rp-20-20.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.602: Tax forms and instructions.
(Also: Part I, §§7701(b), 894; Treas. Reg. § 301.7701(b)-3)

Rev. Proc. 2020-20

SECTION 1. PURPOSE
Travel and related disruptions resulting from the global outbreak of the COVID-19
virus may cause certain Eligible Individuals, as defined in section 3.04 of this revenue
procedure, who did not anticipate meeting the “substantial presence test” under section
7701(b)(3) of the Internal Revenue Code (the Code) to become residents of the United
States for federal income tax purposes during 2020 and may impact an individual’s
qualifications for certain treaty benefits. This revenue procedure provides procedures
for Eligible Individuals to claim the COVID-19 Medical Condition Travel Exception, as
described in section 4.01 of this revenue procedure. Similar relief applies in

determining whether an individual (whether or not an Eligible Individual) qualifies for
benefits under a U.S. income tax treaty with respect to income from dependent personal
services performed in the United States.
SECTION 2. BACKGROUND
.01 The COVID-19 Emergency, as defined in section 3.01 of this revenue
procedure, may have affected the travel plans of foreign travelers who intended to leave
the United States. Regardless of whether they were infected with the COVID-19 virus,
individuals may have become severely restricted in their movements, including by order
of government authorities. Individuals who do not have the COVID-19 virus and attempt
to leave the United States may also face canceled flights and disruptions in other forms
of transportation, shelter-in-place orders, quarantines, and border closures.
Additionally, even those who can travel may feel unsafe doing so during the COVID-19
Emergency due to recommendations to implement social distancing and limit exposure
to public spaces.
.02 Section 7701(b) defines resident and nonresident alien individuals for
purposes of the Code (other than subtitle B). Unless an exception applies, alien
individuals who are not lawful permanent residents (that is, green-card holders), and
who meet the substantial presence test for a given calendar year by virtue of having
sufficient days of presence in the United States, are generally treated as U.S. residents
for that year. An alien individual is a resident under the substantial presence test in the
tested calendar year if: (1) the individual is present in the United States on at least 31
days during the tested calendar year; and (2) the sum of (i) the number of days of

presence in the tested calendar year; (ii) one-third of the number of days of presence in
the preceding calendar year; and (iii) one-sixth of the number of days of presence in the
second preceding calendar year totals 183 or more.
.03 When applying the substantial presence test, an alien individual may exclude
certain days of physical presence in the United States, including if the individual
qualifies for the Medical Condition Exception, as defined in section 3.05 of this revenue
procedure. The Medical Condition Exception provides that an alien individual is not
treated as present in the United States on days when the individual intended to leave
the United States, but was unable to do so because of a medical condition that arose
while the individual was present in the United States. Treas. Reg. § 301.7701(b)-
3(c)(1). A medical condition will not be considered to arise while the individual is
present in the United States if the condition or problem existed before the individual's
arrival in the United States and the individual was aware of the condition or problem.
Treas. Reg. § 301.7701(b)-3(c)(3).
.04 Individuals claiming the Medical Condition Exception must file Form 8843,
Statement for Exempt Individuals and Individuals With a Medical Condition, by the due
date (including extensions) for filing Form 1040-NR regardless of whether they are
required to file a Form 1040-NR. Treas. Reg. § 301.7701(b)-8(c). However, in certain
circumstances, the requirement to timely file Form 8843 may be disregarded. See,
Treas. Reg. §§ 301.7701(b)-8(d)(2) and 301.7701(b)-8(e).
.05 Consistent with the Medical Condition Exception, under U.S. income tax
treaties, days spent in the United States due to an illness that prevents an individual

from timely leaving the country are not taken into account in determining the availability
of treaty benefits with respect to income from dependent personal services performed in
the United States. For example, many U.S. income tax treaties exempt income from
employment (or other dependent personal services) if, among other things, the recipient
is present in the United States for no more than 183 days in any twelve-month period
that begins or ends in the relevant taxable year. See, e.g., Article 14(2) of the 2006
U.S. Model Income Tax Convention. For purposes of computing days of presence in
the United States under this type of test, days on which an illness prevented the
individual from leaving the United States are not counted. See, e.g., the Technical
Explanation to Article 14(2) of the 2006 U.S. Model Income Tax Convention.
SECTION 3. DEFINITIONS
This section 3 defines terms for purposes of this revenue procedure.
.01 COVID-19 Emergency. The term COVID-19 Emergency means the global
outbreak of the COVID-19 virus.
.02 COVID-19 Emergency Period. The term COVID-19 Emergency Period is a
single period of up to 60 consecutive calendar days selected by an individual starting on
or after February 1, 2020 and on or before April 1, 2020 during which the individual is
physically present in the United States on each day.
.03 COVID-19 Emergency Travel Disruptions. The term COVID-19 Emergency
Travel Disruptions means the travel disruptions described in section 2.01 of this
revenue procedure.
.04 Eligible Individual. The term Eligible Individual means any individual (1) who

was not a U.S. resident at the close of the 2019 tax year, (2) who is not a lawful
permanent resident at any point in 2020, (3) who is present in the United States (without
regard to this revenue procedure) on each of the days of the individual’s COVID-19
Emergency Period, and (4) who does not become a U.S. resident in 2020 due to days
of presence in the United States outside of the individual’s COVID-19 Emergency
Period.
.05 Medical Condition Exception. The term Medical Condition Exception means
the exception from the substantial presence test provided under section
7701(b)(3)(D)(ii) and section 301.7701(b)-3(c).
SECTION 4. APPLICATION OF THE COVID-19 MEDICAL CONDITION TRAVEL
EXCEPTION

.01 COVID-19 Medical Condition Travel Exception to days of presence. An
Eligible Individual who intended to leave the United States during the individual’s
COVID-19 Emergency Period, but was unable to do so due to COVID-19 Emergency
Travel Disruptions, may exclude the individual’s COVID-19 Emergency Period (up to 60
calendar days of presence in the United States, as explained in section 3.02 of this
revenue procedure) for purposes of applying the substantial presence test. The
COVID-19 Emergency will be considered a medical condition, as described in section
301.7701(b)-3(c), that prevented the Eligible Individual from leaving the United States
on each day during the individual’s COVID-19 Emergency Period and, as generally
required by the Medical Condition Exception, will not be treated as a pre-existing
medical condition, as described in section 301.7701(b)-3(c)(3). Also, in determining an

individual’s eligibility for treaty benefits with respect to income from employment or the
performance of other dependent personal services within the United States, any days of
presence during the individual’s COVID-19 Emergency Period on which the individual
was unable to leave the United States due to COVID-19 Emergency Travel Disruptions
will not be counted.
.02 Presumption of intent and inability to leave the United States. For purposes of
this revenue procedure, an Eligible Individual will be presumed to have intended to
leave the United States on any day during the individual’s COVID-19 Emergency
Period, unless that individual has applied, or otherwise taken steps, to become a lawful
permanent resident of the United States. An Eligible Individual will be presumed unable
to leave the United States for purposes of the substantial presence test on any day
during the individual’s COVID-19 Emergency Period. Similarly, an individual claiming
benefits under an applicable U.S. income tax treaty with respect to income from
employment or other dependent personal services performed in the United States will
be presumed unable to leave the United States on any day during the individual’s
COVID-19 Emergency Period.
SECTION 5. PROCEDURES FOR CLAIMING THE COVID-19 MEDICAL CONDITION
TRAVEL EXCEPTION

.01 In General. Eligible Individuals who have a requirement to file a Form 1040-
NR for 2020 (taking into account the application of this revenue procedure) must claim
the COVID-19 Medical Condition Travel Exception by attaching Form 8843, Statement
for Exempt Individuals and Individuals with a Medical Condition, to their Form 1040-NR,

by the form’s due date (with extensions), and mailing the forms to the address shown in
the Form 1040-NR return instructions. Eligible Individuals who are not required to file a
2020 Form 1040-NR are not required to file Form 8843 to claim the COVID-19 Medical
Condition Travel Exception under this revenue procedure, but those individuals should
retain all relevant records to support reliance on this revenue procedure and be
prepared to produce these records and complete a Form 8843 if requested by the IRS.
.02 Instructions for completing Form 8843. Subject to section 5.01 of this
revenue procedure, to claim the COVID-19 Medical Condition Travel Exception, Eligible
Individuals should complete Form 8843 as follows:
• Part I and the general identifying information sections should be
completed pursuant to the form instructions;
• Parts II, III, and IV, if applicable, should be completed pursuant to the form
instructions;
• Part V should be completed by writing the following in each respective
space:
o for line 17a, “COVID-19 MEDICAL CONDITION TRAVEL
EXCEPTION.”
o for line 17b, the start date of the Eligible Individual’s COVID-19
Emergency Period.
o for line 17c, the end date of the Eligible Individual’s COVID-19
Emergency Period.

o line 18 should be left blank. There is no need for a physician’s
statement when claiming the COVID-19 Medical Condition Travel
Exception.
• The individual should sign and date the form consistent with the form
instructions.
• The individual should retain a copy of the completed Form 8843 and be
prepared to produce the copy if requested by the IRS, as well as
documentation demonstrating that the individual was physically present in
the United States during all of the individual’s COVID-19 Emergency
Period.

.03 Failure to file. Eligible Individuals who are required under section 5.01 of this
revenue procedure to file Form 8843 with their Form 1040-NR to claim the COVID-19
Medical Condition Travel Exception, but who fail to do so, may be eligible for the
procedural relief under section 301.7701(b)-8(d)(2) or the relief under section
301.7701(b)-8(e). Eligible Individuals who are not required to file a Form 8843 under
section 5.01 may submit the completed Form 8843 at a later date as needed, including
if the individual’s nonresident status for 2020, 2021, or 2022 is later challenged under
examination or otherwise.
.04 Other exceptions to substantial presence. An Eligible Individual may claim
the COVID-19 Medical Condition Travel Exception in addition to, or instead of, claiming
other exceptions from the substantial presence test for which the individual is eligible.

Specifically, relief provided under this revenue procedure does not change the
application of other applicable exceptions to the substantial presence test: (i) exclusion
of days of presence for exempt individuals described under section 7701(b)(3)(D)(i) and
section 301.7701(b)-3(b), (ii) exclusion of days of presence under the Medical Condition
Exception for medical problems or medical conditions other than those related to the
COVID-19 Medical Condition Travel Exception, as addressed in section 5.05 of this
revenue procedure, (iii) the closer connection exception under section 301.7701(b)-2,
and (iv) relief pursuant to treaty provisions applicable to dual residents under section
301.7701(b)-7. Individuals who qualify for other exceptions to the substantial presence
test do not need to claim the COVID-19 Medical Condition Travel Exception in order to
claim other available exceptions, or they may choose to claim all exceptions for which
they are eligible. For example, an alien individual who would be a U.S. resident due to
days spent in the United States even after excluding eligible days under the COVID-19
Medical Condition Travel Exception may still be considered a nonresident alien if the
individual is eligible to claim the closer connection exception under section 301.7701(b)-
2.
.05 Medical Condition Exception available. An Eligible Individual who claims the
COVID-19 Medical Condition Travel Exception may also claim the Medical Condition
Exception, including for medical conditions or medical problems related to the COVID-
19 virus, with respect to any period during 2020 in which the individual satisfies the
requirements to do so. Individuals claiming the Medical Condition Exception for any
period outside of the individual’s COVID-19 Emergency Period should file Form 8843

consistent with the applicable regulations and form instructions.
.06 Claiming a treaty benefit for services income. To claim an exemption from
withholding on income from dependent personal services pursuant to a U.S. income tax
treaty in accordance with this revenue procedure, an individual should provide the
employer or other withholding agent a Form 8233, Exemption From Withholding on
Compensation for Independent (and Certain Dependent) Personal Services of a
Nonresident Alien Individual, certifying that the income is exempt. However, if the
withholding agent currently treats the income as exempt based on a previously
submitted Form 8233, it is not necessary to provide an additional Form 8233. Form
8233 should be completed pursuant to the form instructions. On line 14 of Form 8233,
write “COVID-19 MEDICAL CONDITION TRAVEL EXCEPTION” and specify the
individual’s COVID-19 Emergency Period. If a new Form 8233 is not provided to a
withholding agent, or if the withholding agent already has withheld income tax that
would be exempt from withholding in accordance with this revenue procedure, the
nonresident individual should file Form 1040-NR and attach a statement including the
same information requested on the Form 8233 (including the phrase “COVID-19
MEDICAL CONDITION TRAVEL EXCEPTION,” the individual’s COVID-19 Emergency
Period, the applicable tax treaty, and the tax treaty article).
SECTION 6. DRAFTING INFORMATION
The principal authors of this revenue procedure are Sarah Stein and Ryan
Connery of the Office of Associate Chief Counsel (International). For further information
regarding this revenue procedure contact Sarah Stein at (202) 317-4917 or Ryan

Connery at (202) 317-4972 (not a toll-free call).