Expatriation Tax Planning Compliance

Expatriation Tax Planning Compliance

Planning for Tax Compliance Before Expatriation

Planning for Tax Compliance Before Expatriation: When a U.S. Person is considering expatriating from the United States, one of the most important and key aspects is U.S. tax compliance. That is because when a person is considered a Long-Term Resident or U.S. Citizen they have to evaluate their situation in relation to the IRS rules for covered expatriates

And, even for U.S. Persons who do not meet the net-worth or net-income tax liability tests, they may still be considered a covered expatriate and subject to exit tax unless they can certify they have been in tax compliance for the past five (5) years.

It is important that is next patriot does not sign form 8854 to certify they have been five years tax compliant if this is not true.  The Internal Revenue Service has been increasing enforcement of the expatriation tax laws against expatriates worldwide.

And, since the United States has entered into DTA tax treaties with more than 50 countries, and FATCA agreements with more than 110 countries, compliance is crucial.

Our lawyers will briefly summarize Expatriation Tax Planning Compliance.

IRS Offshore Disclosure Amnesty

In a very common scenario, a person will approach our firm seeking to expatriate from the U.S.  The individual may have already performed so exit tax planning already and are working to minimize and reduce their overall tax liability.

Unfortunately, while they have planned to limit their tax liability post-expatriation – they are not presently in offshore tax compliance – and the clock is ticking.

In order to get into compliance prior to expatriation, there are various voluntary disclosure programs and amnesty programs available to taxpayers.

These programs are used to reduce and sometimes eliminate IRS penalties for noncompliance with offshore reporting requirements, such as:

  • FBAR*
  • Form 3520
  • Form 3520-A
  • Form 5471
  • Form 8621
  • Form 8865

*The FBAR is not technically a tax form but generally considered a required to for a taxpayer to certify 5-years of tax compliance as required on IRS form 8854.

Expatriation with IRS Offshore Disclosure

A very common situation in the past few years has been when a U.S. Citizen or Long-Term Resident wants to expatriate, but is out of international offshore reporting compliance.  In this scenario, the client is unable to certify that they have been 5-years compliance. 

Therefore, we develop a strategy to both get the client into offshore compliance and complete the expatriation process.

Interested in Expatriation from the U.S.?

Our firm specializes exclusively in international tax.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.

Each case is led by a Board-Certified Tax Law Specialist with 20-years experience, and the entire matter (tax and legal) is handled by our team, in-house.

*Please beware of copycat tax and law firms misleading the public about their credentials and experience.

Less than 1% of Tax Attorneys Nationwide Are Certified Specialists

Our lead attorney is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.

Recent Case Highlights

  • We represented a client in an 8-figure disclosure that spanned 7 countries.
  • We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
  • We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
  • We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
  • We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.

How to Hire Experienced Offshore Counsel?

Generally, experienced attorneys in this field will have the following credentials/experience:

  • 20-years experience as a practicing attorney
  • Extensive litigation, high-stakes audit and trial experience
  • Board Certified Tax Law Specialist credential
  • Master’s of Tax Law (LL.M.)
  • Dually Licensed as an EA (Enrolled Agent) or CPA

Interested in Learning More about our Firm?

No matter where in the world you reside, our international tax team can get you IRS offshore compliant.

We specialize in FBAR and FATCA. Contact our firm today for assistance with getting compliant.