Just knowing the paperwork you need to file with the IRS is not enough – you need to know when to file, too. Let’s talk about tax filing deadlines for Expatriates.
Here are the possible tax filings that you may need to do. Not all of these will necessarily apply to you.
We recently helped a green card holder clean up his tax situation so he could avoid covered expatriate status. This is his own post-mortem of the process.
It is a familiar story: green card holder returns to his home country but does not formally cancel his immigrant visa. He does not know about the ongoing tax-filing obligations imposed by the U.S. on green card holders.
Eventually, he learns of the problem and wants to file Form I-407 and tie up his loose ends. He is not rich enough to be a covered expatriate ($2,000,000 or more net worth) but his tax returns for the previous five years were not up to snuff.... continue reading
You can become a covered expatriate if your average tax liability for the previous five years is above a certain amount ($162,000 for expatriations in 2017).
Calculating this average amount is a bit of a pain.
Don’t be “covered expatriate”.
Is it possible to renounce your U.S. citizenship, live outside the United States, collect 100% foreign income, and still be under the IRS’s thumb? (YouTube).
Here is what it takes:
Here’s what happens to you:
Does filing a late Form 8854 make you a covered expatriate?1
If you are late filing your Form 8854, the worst that can happen is that you will be fined $10,000. You will not be a covered expatriate.
Expatriates – citizens who give up their U.S. citizenship, green card holders of long-standing – are required to provide information.4 Form 8854 is how the IRS exercised its power to design a tax return (and set the filing deadline) for the information required from expatriates.... continue reading