Figure 1 Make sure that you comply with US tax new expatriation procedures.


Have you expatriated from the US? Do you intend to expatriate? If so, there is a new procedure which will enable you to become compliant with new US tax laws. The procedure, announced by the Internal Revenue Service (IRS) in September of 2019, will enable select non-compliant US citizens who relinquished their citizenship to comply with US tax new expatriation procedures.

Strict Eligibility Requirements For US Tax New Expatriation Program

     This new procedure is aimed at the ‘Accidental Americans’, or those US citizens who state that they were not aware of their US tax obligations. While a US social security number is not an eligibility requirement, the Internal Revenue Service (IRS) did specify in a report that there will be some strict eligibility requirements that must be met before being able to participate in the US tax new expatriation program. These include:

  • ‘Prior compliance failures were non-willful.
  • Past tax liability is not in excess of $25,000 for the six years of returns to be filed.
  • Less than $2 million in net assets as of expatriation date.
  • Expatriated after March 18, 2010.  Must expatriate prior to filing under this procedure.
  • It is limited to individuals only.
  • The taxpayer has no tax filing history as a US citizen or resident.
  • Must include a copy of approved form DS-403, Certificate of Loss of Nationality with the filing.’

     Additionally, all eligible taxpayers must file their US tax returns on time and require international information for the five years leading up to and including the year of their expatriation.

Foreign Bank Account Reports (FBARs)

     If Foreign Bank Account Reports, FBARs, have been filed, the IRS will not asset penalties on them. However, if you file FBARs in the future, you might incur FBAR penalties.

Covered Expatriate

     There are some potential negative outcomes of the new procedure. If you become a ‘covered expatriate’, you could end up owing an exit tax or other tax penalties.

Knowledgeable, Experienced US Tax Law Professional

     While this new tax procedure might sound confusing to some, because it is, help is available. Any time you are dealing with a tax issue, especially one as important as this one, it is best to contact a tax professional who has knowledge and experience with US tax law.

Contact British American Tax

     To learn more about this new IRS procedure, contact British American Tax today and consult with an expert tax advisor who can answer any questions you might have about taking a proactive approach to your tax planning.

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