Category: Taxation
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Expatriation -

Expatriation: Opportunities in a Mist of Uncertainty -

Almost six years after the tax rules on expatriation were materially changed, a lack of official guidance has left several issues that are both unsettled and unsettling.

In 2013, a record 2,999 people expatriated from the United States. When the final numbers were released, expatriation became a story in the general press, and additional articles have continued to appear. For tax attorneys, however, this story has been building for years, largely due to the increased reporting obligations on US persons living abroad or with foreign assets. In 2008, the HEART Act materially changed the tax rules associated with expatriation. Since then, the only official guidance on these new rules has been Notice 2009-85, 2009-45 IRB 598 , together with the publication of Form 8854 (Initial and Annual Expatriation Statement) and its instructions. Many articles have explained the new regime but the lack of official guidance in this area has left several issues that are both unsettled and unsettling. This article explores a selection of important but less discussed issues regarding expatriation.

Originally Published in Checkpoint Contents, International Tax Library, WGL Journals, Journal of International Taxation (WGL), Journal of International Taxation 2014, Volume 25, Number 12 - December 2014 Articles.