Webinar for Noncovered Expatriates

Course Overview:

Part 1. Introduction/Overview


Part 2. The Certification Test

A. Overview – Certification Test

The only test that matters to you (net worth and net tax liability are not a problem by definition)

B. How you become a covered expatriate

The law, Form 8854 – what is required?

The Code and the question on Form 8854.

The hard questions – small errors, big errors, etc. – what are the risks?

C. How to prevent covered expatriate status

Which years matter?

What to look for in those years?

What to leave alone

What to fix

How to fix it

When to fix it

No Social Security Number?

Part 4. Dual Status Tax Returns

A. Basic requirement to file

Filing requirement for year of termination of resident/citizen status.

What about low income people otherwise exempt from filing?

Should you file a dual status tax return or a full-year resident status return?

B. What happens if you don’t file, or you’re late

C. Technical details

How to allocate income to before/after expatriation date

Paperwork for the citizen/resident portion of the year (Form 1040 as a statement)

How to flow numbers from your Form 1040 Statement to the Form 1040NR

Paperwork for the portion of the year after expatriation

Tax computation for the noncitizen/nonresident portion of the year

Treaties for the nonresident/noncitizen portion of the year

Other stuff – personal exemptions, standard deductions, dependents, etc.

Part 5. Retirement Plans After Expatriation

A. How are the distributions taxed

Default rules

Treaty rules

B. Using treaties to reduce U.S. tax

How it works

The paperwork

C. Withholding at source

How it works

Form W-8BEN

Form 1040NR

Part 6. Life After Expatriation

A. Social Security, Medicare

How it is taxed



Medical treatment paid for by Uncle Sam

B. U.S. real estate

Income taxation of rent

Estate taxation

Capital gains tax on sale

C. Estate planning for U.S. assets

Real estate

Stock market investments

D. Travel to the U.S.


Friday April 24, 2015

8:00AM to 10:00AM Pacific Time

International Tax Lunch: Form 3520 and 3520-A for Foreign Pensions and Trusts

Who: Haoshen Zhong, Attorney

What: The IRS expects U.S. citizens and residents to report their transactions and relationships to foreign trusts on Form 3520. They are required to report ownership in foreign trusts on Form 3520-A. Most foreign pension plans are treated like foreign trusts and are subject to the same reporting and tax requirements. This session discusses briefly how foreign trusts are taxed and reported, using an example of a U.S. citizen employed abroad with a pension plan.

When: Friday, March 13 at 12:00PM Pacific Time

Where: HodgenLaw PC

International Tax Lunch: Form 8621

Who: Debra Rudd, CPA

What: Passive Foreign Investment Companies (PFICs) are subject to special and punitive tax treatment in the United States. This session will examine two of the three possible tax treatments (Mark-To-Market and Default), with a detailed explanation of how to perform the calculations, fill out Form 8621, and report income or loss on a tax return. The presentation will track a single PFIC’s treatment under these two regimes over a five-year period and will include a side-by-side comparison of the tax results during that time.

When: Friday, February 13 at 12:00PM Pacific Time

Where: HodgenLaw PC

International Tax Lunch: Expatriation and Covered Expatriate Status: What It Is and How to Avoid It

What: International Tax Lunch: Expatriation and Covered Expatriate Status:  What It Is and How to Avoid It When: Friday, August 8, 2014 at Noon (Pacific Time)
 Who: Debra Rudd, CPA This month’s International Tax Lunch will be a detailed guide on how to determine whether your client who is expatriating is a covered expatriate and how to […]

International Tax Lunch Session: Form 3520 and Foreign Trust Distributions to U.S. Beneficiaries

What: Form 3520 and Foreign Trust Distributions to U.S. Beneficiaries When: Friday, June 13, 2014 at Noon (Pacific Time)
 Where: HodgenLaw, 80 S. Lake Avenue, Suite 680, Pasadena, CA 91101
 Who: Phil Hodgen This month’s International Tax Lunch will be about Form 3520 and foreign trusts. When you are preparing an income tax return for a U.S. taxpayer […]

International Tax Lunch Session: Controlled Foreign Corporations (CFCs)

What: Controlled Foreign Corporations (CFCs) When: Friday, May 9, 2014 at Noon (Pacific Time) Where: HodgenLaw, 80 S. Lake Avenue, Suite 680, Pasadena, CA 91101 Who: Elena Redko This month Elena Redko will speak about Controlled Foreign Corporations (CFCs) in the context of foreign holding structures. How do you know if it’s a CFC or […]