AICPA Sophie Luo (羅霞) reminds you that you want to give up the US citizenship. After you submit the abandonment application form I-407 to the Homeland Security Bureau, you must submit the 8854 form to the IRS to prove that you have paid before leaving the country. All federal tax for 5 years and abandonment tax , otherwise it will form abandoning nationality without abandoning the tax status. Although you have given up the US citizenship, you still have tax filing obligations for the United States.
If you never fill out and submit the 8854 form when you abandon your books, you may face penalties for unsubmitted statements: $10,000 per year, up to $100,000, and taxes that you have not paid before leaving the country. The money will continue to accumulate fines and interest.
Therefore, if you wants to give up US citizenship, you must remember to fill out and submit the 8854 form to the IRS when you submit the abandonment application form I-407 to the Homeland Security Bureau. Usually, 8854 must be in the year of abandonment. Submitted within the next year and submitted the final tax return in a timely manner.
If you would like to know more about US Abandon Tax,
welcome to contact us at the USCPA Sophie Luo (羅霞) +886 4 22520309 or Email: ustaxproservice@gmail.com
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