to bind the corporation stating under penalties of perjury that,

"XXX corporation is a United States Corporation and will remain so throughout the current tax year."

(12) Corporate applicants must indicate on Form 8802 whether it is a Dual Resident Corporations (DRCs). DRCs must name the other country in which the corporations is a resident. DRCs may not be entitled to U.S. Residency Certification, if requesting certification for the corporation’s other country of residence.

(13) Generally, a DRC of Canada and the U.S. is considered a resident of the country in which the DRC is incorporated. However, an exception to the general rule applies if a DRC is incorporated in both the U.S. and Canada. In such a case, determine where the company was incorporated initially, and if the company continues to be a resident of such country.

1. If the company is a U.S. corporation that continues into Canada and is incorporated in Canada, then it is not a U.S. resident.

2. If the company originated in Canada and continues into the U.S. and is incorporated in the U.S., then it does get benefits as a U.S. resident.

(14) Dual resident corporations may not be entitled to U.S. residency certification, if requesting certification for the other country of residence named on Line 4e of Form 8802. See the chart below for determining if a DRC is entitled to treaty benefits in its dual resident country: