Nonprofit Resources

Substantial Presence Test Relief for Certain Eligible Non-Resident Aliens

In newly released Rev. Proc. 2020-20, the IRS has granted relief from the “number of days requirement” applicable in the “substantial presence test” to certain non-resident alien individuals who will be in the U.S. in 2020 for more days than anticipated due to travel restrictions arising from the COVID-19 pandemic.

The substantial presence test requires that individuals in the U.S. more than 183 days (the actual formula is more complicated than this) be treated as a U.S. resident for federal income tax purposes.

Individuals who find themselves in the U.S. in 2020 for a sufficient number of days to trigger application of the substantial presence test due to COVID-19 related travel restrictions may file IRS Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition, to obtain a “medical condition exemption” permitting them to exclude certain days of physical presence in the U.S.

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