Vast numbers of Americans residing abroad have renounced their US citizenship in recent years, and Lawful Permanent Residents (green card holders) residing abroad are now increasingly likely to return their cards rather than face the increased tax and immigration requirements facing them. The increasing complexity in US reporting requirements, new taxes such as the Net Investment Income Tax (NIIT), informational penalties out of all proportion with tax violations, and the additional FATCA requirements have all played a part.
If you are considering giving up your US citizenship or green card, our specialist expatriation team can guide you through the complex tax rules you need to consider.
We can advise you on your situation with the IRS, and whether you could be considered a "covered expatriate" subject to the punitive US exit charge provisions. One important requirement at the time of expatriation for example is being able to certify that you have been compliant with all of your tax obligations for the past five years.
We can help you to bring your affairs up-to-date or advise and assist with any necessary amendments to ensure you meet the stringent requirements.
What’s more, we will not only prepare the personal tax returns and related filings, but will use the detailed knowledge gained to offer the best possible advice on the implications of expatriating. We will also look at the implications any decision may have on family members or business structures, working closely with our business tax and trust teams.
Whatever your situation, our aim is to provide you with the information you need to make an informed choice about your US citizenship or green card.
Once the process is in place, we will prepare the US tax filings for the year of expatriation, including the expatriation Form 8854 which is mandatory for all but short-term green card holders. We can also advise on any future US tax implications you may face as a non-resident alien.
Throughout the process, we will work with your US immigration lawyer and other professionals to make sure that both the immigration and tax issues are reviewed and processed seamlessly.
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