Tag Archives: Michael Miller

I’ll be back: Revisiting Expatriation for tax purposes vs. Expatriation for citizenship purposes

 

A recent post from Phil Hodgen discussing relinquishing U.S. citizenship and expatriation ends with:

People care about this because they are angling for an earlier expatriation date than “now”, whatever “now” is. It won’t work. If you are a U.S. citizen, you will not have an expatriation date earlier than an objective event involving paperwork. Invoking the time traveler exception again, this is impossible to do unless you have that special ability. Determine your expatriation date for tax purposes as of right now (whenever “now” is for you), and compute the tax consequences accordingly.

As one commenter wrote:

As someone born ‘dual’, and unable to acquire the magical, ‘back-dated’ CLN, I am personally unaffected. However, I think this article just caused a lot of people more sleepless nights. The nightmare never ends.

In my respectful submission the 877A rules:

– apply to those expatriating after the 877A provisions took effect in 2008; and

– do NOT apply to those expatriating prior to the 877A provisions becoming law.

The 877A rules should NOT be read to operate retrospectively.

The 877A rules should be understood to apply when both the expatriating act and the “objective event confirming the paperwork” took place after the 877A rules took effect.

The reasons for my thinking …

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