# US taxes: form8854??



## deannw (Dec 12, 2011)

I have just stumbled across a Initial and Annual Expatriation Statement form 8854. so does anyone know does this mean that even if you choose to renounce us citizenship you have to fill this form out every year???


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## Guest (Jan 23, 2012)

deannw said:


> I have just stumbled across a Initial and Annual Expatriation Statement form 8854. so does anyone know does this mean that even if you choose to renounce us citizenship you have to fill this form out every year???


Here's the instructions for that form:

Instructions for Form 8854 (2011)


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## Bevdeforges (Nov 16, 2007)

It depends on the terms under which you leave the US. If you have less that the threshold amount of assets (i.e. net worth), you don't have to bother with the form at all.

Last I checked the threshold was $2 million in net worth or well over $100,000 in tax liability for the prior tax year.
Cheers,
Bev


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## RødGrød (Oct 8, 2011)

Bevdeforges said:


> It depends on the terms under which you leave the US. If you have less that the threshold amount of assets (i.e. net worth), you don't have to bother with the form at all.


*That is incorrect.* Everyone who renounces US citizenship is required to file Form 8854 when they file their final tax forms with the IRS. This is the form where you let the IRS know that you have expatriated and if you are a"covered expatriate" (i.e. your net worth is more than 2 million). This is also the form where you certify that you are up to date withyour tax filing. You only have to file once. If you are "covered" then you have to pay an exit tax. For those of us who are worth less than 2 million, however, the form is simple: you basically just have to certify that your filings are up to date. 

Regardless of whether or not you are "covered", you *must* file the form, but you only have to file it once and then it is over. Until you file this form with the IRS you are still considered liable for US taxes. 

Green card holders must also file this form if they have held their Green Cards for at least eight years and are now giving it up.


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## SteveOdem (Jan 23, 2012)

Expatriation is complex and a lot of things depend on your situation. The last figures I saw, about 500 did it in the 3rd quarter 2011.

For most people in most situations, filing the 1040 and related is less hassle and you retain US benefits.


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## Peg (Sep 22, 2011)

There are different sections in 8854 so read it carefully as to which ones you fill out. It depends on when you renounced/relinquished.

I agree with RodGrod's interpretation.


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## Peg (Sep 22, 2011)

SteveOdem said:


> Expatriation is complex and a lot of things depend on your situation. The last figures I saw, about 500 did it in the 3rd quarter 2011.
> 
> For most people in most situations, filing the 1040 and related is less hassle and you retain US benefits.


That is not what the original poster asked. They asked for clarification about 8854.


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## Bevdeforges (Nov 16, 2007)

The link that GringoCarlos gave include instructions on whether this is a one-time or an annual filing. It depends on your exact circumstances. 
Cheers,
Bev


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## Bevdeforges (Nov 16, 2007)

I believe we've reached the end of this topic. The original question was about a specific IRS form. The question has been answered. 
Cheers,
Bev


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