Similar Posts


  1. I did a blog post in response, based on a real-life situation going on right now for a real-life relinquisher of a green card.

    If you received your green card in 2006 or later and you cancel your green card in 2012, then you will not have held the green card long enough to become a “long-term resident.” Since only long-term residents and citizens can be subjected to the exit tax rules (including Form 8854), you win. You successfully avoid filing Form 8854. Just file the dual status year tax return and you’re done.


  2. Dear Mr Hodgen, this is perhaps a bit away from this particular blog topic, but I am wondering if you would be kind enough to help me understand something. You mentioned people expatriating “who have held the green card visa in at least 8 of the last 15 years”. If, for example, I am a green card holder and have been so in only 7 of the last 15 (calendar) years, does that mean I am completely outside this whole exit tax system? (Pls assume that all tax returns are lodged up to date and that a final dual status return is also going to be lodged and that I am definitely well below the various thresholds for being a covered expatriate). Will I be able to avoid lodging Form 8854, given the specific referencing in that form to long-term LPRs and citizens, and I will not be within the definition of ‘long term’ (I would not be able to answer Q5 on the form, for example, since there is no applicable box to check)? If I do not need to lodge form 8854, is there anything else I need to do to inform the IRS and/or protect myself from future IRS questions? (how would they know that I am not a long term resident and therefore outside the requirements for lodging 8854? Are they likely to simply assume I have failed to lodge 8854 when I should have, and come after me when they receive my final dual status return?) Would I be better off ‘pretending’ to meet the long term requirement and lodging 8854 anyway (I prefer not to since I don’t want to sign false declarations, and also to avoid the complexities of sorting through 8854 anyway!!)? Thanks so much for your advice and time, I look forward to it!

  3. I know this is arguably a bit off topic, but I find it exceedingly strange that MTM even applies to US real property. Why?? US real property remains fully taxable even after expatriation, so there’s no need to impose tax upon exit. If Phil or anyone else can come up with a plausible rationale, please do let me know!

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.