Important tax information for Japan-bound JUSFC artists

New Forms required for recepients of the US-Japan Creative Arts Fellowship

The Japanese government does not tax your stipend, but in order to have the tax-free status, you must sign a form from the Japanese tax authorities as soon as you arrive in Japan. As of July, 2004, however, both the Japanese Tax Authority and the Internal Revenue Service require a certificate that you are a US resident and are eligible for this tax-free status. This certification is called Form 6166 and must be applied for with a downloadable form called 8802. The following site explains this process fairly well and provides the PDF links for form 8802.
http://www.irs.gov/businesses/small/international/article/0,,id=122559,00.html

Please read carefully the instructions on filling out form 8802. They do not start processing forms for any given year until Jan. 1st of that year, and the earliest they will accept the 8022 application is Dec. 1st of the previous year. In other words, if you need a certificate for tax year 2011, you have to wait until after Dec. 1st, 2010 to send in the 8802 form. Otherwise they will send it back.

The IRS writes that it takes about 45 days to process and send out Form 6166. Form 6166 is a computer generated letter on stationary bearing the US Department of Treasury letterhead, the US Government watermark, and a facsimile signature of the Director, Customer Account Services, Philadelphia Service Center. They will send this to your US address and you must bring two copies of it to Japan. Don't wait until the last minute to apply for this form since without you will not be able to receive the fellowship stipends!

Filling out Form 8802

After you download Form 8802, you will need to fill in all the blanks and send it to the IRS. For complete instructions on how to fill out this form, refer to the PDF file found at the site mentioned above:(http://www.irs.gov/businesses/small/international/article/0,,id=122559,00.html)

I've tried to simplify the process below, with information specific to the incoming JUSFC artist. These answers may or may not apply to you, so please read the instructions carefully. If, after reading this, you still have questions, please contact either Margaret Mihori at the JUSFC Washington Office or me, Christopher Blasdel, at the I-House. You may also try calling the IRS as a last resort.

Electronic payment confirmation number: In addition to the time and hassle factor, the IRS graciously adds a $35 fee for this "service." After they receive your payment, you will be issued as electronic payment confirmation number. The IRS will not process the application without this number.

Applicant's name: No brainer: just put your name (and name of spouse if you file a joint return) and SSN.
Line 2: Put your present address.
Line 3a: If you want Form 6166 mailed to the address on line 2, leave this blank, but if for some reason you will not be available to receive the form at that address, you may put the Japan US Friendship Commission address (below) on that line instead. If that is the case, you need to fill out line 3b as well. The Friendship Commission CAF number is 651-17-5449
Address: C/O Margaret Mihori
Japan-US Friendship Commission
1201 15th St. NW, Suite 330
Washington, DC 20005
Tel.(202) 653-9800 Fax (202) 653-9802.

NB. Only recipients of the US-Japan Creative Arts Fellowship can use the JUSFC address.

Line 4a: Check "individual," "US Citizen" (or "green card holder" if that is the case)
Line 5: Check the appropriate box. Most common is "Yes," form 1040.
Line 6: If you checked "yes" for line 5, you can ignore this line. Otherwise check with your accountant.
Line 7: The current year (or year of actual arrival in Japan) should be sufficient, since the grant is only for a 5 month period. The date should be entered YYYY (ex. 2011)
Line 8: Enter the four digit year and the two digit month (YYYYMM) for the last tax period for which you were required to file your return.For example, if you are applying in September, 2011, you need to enter 201012, since the end of the previous tax year was December of 2010 (see the instructions for more examples).
Line 9: Check "Income tax."
Sign on the dotted line
On the last page, filll out your name, SSN, etc. and then check Japan, 2 copies. Add up the cost (it should be $35).

Lastly, sign, date, keep a copy for your files and send the original off to the IRS. Please note that if you file a joint return, your spouse will have to sign as well.

Don't forget to bring the two copies of the certificate (Form 6166) to Japan with you, along with your passport and visa!