IRS Form 8854: Beginner's Guide to the Tax Expatriation-2025

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The document is Form 8854, the Initial and Annual Expatriation Statement for individuals expatriating from the U.S. in 2024. It requires personal information, details about citizenship, tax liabilities, net worth, and asset declarations at the time of expatriation. The form distinguishes between initial expatriation statements for new expatriates and annual statements for those who expatriated prior to 2024. It includes sections on income tax liability, balance sheet of assets and liabilities, property owned at the time of expatriation, and options for deferring taxes.

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Click ‘Get Form’ to open it in the editor.
Begin by filling out your personal information in Part I, including your mailing address and principal foreign residence. Ensure all details are accurate and typed clearly.
In Section A of Part II, provide your U.S. income tax liability for the five years before expatriation. Be cautious as these amounts are not your balance due; refer to the instructions for clarity.
Complete the Balance Sheet in Section B by listing your assets and liabilities as of your expatriation date. This includes cash, stocks, real estate, and any deferred compensation.
If applicable, proceed to Section C to report property owned on the date of expatriation. Follow the instructions carefully regarding eligible deferred compensation items.
Finally, review all sections for accuracy before signing at the end of the form. Use our platform’s features to save and share your completed form securely.

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What happens if you dont file form 8854?

Form 8854 must also be filed to comply with the annual information reporting requirements of IRC 6039G, if the person is subject to the alternative expatriation tax under IRC 877 or IRC 877A. A $10,000 penalty may be imposed for failure to file Form 8854 when required.

How to avoid expatriation tax?

Renouncing citizenship is the only way to avoid the exit tax: This is not true. With proper planning, it is often possible to mitigate or even eliminate exit tax liability by taking steps to reduce net worth, manage unrealized gains, and ensure compliance with US tax obligations.

Can I file form 8854 online?

You can file Form 8854 electronically with Form 1040NR returns except in the following cases: Situations that need an extra statement. Form 8854, Page 3, Section B.

What is the expatriation tax form 8854?

Its a required form for individuals who are expatriating to docHub that youve complied with all U.S. federal tax obligations for the past 5 years. It helps determine whether you are subject to an expatriation tax (also known as the exit tax).

Can form 8854 be filed electronically?

You can file Form 8854 electronically with Form 1040NR returns except when theres: You need an additional statement. Form 8854, Page 3, Section B. Form 8854, Page 4, Section C.

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Can I electronically file form 8822 online?

Print and mail the form. Ensure that all the information is legible and accurate. Then, mail the printed form to the IRS using the address provided in the instructions. Its essential to keep a copy of the filled form for your records. As of now, Form 8822 cannot be filed electronically.

Can tax forms be filed online?

Filing online (e-file) is a secure, accurate, fast, and easy option to file your tax return.