US Expat Tax – Former Citizens and Long-term Permanent Residents FAQs
Frequently Asked Questions
1. What is the purpose of Form 8854, Initial and Annual Expatriation Information Statement, and where can I get the form?
I terminated my U.S. resident alien status (gave up my green card) and was told that I may still need to furnish some documents to the IRS. Can you please explain?
The expatriation tax provisions apply to U.S. citizens who have relinquished their citizenship and to long-term permanent residents (green card holders) who have ended their U.S. residency. The Form 8854 is used by individuals who have expatriated to inform the IRS of their expatriation and certify they have complied with all federal tax obligations for the 5 tax years preceding the date of their expatriation.
If you are a U.S. resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. If you are a nonresident alien, you are usually subject to U.S. income tax only on U.S. source income. Under limited circumstances, certain foreign source income is subject to U.S. tax.