Closer Connection Exception Checker

IRC Section 7701(b)(3)(B)  •  Form 8840 Eligibility Analysis
Form 8840IRC §7701(b)(3)(B)Treas. Reg. 301.7701(b)-22022 - 2026
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Form 8840 IRC Sec. 7701(b)(3)(B) Treas. Reg. 301.7701(b)-2
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How This Works

Even if you meet the Substantial Presence Test (SPT) and would otherwise be classified as a U.S. resident alien, you may still be treated as a nonresident alien for the year if you qualify for the Closer Connection Exception under IRC Section 7701(b)(3)(B).

To qualify, you must satisfy all three conditions simultaneously. This tool walks through each condition and evaluates the key "closer connection" factors that the IRS examines.

Condition 1
Days < 183
Condition 2
Tax Home Abroad
Condition 3
Closer Connection
No Green Card
Important limitations: This exception is not available if you had a pending application for adjustment of status (Green Card) at any time during the year, or if you were present in the U.S. for 183 days or more. The exception also does not apply if you established a closer connection to two foreign countries; you may only claim a closer connection to one. - IRC Section 7701(b)(3)(B)(iii); Treas. Reg. 301.7701(b)-2(d).
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Basic Information

The exception only matters if SPT was met. Use the SPT Calculator to determine this.
Includes Form I-485 pending or immigrant visa petition filed with USCIS. IRC Sec. 7701(b)(3)(B)(iii).
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Condition 1 - Days Present in U.S.

Were you present in the United States for fewer than 183 days during the tax year?
Count every day you were physically present in the U.S., including partial days. The threshold is strict - exactly 183 days disqualifies the exception.
IRC Sec. 7701(b)(3)(B)(i)
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This condition is automatically evaluated based on the days entered in Step 1. If you entered 183 or more days, Condition 1 is not met and the exception is unavailable regardless of other factors.
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Condition 2 - Tax Home in a Foreign Country

You must have maintained your "tax home" in a foreign country for the entire calendar year. Your tax home is generally the location of your principal place of business or employment. If you have no fixed place of business, your tax home is your regular place of abode. - Treas. Reg. 301.7701(b)-2(c).

Did you have a principal place of business or employment in a foreign country for the entire year?
If self-employed, this is where you primarily conducted your business activities.
Treas. Reg. 301.7701(b)-2(c)(1)
If no fixed place of business: did you maintain a regular place of abode (home) in a foreign country for the entire year?
Answer "N/A" (select No) if you answered Yes above - tax home was already established through your principal place of business.
Treas. Reg. 301.7701(b)-2(c)(2)
Was your tax home in the same foreign country for which you are claiming the closer connection?
The tax home country and the closer connection country must be the same.
IRC Sec. 7701(b)(3)(B)(ii)
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Condition 3 - Closer Connection Factors

You must have had a closer connection to the foreign country than to the United States during the tax year. The IRS evaluates the following factors. No single factor is determinative - the totality of facts and circumstances governs. - Treas. Reg. 301.7701(b)-2(d)(2).

Factor Foreign
Country		 United
States		 Neither /
Both Equal
The IRS looks at these factors holistically. A strong concentration of factors in the foreign country column supports the exception. No single factor is automatically determinative. The location of your permanent home and family tend to carry the most weight in practice. - Treas. Reg. 301.7701(b)-2(d)(2)(i)-(xi).
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Eligibility Analysis

Your Inputs
Tax year-
Days in U.S.-
Foreign country claimed-
Closer connection factors - Foreign-
Closer connection factors - U.S.-
Closer connection factors - Neither-
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Complete All Steps Above

Answer all questions to receive your eligibility analysis.

Form 8840 - Key Facts
Authority: IRC Sec. 7701(b)(3)(B); Treas. Reg. 301.7701(b)-2
Filed On: Form 8840 attached to Form 1040-NR or filed standalone if no return required
Due Date: April 15 (June 15 if abroad); extendable to Oct 15
Penalty: $1,000 per year for failure to file without reasonable cause
Tip: File even if you believe it is clear-cut - the IRS expects the form to be filed to formally claim the exception
Related Considerations
Treaty: If this exception does not apply, a treaty tiebreaker under the applicable U.S. income tax treaty may still achieve nonresident treatment. File Form 8833.
Two Countries: You cannot claim a closer connection to two foreign countries simultaneously. Pick one.
State Taxes: This exception addresses federal tax only. State residency rules are separate and may differ significantly.
Year of Change: If this is the year you arrived in or departed from the U.S., dual-status rules may apply instead.
This tool is for informational purposes only and does not constitute tax advice. Tax determinations are fact-specific. Consult a qualified tax professional before making any filing or planning decisions. A tk.cpa resource - tk.cpa.
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