Key Takeaways
- If you accidentally meet the Substantial Presence Test, the Closer Connection Exception may save you
- You must prove stronger ties to your home country than to the US
- Your US stay must be less than 183 days, and you must maintain a tax home abroad
The Scenario
An individual goes on a long trip to the US and unexpectedly meets the Substantial Presence Test — a rule that can make the IRS treat them as a US resident for tax purposes, taxing worldwide income.
The Closer Connection Exception
To claim this exception, you must meet all conditions: US stay during the year is less than 183 days; you maintain a tax home in a foreign country; and you can demonstrate a closer connection to that country through permanent home, family, business interests, personal belongings, and social ties.
For global professionals, NRIs, consultants, and business owners travelling to the US — days matter, but ties matter more.