IRS Form 8802, Application for United States Residency Certification, User Fee Payment

Public Pension Funds often need an Internal Revenue Service ("IRS") certification to claim foreign tax recaptures and exemptions. This Bulletin reviews new procedures for obtaining the necessary certifications.

IRS Form 8802, Application for United States Residency Certification, is used to request proof of a taxpayer’s U.S. residency status for federal tax purposes to claim benefits under an income tax treaty or an exemption from a value added tax (VAT) imposed by a foreign country. In response, the IRS provides a U.S. residency certification to the applicant on IRS Form 6166.

In September 2006, the IRS announced in Release 2006-139 that a user fee would be charged for filing Form 8802 if it is postmarked on or after October 2, 2006.  The IRS later delayed this effective date and announced in Notice 2006-90 that user fees will be charged for Form 8802 applications postmarked on or after November 1, 2006.

The IRS has now announced that beginning April 2, 2007, user fees associated with Form 8802 may be paid electronically through the IRS Web site.  The new online payment option can be accessed on the "Electronic Payment of User Fees" page on IRS.gov.  This new payment option was announced in IRS Revenue Procedure 2007-22.

The applicant will receive a confirmation number and must include that number on page one of Form 8802 prior to mailing.

The IRS allows a single Form 8802 to be used to request multiple Forms 6166.  The initial user fee of $35 covers a single Form 8802 requesting up to 20 Forms 6166 for a single Taxpayer Identification Number (TIN), regardless of the country for which certification is requested or the tax period to which the certification applies.  An additional $5 covers up to 20 additional Forms 6166 on the same Form 8802.  Applicants are advised to include all Forms 6166 requests on a single Form 8802 to avoid a new $35 user fee charge for processing a second Form 8802 application.

The IRS has also issued an FAQ regarding the online payment option for Form 8802.

For additional information regarding Form 8802 or the new electronic payment option, please contact Mary Beth Braitman or Terry Mumford.