Expatriation with offshore disclosure

Overview

Expatriation refers to wanting to “permanently” give up your U.S. status. either as a U.S. citizen or as a U.S. Permanent resident. However, some U.S. Citizens and Permanent Residents who want to expatriate may become subject to what is called a U.S. exit Tax before they are allowed to renounce to their U.S. status.

Not all expatriates are covered expatriates, and not all covered expatriates will owe any exit tax at expatriation. Only a Covered Expatriate is subject to exit tax. So, who is a Covered Expatriate:

There are 3 main ways a person meets the covered expatriate test:

1. Average Tax Liability Test: Your average annual net income tax liability for the 5 tax years ending before the date of expatriation is more than $168,000 for 2019
2. Net Worth Test: Your net worth was $2 million or more on the date of your expatriation
3. 5-Year Tax Compliance: 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

When a person seeks to both: get into offshore compliance and expatriate, many different avenues must be explored.

Not following the right procedures, and not counting with expert and cautious explanation and guidance can cause serious you tax consequences – and many of these tax consequences are irreversible.

If you are considering expatriation, and you’re either a US citizen or a U.S. Permanent Resident, then it is important to understand the exit tax implications.

At Sabalier Law, you can get a Legal Consultation to CONFIDENTLY discuss your case and circumstances protected by the Attorney- Client Privilege. After our initial consultation, I will be able to provide you the legal guidance you need, correctly file your final tax returns and sort out your U.S. taxes to ensure a successful expatriation process.

Requirements

A person wishing to renounce his or her U.S. citizenship must voluntarily and with intent to relinquish U.S. citizenship:

1. Appear in person before a U.S. consular or diplomatic officer,
2. In a foreign country in the U.S. Embassy or Consulate; and
3. Sign an oath of renunciation

To renounce to your tax liability as a U.S. person you must:

1. Be tax compliant for the past five years and
2. File form 8854

For this process you will need to bring the following documents:

• Evidence of U.S. citizenship (such as your most recent U.S. passport or U.S. birth certificate, if you are not in possession of a U.S. passport
• U.S. Consular Report of Birth Abroad, if applicable
• Bio-pages of all current foreign passports
• Certificates of Naturalization for any country, including the United States, if applicable
• Certificates of Citizenship for any country, including the United States, if applicable
• Evidence of any name changes, if applicable (for example, your marriage or divorce certificates, court orders or deed polls)
• Completed form DS-4079
• Completed Loss of Citizenship Questionnaire
• Completed Informal Loss of Citizenship Acknowledgement, which must be signed/dated and sent as a scanned document

What's included?

• At Sabalier Law, you count with CONFIDENTIAL, expert legal representation and guidance throughout your entire tax filing process protected by the Attorney- Client Privilege
• Expert legal preparation and expedited submission of your taxes
• Legal review of your tax forms, to ensure that they are filled out completely and accurately
• Legal guidance in case there are there are any requests for additional information of your accounts and finances for clarification purposes
• Legal advocacy and representation in case an issue arises
• Constant updates on the status of your case
• Timely notification of changes in the tax code, laws and procedures that are relevant for you and your case
• Expert and attentive legal support and representation throughout your tax filing process from the moment you hire me. My work is not done until you have no more legal worries in mind
• And the best part is that at Sabalier Law, all legal services are offered online, using the latest in secure technology to ensure your safety and your comfort, so that you can get the legal representation, information, and communication you need every step of the way throughout your immigration process regardless of where you are located in the world