Purpose of Form.
- Expatriation tax provisions apply to US citizens who have relinquished their citizenship and Long Term Residents (LTR) who have ended their residency (expatriated). Form 8854 is for individuals who expatriate after 4 June 2004.
- Filing this 2015 Form 8854 establishes that you have expatriated for tax purposes or that you have complied with the annual information reporting requirements of Section 6039G if you are subject to the Exit Tax under Section 877.
- Until you file Form 8854 and notify the Department of State or Department of Homeland Security of your expatriating act, your expatriation for immigration purposes does not relieve you of the US filing requirements and report worldwide income as a citizen or resident of the United States.
- Form 8854 should be filed as soon as possible after the date you relinquish US citizenship or terminate LTR. You remain subject to tax as a US citizen or resident until you file Form 8854 and notify the appropriate authorities of your expatriation act.
- Complete Parts I, IV and V of the form.
- Where to file:
Department of the Treasury
Internal Revenue Service
Philadelphia, PA 19255-0549
Requirements in the Form.
Expatriating US citizens and LTRs are obliged to file Parts I, IV and V of Form 8854 from 2013. Parts II and III applied prior to January 1, 2012.
Part I calls for general information: name, address, country of tax residence, expatriation date, days present in United States, other citizenship(s), US citizenship by birth or naturalization.
Parts IV and V require reporting extensive financial information: Income tax liability for five years preceding Expatriation, ownership of property as of Expatriation date, property related to tax deferral, assets and liabilities at Fair Market Value and Adjusted Basis, and total income. Note that failure to file this form or else filing incomplete subjects the filer to a $10,000 penalty. Moreover the expatriate who fails to file Form 8854 will be obliged to pay the same Exit Tax that is otherwise applicable to a Covered Expatriate.