Aug 252018
 

At Inversoft, I’ve been working on getting our tax exemption for various European countries. This process requires a valid 8802 be submitted to the IRS. In return, the IRS will ship you out a shiny new form 6616 that you can snail mail across the Atlantic to the country of your choice. Yes, feel the sarcasm. This process is unbelievably dated, horrific, slow, lame, tree-killing, etc.

After talking to a number of accountants, some knowledgable and many not, I finally have the form filled out correctly and I’m about to drop it in the mail. Since this process is SOOOO painful, I figured I would give other S-Corp owners a heads up to hopefully save their sanity and a bunch of time.

Here’s exactly how to fill out form 8802:

  1. Put your full legal company name at the top under Applicant Name
  2. Put your S-Corp’s FEIN under Applicant’s U.S. taxpayer identification number
  3. Leave Line 1 blank
  4. Put in your company address on Line 2. I put in the exact same address on my S-Corp’s tax return since we haven’t moved this year. I don’t know if this is required, but might as well error on the safe side.
  5. Put in your company address on Line 3a
  6. Put in your name (that is you the shareholder/CEO) in Line 3b
  7. Checkmark Line 4f since you are an S-Corp
  8. Checkmark 1120s under the Yes. heading of Line 5
  9. Leave Line 6 blank
  10. Write 2018 on Line 7
  11. Put the last year and month you filed a tax return for on Line 8. This is the fiscal year end. So, in my case, the last year and month (fiscal year end) I filed was December 2017, so I put in 201712 and it MUST be in this format.
  12. Checkmark Income Tax on Line 9
  13. Write this exact text in two (2) separate lines on Line 10
    <Shareholder name> <Shareholder SSN> is a U.S. resident and will continue to be throughout the current tax year.
    <S-Corp name> <S-Corp FEIN> has filed its required return and the entity classification has not changed since the return was filed.
  14. Sign, date, add your phone number, name and title to the bottom
  15. Put your S-Corp name at to the top of the worksheet with your FEIN
  16. Put the current calendar year on the worksheet (still at the top section)
  17. Line 11 (on the worksheet) pick the country (or countries) you need and ask for 5 forms each
  18. Make sure you put in the correct total on Line 12

That’s all you need for form 8802. However, since you are filling this out for an S-Corp and according to tax law and treaties, S-Corp’s can’t claim exemptions or be identified as a corporation, you need to fill out a form 8821 also. The 8821 form is an authorization made by the shareholder in an S-Corp that is certifying that the form 8802 is correct. This is part of the perjury statement.

Filling out the form 8821 is also a nightmare and the instructions suck, so here are the steps for that form as well:

  1. Put your personal information (since you are the shareholder) on Line 1 (i.e. I put Brian Pontarelli here with my home address) including your SSN and phone number
  2. Leave Line 2 blank
  3. Don’t checkmark the checkbox on Line 3
  4. Write Income on Line 3a
  5. Write 1040 on Line 3b
  6. Write 2016, 2017, 2018, 2019, 2020 on Line 3c (or whatever years you need)
  7. Write Form 8802 on Line 3d
  8. Leave Line 4 blank
  9. Checkmark Line 5a
  10. Leave Line 6 blank
  11. Sign, date, print your name and put your title as CEO (or whatever it is)

That should be it. I’m sending mine off next week, so if they aren’t accepted, I’ll update this post with any fixes I made.

  7 Responses to “Steps to fill out form 8802 for an S-Corp”

  1. Hello Sir,

    My name is Jan and I have a dilemma.

    My boss gave me a task on filling for his Form 8802 under S Corp. Now my problem is that I don’t think he has shareholders.

    How can I fill out the form 8821 knowing that he doesn’t have any shareholders?

    • All companies have shareholders. My guess is that he the only shareholder and owns 100% of the company. That’s the same as my situation so these instructions should work for you.

      • Thank you Brian for your quick response.

        I have other questions:

        1. Let say he is the only shareholder. Is he going to be one who will fill out the Form 8821 too?

        2. On “Line 11 (on the worksheet) pick the country (or countries) you need and ask for 5 forms each” we only need it for our client in India. Is it okay to request up to 5 forms and the fee will be the same, $85 for the overall cost of the application?

        • Here are answers:

          #1 – His information should be on form 8821 also. That form is for the shareholder.

          #2 – You can order as many copies as you like for the $85 fee. At least, that’s what the instructions imply. I would assume they would reject it if you asked for like 10,000 copies.

          ;)

          • Thanks Brian!

            How about on Line 10 of the Form 8802? The Perjury Statement?

          • Hi Brian,

            On the Form 8802.

            Your Number 10 instruction for Line 7 says:

            Write this exact text in two (2) separate lines on Line 7
            is a U.S. resident and will continue to be throughout the current tax year.
            has filed its required return and the entity classification has not changed since the return was filed.

            —-

            In the form 8802 that I have, Line 7 says:

            Calendar year(s) for which certification is requested.
            Note. If certification is for the current calendar year or a year for which a tax return is not yet required to be filed, a penalties
            of perjury statement from Table 2 of the instructions must be entered on line 10 or attached to Form 8802 (see instructions).

            So I guess I should put the year that I am requesting the certification which is this year, 2018. And not the one that you instructed? Please enlighten me. Thank you so much!

          • Oops. Thanks for finding that issue. I updated the post to have the correct information for Line 7 and Line 10 (the perjury statement). Let me know if those items don’t make sense or don’t line up with your form correctly.

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