Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Tax Forms 1040x

1040x Amended Return FormState Amended FormHelp With 1040xFree Income Tax SoftwareCan I File 1040nr OnlineFile 2011 Taxes Online For FreeTax Software 2005 2006How To File An Extension For 2012 TaxesHrblockfreeI Need To File My State Taxes Only1040 Ez Free1040ez Fillable FormFile 2009 Taxes OnlineFle 2012 Taxes Late Online Tax FilingFile Federal Taxes Online Free 2012Irs Vita SitesTax Amendment Form 2011Turbotax Online 20122012 Tax Return Form2012 Tax Returns1040ez 2010How To Fill Out Form 1040xHow To File Amended ReturnTurbo Taxes 2011Irs Amended Returns104ez FormCan I Still E File 2011 TaxesFederal Income Tax Amended ReturnIrs 1040x 2010Amended Tax Return FormAmending A Tax Return OnlineFree State Return TurbotaxForm 1040ezFiling A 1040x Amended Tax ReturnFree Tax Preparation SoftwareEz FormsWhere To File My 2011 Tax ReturnTurbotax Free MilitaryFree State And Federal Tax Filing For Low Income2013 1040x

Tax Forms 1040x

Tax forms 1040x Part One -   Fuel Taxes and Fuel Tax Credits and Refunds Chapter 1 defines the types of fuel, taxable events, and exemptions or exceptions to the fuel taxes. Tax forms 1040x Chapter 2 provides information on, and definitions of, the nontaxable uses and explains how to make a claim. Tax forms 1040x Table of Contents 1. Tax forms 1040x   Fuel TaxesDefinitions Information Returns Registration RequirementsAdditional information. Tax forms 1040x Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. Tax forms 1040x Reseller statement. Tax forms 1040x Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Tax forms 1040x Deep-draft ocean-going vessels. Tax forms 1040x Passenger vessels. Tax forms 1040x Ocean-going barges. Tax forms 1040x State or local governments. Tax forms 1040x Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel 2. Tax forms 1040x   Fuel Tax Credits and RefundsGasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Tax forms 1040x Providing information. Tax forms 1040x Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Tax forms 1040x Fuel used between airfield and farm. Tax forms 1040x Fuel not used for farming. Tax forms 1040x Vehicles not considered highway vehicles. Tax forms 1040x Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP292 Notice

We're revoking your Qualified Subchapter S Trust (QSST) election.


What you need to do

  • Timely file Form 1041

You may want to

  • Keep this notice in your permanent records.

Understanding your notice

Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP292, Page 1

 

Page Last Reviewed or Updated: 16-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Tax Forms 1040x

Tax forms 1040x 1. Tax forms 1040x   Bona Fide Residence Table of Contents Presence TestDays of Presence in the United States or Relevant Possession Significant Connection Tax HomeExceptions Closer ConnectionException for Year of Move Special Rules in the Year of a MoveYear of Moving to a Possession Year of Moving From a Possession Reporting a Change in Bona Fide ResidenceWho Must File Penalty for Not Filing Form 8898 In order to qualify for certain tax benefits (see chapter 3), you must be a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI for the entire tax year. Tax forms 1040x Generally, you are a bona fide resident of one of these possessions (the relevant possession) if, during the tax year, you: Meet the presence test, Do not have a tax home outside the relevant possession, and Do not have a closer connection to the United States or to a foreign country than to the relevant possession. Tax forms 1040x Special rule for members of the U. Tax forms 1040x S. Tax forms 1040x Armed Forces. Tax forms 1040x   If you are a member of the U. Tax forms 1040x S. Tax forms 1040x Armed Forces who qualified as a bona fide resident of the relevant possession in an earlier tax year, your absence from that possession during the current tax year in compliance with military orders will not affect your status as a bona fide resident. Tax forms 1040x Likewise, being in a possession solely in compliance with military orders will not qualify you for bona fide residency. Tax forms 1040x Also see the special income source rule for members of the U. Tax forms 1040x S. Tax forms 1040x Armed Forces in chapter 2, under Compensation for Labor or Personal Services . Tax forms 1040x Special rule for civilian spouse of active duty member of the U. Tax forms 1040x S. Tax forms 1040x Armed Forces. Tax forms 1040x   If you are the civilian spouse of an active duty servicemember, under Military Spouses Residency Relief Act (MSRRA) you can choose to keep your prior residence or domicile for tax purposes (tax residence) when accompanying the servicemember spouse, who is relocating under military orders, to a new military duty station in one of the 50 states, the District of Columbia, or a U. Tax forms 1040x S. Tax forms 1040x possession. Tax forms 1040x Before relocating, you and your spouse must have the same tax residence. Tax forms 1040x If you are a civilian spouse and choose to keep your prior tax residence after such relocation, the source of income for services performed (for example, wages, salaries, tips, or self-employment) by you is considered to be (the jurisdiction of) the prior tax residence. Tax forms 1040x As a result, the amount of income tax withholding (from Form(s) W-2, Wage and Tax Statement) that you are able to claim on your federal return, as well as the need to file a state or U. Tax forms 1040x S. Tax forms 1040x possession return, may be affected. Tax forms 1040x For more information, consult with state, local, or U. Tax forms 1040x S. Tax forms 1040x possession tax authorities regarding your tax obligations under MSRRA. Tax forms 1040x Presence Test If you are a U. Tax forms 1040x S. Tax forms 1040x citizen or resident alien, you will satisfy the presence test for the entire tax year if you meet one of the following conditions. Tax forms 1040x You were present in the relevant possession for at least 183 days during the tax year. Tax forms 1040x You were present in the relevant possession for at least 549 days during the 3-year period that includes the current tax year and the 2 immediately preceding tax years. Tax forms 1040x During each year of the 3-year period, you must be present in the relevant possession for at least 60 days. Tax forms 1040x You were present in the United States for no more than 90 days during the tax year. Tax forms 1040x You had earned income in the United States of no more than a total of $3,000 and were present for more days in the relevant possession than in the United States during the tax year. Tax forms 1040x Earned income is pay for personal services performed, such as wages, salaries, or professional fees. Tax forms 1040x You had no significant connection to the United States during the tax year. Tax forms 1040x Special rule for nonresident aliens. Tax forms 1040x   Conditions (1) through (5) above do not apply to nonresident aliens of the United States. Tax forms 1040x Instead, nonresident aliens must meet the substantial presence test discussed in chapter 1 of Publication 519. Tax forms 1040x In that discussion, substitute the name of the possession for “United States” and “U. Tax forms 1040x S. Tax forms 1040x ” wherever they appear. Tax forms 1040x Disregard the discussion in that chapter about a Closer Connection to a Foreign Country. Tax forms 1040x Days of Presence in the United States or Relevant Possession Generally, you are treated as being present in the United States or in the relevant possession on any day that you are physically present in that location at any time during the day. Tax forms 1040x Days of presence in a possession. Tax forms 1040x   You are considered to be present in the relevant possession on any of the following days. Tax forms 1040x Any day you are physically present in that possession at any time during the day. Tax forms 1040x Any day you are outside of the relevant possession in order to receive, or to accompany any of the following family members to receive, qualifying medical treatment (see Qualifying Medical Treatment , later). Tax forms 1040x Your parent. Tax forms 1040x Your spouse. Tax forms 1040x Your child, who is your son, daughter, stepson, or stepdaughter. Tax forms 1040x This includes an adopted child or child lawfully placed with you for legal adoption. Tax forms 1040x This also includes a foster child who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Tax forms 1040x Any day you are outside the relevant possession because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Tax forms 1040x   If, during a single day, you are physically present: In the United States and in the relevant possession, that day is considered a day of presence in the relevant possession; or In two possessions, that day is considered a day of presence in the possession where your tax home is located (see Tax Home , later). Tax forms 1040x Days of presence in the United States. Tax forms 1040x   You are considered to be present in the United States on any day that you are physically present in the United States at any time during the day. Tax forms 1040x However, do not count the following days as days of presence in the United States. Tax forms 1040x Any day you are temporarily present in the United States in order to receive, or to accompany a parent, spouse, or child who is receiving, qualifying medical treatment. Tax forms 1040x “Child” is defined under item 2c earlier. Tax forms 1040x “Qualifying medical treatment” is defined later. Tax forms 1040x Any day you are temporarily present in the United States because you leave or are unable to return to the relevant possession during any: 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice of a federal declaration of a major disaster is issued in the Federal Register, or Period for which a mandatory evacuation order is in effect for the geographic area in the relevant possession in which your main home is located. Tax forms 1040x Any day you are in the United States for less than 24 hours when you are traveling between two places outside the United States. Tax forms 1040x Any day you are temporarily present in the United States as a professional athlete to compete in a charitable sports event (defined later). Tax forms 1040x Any day you are temporarily in the United States as a student (defined later). Tax forms 1040x Any day you are in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Tax forms 1040x Qualifying Medical Treatment Such treatment is generally provided by (or under the supervision of) a physician for an illness, injury, impairment, or physical or mental condition. Tax forms 1040x The treatment generally involves: Any period of inpatient care that requires 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 Any temporary period of inpatient care in a residential medical care facility for medically necessary rehabilitation services. Tax forms 1040x With respect to each qualifying medical treatment, you must prepare (or obtain) and maintain documentation supporting your claim that such treatment meets the criteria to be considered days of presence in the relevant possession. Tax forms 1040x You must be able to produce this documentation within 30 days if requested by the IRS or tax administrator for the relevant possession. Tax forms 1040x You must keep the following documentation. Tax forms 1040x Records that provide: The patient's name and relationship to you (if the medical treatment is provided to a person you accompany); The name and address of the hospital, hospice, or residential medical care facility where the medical treatment was provided; The name, address, and telephone number of the physician who provided the medical treatment; The date(s) on which the medical treatment was provided; and Receipt(s) of payment for the medical treatment. Tax forms 1040x Signed certification by the providing or supervising physician that the medical treatment met the requirements for being qualified medical treatment, and setting forth: The patient's name, A reasonably detailed description of the medical treatment provided by (or under the supervision of) the physician, The dates on which the medical treatment was provided, and The medical facts that support the physician's certification and determination that the treatment was medically necessary. Tax forms 1040x Charitable Sports Event A charitable sports event is one that meets all of the following conditions. Tax forms 1040x The main purpose is to benefit a qualified charitable organization. Tax forms 1040x The entire net proceeds go to charity. Tax forms 1040x Volunteers perform substantially all the work. Tax forms 1040x In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in the charitable sports event. Tax forms 1040x 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. Tax forms 1040x Student To qualify as a student, you must be, during some part of each of any 5 calendar months during the calendar year: 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 A student taking a full-time, on-farm training course given by a school described in (1) above or by a state, county, or local government agency. Tax forms 1040x The 5 calendar months do not have to be consecutive. Tax forms 1040x Full-time student. Tax forms 1040x   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. Tax forms 1040x However, school attendance exclusively at night is not considered full-time attendance. Tax forms 1040x School. Tax forms 1040x   The term “school” includes elementary schools, middle schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical schools. Tax forms 1040x It does not include on-the-job training courses, correspondence schools, and schools offering courses only through the Internet. Tax forms 1040x Significant Connection One way in which you can meet the presence test is to have no significant connection to the United States during the tax year. Tax forms 1040x This section looks at the factors that determine if a significant connection exists. Tax forms 1040x You are treated as having a significant connection to the United States if you: Have a permanent home in the United States, Are currently registered to vote in any political subdivision of the United States, or Have a spouse or child (see item 2c under Days of presence in a possession , earlier) who is under age 18 whose main home is in the United States, other than: A child who is in the United States because he or she is the child of divorced or legally separated parents and is living with a custodial parent under a custodial decree or multiple support agreement, or A child who is in the United States as a student. Tax forms 1040x For the purpose of determining if you have a significant connection to the United States, the term “spouse” does not include a spouse from whom you are legally separated under a decree of divorce or separate maintenance. Tax forms 1040x Permanent home. Tax forms 1040x   A permanent home generally includes an accommodation such as a house, an apartment, or a furnished room that is either owned or rented by you or your spouse. Tax forms 1040x The dwelling unit must be available at all times, continuously, not only for short stays. Tax forms 1040x Exception for rental property. Tax forms 1040x   If you or your spouse own the dwelling unit and at any time during the tax year it is rented to someone else at fair rental value, it will be considered your permanent home only if you or your spouse use that property for personal purposes for more than the greater of: 14 days, or 10% of the number of days during that tax year that the property is rented to others at a fair rental value. Tax forms 1040x   You are treated as using rental property for personal purposes on any day the property is not being rented to someone else at fair rental value for the entire day. Tax forms 1040x   A day of personal use of a dwelling unit is also any day that the unit is used by any of the following persons. Tax forms 1040x You or any other person who has an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement. Tax forms 1040x A member of your family or a member of the family of any other person who has an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Tax forms 1040x Family includes only brothers and sisters, half-brothers and half-sisters, spouses, ancestors (parents, grandparents, etc. Tax forms 1040x ), and lineal descendants (children, grandchildren, etc. Tax forms 1040x ). Tax forms 1040x Anyone under an arrangement that lets you use some other dwelling unit. Tax forms 1040x Anyone at less than a fair rental price. Tax forms 1040x   However, any day you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Tax forms 1040x Whether your property is used mainly for this purpose is determined in light of all the facts and circumstances, such as: The amount of time you devote to repair and maintenance work, How often during the tax year you perform repair and maintenance work on this property, and The presence and activities of companions. Tax forms 1040x   See Publication 527, Residential Rental Property, for more information about personal use of a dwelling unit. Tax forms 1040x Example—significant connection. Tax forms 1040x Ann Green, a U. Tax forms 1040x S. Tax forms 1040x citizen, is a sales representative for a company based in Guam. Tax forms 1040x Ann lives with her spouse and young children in their house in Guam, where she is also registered to vote. Tax forms 1040x Her business travel requires her to spend 120 days in the United States and another 120 days in foreign countries. Tax forms 1040x When traveling on business, Ann generally stays at hotels but sometimes stays with her brother, who lives in the United States. Tax forms 1040x Ann's stays are always of short duration and she asks her brother's permission to stay with him. Tax forms 1040x Her brother's house is not her permanent home, nor does she have any other accommodations in the United States that would be considered her permanent home. Tax forms 1040x Ann satisfies the presence test because she has no significant connection to the United States. Tax forms 1040x Example—presence test. Tax forms 1040x Eric and Wanda Brown live for part of the year in a condominium, which they own, in the CNMI. Tax forms 1040x They also own a house in Maine where they live for 120 days every year to be near their grown children and grandchildren. Tax forms 1040x The Browns are retired and their only income is from pension payments, dividends, interest, and social security benefits. Tax forms 1040x In 2013, they spent only 175 days in the CNMI because of a 70-day vacation to Europe and Asia. Tax forms 1040x Thus, in 2013, the Browns were not present in the CNMI for at least 183 days, were present in the United States for more than 90 days, and had a significant connection to the United States because of their permanent home. Tax forms 1040x However, the Browns still satisfied the presence test with respect to the CNMI because they had no earned income in the United States and were physically present for more days in the CNMI than in the United States. Tax forms 1040x Tax Home You will have met the tax home test if you did not have a tax home outside the relevant possession during any part of the tax year. Tax forms 1040x Your tax home is your regular or main place of business, employment, or post of duty regardless of where you maintain your family home. Tax forms 1040x 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. Tax forms 1040x If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. Tax forms 1040x Exceptions There are some special rules regarding tax home that provide exceptions to the general rule stated above. Tax forms 1040x Students and Government Officials Disregard the following days when determining whether you have a tax home outside the relevant possession. Tax forms 1040x Days you were temporarily in the United States as a student (see Student under Days of Presence in the United States or Relevant Possession, earlier). Tax forms 1040x Days you were in the United States serving as an elected representative of the relevant possession, or serving full time as an elected or appointed official or employee of the government of that possession (or any of its political subdivisions). Tax forms 1040x Seafarers You will not be considered to have a tax home outside the relevant possession solely because you are employed on a ship or other seafaring vessel that is predominantly used in local and international waters. Tax forms 1040x For this purpose, a vessel is 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 waters and in the waters within 3 miles of the relevant possession exceeds the total amount of time it is used in the territorial waters of the United States, another possession, or any foreign country. Tax forms 1040x Example. Tax forms 1040x In 2013, Sean Silverman, a U. Tax forms 1040x S. Tax forms 1040x citizen, was employed by a fishery and spent 250 days at sea on a fishing vessel. Tax forms 1040x When not at sea, Sean lived with his spouse at a house they own in American Samoa. Tax forms 1040x The fishing vessel on which Sean works departs and arrives at various ports in American Samoa, other possessions, and foreign countries, but was in international or American Samoa's local waters for 225 days. Tax forms 1040x For purposes of determining bona fide residency of American Samoa, Sean will not be considered to have a tax home outside that possession solely because of his employment on board the fishing vessel. Tax forms 1040x Year of Move If you are moving to or from a possession during the year, you may still be able to meet the tax home test for that year. Tax forms 1040x See Special Rules in the Year of a Move , later in this chapter. Tax forms 1040x Closer Connection You will have met the closer connection test if, during any part of the tax year, you do not have a closer connection to the United States or a foreign country than to the relevant U. Tax forms 1040x S. Tax forms 1040x possession. Tax forms 1040x You will be 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 the United States or foreign country. Tax forms 1040x In determining if you have maintained more significant contacts with the relevant possession, the facts and circumstances to be considered include, but are not limited to, the following. Tax forms 1040x The location of your permanent home. Tax forms 1040x The location of your family. Tax forms 1040x The location of personal belongings, such as automobiles, furniture, clothing, and jewelry owned by you and your family. Tax forms 1040x The location of social, political, cultural, professional, or religious organizations with which you have a current relationship. Tax forms 1040x The location where you conduct your routine personal banking activities. Tax forms 1040x The location where you conduct business activities (other than those that go into determining your tax home). Tax forms 1040x The location of the jurisdiction in which you hold a driver's license. Tax forms 1040x The location of the jurisdiction in which you vote. Tax forms 1040x The location of charitable organizations to which you contribute. Tax forms 1040x The country of residence you designate on forms and documents. Tax forms 1040x The types of official forms and documents you file, such as Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), or Form W-9, Request for Taxpayer Identification Number and Certification. Tax forms 1040x Your connections to the relevant possession will be compared to the total of your connections with the United States and foreign countries. Tax forms 1040x Your answers to the questions on Form 8898, Part III, will help establish the jurisdiction to which you have a closer connection. Tax forms 1040x Example—closer connection to the United States. Tax forms 1040x Marcos Reyes, a U. Tax forms 1040x S. Tax forms 1040x citizen, moved to Puerto Rico in 2013 to start an investment consulting and venture capital business. Tax forms 1040x His spouse and two teenage children remained in California to allow the children to complete high school. Tax forms 1040x He traveled back to the United States regularly to see his spouse and children, to engage in business activities, and to take vacations. Tax forms 1040x Marcos had an apartment available for his full-time use in Puerto Rico, but remained a joint owner of the residence in California where his spouse and children lived. Tax forms 1040x Marcos and his family had automobiles and personal belongings such as furniture, clothing, and jewelry located at both residences. Tax forms 1040x Although Marcos was a member of the Puerto Rico Chamber of Commerce, he also belonged to and had current relationships with social, political, cultural, and religious organizations in California. Tax forms 1040x Marcos received mail in California, including bank and brokerage statements and credit card bills. Tax forms 1040x He conducted his personal banking activities in California. Tax forms 1040x He held a California driver's license and was also registered to vote there. Tax forms 1040x Based on all of the particular facts and circumstances pertaining to Marcos, he was not a bona fide resident of Puerto Rico in 2013 because he had a closer connection to the United States than to Puerto Rico. Tax forms 1040x Closer connection to another possession. Tax forms 1040x   Generally, possessions are not treated as foreign countries. Tax forms 1040x Therefore, a closer connection to a possession other than the relevant possession will not be treated as a closer connection to a foreign country. Tax forms 1040x Example—tax home and closer connection to possession. Tax forms 1040x Pearl Blackmon, a U. Tax forms 1040x S. Tax forms 1040x citizen, is a permanent employee of a hotel in Guam, but works only during the tourist season. Tax forms 1040x For the remainder of each year, Pearl lives with her spouse and children in the CNMI, where she has no outside employment. Tax forms 1040x Most of Pearl's personal belongings, including her automobile, are located in the CNMI. Tax forms 1040x She is registered to vote in, and has a driver's license issued by, the CNMI. Tax forms 1040x She does her personal banking in the CNMI and routinely lists her CNMI address as her permanent address on forms and documents. Tax forms 1040x Pearl satisfies the presence test with respect to both Guam and the CNMI. Tax forms 1040x She satisfies the tax home test with respect to Guam, because her regular place of business is in Guam. Tax forms 1040x Pearl satisfies the closer connection test with respect to both Guam and the CNMI, because she does not have a closer connection to the United States or to any foreign country. Tax forms 1040x Pearl is considered a bona fide resident of Guam, the location of her tax home. Tax forms 1040x Exception for Year of Move If you are moving to or from a possession during the year, you may still be able to meet the closer connection test for that year. Tax forms 1040x See Special Rules in the Year of a Move , next. Tax forms 1040x Special Rules in the Year of a Move If you are moving to or from a possession during the year, you may still be able to meet the tax home and closer connection tests for that year. Tax forms 1040x Year of Moving to a Possession You will satisfy the tax home and closer connection tests in the tax year of changing your residence to the relevant possession if you meet all of the following. Tax forms 1040x You have not been a bona fide resident of the relevant possession in any of the 3 tax years immediately preceding your move. Tax forms 1040x In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the last 183 days of the tax year. Tax forms 1040x You are a bona fide resident of the relevant possession for each of the 3 tax years immediately following your move. Tax forms 1040x Example. Tax forms 1040x Dwight Wood, a U. Tax forms 1040x S. Tax forms 1040x citizen, files returns on a calendar year basis. Tax forms 1040x He lived in the United States from January 2007 through May 2013. Tax forms 1040x In June 2013 he moved to the USVI, purchased a house, and accepted a permanent job with a local employer. Tax forms 1040x From July 1 through December 31, 2013 (more than 183 days), Dwight's principal place of business was in the USVI and, during that time, he did not have a closer connection to the United States or a foreign country than to the USVI. Tax forms 1040x If he is a bona fide resident of the USVI during all of 2014 through 2016, he will satisfy the tax home and closer connection tests for 2013. Tax forms 1040x If Dwight also satisfies the presence test in 2013, he will be considered a bona fide resident of the USVI for the entire 2013 tax year. Tax forms 1040x Year of Moving From a Possession In the year you cease to be a bona fide resident of American Samoa, the CNMI, Guam, or the USVI, you will satisfy the tax home and closer connection tests with respect to the relevant possession if you meet all of the following. Tax forms 1040x You have been a bona fide resident of the relevant possession for each of the 3 tax years immediately preceding your change of residence. Tax forms 1040x In the year of the move, you do not have a tax home outside the relevant possession or a closer connection to the United States or a foreign country than to the relevant possession during any of the first 183 days of the tax year. Tax forms 1040x You are not a bona fide resident of the relevant possession for any of the 3 tax years immediately following your move. Tax forms 1040x Example. Tax forms 1040x Jean Aspen, a U. Tax forms 1040x S. Tax forms 1040x citizen, files returns on a calendar year basis. Tax forms 1040x From January 2010 through December 2012, Jean was a bona fide resident of American Samoa. Tax forms 1040x Jean continued to live there until September 6, 2013, when she accepted new employment and moved to Hawaii. Tax forms 1040x Jean's principal place of business from January 1 through September 5, 2013 (more than 183 days), was in American Samoa, and during that period Jean did not have a closer connection to the United States or a foreign country than to American Samoa. Tax forms 1040x If Jean continues to live and work in Hawaii for the rest of 2013 and throughout years 2014 through 2016, she will satisfy the tax home and closer connection tests for 2013 with respect to American Samoa. Tax forms 1040x If Jean also satisfies the presence test in 2013, she will be considered a bona fide resident for the entire 2013 tax year. Tax forms 1040x Puerto Rico You will be considered a bona fide resident of Puerto Rico for the part of the tax year preceding the date on which you move if you: Are a U. Tax forms 1040x S. Tax forms 1040x citizen, Are a bona fide resident of Puerto Rico for at least 2 tax years immediately preceding the tax year of the move, Cease to be a bona fide resident of Puerto Rico during the tax year, Cease to have a tax home in Puerto Rico during the tax year, and Have a closer connection to Puerto Rico than to the United States or a foreign country throughout the part of the tax year preceding the date on which you cease to have a tax home in Puerto Rico. Tax forms 1040x Example. Tax forms 1040x Randy White, a U. Tax forms 1040x S. Tax forms 1040x citizen, files returns on a calendar year basis. Tax forms 1040x For all of 2011 and 2012, Randy was a bona fide resident of Puerto Rico. Tax forms 1040x From January through April 2013, Randy continued to reside and maintain his principal place of business in and closer connection to Puerto Rico. Tax forms 1040x On May 5, 2013, Randy moved and changed his tax home to Nevada. Tax forms 1040x Later that year he established a closer connection to the United States than to Puerto Rico. Tax forms 1040x Randy did not satisfy the presence test for 2013 with respect to Puerto Rico, nor the tax home or closer connection tests. Tax forms 1040x However, because Randy was a bona fide resident of Puerto Rico for at least 2 tax years before he moved to Nevada in 2013, he was a bona fide resident of Puerto Rico from January 1 through May 4, 2013. Tax forms 1040x Reporting a Change in Bona Fide Residence If you became or ceased to be a bona fide resident of a U. Tax forms 1040x S. Tax forms 1040x possession, you may need to file Form 8898. Tax forms 1040x This applies to the U. Tax forms 1040x S. Tax forms 1040x possessions of American Samoa, the CNMI, Guam, Puerto Rico, and the USVI. Tax forms 1040x Who Must File You must file Form 8898 for the tax year in which you meet both of the following conditions. Tax forms 1040x Your worldwide gross income (defined below) in that tax year is more than $75,000. Tax forms 1040x You meet one of the following. Tax forms 1040x You take a position for U. Tax forms 1040x S. Tax forms 1040x tax purposes that you became a bona fide resident of a U. Tax forms 1040x S. Tax forms 1040x possession after a tax year for which you filed a U. Tax forms 1040x S. Tax forms 1040x income tax return as a citizen or resident alien of the United States but not as a bona fide resident of the possession. Tax forms 1040x You are a citizen or resident alien of the United States who takes the position for U. Tax forms 1040x S. Tax forms 1040x tax purposes that you ceased to be a bona fide resident of a U. Tax forms 1040x S. Tax forms 1040x possession after a tax year for which you filed an income tax return (with the IRS, the possession tax authority, or both) as a bona fide resident of the possession. Tax forms 1040x You take the position for U. Tax forms 1040x S. Tax forms 1040x 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 CNMI, Guam, or the USVI. Tax forms 1040x Worldwide gross income. Tax forms 1040x   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 can exclude part or all of it) and before any deductions, credits, or rebates. Tax forms 1040x Example. Tax forms 1040x You are a U. Tax forms 1040x S. Tax forms 1040x citizen who moved to the CNMI in December 2012, but did not become a bona fide resident of that possession until the 2013 tax year. Tax forms 1040x You must file Form 8898 for the 2013 tax year if your worldwide gross income for that year was more than $75,000. Tax forms 1040x Penalty for Not Filing Form 8898 If you are required to file Form 8898 for any tax year and you fail to file it, you may owe a penalty of $1,000. Tax forms 1040x You may also owe this penalty if you do not include all the information required by the form or the form includes incorrect information. Tax forms 1040x In either case, you will not owe this penalty if you can show that such failure is due to reasonable cause and not willful neglect. Tax forms 1040x This is in addition to any criminal penalty that may be imposed. Tax forms 1040x Prev  Up  Next   Home   More Online Publications