expatriation

Giving up U.S. citizenship or a green card (expartitian)

In addition to the legal steps to be taken when a U.S. citizen or lawful permanent resident (‘green card’ holder) wishes to revoke their citizenship or resident status, they are also subject to an ‘Exit Tax’ unless they meet certain conditions (tax compliance, net worth) and should file IRS Form 8854 (Initial and Annual Expatriation Statement). Late filing Form 8854 can result in a penalty of $10,000.

There are specific reliefs for U.S. citizens who expatriated without being compliant or who are late filing Form 8854. 

There are also special procedures for ‘Accidental Americans’ who may not have to seek a social security card.

There are further complications when gifts are made to U.S. taxpayers by a former U.S. citizen who was a ‘covered expatriate’.

If you require further assistance contact info@ustax.cpa