As a US citizen or Green Card holder you are likely to be well aware that the simple act of leaving the US does not put an end to your US tax compliance requirements. US expatriates must continue to file US federal returns regardless of how long they reside outside of the US.
US state tax obligations vary significantly. Some states, which are known as “domicile states” require you to continue to file as a resident regardless of how long you have been absent from that state. Others may require a particular period of absence dependent upon your domicile status or pre-departure residency status in order to break residency. Even as a non-resident if you have state source income such as a US rental property or workdays conducted in a particular state you may have a requirement to file a state return.
We can offer assistance to ensure you are fully aware of your US filing obligations while you are residing or working abroad.
If you are considering giving up your US citizenship or surrendering your Green Card we highly recommend that you seek advice from an immigration lawyer as there are more considerations to expatriation than just minimizing or eliminating your ongoing US tax obligations.
Should you decide to proceed with expatriation we can offer assistance in determining whether you will be regarded by the IRS as having expatriated for tax purposes (otherwise known as being a “covered expatriate”), what the tax implications are of meeting this definition. We can also suggest potential pre-expatriation planning which will minimize the cost of expatriation.
In addition we can also assist with any US filing obligations in relation to your expatriation, in particular assisting with the completion of Form 8854 and addressing the potential ongoing filing obligations of other members of your family.