Form 8854 PDF Details

Every year, taxpayers must file a Form 8854 to report information about their participation in certain expatriation events. This form is used to determine whether you meet the requirements for tax treatment as a long-term resident of the United States or as a dual citizen or national. In this blog post, we will explain what expatriation events are and how to complete Form 8854. We will also discuss the consequences of expatriating and provide tips on how to minimize those consequences.

QuestionAnswer
Form NameForm 8854
Form Length5 pages
Fillable?No
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Avg. time to fill out1 min 15 sec
Other names www.irs.govpubirs-pdf2021 Form 8854 - Internal Revenue Service

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Form 8854

Initial and Annual Expatriation Statement

 

OMB No. 1545-0074

 

 

 

2021

 

For calendar year 2021 or other tax year beginning

, 2021, and ending

, 20

 

 

Department of the Treasury

▶ Go to WWW.IRS.GOV/FORM8854 for instructions and the latest information.

 

Attachment

Internal Revenue Service

▶ Please print or type.

 

 

 

Sequence No. 112

Name

 

 

 

Identifying number (see instructions)

 

 

 

 

 

 

Part I General Information. For all filers.

1Mailing address and telephone number where you can be reached after expatriation

2Address of principal foreign residence (if different from line 1)

3Country of tax residence (if different from line 2)

4Check the box that applies. See instructions.

Initial expatriation statement for persons who expatriated in 2021. Complete Part II.

Annual expatriation statement for persons who expatriated before 2021. Complete Part III.

5Date of expatriation under section 877A(g)(3) for expatriating citizens and long-term residents. See instructions.

Citizen Long-term resident

Long-term resident with dual residency in a treaty country. Date commencing to be treated, for tax purposes, as a resident of the treaty country

6List all countries (including the United States) of which you are a citizen (see instructions).

aName of country

bDate you became a citizen of each country listed in line 6a (see instructions).

7 How you became a U.S. citizen

By birth

8Date you became a U.S. lawful permanent resident

By naturalization

Part II Initial Expatriation Statement for Persons Who Expatriated in 2021

Section A

Expatriation Information

1Enter your U.S. income tax liability (after foreign tax credits) for the 5 tax years ending before the date of your expatriation.

1st Year

2nd Year

3rd Year

4th Year

5th Year

Before Expatriation

Before Expatriation

Before Expatriation

Before Expatriation

Before Expatriation

$

 

$

 

$

 

$

 

 

$

2 Enter your net worth on the date of your expatriation for tax purposes

$

3Did you become at birth a U.S. citizen and a citizen of another country, and do you continue to be a citizen

of, and taxed as a resident of, that other country? . . . . . . . . . . . . . . . . . . .

4If you answered “Yes” to question 3, have you been a resident of the United States for not more than 10 of

the last 15 tax years (including the year of your expatriation)? . . . . . . . . . . . . . . . .

5Were you under age 181/2 on the date you expatriated and have you been a U.S. resident for not more than

10 tax years? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6Do you certify under penalties of perjury that you have complied with all of your tax obligations for the 5

preceding tax years? See instructions . . . . . . . . . . . . . . . . . . . . . . .

Yes

Yes

Yes

Yes

No

No

No

No

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 24126N

Form 8854 (2021)

Form 8854 (2021)

Page 2

Section B

Balance Sheet

List in U.S. dollars the fair market value and the U.S. adjusted basis of your assets and liabilities as of your expatriation date. For Lines 6 and 7, list in U.S. dollars the present value of your pensions and deferred compensation interests as of your expatriation date. For more details, see the instructions.

 

Assets

 

(a) Fair market

(b) U.S. adjusted

 

 

value (FMV)

basis

 

 

 

 

 

 

 

1

Cash, including bank deposits

 

 

2

Marketable stock and securities issued by U.S. companies .

 

 

3

Marketable stock and securities issued by foreign companies

 

 

4

Nonmarketable stock and securities issued by U.S. companies

 

 

5

Nonmarketable stock and securities issued by foreign companies

 

 

a Separately state stock issued by foreign companies that would

 

 

 

be controlled foreign corporations if you were still a U.S. citizen

 

 

 

or permanent resident. See instructions

 

 

b

Provide the name, address, and EIN, if any, of

any such company

 

 

 

 

 

 

 

 

 

 

 

 

6

Pensions or similar retirement arrangements (both U.S. and

 

 

 

foreign). See instructions

 

 

7

Deferred compensation (including stock options). See instructions

 

 

 

 

8

Partnership interests. See instructions

 

 

9

Assets held in trust. See instructions

 

 

10

Beneficial interests in trusts not included in line 9. See instructions

 

 

11

Intangibles used in the United States

 

 

12

Intangibles used outside the United States

 

 

13

Loans to U.S. persons

 

 

14

Loans to foreign persons

 

 

15

Real property located in the United States

 

 

16

Real property located outside the United States

 

 

17

Business property located in the United States

 

 

18

Business property located outside the United States . . . .

 

 

19

Other assets. See instructions

 

 

20

Total assets. Add lines 1 through 5 and lines 6 through 19. Don’t

 

 

 

include amounts on line 5a in this total

 

 

 

 

 

 

 

 

Liabilities

 

Amount

 

21

Installment obligations

 

 

22

Mortgages, etc

 

 

23

Other liabilities. See instructions

 

 

24

Total liabilities. Add lines 21 through 23

 

 

25

Net worth. Subtract line 24 from line 20, column (a) . . . .

 

 

Form 8854 (2021)

Form 8854 (2021)

Page 3

Section C

Property Owned on Date of Expatriation

Don’t complete Section C if:

•Your average net income tax liability for the 5 tax years immediately before expatriation (see line 1 in Section A) wasn’t more than $172,000, your net worth on the date of your expatriation (see line 2 in Section A) was under $2 million, and you checked “Yes” on line 6 in Section A;

•In Section A, you checked “Yes” on lines 3, 4, and 6; or

•In Section A, you checked “Yes” on lines 5 and 6.

1a Do you have any eligible deferred compensation items? Checking the “Yes” box is an irrevocable waiver of any right to claim any reduction in withholding for such eligible deferred compensation item under any treaty with the United States . . . . . . . . . . . . . . . . . . . . . . . . . .

bDo you have any ineligible deferred compensation items? If “Yes,” you must include in income the

present value of your account on the day before your expatriation date . . . . . . . . . . . .

cDo you have an interest in a specified tax deferred accounts? If “Yes,” you must include in income the

amount of your entire interest in the account on the day before your expatriation date . . . . . . .

Yes

Yes

Yes

No

No

No

d Are you a beneficiary of a nongrantor trust? See instructions . . . . . . . . . . . . . . .

Yes

No

Check this box to elect under section 877A(f)(4)(B) to be treated as having received the value of your entire interest in the trust (as determined for purposes of section 877A) as of the day before your expatriation date. Attach a copy of your valuation letter ruling issued by the IRS. See instructions.

2Recognition of gain or loss on the deemed sale of mark-to-market property. Caution: Don’t include in column (a) any property described on line 1a, 1b, 1c, or 1d.

Complete column (g) only if you are deferring tax on gain from any property listed in column (a).

(a)

(b)

(c)

(d)

(e)

(f)

(g)

Gain after

Description of property

Fair market value

Cost or other

Gain or (loss).

Form or Schedule

Amount of tax

allocation of the

 

on day before date

basis*

Subtract (c)

on which gain

deferred (attach

 

exclusion amount

 

of expatriation

 

from (b)

(see instructions)

or loss is reported

computations)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 Total. Add the amounts in column (d) and column (e) . . .

 

 

 

 

4 Total tax deferred. Add the amounts in column (g). Enter here

 

 

 

 

and on Part II, Section D, line 5

 

 

 

 

 

 

 

 

 

 

 

* You must identify as “(h)(2)” any property for which you are making the special basis election under section 877A(h)(2). This election is irrevocable. See the instructions for Part II, Section C, line 2, column (c).

Form 8854 (2021)

Form 8854 (2021)

Page 4

Section D

Deferral of Tax

Election to defer tax. You can defer tax only if you have provided adequate security. Adequate security is described in the instructions.

1 Are you electing to defer tax under section 877A(b)?

 

Checking the “Yes” box is an irrevocable waiver of any right under any treaty of the United States

 

that would prevent assessment or collection of any tax imposed because of section 877A

Yes

No

If you checked the “Yes” box, continue to line 2. Otherwise, don’t complete lines 2 through 5.

2Enter the total tax you would have reported, absent the deferral election, on Form 1040 or

1040-SR, line 24, for the part of the year including the day before the expatriation date absent the deferral election . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3Enter the total tax for the same part of the tax year determined without regard to the amounts

attributable to section 877A(a). Attach computation . . . . . . . . . . . . . . . .

4

Subtract line 3 from line 2. This is the amount of tax eligible for deferral

5

Enter the total tax deferred from Part II, Section C, line 4, column (g)

 

• If you are filing Form 1040 or 1040-SR, enter this amount in brackets to the left of the entry

 

space for line 24. Identify as “EXP.”

• If you are filing Form 1040-NR, enter this amount in brackets to the left of the entry space for line 24. Identify as “EXP.”

2

3

4

5

Part III Annual Expatriation Statement for Persons Who Expatriated Before 2021

•If you made an election to defer the payment of tax, complete line 1.

•If you have an item of eligible deferred compensation, complete line 2.

•If you are a beneficiary of a nongrantor trust, complete line 3.

1Complete columns (a), (b), and (c) for all property on which you deferred tax on a prior year Form 8854. Complete column (d) for any property you disposed of in 2021 and see the instructions for Part III.

(a)

Description of property

(b)

Amount of mark-to-market gain or

(loss) reported on prior year

Form 8854

(c)

Amount of tax deferred on prior year

Form 8854

(d)

Date of disposition (if any)

Form 8854 (2021)

Form 8854 (2021)

Page 5

 

 

Part III

Annual Expatriation Statement for Persons Who Expatriated Before 2021 (CONTINUED)

 

2 Did you receive any distributions of eligible deferred compensation items for 2021? . . . . . . . .

If “Yes,” enter the amount of distribution(s) and amount withheld at source, if any, below.

 

Amount of distribution

Amount withheld at source, if any

1

 

 

2

 

 

3

 

 

3 Did you receive any distributions from a nongrantor trust for 2021? . . . . . . . . . . . . . .

If “Yes,” enter the amount of distribution(s) and amount withheld at source, if any, below.

 

Amount of distribution

Amount withheld at source, if any

1

 

 

2

 

 

3

 

 

Yes

Yes

No

No

Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than filer) is based on all information of which preparer has any knowledge.

Sign Here

Your signature

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid

Print/Type preparer’s name

Preparer’s signature

 

Date

Check

if

PTIN

 

 

 

 

 

Preparer

 

 

 

 

self-employed

 

 

 

 

 

 

 

 

Firm’s name ▶

 

 

 

Firm’s EIN ▶

 

 

Use Only

 

 

 

 

 

Firm’s address ▶

 

 

 

Phone no.

 

 

 

 

 

 

 

 

Form 8854 (2021)

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This PDF doc will need you to type in some specific information; to ensure accuracy and reliability, remember to take heed of the guidelines down below:

1. The Form 8854 requires specific information to be inserted. Make certain the following blanks are finalized:

Tips on how to complete Form 8854 part 1

2. Just after filling in the previous section, head on to the subsequent part and fill out the necessary particulars in these fields - Citizen Longterm resident Longterm, List all countries including the, a Name of country, b Date you became a citizen of, How you became a US citizen, By birth, By naturalization, Date you became a US lawful, Part II Section A, Initial Expatriation Statement for, Expatriation Information, Enter your US income tax liability, st Year, nd Year, and rd Year.

Filling out section 2 in Form 8854

3. The following section will be focused on If you answered Yes to question, Yes, Were you under age on the date, tax years, Yes, Do you certify under penalties of, preceding tax years See, For Paperwork Reduction Act Notice, Cat No N, Yes, and Form - fill out these fields.

Form 8854 completion process shown (stage 3)

4. Now complete this next section! Here you have all these Assets, a Fair market, value FMV, b US adjusted, basis, Cash including bank deposits, Marketable stock and securities, Nonmarketable stock and securities, Provide the name address and EIN, Pensions or similar retirement, and Deferred compensation including form blanks to fill in.

Completing section 4 of Form 8854

5. This pdf should be finalized by going through this area. Below one can find a full list of form fields that require accurate information to allow your form usage to be complete: Installment obligations, Mortgages etc, Other liabilities See, Liabilities, Amount, and Form.

Writing section 5 of Form 8854

It is easy to make errors while completing the Other liabilities See, and so be sure to look again prior to when you submit it.

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