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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 8898, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄2 "), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄2 ") x 559 mm (22") FOLD TO: 216 mm (8 1⁄2 ") x 279 mm (11")
PERFORATE: (ON FOLD)
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Action
䊳
Department of the Treasury
Internal Revenue Service
䊳
See separate instructions.
Revised proofs
requested
OMB No. 1545-0074
Do not file with your tax return.
Name. If married, file a separate form for each spouse required to file Form 8898.
Your social security number:
Current Address:
1
Signature
O.K. to print
Statement for Individuals Who Begin or End
Bona Fide Residence in a U.S. Possession
8898
Form
(March 2006)
Part I
Date
Address in Possession (if different from current address):
General Information
I am notifying the IRS that I (check box a or b below and enter the tax year in the space provided):
其
a bona fide resident of a U.S. possession in tax year 䊳
became
a
b
ceased to be
c Of which U.S. possession did you become (or cease to be) a bona fide resident:
American Samoa
Guam
Commonwealth of Puerto Rico
U.S. Virgin Islands
Commonwealth of the Northern Mariana Islands (CNMI)
Yes
2
Are you a U.S. citizen or resident alien (see instructions)?
3
Enter your average worldwide gross income for the three-year period prior to the tax year you became (or ceased
to be) a bona fide resident of the possession (see instructions)
Part II
No
Presence in the United States or Possession
4a If you checked box a on line 1 above, enter the date (month/day/year) you moved to the possession to establish bona fide residence
/
/
.
b If you checked box b on line 1 above, enter the date (month/day/year) you moved from the
possession to end bona fide residence
/
/
.
Note. Skip line 5 if you are filing Form 8898 for the tax year that begins before October 23, 2004, and ends after October 22,
2004, and you are following the rules under Temporary Regulations section 1.937-1T. See page 1 of the instructions.
5a Enter the number of days you were present in the United States during the tax year (see instructions)
b Enter the number of days you were present in the possession during the tax year (see instructions)
Note. Complete line 6 only if you are following the rules under Test for Tax Years Ending After January 31, 2006.
See page 1 of the instructions.
6
Did you have a significant connection to the United States during the tax year (see instructions)?
Yes
No
7
Did you have any earned income from U.S. sources during the tax year (see instructions)?
Yes
No
If “Yes” and you are following the rules under Test for Tax Years Ending After January 31, 2006, was the amount of the
income more than $3,000?
Yes
No
Yes
No
Yes
No
Yes
No
Part III
8
Closer Connection to the United States, Foreign Country, or Possession
Did you have a tax home outside the possession at any time during the tax year (see instructions)?
If “Yes,” where?
Note. Skip line 9 if you are following the rules under Test for Tax Years Ending Before October 23, 2004.
Did you have a closer connection to the United States or a foreign country than to the possession at any time during the tax year?
9
If “Yes,” where?
Note. Complete line 10 only if you are following the rules under Test for Tax Years Ending After January 31, 2006.
10
If you answered “Yes” to line 8 or line 9, are you using the year-of-the-move exception?
(See Exception for the Year of the Move on page 2 of the instructions.)
11
Where was your principal permanent home located during the tax year (see instructions)?
12
If you had more than one permanent home available to you at all times during the tax year, list the location of each:
13
Where was your immediate family located during the tax year?
14
Where was your automobile(s) located during the tax year?
15
Where was your automobile(s) registered during the tax year?
16
Where were your personal belongings, furniture, etc., located during the tax year?
17
List social, cultural, religious, professional, and political organizations (including but not limited to country clubs and chambers of
commerce) you participated in during the tax year and the location of each:
a
Location
b
Location
c
d
e
Location
Location
Location
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 37706B
Form 8898 (3-2006)
15
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 8898, PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄2 "), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄2 ") x 559 mm (22") FOLD TO: 216 mm (8 1⁄2 ") x 279 mm (11")
PERFORATE: (ON FOLD)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT
Form 8898 (3-2006)
Part III
18
Page
2
Closer Connection to the United States, Foreign Country, or Possession (Continued)
Where was the bank(s) with which you conducted your routine personal banking activities during the tax year located?
a
c
b
d
19
Did you conduct business activities in a location other than your tax home?
Yes
No
Yes
No
Yes
No
If “Yes,” where?
20a
Where was your driver’s license issued?
b If you hold a second driver’s license, where was it issued?
21
Were you registered to vote during the tax year?
If “Yes,” where?
22
Did you claim a homestead exemption for the tax year (see instructions)?
If “Yes,” where?
23
When completing official documents, forms, etc., what address did you list as your residence?
Note. If you used more than one address, specify the type of documents, forms, etc., and the addresses used.
a
Address
b
Address
c
Address
d
Address
e
Address
24
Where (for example, in the United States, possession, other country) did you keep your personal, financial, and legal documents?
25
Where (for example, from the United States, possession, other country) did you derive the majority of your income for the tax year?
26
Did you have any income from U.S. sources for the tax year (see instructions)?
Yes
No
Yes
No
Yes
No
Yes
No
If “Yes,” what type(s)?
27
Did you have any income from possession sources for the tax year (see instructions)?
If “Yes,” what type(s)?
28
Where (for example, in the United States, possession, other country) were your investments located (see instructions)?
29
List any charitable organizations to which you made contributions during the tax year and their locations:
a
Location
b
Location
c
d
e
Location
Location
Location
Part IV
Source of Income
During the tax year, did you have an office in the possession from which you conducted a trade or business?
30
If “Yes,” provide the address of that office and a short description of your trade or business:
31
During the tax year, did you receive compensation for personal services?
If “Yes,” where did you perform these services?
32
During the tax year, did you manufacture an article in the possession for sale to customers?
Yes
No
33
Did you sell or exchange appreciated property during the tax year after becoming a resident of the possession?
If “Yes,” provide a short description of the property and the amount of the gain (see instructions).
Yes
No
34
If you conducted a trade or business in the possession during the tax year, did that business consist of:
a Receiving rents or royalties for the use of intangible property?
Yes
No
b Receiving dividends or interest in connection with a banking, financing, or similar business?
Yes
No
c The sale or exchange (outside the possession) of personal property consisting of stock in trade or inventory?
Yes
No
Note. If you have any other information to substantiate your closer connection to the United States or the possession, or you wish to explain in
more detail any of your responses, attach a statement to this form.
Sign
Here
Keep a copy for
your records.
Under penalties of perjury, I declare that I have examined this form and the accompanying attachments and to the best of my knowledge and
belief, they are true, correct, and complete.
䊳
Your signature
䊳
Date
Form 8898 (3-2006)
PAGER/SGML
Page 1 of 4
Userid: ________ DTD INSTR04
Fileid: I8898.SGM ( 3-Aug-2006)
Leading adjust: -7%
Instructions for Form 8898
❏
Draft
(Init. & date)
❏
Ok to Print
9:17 - 3-AUG-2006
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Instructions for Form 8898
Department of the Treasury
Internal Revenue Service
(March 2006)
Statement for Individuals Who Begin or End Bona Fide Residence in a U.S.
Possession
Section references are to the Internal
Revenue Code unless otherwise noted.
worldwide gross income for that year is
more than $75,000.
General Instructions
When and Where To File
Purpose of Form
Use Form 8898 to notify the IRS that you
became or ceased to be a bona fide
resident of a U.S. possession in
accordance with section 937(c). See
Bona Fide Residence, on this page. For
this purpose, the following are considered
U.S. possessions: American Samoa,
Guam, the Commonwealth of the
Northern Mariana Islands (CNMI), the
Commonwealth of Puerto Rico, and the
U.S. Virgin Islands.
Who Must File
You must file Form 8898 for the tax year
(beginning with tax year 2001) in which
you meet both of the following conditions:
1. Your worldwide gross income
(defined below) in that tax year is more
than $75,000, and
2. You meet one of the following:
a. You take a position for U.S. tax
purposes that you became a bona fide
resident of a U.S. possession after a tax
year for which you filed a U.S. income tax
return as a citizen or resident of the
United States but not as a bona fide
resident of the possession.
b. You are a citizen or resident of the
United States who takes the position for
U.S. tax purposes that you ceased to be a
bona fide resident of a U.S. possession
after a tax year for which you filed an
income tax return (with the IRS, the
possession tax authorities, or both) as a
bona fide resident of the possession.
c. You take the position for U.S. tax
purposes that you became a bona fide
resident of Puerto Rico or American
Samoa after a tax year for which you
were required to file an income tax return
as a bona fide resident of the U.S. Virgin
Islands, Guam, or the CNMI.
When figuring whether your worldwide
gross income is more than $75,000, do
not include any of your spouse’s income.
If both you and your spouse are required
to file Form 8898, file a separate Form
8898 for each of you.
Worldwide gross income. Worldwide
gross income means all income you
received in the form of money, goods,
property, and services, including any
income from sources outside the United
States (even if you may exclude part or all
of it) and before any deductions, credits,
or rebates.
Example. You moved to the CNMI in
December 2002 but did not become a
bona fide resident of that possession until
the 2003 tax year. You must file Form
8898 for the 2003 tax year if your
File Form 8898 by the due date (including
extensions) for filing Form 1040 or Form
1040NR. File the form by itself at the
following address:
Internal Revenue Service Center
P.O. Box 331
Bensalem, PA 19020-8517
Note. For tax years 2001 through 2005,
mail Form 8898 to the above address by
October 16, 2006. But if you have an
extension to file your 2005 return, file
Form 8898 for 2005 by the extended due
date.
Penalty for Not Filing Form
8898
If you are required to file Form 8898 for
any tax year, and you fail to file it or do
not include all the information required by
the form or the form includes incorrect
information, you may owe a penalty of
$1,000, unless it is shown that such
failure is due to reasonable cause and not
willful neglect. This is in addition to any
criminal penalty that may be imposed.
Bona Fide Residence
Because of changes to the law, different
rules may apply to specific years for
determining whether you were a bona fide
resident of a U.S. possession.
2001 through 2003 tax years. If you
became or ceased to be a bona fide
resident in a tax year ending before
October 23, 2004, see Test for Tax Years
Ending Before October 23, 2004.
2004 tax year — Tax years beginning
before October 23, 2004, and ending
after October 22, 2004. For 2004, you
can use either of the following to
determine if you are a bona fide resident.
• Test for Tax Years Ending Before
October 23, 2004.
• Rules in Temporary Regulations
section 1.937-1T, 2005-20 I.R.B. 1039,
available at www.irs.gov/pub/irs-irbs/
irb05-20.pdf.
Generally, the rules in the temporary
regulations for 2004 are similar to the tax
home and closer connection tests
(excluding the year-of-move exception)
discussed in these instructions.
2005 tax year — Tax years beginning
after October 22, 2004, and ending
before February 1, 2006. For 2005, you
can use either of the following to
determine if you are a bona fide resident.
• Test for Tax Years Ending After
January 31, 2006.
Cat. No. 39789W
• Rules in Temporary Regulations
section 1.937-1T, 2005-20 I.R.B. 1039,
available at www.irs.gov/pub/irs-irbs/
irb05-20.pdf.
For 2005, the rules in the Temporary
Regulations are similar to the presence
test, tax home test, and closer connection
test (excluding the year-of-move
exception) discussed in these instructions
and it generally will be to your advantage
to use the rules under Test for Tax Years
Ending After January 31, 2006.
2006 and later tax years. If you became
or ceased to be a bona fide resident in a
tax year ending after January 31, 2006,
see Test for Tax Years Ending After
January 31, 2006.
Test for Tax Years Ending
Before October 23, 2004
For U.S. citizens, the test for determining
whether you are a bona fide resident of a
U.S. possession is based on your
intentions with regard to the length and
nature of your stay in the possession, as
shown by your particular facts and
circumstances. Accordingly, the following
factors may be considered in determining
your intent to be a bona fide resident of
the relevant possession:
• Your establishment of a permanent
home for you and members of your family
in the possession for an indefinite period
of time. See Permanent home, on page 3.
• Your marital status and residence of
your family.
• Your social, cultural, and economic ties
to the possession.
• Your physical presence in the
possession. See, for example, Days of
presence in the United States or U.S.
possession on page 2.
• Your reasons for, and the nature and
extent of, temporary absences.
• Your assumption of economic burdens
and payment of taxes to the possession.
• Your home(s) outside of the
possession.
• Your place of employment.
• Your tax home (see Tax Home Test on
page 2).
• Your location where you are registered
to vote.
• Your address on your driver’s license.
This is not an exclusive list; other
relevant factors may be considered.
Test for Tax Years Ending After
January 31, 2006
You are a bona fide resident of a U.S.
possession if you:
• Do not have a tax home outside the
possession,
• Do not have a closer connection to the
United States or to a foreign country than
to the possession, and
• Meet the presence test (defined on
pages 2 and 3).
Page 2 of 4
Instructions for Form 8898
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Special rule for members of the U.S.
Armed Forces. If a member of the U.S.
Armed Forces qualified as a bona fide
resident of the relevant possession in an
earlier tax year, his or her absence from
that possession during the current tax
year in compliance with military orders will
not affect the individual’s status as a bona
fide resident. Likewise, being in a
possession solely in compliance with
military orders will not qualify an individual
for bona fide residency.
Exception for the Year of the Move
An exception applies to the tax home and
the closer connection tests for the tax
year you moved to or from the
possession. Under this exception, you
satisfy the tax home and the closer
connection tests for the tax year of the
move if you meet the requirements
explained next.
Also, a special exception applies to the
bona fide residence test for the tax year
you moved from Puerto Rico. Under this
exception, you satisfy the bona fide
residence test for the tax year you moved
from Puerto Rico if you meet the
requirements discussed later under Year
of the move from Puerto Rico.
Year of the move to the possession.
You satisfy the tax home and closer
connection tests for the tax year you
moved to the possession if you meet all of
the following.
• You were not a bona fide resident of
the possession in any of the 3 tax years
immediately preceding the tax year of the
move.
• You did not have a tax home outside
the possession during any part of the final
183 days of the tax year of the move.
• You are a bona fide resident of the
possession for the 3 tax years
immediately following the tax year of the
move.
If you do not meet all of the above
conditions, you do not meet the tax home
and closer connection tests under this
exception. Instead, you must meet the
requirements explained later under Tax
Home Test and Closer Connection Test.
Year of the move from the possession.
You satisfy the tax home and closer
connection tests for the tax year you
moved from American Samoa, the CNMI,
Guam, or the U.S. Virgin Islands if you
meet all of the following.
• You were a bona fide resident of the
possession for the 3 tax years
immediately preceding the tax year of the
move.
• You did not have a tax home outside
the possession during any part of the first
183 days of the tax year of the move.
• You are not a bona fide resident of the
possession in any of the 3 tax years
immediately following the tax year of the
move.
If you do not meet all of the above
conditions, you do not meet the tax home
and closer connection tests under this
exception. Instead, you must meet the
requirements explained later under Tax
Home Test and Closer Connection Test.
Year of the move from Puerto Rico.
You qualify as a bona fide resident of
Puerto Rico for the part of the tax year
before the date you moved from Puerto
Rico if you meet all of the following
requirements.
1. You are a U.S. citizen.
2. You were a bona fide resident of
Puerto Rico for at least 2 tax years
immediately before the tax year of the
move.
3. In the year of the move, you:
a. Ceased to be a bona fide resident
of Puerto Rico.
b. Ceased to have a tax home in
Puerto Rico.
4. You had a closer connection to
Puerto Rico than to the United States or a
foreign country during the part of the tax
year before the date on which 3(b) above
occurred.
If you do not meet all of the above
requirements, you are not a bona fide
resident of Puerto Rico in the year of the
move under this exception. Instead, you
must meet the requirements explained
next under Tax Home Test, Closer
Connection Test, and Presence Test.
Tax Home Test
Under the tax home test, you generally
cannot have a tax home outside the
possession during any part of the tax
year. Your tax home is your regular or
main place of business, employment, or
post of duty regardless of where you
maintain your family home. If you do not
have a regular or main place of business
because of the nature of your work, then
your tax home is the place where you
regularly live. If you do not fit either of
these categories, you are considered an
itinerant and your tax home is wherever
you work.
Special rules for students and
government officials. Disregard the
following days when determining whether
you have a tax home outside the
possession.
• Days you were temporarily in the
United States as a student (see Student
defined on page 3).
• Days you were in the United States
serving as an elected representative of
the possession, or serving full time as an
elected or appointed official or employee
of the government of the possession (or
any of its political subdivisions).
Special rule for seafarers. You will not
be considered to have a tax home outside
the possession solely because you are
employed on a ship or other seafaring
vessel that is predominantly used in local
and international waters. For this
purpose, a vessel will be considered to be
predominantly used in local and
international waters if, during the tax year,
the total amount of time it is used in
international water and in water within 3
miles of the possession exceeds the total
amount of time it is used in the territorial
water of the United States, another
possession, or any foreign country.
Closer Connection Test
You meet the closer connection test if you
do not have a closer connection to the
United States or a foreign country than to
the U.S. possession.
You are considered to have a closer
connection to a possession than to the
United States or to a foreign country if
you have maintained more significant
contacts with the possession(s) than with
-2-
the United States or foreign country.
Significant contacts that may be
considered include:
1. The location of:
a. Your permanent home,
b. Your family,
c. Your current social, political,
cultural, or religious affiliations,
d. Where you conduct your routine
personal banking activities, and
e. The jurisdiction in which you hold a
driver’s license.
2. The country of residence you
designate on forms and documents.
Your connections to the possession
will be compared to the total of your
connections with the United States and
foreign countries. Your answers to the
questions on Form 8898, Part III, will help
establish the jurisdiction to which you
have a closer connection.
Presence Test
You meet the presence test for the tax
year if you meet one of the following
conditions.
1. You were present in the possession
for at least 183 days during the tax year.
2. You were present in the United
States for no more than 90 days during
the tax year.
3. You had $3,000 or less of earned
income from U.S. sources and were
present for more days in the possession
than in the United States during the tax
year. See the instructions for line 7 for the
definition of earned income from U.S.
sources.
4. You had no significant connection
(defined on page 3) to the United States
during the tax year.
If you are a nonresident alien, see
Special rule for nonresident aliens,
CAUTION on page 3.
Days of presence in the United States
or U.S. possession. Generally, you are
treated as being present in the United
States or in the possession on any day
that you are physically present in that
location at any time during the day. If,
during a single day, you were physically
present in the United States and a
possession, that day is counted as a day
of physical presence in the possession. If,
during a single day, you were physically
present in two possessions, that day is
counted as a day of physical presence in
the possession in which you have your
tax home.
Count the following days as days of
presence in the possession for purposes
of the presence test. Do not count them
as days of presence in the United States.
• Days you were outside the possession
to receive (or to accompany on a full-time
basis a parent, spouse, or child who is
receiving) qualified medical treatment
(defined on page 3). For this purpose, the
child must be your son, daughter,
stepchild, foster child, adopted child, or a
child lawfully placed with you for legal
adoption.
• Days you were outside the possession
because you left or were unable to return
to the possession during any 14-day
period within which a major disaster
occurred in the possession that was
declared a disaster area by the President.
!
Page 3 of 4
Instructions for Form 8898
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• Days you were outside the possession
because you left or were unable to return
to the possession during any period for
which a mandatory evacuation order was
in effect for the area in the possession
where you resided.
Do not count the following days as
days of presence in the United States for
purposes of the presence test.
• Days you were in the United States for
less than 24 hours when you were
traveling between two places outside the
United States.
• Days you were temporarily present in
the United States as a professional
athlete to compete in a charitable sports
event (defined later).
• Days you were temporarily in the
United States as a student (defined later).
• Days you were in the United States
serving as an elected representative of a
possession, or serving full time as an
elected or appointed official or employee
of the government of the possession (or
any of its political subdivisions).
Qualified medical treatment. This is
medical treatment provided by (or under
the supervision of) a physician for an
illness, injury, impairment, or physical or
mental condition. The treatment must
involve:
• A period of inpatient care (requiring an
overnight stay) in a hospital or hospice
and any period immediately before or
after that inpatient care to the extent it is
medically necessary, or
• A temporary period of inpatient care
(requiring an overnight stay) in a
residential medical care facility for
medically necessary rehabilitation
services.
You must keep records of your
qualified medical treatment. For details on
the records you must keep, see Pub. 570,
Tax Guide for Individuals With Income
From U.S. Possessions.
Charitable sports event. A charitable
sports event is one that meets the
following conditions.
• The main purpose is to benefit a
qualified charitable organization.
• The entire net proceeds go to charity.
• Volunteers perform substantially all the
work.
See Pub. 78 for a listing of most qualified
organizations. You can access Pub. 78
on the IRS website at www.irs.gov under
Charities and Non-Profits. In figuring the
days of presence in the United States,
you can exclude only the days on which
you actually competed in a sports event.
You cannot exclude the days on which
you were in the United States to practice
for the event, to perform promotional or
other activities related to the event, or to
travel between events.
Student defined. To qualify as a
student, you must be, during some part of
each of 5 calendar months during the
calendar year (not necessarily
consecutive):
1. A full-time student at a school that
has a regular teaching staff, course of
study, and regularly enrolled body of
students in attendance, or
2. A student taking a full-time, on-farm
training course given by a school
described in (1) above or a state, county,
or local government.
Full-time student defined. A full-time
student is a person who is enrolled for the
number of hours or courses the school
considers to be full-time attendance.
School defined. The term “school”
includes elementary schools, junior and
senior high schools, colleges, universities,
and technical, trade, and mechanical
schools. It does not include on-the-job
training courses, correspondence
schools, and Internet schools.
Significant connection. You have a
significant connection to the United States
if:
1. You have a permanent home
(defined later) in the United States,
2. You are registered to vote in any
political subdivision of the United States,
or
3. You have a spouse or child under
18 whose principal home is in the United
States. For this purpose —
a. A spouse does not include a
spouse from whom you are legally
separated under a decree of divorce or
separate maintenance.
b. The child must be your son,
daughter, stepchild, foster child, adopted
child, or a child lawfully placed with you
for legal adoption. But a child does not
include:
i. A child who lives in the United
States with a custodial parent under a
custodial decree or multiple support
agreement, or
ii. A child who is in the United States
as a student (defined earlier).
Permanent home. A permanent
home generally includes accommodations
such as a house, an apartment, or a
furnished room that is available at all
times, continuously and not solely for
short stays. However, if you or your
spouse owns the dwelling unit and rents it
to someone else during the tax year, the
dwelling unit is not your permanent home
unless, during that tax year, you use
some part of it for personal purposes for
more than the greater of:
• 14 days, or
• 10% of the days the property is rented
to others at a fair rental price.
Generally, the rental property is
considered used for personal purposes
on any day it is used by you, a family
member, or anyone else who has an
interest in the property. The rental
property is not considered used for
personal purposes on any day on which
the principal purpose for using the
property is to do repair or maintenance
work. For more information on
determining whether the rental property
was used for personal purposes, see
Pub. 570.
Special rule for nonresident aliens.
The presence test does not apply to
nonresident aliens. Instead, nonresident
aliens must meet the substantial
presence test discussed in chapter 1 of
Pub. 519, U.S. Tax Guide for Aliens. In
that discussion, substitute the name of
the possession for “United States” and
“U.S.” wherever they appear. Also
disregard the discussion in that chapter
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about a Closer Connection to a Foreign
Country.
Specific Instructions
Unless otherwise specified, answers to
questions seeking information for a tax
year generally refer to the tax year in
which you became (or ceased to be) a
bona fide resident.
Name and social security number
(SSN). If you file a joint return, enter only
the name and SSN of the spouse whose
information is being reported on Form
8898. If both you and your spouse are
required to file Form 8898, file a separate
Form 8898 for each of you.
Line 1
Check box a or b, whichever applies, and
enter the tax year you became or ceased
to be a bona fide resident of a U.S.
possession in the line provided.
Example. Mr. Grey, a U.S. citizen,
moved from New York to the U.S. Virgin
Islands on March 1, 2005. He chooses to
use the test for tax years ending after
January 31, 2006. He meets the tax home
and closer connection tests under the
exception for year of the move. He also
meets the presence test for 2005. Thus,
he became a bona fide resident of the
U.S. Virgin Islands in 2005. He checks
box a on line 1 and enters ‘‘2005’’ on the
line provided.
Line 2
If you are not a U.S. citizen, you are
either a nonresident alien or resident alien
of the United States. You are considered
a resident alien of the United States for
U.S. tax purposes if you meet either the
green card test or the substantial
presence test for the calendar year
(January 1 through December 31). If you
do not meet either of those tests, you are
considered a nonresident alien. For more
information about these tests, get Pub.
519.
Line 4
If you checked line 1, box a, enter on line
4a the exact date (month/day/year) you
moved to a possession to establish bona
fide residence. If you checked line 1, box
b, enter on line 4b the exact date (month/
day/year) you moved from the possession
to end bona fide residence.
Example. Mr. Grey, a U.S. citizen,
moved from New York to the U.S. Virgin
Islands on March 1, 2005. Mr. Grey would
enter “March 1, 2005” on line 4a.
Line 7
Earned income is wages, salaries,
professional fees, and other amounts
received as compensation for personal
services actually rendered, including the
fair market value of all remuneration paid
in any medium other than cash.
Professional fees include all fees received
by an individual engaged in a professional
occupation (such as doctor or lawyer) in
the performance of professional activities.
The source of your earned income is the
place where you perform the services for
which you received the income. For
example, earned income is from U.S.
Page 4 of 4
Instructions for Form 8898
9:17 - 3-AUG-2006
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
sources if the services that produced the
income were performed in the United
States.
Lines 11 and 12
See Permanent home, earlier. If you have
more than one home, your principal
permanent home is ordinarily the
permanent home you live in most of the
time.
Line 13
Your immediate family means your
spouse and minor children.
Line 22
Under state law, a homestead exemption
may:
1. Protect the owner of real property
from a forced sale or seizure of the
property from creditors (for example, in a
bankruptcy proceeding), or
2. Provide a reduction in state or local
real property taxes to qualified
homeowners.
In some states, for individuals to avail
themselves of these privileges, state laws
require a designation of the homestead
property, the filing or recordation of a
declaration to make the exemption
operative, or an application for the
homestead tax exemption. If either of the
following apply, answer yes on line 22
and indicate the state in which such
designation, declaration, recordation,
application, or property tax exemption
was made.
1. You made a designation of
homestead property or otherwise filed or
recorded a declaration concerning
property under a state homestead
exemption law, or
2. You applied for or took a
homestead tax exemption from state or
local property taxes.
Lines 26 and 27
See Pub. 570, chapter 2, for information
to determine the source of income.
Line 28
For stocks and bonds, indicate the
country of origin of the stock company or
debtor, and for U.S. companies or
debtors, the state or possession of
incorporation or formation. For example, if
you own shares of a U.S. publicly-traded
Delaware corporation, the investment is
considered located in the United States
(that is, Delaware), even though the
shares of stock are stored in a safe
deposit box in a foreign country or
possession.
Line 33
A gain is the amount you realize from a
sale or exchange of property that is more
than its adjusted basis. See Pub. 544,
Sales and Other Dispositions of Assets,
for the definitions of amount realized and
adjusted basis.
Special source rules apply to
gains from dispositions of certain
CAUTION property within 10 years of
becoming a bona fide resident of a U.S.
possession. See Special rules for gains
from dispositions of certain property in
Pub. 570 for more information.
!
Privacy Act and Paperwork Reduction
Act Notice. We ask for this information
to carry out the Internal Revenue laws of
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the United States. Section 937(c) and its
regulations require that you give us the
information. We need it to determine if
you are a bona fide resident of a U.S.
possession. If you do not provide this
information or provide false information,
you may be subject to penalties. We may
disclose this information to the
Department of Justice for civil and
criminal litigation, and to cities, states,
and the District of Columbia for use in
administering their tax laws. We may also
disclose this information to other
countries under a tax treaty, to federal
and state agencies to enforce federal
nontax criminal laws, or to federal law
enforcement and intelligence agencies to
combat terrorism.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by Code section
6103.
The average time and expense
required to complete and file this form will
vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making this
form simpler, we would be happy to hear
from you. See the instructions for your
income tax return.
| File Type | application/pdf |
| File Title | 2005 Form 1040 |
| Subject | U.S. Individual Income Tax Return |
| Author | SE:W:CAR:MP |
| File Modified | 2006-12-30 |
| File Created | 2006-12-30 |