Expatriation Tax Lawyers Blog

Latest from Expatriation Tax Lawyers Blog

  Exit Tax Planning & the IRS Exit Tax Planning: The U.S. Exit Tax Planning & IRS analysis is complicated. When a U.S. Citizen or Legal Permanent Resident (Green Card Holder) who is considered a Long-Term Resident (LTR) wants to give up or relinquish their U.S. tax status and escape the clutches of the U.S. tax system, there is a formal process they have to go through in accordance with IRC 877A. This process…
Deemed Distribution Exit Tax Deemed Distribution & Exit Tax at Expatriation: The deemed distribution & exit tax at expatriation analysis is complicated. The reason is primarily because when people consider IRS tax and expatriation, they focus on mark-to-market. But, in addition to mark-to-market, there is another aspect of exit tax which is referred to as a deemed distribution. With deemed distribution, a person is “deemed” to have received a full distribution of the…
Expatriation Mark-to-Market Exit Tax Example Expatriation Mark-to-Market Exit Tax Example: Our Attorneys summarize the expatriation mark-to-market exit tax Example, as provided in Notice 2009-45. When it comes to expatriation, a common question we receive is about applying the IRS exit tax exclusion re: IRC 877A, to the unrealized gains and losses. As provided in Notice 2009-45: “After allocating the appropriate amount of the exclusion amount among the gain assets, the covered expatriate must…
Expatriation Market-to Market Regime Summary Expatriation Market-to Market Regime: The Basics of the Expatriation Market-to Market Regime is complex. It involves computing the exit tax and determining if the covered expatriate has any IRS tax liability at when they exit the U.S. First a person expatriates from the United States, and they are a U.S. Citizen or Long-Term Legal Permanent Resident — they have to complete the covered expatriate analysis. Then, if the expatriate meets…
Form W-8CE (Notice of Expatriation & Waiver of Treaty Benefits in 2020) Form W-8CE: Notice of Expatriation & Waiver of Treaty Benefits: The Form W-8CE Notice of Expatriation & Waiver of Treaty Benefits form is very important for covered expatriates facing the exit tax as a result of expatriation — especially when it involves eligible deferred compensation, such as a 401-K.  The W-8CE timing issue is especially crucial. for eligible deferred compensation, such as…
Allocation of the Exclusion Amount 877A Calculating Exit Tax Allocation of the Exclusion Amount 877A Calculating Exit Tax: When it comes time for expatriation from the United States, some U.S. persons who are considered a covered expatriate may have to compute the exit tax. And, when it comes time to computing the exit tax, one important aspect is the exclusion of a certain portion of the mark-to-market unrealized gain. When a person computes the exit…
Specified Tax Deferred Account Expatriation Tax Exception Specified Tax Deferred Account Expatriation Tax Exception: The Specified Tax Deferred Account Expatriation Tax Exception (IRS 877A)  is complicated. In general, when a person expatriates from the U.S.,  and they are considered a covered expatriate, then they are subject to U.S. tax on the unrealized gain – using a Mark-to-Market calculation. As with anything dealing with the IRS, there are exceptions, and more exceptions.  One…
Deferred Compensation Expatriation Tax Treatment Deferred Compensation Expatriation Tax Treatment: We summarize Deferred Compensation Expatriation Tax Treatment. The Expatriation rules are complex. When a person is ready to expatriate, and learns they are a covered expatriate, the first step is usually to (immediately) take stock of their worldwide assets to determine the mark-to-market outcome on unrealized gain. This article will discuss the deferred compensation rules. Deferred Compensation Expatriation Tax Treatment (IRS) Some assets held…
Relief Procedures for Certain Former Citizens: How to Apply to the IRS Relief Procedures for Certain Former Citizens: The IRS Relief Procedures for Certain Former Citizens helps current and former citizens and residents with expatriation and U.S. exit tax avoidance — by avoiding covered expatriate status. Whether you have already relinquished U.S. Citizenship, or are intending to in the near future, this new program may be a good fit. It provide a tax-free option for…
Green Card Exit Tax 8 Years Green Card Exit Tax 8 Years & Tax Implications at Surrender: The Green Card Exit Tax 8 Years rules are complex. The IRS rules involving U.S. exit tax for green card holders is complex. The general proposition is that when a U.S. citizen renounces citizenship and relinquishes their U.S. status, they are subject to the expatriation and exit tax rules. But, the rules are not limited to U.S.…