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  1. #1
    Join Date
    Apr 2014
    Posts
    4

    Question Who Must File Form 8854

    Hello all,

    I have been a permanent resident for 9 years. I gave up my green card on January 29, 2014 by filing a 401 at the US Embassy.

    I am trying to figure out if every expatriate must file form 8854 or only those who qualify under "Who must file" on the form instructions.

    Expatriation AfterJune 16, 2008

    The rules in this section apply to persons who are considered to have expatriated after June 16, 2008.

    Who Must File

    If you expatriated after June 16, 2008, the expatriation rules apply to you if any of the following statements apply.
    Does ^ this mean that if the following statements don't apply I don't have to file this form?


    Your average annual net income tax liability for the 5 tax years ending before the date of expatriation is more than the amount listed next.

    $139,000 for 2008.

    $145,000 for 2009.

    $145,000 for 2010.

    $147,000 for 2011.

    $151,000 for 2012.

    $155,000 for 2013.

    Your net worth was $2 million or more on the date of your expatriation.

    You fail to certify on Form 8854 that you have complied with all federal tax obligations for the 5 tax years preceding the date of your expatriation.
    Is this talking about the current form itself? So I do have to file it? How can I fail to certify on a form I have not filed yet?

    You expatriated before 2013 and you:

    Deferred the payment of tax,

    Have an item of eligible deferred compensation, or

    Have an interest in a nongrantor trust.

    Covered expatriate. You are a covered expatriate if at least one of the statements in paragraphs (1), (2), or (3), set out above (under Who Must File) applies.
    None of those statements apply to me... so, do I still have to file the form?

    If so, Would I have to wait until next year filing to be able to file this form with my taxes? So the earliest I could file it would be Jan 2015, right?

    I have read lots of sites and they all say different things... I would really appreciate some guidance with it. Talked to my CPA and he is not sure.. Talked to IRS and they cannot help me as I am not longer a US Citizen...

    Thanks!

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Who Must File 8854 / Instructions Not Clear

    You never were a citizen.

    IRS does not require you to be a citizen.

    So. Which part of your post is true?

  3. #3
    Join Date
    Apr 2014
    Posts
    4

    Default Re: Who Must File 8854 / Instructions Not Clear

    I am sorry. I meant to say 'Talked to IRS and they cannot help me as I am not longer a US Permanent Resident'

  4. #4
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Who Must File 8854 / Instructions Not Clear

    Okay, let's have another look from http://www.irs.gov/Individuals/Inter...patriation-Tax

    This will help you define your status (I'm sort of doing this in reverse of your question as it seems to be much simpler that way - got to love IRS publications )

    If you expatriated after June 16, 2008, the new IRC 877A expatriation rules apply to you if any of the following statements apply.

    Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation ($147,000 for 2011, $151,000 for 2012, and $155,000 for 2013).

    Your net worth is $2 million or more on the date of your expatriation or termination of residency.

    You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency.


    Do you fall into any of those categories?

  5. #5
    Join Date
    Apr 2014
    Posts
    4

    Default Re: Who Must File 8854 / Instructions Not Clear

    No, I do not fall into any of those.

    However I get tripped by this sentence "You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations"

    I have always paid my taxes on a timely manner, but how would I fail to certify it on a form I have not filed? (or a form I am trying to figure out if I have to file?)

  6. #6
    Join Date
    Apr 2014
    Posts
    4

    Default Re: Who Must File 8854 / Instructions Not Clear

    Contacted an expat tax accountant and he isn't familiar with this either- he said best bet would be hiring a lawyer in the States...
    Any help would be greatly appreciated.

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