@sg281 ,
I don't believe you need to file either of those forms ---
(a) you are already disclosing the treaty & article under which you are excluding income -- which is what 8833 does
(b) you are no longer an exempt person nor over-staying because of exigencies -- which is what 8843 does.
Should you decide to pay back taxes due to excluded income --- you have to amend the returns of those years -- each year stands on its own. There may be interest charges but should be no penalty ( failure to pay, failure to file etc. ). I would suggest strongly that if you so decide , you should visit nearest IRS office and seek clarification.
My personal opinion , is that even though I understand why the two year exclusion limit was placed ( mostly to protect Indian brain drain ), I disagree with the US technical analysis -- in that India uses "may" and not "will", "shall" and actually means it as seen from the Indian version of the treaty and analysis. But the issue here is (a) there are no case law that I could find that addresses this and (b) even if you win an argument with the IRS, you still lose --- in that there is tendency for them to pursue enhanced scrutiny for years in the name " bring/ confirm you into compliance ". It is a losing battle.
Nor do I know if these "exclusions" are tracked or not and if so how >
Does this make sense ?
