Everything you need to know: "Expatriation"- giving up a green card (LTR) or US Citizenship

Course Description

Some of your clients are US citizens who may be thinking of giving up their citizenship. This number may be small, but many of your clients are green card holders.

How many green card holders truly understand what will happen to them if they hold the card for 8 “tax years” (that can be far less than 8 calendar years!) and then relinquish the card?

How many understand that merely because the card has “expired” for immigration purposes, the mere expiration does not let them off the hook for tax purposes?

Green card holders with expired cards remain liable for paying US tax as tax residents. In addition, those “expired” years count in determining if they have held the card long enough to be subject to the “expatriation” tax regime once the card is formally relinquished or administrative action is taken.

If the US citizen giving up citizenship, or the green card holder giving up the card is classified as a “covered expatriate” (CE), the expatriation regime applies. The regime will impose an “exit tax” on a deemed sale of the client’s worldwide assets. Additionally, a 40% transfer tax will be imposed on any US recipients of a gift or inheritance from the CE at any time in the future.

Understanding how to advise clients about the complex tax aspects of the US “expatriation” tax regimes can create a whole new line of business for tax advisors, enrolled agents, and return preparers seeking to expand their US tax practice.

Don’t lose potential big business opportunities because you do not fully understand the expatriation rules. The regimes should be understood by any client who is thinking of obtaining a green card or US citizenship, as well as by those thinking of relinquishing the card or citizenship.

Expatriation matters have grown in importance over the years as more and more individuals are divorcing from the United States. The IRS now has an audit campaign in place for individuals expatriating any time after June 2008. It is aggressively seeking unpaid exit tax and penalties.  Now more than ever, tax professionals need to understand the expatriation rules and how to engage in constructive tax planning for clients to escape the harsh results. This CPE course provides all the information you need.

This CE/CPE Tax course will provide an in-depth examination of the overall framework and rules surrounding the expatriation tax rules. This is one of the most complex and misunderstood areas in US international tax. The rules have changed several times over the years, adding to the complexity. My CPE course makes it easy and digestible.

Learning Objectives

• To explain the various ways a US citizen can “expatriate” and which carry greater tax risks and issues.
• To discuss how a green card holder is considered to “expatriate” – you will be surprised.
• To explore the IRC Section 877 and 877A “expatriation” regime rules – Exit Tax and how the tax applies to various assets including the principal residence, IRAs/401(k)s/Coverdell’s, US and foreign pensions, interests in trusts.
• To identify who will be treated as a CE subject to the harsh expatriation regime and learn planning techniques to help avoid the triggers.
• To analyze how US recipients of gifts or an inheritance from a CE will be subject to a 40% transfer tax; how proposed regulations treat all such US recipients as “guilty” unless they can prove the gift or bequest was not given to them by a CE.
• To explore how to use possible exceptions to CE status for younger persons or certain dual nationals who have had limited US physical presence.
• To look at how to compute a client’s “net worth” for purposes of the Net Worth test triggering CE status.
• To explain traps and issues involved in the computing net worth of married couples.
• To analyze what it means to meet the tax compliance test for expatriation purposes. 
• To analyze what to do if your client has not been tax compliant but has already expatriated.
• To discuss the Reed Amendment and possible ban on re-entry to the US. How much of a risk is this. Realistically, we will examine how much of a risk this really is.

Recommended For

• This IRS-approved CE webinar is recommended for Tax partners, managers, and staff, CPAs, EA, AFSP, CRTP, MRTP, ORTP, CFIRS, CWS, tax return preparers, tax attorneys, and other tax practitioners who want to understand everything about complex tax aspects of the US “expatriation” tax regimes.
  

Who Should Attend?

Webinar Qualifies For

• 2 General Credit for Accountant/Bookeeper
• 2 CE Credit of Federal tax-related matters for Annual Filing Season Program (AFSP)
• 2 CE Credit of Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-0983)
• 2 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
• 2 CE Credit of Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-01188-22-O)
• 2 CPE Credit for Certified Government Financial Manager (CGFM)
• 2 CE Credit of Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-01188-22-O)
• 2 CPD Credit of General income tax planning for Personal Financial Specialist (PFS)
• 2 CPE Credit for Chartered Financial Consultant (ChFC)
• 2 CE Credit for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-01188-22-O)
• 2 CPE Credit for Financial Services Certified Professional (FSCP)
• 2 CPE Credit for Chartered Advisor in Senior Living (CASL)
• 2 CPE Credit for Chartered Special Needs Consultant (ChSNC)
• 2 CPE Credit for Retirement Income Certified Professional (RICP)
• 2 CPE Credit for Wealth Management Certified Professional (WMCP)
• 2 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
• 2 CE Credit for Certified Wealth Strategist (CWS)

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