Filing the 8840 "closer connection form"
Last year when several threads were posted about the 8840 "closer connection form" I was asking some of the full-timer snow-birds around my resort about it and was told a solid "no way are we filling...
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I know of two people who have been contacted over the last 18 months and it's not fun when you have to hire a tax lawyer to work everything out on your behalf. I think people are niave when they scoff at the subject.
A really good tax attorney can cost you $250+++ per hour.
....not to mention the $10,000 penalty retroactive for every year this form hadn't been filed if the IRS determines (from your passport in/out bar code swipes) that you apparently should have been filing a US tax return.
When we start approaching the 3-year cumulative "test" for foreign residency for US tax purposes, you can bet we'll be filling out that form. The down-side to not doing so is too hellacious to contemplate.
Good luck,
S-
