MYCPE ONE

Everything You Need to Know: "Expatriation"- Giving up a Green Card (LTR) or US Citizenship 2 Credits 2 Credits

Feb 28, 2024, 12:30 PM EDT

Everything You Need to Know: "Expatriation"- Giving up a Green Card (LTR) or US Citizenship 2 Credits 2 Credits

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Feb 28, 2024, 12:30 PM EDT

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AI Review Summary

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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.

Course Overview

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. 

Major topics included: 

  • Broad Overview: How to Approach an Expatriation Case
  • How to Approach: First - Which Laws Apply to your Client?
  • How to Expatriate / Terminate US status?
  • “Tax Compliance” – What? When? 
  • Form 8854: Initial and Annual Expatriation Statement
  • Options For Getting Into Tax Compliance
  • Form 8854 and Certification of Tax Compliance
  • Deemed Sale of Principal Residence
  • Additional Tax Burdens if CE
  • Reducing Net Worth – Gifting Plans

On Demand Credits for All Qualifications

Live Webinar Credits for All Qualifications

License details Credits Status
Taxes for Certified Public Accountants (CPA-US) 2 CPE Approved
Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-00983) 2 CE Approved
General income tax planning for Personal Financial Specialist (PFS) 2 CPD Eligible
Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Chartered Financial Consultant (ChFC) 2 CE Eligible
Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Delaware Licensed Public Accountant (DE-LPA) 2 CPE Approved
Federal tax-related matters for LTC (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Retirement Income Certified Professional (RICP) 2 CE Eligible
Taxes for Financial Services Certified Professional (FSCP) 2 CE Eligible
Taxes for Wealth Management Certified Professional (WMCP) 2 CE Eligible
Taxes for Chartered Advisor in Senior Living (CASL) 2 CE Eligible
Taxes for Iowa Licensed Public Accountant (IA-LPA) 2 CPE Approved
Taxes for Maine Licensed Public Accountant (ME-LPA) 2 CPE Approved
Taxes for Chartered Special Needs Consultant (ChSNC) 2 CE Eligible
License details Credits Status
Taxes for Certified Public Accountants (CPA-US) 2 CPE Approved
Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-00983) 2 CE Approved
General income tax planning for Personal Financial Specialist (PFS) 2 CPD Eligible
Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Chartered Financial Consultant (ChFC) 2 CE Eligible
Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Delaware Licensed Public Accountant (DE-LPA) 2 CPE Approved
Federal tax-related matters for LTC (Approval No. GEHNZ-T-01188-22-O) 2 CE Approved
Taxes for Retirement Income Certified Professional (RICP) 2 CE Eligible
Taxes for Financial Services Certified Professional (FSCP) 2 CE Eligible
Taxes for Wealth Management Certified Professional (WMCP) 2 CE Eligible
Taxes for Chartered Advisor in Senior Living (CASL) 2 CE Eligible
Taxes for Iowa Licensed Public Accountant (IA-LPA) 2 CPE Approved
Taxes for Maine Licensed Public Accountant (ME-LPA) 2 CPE Approved
Taxes for Chartered Special Needs Consultant (ChSNC) 2 CE Eligible

Additional Information

Credits

2

Course Level

Basic

Instructional Method

QAS Self Study

Group Internet Based

Pre-requisites

None

Advance Preparation

None

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MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

CTEC APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC, in accordance with the standards set forth in Circular 230 section 10.6, grants Continuing Education (CE) credits based on a 50-minute hour. MY-CPE LLC is approved by the California Tax Education Council (CTEC) (Provider Number – 6273) to offer continuing education courses that count towards the annual continuing education requirement for CTEC Registered Tax Preparers. Additional information regarding registration as a tax preparer can be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free at (877) 850-2832, or by visiting www.ctec.org.

About Instructor

With 40 years of US tax and international experience, Virginia has been a member of the NYS Bar since 1984 and is admitted to practice before the United States Tax Court. Practicing US tax overseas since 1986, Virginia’s work has focused on clients throughout Europe, Asia and the Middle East.  She provides expert insight into tax planning and compliance for American expats and foreign persons having any US connections.


Virginia has expertise in cross-border transactions and structuring, FATCA, regaining US tax compliance with previously unreported foreign income, assets or accounts, expatriation tax planning, and providing specialist advice for international families in numerous areas of US international tax.  Working with tax and attorney colleagues across the globe, including an appointment with Helm Advisors in Zurich, Switzerland, Virginia excels in solving cross-border and multi-jurisdictional tax matters.  She has developed a unique and sought-after specialty in analyzing the US tax consequences of transactions involving Sharia law , the use of UAE “foundations” and the use of trusts in US tax planning.


Virginia’s tax advice is highly knowledgeable, reliable and solution-focused. Having assisted Asian and Middle Eastern families for decades, she appreciates the sensitive and special situations involved in multi-national families. Virginia has worked with international law and accounting firms (Deloitte), major banks (including HSBC), and trust companies. Early in her career she worked with the top-tier NY law firm, Willkie Farr & Gallagher.


Virginia is a contributor on Forbes, covering US international tax issues faced by Americans abroad and foreign persons with US affiliations. She is also a Bloomberg tax author and an avid tax blogger for many years.  Virginia’s work is highly regarded and recognized internationally.   Her Twitter (X) Account @VLJeker has been listed in Forbes, Top 100 Must-Follow Tax Twitter Accounts and she is named by Bloomberg as a tax professional to follow on LinkedIn. Tax Notes International recognized Virginia as a preeminent US tax professional, profiling her international tax practice (here).   Listen to a short podcast posted in Forbes to hear Virginia discuss how she established her tax practice abroad, the challenge of balancing family life with career, and recent international tax issues.


Virginia has been quoted in the New York Times, Newsweek and the Wall Street Journal and is regularly quoted in local news and publications. Virginia has a passion for US international tax and her contributions to the field are prolific: interviewed by CNN, local television appearances, regularly speaking at conferences and seminars, and publishing a vast array of scholarly works on US tax issues, some of which have been referenced by other attorneys or organizations both to the US courts and US Congress. Virginia trains tax professionals through webinars with MyCPE, Webinar Planet and various professional groups.  

On Demand FAQs

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To earn CPE credits, you must complete the self-study course, pass the required assessments, and submit the necessary documentation. Credits are awarded based on the completion of course hours and successfully passing the assessments.

Are the self-study courses accepted by NASBA and other professional organizations?

MY-CPE LLC courses are accepted for continuing education credit by various professional certification programs, including NASBA, IRS, CFP Board, and HRCI. MY-CPE LLC is also recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® and SHRM-SCP® recertification activities.

What are the requirements to maintain compliance with self-study courses?

To maintain compliance, you must follow the guidelines set by NASBA and other regulatory bodies, which include completing the course within the specified timeframe, passing the assessments, and keeping accurate records of your learning activities.

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After successfully completing a self-study course and passing the assessments, you can access and download your course completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other professional organizations for compliance and reporting purposes.

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What is a Live Webinar Group Internet-Based Credit?

A Live Webinar Group Internet-Based Credit is an interactive, real-time online seminar where professionals can earn Continuing Education credits by participating in live sessions led by experts in various fields. Our courses qualify for credits with NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other professional organizations.

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To earn credits, you must attend the entire live webinar, actively participate in any polls or questions, and complete any required evaluations or assessments. Credits are awarded based on your attendance and participation in the live session.

Are the live webinars accepted by NASBA and other Professional Organizations?

MY-CPE LLC courses are accepted for continuing education credit by various professional certification programs, including NASBA, IRS, CFP Board, and HRCI. MY-CPE LLC is also recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® and SHRM-SCP® recertification activities.

What are the requirements to maintain compliance with live webinar courses?

To maintain compliance, you must adhere to the guidelines set by NASBA and other regulatory bodies, which include attending the full duration of the webinar, participating in interactive elements, and completing any post-webinar evaluations or assessments.

How can I access my webinar completion certificates?

After successfully attending a live webinar and fulfilling all participation requirements, you can access and download your completion certificates from your account dashboard on our platform. These certificates are accepted for compliance and reporting purposes with NASBA, IRS, CFP Board, HRCI, SHRM (for PDCs), Payroll Org, FP Canada, and 25+ other professional organizations.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Reviews and Ratings

out of 5

Excellent (67%)

Very Good (31%)

Average (2%)

Poor

Terrible

DL

David Lesperance,

5

This webinar is critical for any advisor who is having a client contemplating leaving the US tax system by either renouncing their US citizenship or relinquishing their US Green Card. Virginia’s depth of knowledge, experience and expertise as laid out in this presentation will quickly dispel the myth that this is a DIY or amateur job, especially for HNW Americans. The fiscal damage that can be done in overpaying tax upon departure or laying a significant future tax burden on US heirs will make the cost of proper advice seem like a rounding error.

JO

Jeanne Oconnell, EA

5

Instructor very knowledgeable. Presentation excellent. Thank you.

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Everything You Need to Know: "Expatriation"- Giving up a Green Card (LTR) or US Citizenship

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