SECTION 2. BACKGROUND

Form 8802 is used to request Form 6166, a letter that the applicant may use as proof of the applicant’s status as a resident of the United States to claim benefits under an income tax treaty or an exemption from a value added tax (VAT) imposed by a foreign country.

Rev. Proc. 2006–35, 2006–37 I.R.B. 434, announced that a new user fee charge will apply to process all requests for residency certification on Form 8802. Section 3.01 of the revenue procedure describes the fee schedule, and section 3.02 provides that the fee must be paid by check or money order to the United States Treasury in U.S. dollars.

Notice 2006–90, 2006–42 I.R.B. 688, modified Rev. Proc. 2006–35, by delaying the effective date of the user fee charge for processing Form 8802 until November 1, 2006. Recognizing the administrative advantages to both taxpayers and the IRS of alternative payment methods, the IRS is making arrangements to allow for the electronic payment of these fees.