Similar Posts

One Comment

  1. I’m trying to understand how to fill out Part V of form 8854. I am NOT a covered expat (phew!). My wife and I have community property and she remains a citizen so the exit tax only concerns my half of our assets.

    But i still have to fill out this ‘balance sheet’. Not sure what purpose it serves- i won’t be paying tax on it AND the IRS doesn’t really have the aability to verify my statements, unless they start a lengthy investigation.

    Nevertheless I am unclear on a number of issues.
    -Column b is supposed to state the ‘US adjusted basis. The instructions, nor the IRS website, not Google, explains what this is.
    – I am not clear what to do with 401K, which is till hold in a US institution Do I list this as cash? Pension? nonmarketable securities?
    – lastly, of course i will check that thsi matches my FBAR forms. but given that the balance sheet doesn’t list whether the assets are held in the US or abroad, it would be impossible for the IRS to note any discrepancies between this statement and my FBAR… correct?
    – also, if i have any assets that i never listed on an FBAR form (like a house, or pension plan) how could the IRS even be aware of them?

Comments are closed.

Tax laws change over time, and the information in this post above may be less accurate today than it was at the time of the last revision. This post is not tax advice for your specific situation. Please contact an international tax professional to get personalized advice for your situation.