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:
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 get a FREE Initial 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.