Many U.S businesses and individuals conducting financial activities in foreign countries face numerous difficulties among which is the issue of double taxation. You may be an artist who receives royalty payments from a foreign country or you may be a business representative performing services or selling your products overseas, it does not matter. Your income is being taxed in the United States and abroad alike. Fortunately United States have a number of treaties in place with many foreign nations to allow reduction of double taxation for U.S residents. To find out the exact percentage reduction you will have to check the appropriate treaty between the United States and the target country.
How do you get the U.S Residency Certificate?
First of all you as an individual or your entity must qualify as the U.S Resident for the tax purposes, and therefore pay U.S taxes, or file all appropriate information returns if it is a non-profit entity.
To obtain IRS Form 6166 (also known as U.S Residency Certificate) you will have to fill out
and submit IRS Form 8802, which is the application for the U.S Residency Certification. IRS provides a great manual on how to fill out the Form 8802, however if you are doing it for the first time you most like will still have several questions. The simplest procedures are for the individuals and C-Corporations, as they are qualified directly based on their income tax returns. Limited Liability Companies, Partnerships and S-Corporations are all treated as Partnerships and at least on Partner must be U.S Resident for tax purposes and pay taxes in the United States.
When to apply?
That depends on the year for which certification is requested. For instance if you need the certification for the next calendar year the earliest you may apply is December 1 of the current year. Your envelope must be postmarked not earlier than December 1. For the previous year’s certification or for the current year you may apply anytime. Remember to submit proper Statements of Perjury for the years for which the taxes are still due.
How does the U.S Residency Certificate look like?
Form 6166 is a green letter printed on Department of Treasury, Internal Revenue Service letterhead with the embedded security features to ovoid photocopies.
What to submit with Form 8802?
It all depends on your individual case. It is a recently formed entity, you might want to submit a copy of your certificate of registration to validate that the entity is recently formed and therefore it did not pay taxes yet. If you are applying for the current year certification or the following year, you will have to provide statement of perjury made by an officer of the entity who may legal bind the entity to ensure that the entity will remain U.S Resident and therefore pay U.S Taxes.
Other information submitted depends on the case by case basis and may include copies of tax returns, payment confirmation receipts and other IRS forms.
What is the turnaround time?
It will take anywhere from 6 to 14 weeks to obtain Form 6166 from the IRS. This does not include the time to apostille the document or have it translated.
Why use A&M Logos to obtain your Form 6166?
We have developed an online application form which will provide us with all the required information to prepare all required paperwork without the need for you to leave your home or office. Our complete range of services will save you time and efforts by requesting the authentication by the apostille of your form 6166 and translation of your U.S Residency Certificate into the foreign language all from one online application. For those who need to obtain the IRS Residency Certificates on annual basis we provide early reminders in the end of each calendar year to ensure that our clients order documents ahead of time as this process is a lengthy one.
There is more information to be found on our website when it comes to IRS Form 6166 or U.S Residency Certificate.