IRS Form 8854 Instructions

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Any United States citizen who decides to give up a citizenship, or for long-term residents who had immigrated to this country and have now decided to end a residency, must file an IRS 8854 form. This form declares that you have expatriated from the U.S. on or after June 4, 2004 and that you have satisfied all U.S. tax liabilities. Depending on the date of your expatriation, there will only be certain parts of the IRS 8854 form to complete.

General Expatriation Information

  • Complete part one of the IRS 8854 form no matter what date you expatriated from the United States. Write down a mailing address and telephone number where the IRS can reach you after you expatriate, the address of your foreign residence if this is different from your mailing address, and the country where you pay residence tax if this is also different from your foreign residence.

  • Check the appropriate box on the day you ended U.S. citizenship. You will fill out only certain parts of the 8854 form depending on your expatriation date. If expatriation occurred June 4, 2004 through June 16, 2008, complete parts two and five. Fill in part three if expatriation occurred between June 17, 2008 to December 31, 2009 and if you deferred tax payments in 2008 or 2009, have eligible deferred compensation or have interest in a non-grantor trust. Complete parts four and five if you expatriated in 2010.

  • Finish writing in your general information in the first part before moving on to your specified expatriation section. Provide your date of notification of termination of residency, expatriating act or claim of treaty benefits. Place in the number of days that you were physically present in the United States during the current year along with information of all the other countries where you are a present citizen along with the date. Finish part one by identifying how you became a United States citizen.

June 4, 2004 to June 16, 2008 Expatriation

  • Fill out part two if you had expatriated between June 4, 2004 and June 16, 2008. Place a check mark in the box on whether you had already completed a form 8854 for this time period.

  • Indicate if you were physically in the United States for more than 30 days but not over 60 days. Indicate if you were performing any services for an unrelated employer during that time frame.

  • Answer if you are a citizen or resident while working for the employer and fully liable for income tax in the country where you, your spouse or your parents were born. Move on to part five in the 2010 Expatriation section to complete the 8854 form.

June 17, 2008 to December 31, 2009 Expatriation

  • Write in part three if you had expatriated between June 17, 2008 to December 31, 2009. Provide information on line one to indicate property which you deferred tax on for your 2008 or 2009 IRS form 8854.

  • Include information concerning any property disposed of in 2010 on line one. For items where you received eligible deferred compensation, fill in line two to indicate the distributed amount and any amount withheld.

  • Complete line three concerning the distributed amount if you have interest in a non-grantor trust. Include the amount withheld for the interest in the non-grantor trust.

2010 Expatriation

  • Complete part four, section A, if you had expatriated from the United States anytime during 2010. Provide the amount of income tax liability for the five tax years ending before the expatriation date. Fill in your net worth on the day you had expatriated.

  • Include information on whether you became a United States citizen and a citizen of another country and if taxes applied to you as a resident of that other country. Indicate if you have been a United States citizen for less than 10 years of the last 15 tax years and if you were under the age of 18-1/2 on the date of expatriation and were a United States resident for less than 10 years.

  • Certify that you complied with all tax obligations for the five previous tax years. Indicate property owned on the expatriation date in section B of part four. Skip this section if your net income tax liability for the five years before expatriation was less than $145,000, your net worth was under $2 million or if you answered yes to any questions concerning your expatriation information in part 4.

  • Fill in section B on whether you have any eligible deferred compensation items, ineligible deferred compensation items, specified tax deferred accounts or interest in a non-grantor trust. If you received any gains or losses on the deemed sale of market-to-market property, include the property information in the columns. Add the column amounts and the total tax deferred.

  • Complete section C for the deferral of tax to finish part four. Indicate whether you are electing to defer tax by having adequate security and use the total tax amount you would have reported on form 1040 to compute the amount of tax eligible for deferral.

  • Complete part five of the IRS 8854 form for expatriation in 2010 and during the time period between June 4, 2004 to June 16, 2008. Fill out the balance sheet for the fair market value and the U.S. adjusted basis for your assets and liabilities concerning the end of the tax year when you are filling out this form. Include your income statement information for the tax year when you are filing this return.

  • Complete form 8854 by signing and dating the return. Mail the form to the Department of the Treasury, Internal Revenue Service, located in Philadelphia, Pennsylvania.

References

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