What Is Form 8840 and How Does the Closer Connection Exception Work?

Form 8840 (Closer Connection Exception Statement for Aliens) lets you avoid U.S. resident alien status even if you meet the Substantial Presence Test by proving a closer connection to a foreign country. You must have been present in the U.S. fewer than 183 days in the current year and maintain a tax home in the foreign country (IRS: Closer Connection Exception to the Substantial Presence Test).

Two requirements must both be met:

• Fewer than 183 days of physical presence in the U.S. during the current calendar year
• A closer connection to one foreign country (or two, in limited cases) than to the United States

The IRS evaluates the closer connection based on factors including:

Who typically benefits from Form 8840:

• Canadian snowbirds who spend winters in the U.S. but maintain a primary home in Canada
• Cross-border commuters who travel frequently to the U.S. for business
• Retirees splitting time between the U.S. and a foreign country
• Foreign executives with regular U.S. meetings but a foreign home base

Filing mechanics:

• File annually by the due date of your return (including extensions), even for years you had no U.S. filing obligation
• Attach to Form 1040-NR if you have U.S.-source income requiring a return
• File standalone if you have no U.S. filing obligation but want to establish the exception on record
• Failure to file does not automatically make you a resident, but the IRS may challenge your status without it

Form 8840 does not apply if you have a green card or have applied for one. Green card holders are resident aliens regardless of the number of days present.

For more on residency tests, see our Substantial Presence Test guide.