Publication 570 - Introductory Material
What's New
U.S. statute of limitations for bona fide residents of the U.S. Virgin Islands. A new automatic exchange of information program has been established between the IRS and the U.S. Virgin Islands (USVI) that will provide the IRS with the tax information of certain taxpayers who file an income tax return with the USVI claiming bona fide residency. For tax years ending on or after December 31, 2006, if you (and your spouse if filing a joint return) claim bona fide residency for the entire tax year, file your income tax return only with the USVI. No separate return is required to be filed with the United States to start the statute of limitations on assessment of your U.S. tax. See Notice 2007-31 and Notice 2007-19 for more information, including rules for tax years ending before December 31, 2006.
Reminders
Third party designee. You can check the “Yes” box in the “Third Party Designee” area of your U.S. income tax return to authorize the IRS to discuss your U.S. income tax return with a friend, family member, or any other person you choose. This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your return. It also allows your designee to perform certain actions. See your income tax package for details.
IRS individual taxpayer identification numbers (ITINs) for aliens. If you are a nonresident or resident alien and you do not have and are not eligible to get a social security number (SSN), you must apply for an ITIN. For details on how to do so, see Form W-7, Application for IRS Individual Taxpayer Identification Number, and its instructions. Allow 6 weeks for the IRS to notify you of your ITIN (8-10 weeks if submitted during peak processing periods or if you are filing from overseas). If you already have an ITIN, enter it wherever your SSN is requested on your tax return. An ITIN is for tax use only. It does not entitle you to social security benefits or change your employment or immigration status under U.S. law.
Earned income credit (EIC). Generally, if you are a bona fide resident of a U.S. possession, you cannot claim the EIC on your U.S. tax return. However, certain U.S. possessions may allow bona fide residents to claim the EIC on their possession tax return. To claim the EIC on your U.S. tax return, your home (and your spouse's if filing a joint return) must have been in the United States for more than half the year. If you have a child, the child must have lived with you in the United States for more than half the year. For this purpose, the United States includes only the 50 states and the District of Columbia. Special rules apply to military personnel stationed outside the United States. For more information on this credit, see Publication 596, Earned Income Credit (EIC).
Change of address. If you change your mailing address, be sure to notify the Internal Revenue Service using Form 8822, Change of Address. Mail it to the Internal Revenue Service Center for your old address (addresses for the Service Centers are on the back of the form).
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Introduction
This publication discusses how to treat income received from the following U.S. possessions on your tax return(s).
American Samoa.
The Commonwealth of Puerto Rico (Puerto Rico).
The Commonwealth of the Northern Mariana Islands (CNMI).
Guam.
The U.S. Virgin Islands (USVI).
Unless stated otherwise, when the term “possession” is used in this publication, it includes the Commonwealths of Puerto Rico and the Northern Mariana Islands.
Chapter 1 discusses the requirements for being considered a bona fide resident of the listed possessions.
Chapter 2 gives the rules for determining if your income is from sources within, or effectively connected with a trade or business in, those possessions.
Next, chapter 3 looks at the rules for filing tax returns when you receive income from any of these possessions. You may have to file a U.S. tax return only, a possession tax return only, or both returns. This generally depends on whether you are a bona fide resident of the possession. In some cases, you may have to file a U.S. return, but will be able to exclude income earned in a possession from U.S. tax. You can find illustrated examples of some of the additional forms required in chapter 5.
If you are not a bona fide resident of one of the above possessions, or are otherwise required to file a U.S. income tax return, the information in chapter 4 will tell you how to file your U.S. tax return. This information also applies if you have income from U.S. insular areas other than the five possessions listed above because that income will not qualify for any of the exclusions or other benefits discussed in chapter 3. These other U.S. insular areas include:
Baker Island,
Howland Island,
Jarvis Island,
Johnston Island,
Kingman Reef,
Midway Islands,
Palmyra Atoll, and
Wake Island.
Internal Revenue Service
International Returns Section
P.O. Box 920
Bensalem, PA 19020-8518
If you need additional information on your tax obligations in a U.S. possession, write to the tax department of that possession. Their addresses are provided in chapter 3 under the individual headings for each possession.
Comments and suggestions
We welcome your comments about this publication and your suggestions for future editions. You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
Tax questions
If you have a tax question, check the information available on www.irs.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.
You can get the necessary possession tax forms at the tax office for the appropriate possession. The office addresses are given in chapter 3.
Useful Items - You may want to see:
Publication
54 Tax Guide for U.S. Citizens and Resident Aliens Abroad
514 Foreign Tax Credit for Individuals
519 U.S. Tax Guide for Aliens
Form (and Instructions)
1040-PR
Planilla Para la Declaración de la Contribución Federal sobre el Trabajo por Cuenta Propia (Incluyendo el Crédito Tributario Adicional por Hijos para Residentes Bona Fide de Puerto Rico)1040-SS
U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)1116
Foreign Tax Credit4563
Exclusion of Income for Bona Fide Residents of American Samoa4868
Application for Automatic Extension of Time To File U.S. Individual Income Tax Return5074
Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands (CNMI)8689
Allocation of Individual Income Tax to the U.S. Virgin Islands8898
Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession
