Choisir la langue

Formulaire 8854 Instructions

Instructions pour le formulaire 8854, Déclaration d'expatriation initiale et annuelle

Rév. 2023

Formulaires associés

Détails
Format de fichier PDF
Taille 205 KB
Télécharger
Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 8854  
Initial and Annual Expatriation Statement  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
long-term resident (LTR), defined below, and terminated your  
residency in 2023.  
You must file your annual Form 8854 (Parts I and III) if you  
expatriated before 2023 and you:  
Future Developments  
For the latest information about developments related to  
Form 8854 and its instructions, such as legislation enacted  
after they were published, go to IRS.gov/Form8854.  
1. Deferred the payment of tax,  
2. Have an item of eligible deferred compensation, or  
3. Are a beneficiary of a nongrantor trust.  
What's New  
Expatriation. Expatriation includes the acts of relinquishing  
U.S. citizenship and terminating long-term residency.  
Date of relinquishment of U.S. citizenship. You are  
considered to have relinquished your U.S. citizenship (and  
consequently, have an expatriation date) on the earliest of the  
following dates.  
Increase in average annual net income tax liability. The  
average annual net income tax liability for the 5 tax years  
ending before your expatriation date, which is used to  
determine whether an individual is a covered expatriate, has  
increased to $190,000. For more information, see Covered  
expatriate, later.  
1. The date you renounced your U.S. citizenship before a  
diplomatic or consular officer of the United States (provided  
that the voluntary renouncement was later confirmed by the  
issuance of a certificate of loss of nationality).  
2. The date you furnished to the State Department a  
signed statement of your voluntary relinquishment of a U.S.  
nationality confirming the performance of an expatriating act  
(provided that the voluntary relinquishment was later  
confirmed by the issuance of a certificate of loss of  
nationality).  
Increase in threshold for net unrealized gain on proper-  
ty. For 2023, if you are a covered expatriate, the net gain  
that you must otherwise include in your income is reduced by  
$821,000. For more information, see Taxation Under Section  
877A, later.  
General Instructions  
Purpose of Form  
Section 877A applies to U.S. citizens who have relinquished  
their citizenship and long-term residents who have ended  
their residency (expatriated) on or after June 17, 2008.  
3. The date the State Department issued a certificate of  
loss of nationality.  
4. The date a U.S. court canceled your certificate of  
naturalization.  
Form 8854 is used by expatriates to certify compliance  
with tax obligations in the 5 years before expatriation and to  
comply with their initial and annual information reporting  
obligations under section 6039G.  
Long-term resident (LTR) defined. You are an LTR if you  
were a lawful permanent resident of the United States in at  
least 8 of the last 15 tax years ending with the year you are  
no longer treated as a lawful permanent resident. In  
determining if you meet the 8-year requirement, don't count  
any year if in that year you were treated as a resident of a  
foreign country under a tax treaty and did not waive treaty  
benefits applicable to residents of that country.  
Lawful permanent resident. You are a lawful permanent  
resident of the United States if you have been given the  
privilege, according to U.S. immigration laws, of residing  
permanently in the United States as an immigrant. You  
generally have this status if you have been issued an alien  
registration card, also known as a green card, and your green  
card hasn't been revoked or judicially or administratively  
determined to have been abandoned. However, you are also  
no longer treated as a lawful permanent resident if you (1)  
commenced to be treated as a resident of a foreign country  
under the provisions of a tax treaty, (2) did not waive the  
benefits of such treaty, and (3) notified the IRS of the  
commencement of such treatment. See Regulations section  
301.7701(b)-7 for information on related filing requirements.  
Date of termination of long-term residency. If you were  
an LTR, you terminated your lawful permanent residency  
(and consequently, have an expatriation date) on the earliest  
of the following dates.  
Note. Individuals who expatriated for immigration purposes  
after June 3, 2004, and before June 17, 2008, but who have  
not previously filed a Form 8854, continue to be treated as  
U.S. citizens or U.S. lawful permanent residents for U.S.  
income tax purposes until they file a Form 8854. See section  
7701(n), as in effect before June 17, 2008.  
Individuals in this category are subject to section 877 once  
they file the Form 8854. These individuals should use the  
modify the year on the form by crossing out 2018 and  
entering the year of actual filing) for purposes of filing their  
initial and/or annual expatriation statements pursuant to  
section 877 going forward.  
Individuals who expatriated before June 17, 2008, who  
have previously filed a Form 8854, but who still have an  
annual reporting requirement in 2023 under section 877,  
should also use the 2018 Form 8854 but modify the year on  
the form by crossing out 2018 and entering 2023.  
Who Must File  
You must file your initial Form 8854 (Parts I and II) if you  
relinquished your U.S. citizenship in 2023 or you are a  
Aug 10, 2023  
Cat. No. 24874E  
   
1. The date you voluntarily abandoned your lawful  
permanent resident status by filing Department of Homeland  
Security Form I-407 with a U.S. consular or immigration  
officer.  
2. The date you became subject to a final administrative  
order that you abandoned your lawful permanent resident  
status (or, if such order has been appealed, the date of a final  
judicial order issued in connection with such administrative  
order).  
3. The date you became subject to a final administrative  
or judicial order for your removal from the United States  
under the Immigration and Nationality Act.  
4. If you were a dual resident of the United States and a  
country with which the United States has an income tax  
treaty, the date on which you commenced to be treated as a  
resident of that country under the treaty, did not waive the  
benefits of the treaty, and gave notice to the IRS of the  
commencement of such treatment. See Regulations section  
301.7701(b)-7 for information on related filing requirements.  
your U.S. income tax and reporting requirements in order to  
avoid being treated as a covered expatriate under section  
877A, you may qualify for certain relief procedures. See  
Penalties. If you are subject to section 877A and required to  
file Form 8854 for any tax year, and you fail to file or do not  
include all the information required by the form, or the form  
includes incorrect information, you will owe a penalty of  
$10,000 for that year, unless it is shown that such failure is  
due to reasonable cause and not willful neglect.  
Taxation Under Section 877A  
If you are a covered expatriate in the year you expatriate, you  
are subject to income tax on the net unrealized gain in your  
property as if the property had been sold for its fair market  
value (FMV) on the day before your expatriation date  
(“mark-to-market tax”). This applies to most types of property  
interests you held on the date of your expatriation. But see  
Exceptions, later.  
Covered expatriate. You are a covered expatriate if you  
expatriated after June 16, 2008, and any of the following  
statements apply.  
1. Your average annual net income tax liability for the 5  
tax years ending before the date of expatriation is more than  
$190,000.  
Gains from deemed sales are taken into account without  
regard to other rules under the Code. Losses from deemed  
sales are taken into account to the extent otherwise allowed  
under the Code. However, section 1091 (relating to the  
disallowance of losses on wash sales of stock and securities)  
doesn't apply. For 2023, the net gain that you must otherwise  
include in your income is reduced (but not below zero) by  
$821,000.  
2. Your net worth was $2 million or more on the date of  
your expatriation.  
3. You fail to certify on Form 8854 that you have complied  
with all federal tax obligations for the 5 tax years preceding  
the date of your expatriation.  
Exceptions. The mark-to-market tax does not apply to the  
following.  
1. Eligible deferred compensation items.  
2. Ineligible deferred compensation items.  
3. Specified tax deferred accounts.  
4. Interests in nongrantor trusts.  
Exception for dual-citizens and certain minors.  
Dual-citizens and certain minors (defined next) won't be  
treated as covered expatriates (and therefore won't be  
subject to the expatriation tax) solely because one or both of  
the statements in paragraph (1) or (2) under Covered  
expatriate, earlier, applies. However, these individuals will still  
be treated as covered expatriates unless they file Form 8854  
and certify that they have complied with all federal tax  
obligations for the 5 tax years preceding the date of  
expatriation as required in paragraph (3) (under Covered  
expatriate, earlier).  
Instead, item (1) is subject to withholding provided that  
you (i) properly make an irrevocable waiver on your initial  
filing of this form of any right to claim any reduction in  
withholding under an applicable treaty between the United  
States and your country of residence (see Line 1a under Part  
II, Section C, later); and (ii) timely notify the payor on Form  
W-8CE. To timely notify the payor on Form W-8CE, you must  
file the Form W-8CE with the payor on the earlier of:  
Certain dual-citizens. You can qualify for the exception  
described above if you meet both of the following  
requirements.  
The day before the first distribution on or after your  
expatriation date, or  
You became at birth a U.S. citizen and a citizen of another  
30 days after your expatriation date.  
In the case of item (2), you are treated as receiving the  
country and, as of your expatriation date, you continue to be  
a citizen of, and are taxed as a resident of, that other country.  
present value of your accrued benefit as of the day before  
your expatriation date and you should include this amount on  
your Form 1040 or 1040-SR for the year that includes your  
expatriation date. In the case of item (3), you are treated as  
receiving a distribution of your entire interest in the account  
on the day before your expatriation date and you should  
include this amount on your Form 1040 or 1040-SR for the  
year that includes your expatriation date. See paragraphs (d),  
(e), and (f) of section 877A.  
You were a resident of the United States for not more than  
10 years during the 15-tax-year period ending with the tax  
year during which you expatriated. For the purpose of  
determining U.S. residency, use the substantial presence test  
described in chapter 1 of Pub. 519.  
Certain minors. You can qualify for the exception  
described above if you meet both of the following  
requirements.  
You expatriated before you were 181/2.  
Item (4) is subject to withholding, and you are treated as  
having waived any right to claim any reduction in withholding  
under an applicable treaty between the United States and  
your country of residence, unless you elect to be treated as  
having received the value of your entire interest in the trust by  
obtaining a ruling from the IRS to that effect. See Section C  
under Part II, later.  
You were a resident of the United States for not more than  
10 tax years before you expatriated. For the purpose of  
determining U.S. residency, use the substantial presence test  
described in chapter 1 of Pub. 519.  
Note. If you have relinquished or intend to relinquish your  
U.S. citizenship, and you wish to come into compliance with  
-2-  
Instructions for Form 8854 (2023)  
     
3. If you elected to defer the payment of any tax due, see  
the instructions under Part II, Section D, Line 5, later, and  
send your tax deferral agreement request to the address  
listed below.  
Deferral of the payment of mark-to-market tax. You can  
make an irrevocable election to defer the payment of the  
mark-to-market tax imposed on the deemed sale of property.  
If you make this election, the following rules apply.  
1. You make the election on a property-by-property basis.  
Internal Revenue Service  
3651 S IH35  
2. The deferred tax on a particular property is due on the  
return for the tax year in which you dispose of the property.  
MS 4301AUSC  
Austin, TX 78741  
3. Interest is charged for the period the tax is deferred.  
4. The due date for the payment of the deferred tax  
Note. If you were a U.S. person for any portion of 2023, you  
may be required to file Financial Crimes Enforcement  
Network (FinCEN) Form 114, Report of Foreign Bank and  
Financial Accounts (FBAR). In addition, you may be required  
to file Form 8938, Statement of Specified Foreign Financial  
Assets. For more information, go to IRS.gov/FBAR.  
cannot be extended beyond the earlier of the following dates.  
a. The due date of the return required for the year of  
death.  
b. The time that the security provided for the property  
fails to be adequate. See item (6) below.  
5. You make the election in Part II, Section D.  
6. You must provide adequate security (such as a bond).  
7. You must make an irrevocable waiver of any right  
under any treaty of the United States that would preclude  
assessment or collection of any tax imposed by section  
877A.  
Specific Instructions  
Identifying number. Generally, this number is your U.S.  
social security number. If you were never issued a social  
security number, attach a statement explaining the reason.  
Part I—General Information  
When To File  
This section is to be completed by all filers.  
Attach your initial Form 8854 to your income tax return (Form  
1040, 1040-SR, or 1040-NR) for the year that includes your  
expatriation date, and file your return by the due date of your  
tax return (including extensions). Also send a copy of your  
Form 8854, marked “Copy,” to the address under Where To  
File, later. If you are not required to file an income tax return,  
send your Form 8854 to the address under Where To File,  
later, by the date your Form 1040-NR (or Form 1040 or  
1040-SR) would have been due (including extensions) if you  
had been required to file. (See Resident Alien or Nonresident  
Alien in the Instructions for Form 1040-NR.)  
Line 1  
If you have a P.O. box, enter your box number instead of your  
street address only if your post office does not deliver mail to  
the street address.  
Line 2  
Enter the information in the following order: street address,  
city, province or state, and country. Follow the country's  
practice for entering the postal code. Don't abbreviate the  
country name.  
File your annual Form 8854 if you expatriated before 2023  
and you:  
Line 3  
Enter the country of which you are considered a resident for  
tax purposes if it is different from the country in which your  
principal foreign residence is located.  
1. Deferred the payment of tax on any property on a Form  
8854 filed in a previous year,  
2. Reported an eligible deferred compensation item on a  
Form 8854 filed in a previous year, or  
Line 4  
3. Reported an interest in a nongrantor trust on a Form  
Check the appropriate box to indicate whether you  
expatriated in 2023 and are filing your initial expatriation  
statement, or if you expatriated before 2023 (but after June  
16, 2008) and are filing an annual statement.  
8854 filed in a previous year.  
See Part III, later.  
For each year that you are required to file a Form 1040-NR  
(or Form 1040 or 1040-SR), attach your annual Form 8854 to  
your Form 1040-NR (or Form 1040 or 1040-SR) and send a  
copy, marked “Copy,” to the address under Where To File,  
later. For each year that you are not required to file Form  
1040-NR (or Form 1040 or 1040-SR), send your Form 8854  
to the address under Where To File, later, by the date your  
Form 1040-NR (or Form 1040 or 1040-SR) would have been  
due (including extensions) if you had been required to file a  
Form 1040-NR (or Form 1040 or 1040-SR).  
Line 5  
Your expatriation date is the date you relinquish citizenship  
(in the case of a former citizen) or terminate your long-term  
residency (in the case of a former U.S. resident). See Date of  
long-term residency, earlier.  
Line 6  
List all countries (including the United States) of which you  
are a citizen and the date, including by birth, on which you  
became a citizen.  
Where To File  
1. Send your original initial or annual Form 8854 to the  
Line 7  
address listed below.  
If you are a former U.S. citizen, check the appropriate box to  
indicate how you became a U.S. citizen.  
2. If you are required to attach the original Form 8854 to a  
Form 1040-NR, 1040, or 1040-SR, send a copy of your initial  
or annual Form 8854, marked “Copy,” to the address listed  
below.  
-3-  
Instructions for Form 8854 (2023)  
 
information returns, if applicable, and your obligation to pay  
all relevant tax liabilities, interest, and penalties.  
Line 8a  
If you are or were a U.S. lawful permanent resident, enter the  
date on which you became a U.S. lawful permanent resident.  
This is the date you were issued your green card.  
You will be subject to tax under section 877A if you  
have not certified your compliance with these  
!
CAUTION  
obligations, regardless of whether your average  
Line 8b  
Enter the date you either:  
annual income tax liability or net worth exceeds the  
applicable threshold amounts.  
1. Became subject to a final administrative order that you  
abandoned your lawful permanent resident status (or, if such  
order has been appealed, the date of a final judicial order  
issued in connection with such administrative order); or  
2. Became subject to a final administrative or judicial  
order for your removal from the United States under the  
Immigration and Nationality Act.  
Section B—Balance Sheet  
The financial information in this balance sheet is required  
under section 6039G. The balance sheet can be used to  
arrive at your net worth.  
For purposes of determining your net worth, you are  
considered to own any interest in property that would be  
taxable as a gift under chapter 12 of subtitle B of the Code  
had you transferred it immediately prior to expatriation, but  
without regard to sections 2503(b) through (g), 2513, 2522,  
2523, and 2524. To determine the value of your interests in  
property, use the valuation principles of section 2512 and the  
regulations thereunder.  
Line 8c  
Enter the date you voluntarily abandoned your lawful  
permanent resident status by filing Department of Homeland  
Security Form I-407 with a U.S. consular or immigration  
officer.  
Part II—Initial Expatriation Statement  
for Persons Who Expatriated in 2023  
Section A—Expatriation Information  
This section must be completed by all individuals who  
expatriated in 2023.  
Note. If there have been significant changes in your assets  
and liabilities for the period that began 5 years before your  
expatriation and ended on the date that you first filed Form  
8854, you must attach a statement explaining the changes.  
Columns (a) and (b)  
List in U.S. dollars the FMV (column (a)) and the U.S.  
adjusted basis (column (b)) of your assets and liabilities as of  
your expatriation date.  
Line 1  
For each of the 5 tax years ending before the date of your  
expatriation, determine your total tax less any foreign tax  
credit. For 2022, use the amount shown on the 2022 Form  
1040, line 24, less any amount reported on Schedule 3 (Form  
1040), line 1.  
You can use good faith estimates of FMV and basis.  
Formal appraisals are not required.  
Line 5a  
Line 2  
List the appropriate amount in each column for all  
nonmarketable stock and securities issued by foreign  
corporations that would be controlled foreign corporations if  
you were still a U.S. citizen or resident. Note that these  
amounts are already included on line 5. Don't include  
amounts on this line in the total on line 20.  
You can use the Part II, Section B, balance sheet to  
determine your net worth.  
Line 3  
Check the “Yes” box if you became at birth a U.S. citizen and  
a citizen of another country and, as of your expatriation  
date, you continue to be a citizen of, and are taxed as a  
resident of, that other country.  
Line 6  
List in U.S. dollars the present value of your U.S. and foreign  
pensions or similar retirement arrangements as of your  
expatriation date.  
Line 5  
Line 7  
Check the “Yes” box if:  
You expatriated before you were 181/2, and  
List in U.S. dollars the present value of your deferred  
compensation, including any stock options, as of your  
expatriation date. The present value should include all  
deferred compensation, regardless of where you performed  
services.  
You have been a resident of the United States for not more  
than 10 tax years before you expatriated. For the purpose of  
determining U.S. residency, use the substantial presence test  
described in chapter 1 of Pub. 519.  
Line 6  
Line 8  
Check the “Yes” box if you have complied with your tax  
obligations for the 5 tax years ending before the date on  
which you expatriated, including but not limited to, your  
obligations to file income tax, employment tax, gift tax, and  
List the total value of all your partnership interests. If you hold  
an interest in one or more partnerships, you must attach a  
statement to Form 8854 that lists each partnership  
separately. Include the employer identification number (EIN),  
-4-  
Instructions for Form 8854 (2023)  
if any, for each partnership. Describe the assets and liabilities  
(using the categories on this balance sheet) from your  
interest in each partnership.  
Section C—Property Owned on Date of  
Expatriation  
Complete Section C only if you are a covered expatriate (see  
Covered expatriate, earlier). If you need additional space for  
the description of property, or if you need additional entry  
lines, attach a statement.  
Line 9  
For purposes of determining your net worth, you are  
considered to own assets held in trusts that would be subject  
to U.S. gift tax if you had transferred your interests in the  
trusts by gift immediately before your expatriation date, but  
without regard to sections 2503(b) through (g), 2513, 2522,  
2523, and 2524. List the total FMV and basis of such  
property on line 9. Attach a statement to Form 8854  
describing each asset. Include the EIN (if any) for the trust in  
which the asset is held.  
Line 1  
None of the amounts checked on line 1 are subject to the  
mark-to-market tax. Don't include them on line 2. Instead,  
you must attach a statement to the form that separately  
identifies each amount checked on line 1 as of the day before  
your expatriation date.  
Some of these amounts may otherwise be taxable or  
subject to income tax withholding at source. You  
must provide Form W-8CE to the payor of the  
TIP  
Line 10  
relevant items. See paragraphs (d), (e), and (f) of section  
877A for more information.  
List the total value of all of your beneficial interests in trusts to  
the extent not included on line 9. You must attach a statement  
to Form 8854 that lists each trust separately. Include the EIN  
(if any) for each trust. Describe the assets and liabilities  
(using the categories on this balance sheet) from your  
interest in each trust of which you have a beneficial interest.  
Line 1a. Generally, a deferred compensation item is one of  
the following.  
1. Any interest in a plan or arrangement described in  
section 219(g)(5). This includes a qualified pension,  
profit-sharing (including 401(k)), annuity, SEP, and SIMPLE  
plan.  
Note. To determine the value of your beneficial interest, use  
the two-step process described in section III of Notice 97-19  
which is on page 40 of Internal Revenue Bulletin 1997-10 at  
2. Any interest in a foreign pension plan or similar  
retirement arrangement or program.  
3. Any item of deferred compensation, whether or not  
substantially vested. This is any amount of compensation if,  
under the terms of the plan, contract, or other arrangement  
providing for such compensation, the following conditions  
were met.  
Lines 11 and 12  
Intangible property includes any of the following items that  
have substantial value independent of the services of any  
individual.  
a. You had a legally binding right on your expatriation  
Patent, invention, formula, process, design, pattern, or  
date to such compensation.  
know-how.  
Copyright, literary, musical, or artistic composition.  
Trademark, trade name, or brand name.  
b. The compensation has not been actually or  
constructively received on or before your expatriation date.  
Franchise, license, or contract.  
c. The compensation is payable on or after your  
Method, program, system, procedure, campaign, survey,  
expatriation date.  
study, forecast, estimate, customer list, or technical data.  
Examples of items of deferred compensation include a  
cash-settled stock appreciation right, a phantom stock  
arrangement, a cash-settled restricted stock unit, an  
unfunded and unsecured promise to pay money or other  
compensation in the future (other than such a promise to  
transfer property in the future), and an interest in a trust  
described in section 402(b)(1) or (4) (commonly referred to  
as a “secular trust”).  
Any similar item.  
Line 19  
Attach a statement describing and listing the total value of  
any other assets you have that aren't included on lines 1  
through 18.  
4. Any property, or right to property, that you are entitled  
to receive in connection with the performance of services  
(whether or not such property or right to property is  
substantially vested) to the extent not previously taken into  
account under section 83 or in accordance with section 83.  
Examples of these items include, but are not limited to,  
restricted stock, stock-settled stock appreciation rights, and  
stock-settled restricted stock units.  
Line 20  
Combine lines 1 through 5 and 6 through 19, not including  
any amounts on line 5a. The amounts on line 5a are included  
in determining the amounts on line 5.  
Line 23  
Attach a statement describing and listing the total value of  
any other liabilities you have that aren't included on lines 21  
and 22.  
Note. A deferred compensation item does not include the  
portion of an item that is attributable to services performed  
outside the United States while you were not a citizen or  
resident of the United States. For more information, see  
section 5 of Notice 2009-85, 2009-45 I.R.B. 598, available at  
-5-  
Instructions for Form 8854 (2023)  
   
Eligible deferred compensation item means any deferred  
compensation item with respect to which:  
owner under sections 671 through 679 on the day before  
your expatriation date. You are considered a beneficiary of  
such trust if:  
1. You are entitled or permitted, under the terms of the  
trust instrument or applicable local law, to receive a direct or  
indirect distribution of trust income or corpus (including, for  
example, a distribution in discharge of an obligation);  
The payor is either a U.S. person or a non-U.S. person who  
elects to be treated as a U.S. person for purposes of section  
877A(d)(1),  
The covered expatriate notifies the payor of their status as  
a covered expatriate on Form W-8CE, and  
The covered expatriate irrevocably waives any right to  
2. You have the power to apply trust income or corpus for  
claim any withholding reduction on such item under any  
your own benefit; or  
treaty with the United States on Form 8854.  
3. You could be paid from the trust income or corpus if  
the trust or the current interests in the trust were terminated.  
The Secretary may provide separate guidance providing a  
procedure for a payor who is a non-U.S. person and wishes  
to elect to be treated as a U.S. person for purposes of section  
877A(d)(1).  
Unless you elect to be treated as having received the  
value of your interest in the trust, as determined for purposes  
of section 877A, as of the day before your expatriation date,  
you cannot claim a reduction in withholding on any  
distribution from the trust under any treaty with the United  
States. Before you can make the election, you must get a  
letter ruling from the IRS as to the value, if ascertainable, of  
your interest in the trust as of the day before your expatriation  
date by following the procedures set forth in Rev. Proc.  
2020-1, 2020-1 I.R.B. 1, available at IRS.gov/irb/  
You must file Form 8854 annually to certify that no  
distributions have been received from your eligible  
!
CAUTION  
deferred compensation item(s) or to report the  
distributions you received.  
Note. If you have one or more eligible deferred  
compensation items, you must attach a statement to the form  
that separately identifies each eligible deferred  
2020-01_IRB#RP-2020-01. You must make this election by  
checking the box under line 1d of this form and attaching a  
copy of the letter ruling both to this form and to your timely  
filed tax return (including extensions) for the 2023 tax year.  
Until you obtain the valuation letter ruling and provide a copy  
of such letter ruling to the trustee of the nongrantor trust  
together with certification, under penalties of perjury, that you  
have paid all tax due as a result of your election, any taxable  
distributions that you receive from the trust will be subject to  
30% withholding.  
compensation item and includes the following language for  
each item: “I irrevocably waive any right to claim any  
reduction in withholding for this eligible deferred  
compensation item under any treaty with the United States.”  
Line 1b. Ineligible deferred compensation item means any  
deferred compensation item that is not an eligible deferred  
compensation item. The amount of this deferred  
compensation item (the present value of the accrued benefit)  
must be included on your Form 1040 or 1040-SR, or other  
schedule, for the portion of your tax year that includes your  
expatriation date. For more information, see section 5D of  
Notice 2009-85, 2009-45 I.R.B. 598, available at IRS.gov/irb/  
If you are a beneficiary of a nongrantor trust, you  
must file Form 8854 annually to certify that no  
!
CAUTION  
distributions have been received or to report the  
distributions you received.  
Note. If you have one or more ineligible deferred  
compensation items, you must attach a statement to the form  
that separately identifies each ineligible deferred  
compensation item and provides the present value of such  
ineligible deferred compensation item as of the day before  
your expatriation date.  
Note. If you are a beneficiary of one or more nongrantor  
trusts, you must attach a statement to the form that  
separately identifies each trust and includes one of the  
following statements for each trust.  
1. “I waive any right to claim any reduction in withholding  
on any distribution from such trust under any treaty with the  
United States.”  
2. “I elect under section 877A(f)(4)(B) to be treated as  
having received the value of my entire interest in the trust (as  
determined for purposes of section 877A) as of the day  
before my expatriation date. I attach a copy of my valuation  
letter ruling issued by the IRS.”  
Line 1c. A specified tax deferred account includes:  
1. An individual retirement plan (except those described  
in section 408(k) or 408(p)),  
2. A Coverdell education savings account, or  
3. A health savings account or an Archer medical savings  
account.  
The amount of your entire interest in your specified tax  
deferred account on the day before your expatriation date  
must be included on your Form 1040 or 1040-SR, or other  
schedule, for the portion of your tax year that includes your  
expatriation date. For more information, see section 6 of  
Notice 2009-85, 2009-45 I.R.B. 598, available at IRS.gov/irb/  
Line 2  
Column (a). An interest in property includes money or other  
property, regardless of whether it produces any income or  
gain. In addition, an interest in the right to use property will be  
treated as an interest in such property. However, do not list  
the following.  
1. Deferred compensation items.  
2. Specified tax deferred accounts.  
3. Interests in nongrantor trusts.  
Note. If you have one or more specified tax deferred  
accounts, you must attach a statement to the form that  
separately identifies each specified tax deferred account and  
provides the entire account balance of each specified tax  
deferred account on the day before your expatriation date.  
You are considered to own any interest in property that  
would be included in your gross estate for federal estate tax  
purposes under chapter 11 of subtitle B of the Code if you  
Line 1d. A nongrantor trust is the part of any trust, whether  
domestic or foreign, of which you were not considered the  
-6-  
Instructions for Form 8854 (2023)  
died on the day before your expatriation date as a citizen or  
resident of the United States. Whether property would be  
included in your gross estate will be determined without  
regard to sections 2010 through 2016. For this purpose, you  
are considered to own your beneficial interest(s) in each trust  
(or part of a trust), other than a nongrantor trust subject to  
section 877A(f), that would not be included in your gross  
estate as described in the preceding sentences. Your  
beneficial interest(s) in such a trust shall be determined  
under the special rules set forth in section III of Notice 97-19,  
which is on page 40 of Internal Revenue Bulletin 1997-10 at  
Column (b). Use the FMV on the day before your  
expatriation date. FMV is the price at which the property  
would change hands between a buyer and a seller when both  
have reasonable knowledge of all the necessary facts and  
neither has to buy or sell. If parties with adverse interests  
place a value on property in an arm's-length transaction, that  
is strong evidence of the FMV.  
Basis  
200,000  
800,000  
800,000  
FMV  
2,000,000  
1,000,000  
500,000  
Built-in Gain/Loss  
Asset A  
Asset B  
Asset C  
1,800,000  
200,000  
(300,000)  
Step 2: Allocate the exclusion amount to each of the gain  
properties by multiplying the exclusion amount ($821,000) by  
a ratio of the deemed gain attributable to each gain property  
over the total gain of all the gain properties deemed sold.  
Asset A  
1,800,000  
× 821,000 = 738,900  
2,000,000  
Asset B  
200,000  
Column (c). Generally, the cost or other basis in this column  
cannot be less than the FMV of the property on the date you  
first became a U.S. resident. However, if you are a naturalized  
citizen or an LTR at the time you expatriated, you can make  
an irrevocable election under section 877A(h)(2) to  
× 821,000 = 82,100  
2,000,000  
Step 3: Figure the final amount of deemed gain on each  
asset by subtracting the exclusion amount allocated to each  
asset.  
determine basis without regard to this restriction. Print “(h)  
(2)” after any entry for which you make this election.  
Column (e). Before you complete column (e), you must  
allocate the exclusion amount to the gain properties on a  
separate schedule. Attach a copy of the separate schedule to  
this form. To allocate the exclusion amount, determine the  
gain of each gain property listed in column (a) and enter that  
gain in column (d). If the total gain of all the gain properties  
exceeds the exclusion amount ($821,000 for 2023), then  
allocate the entire exclusion amount to the gain properties by  
multiplying the exclusion amount by the ratio of the gain  
determined for each gain property in column (d) over the total  
gain of all gain properties listed in column (d). After you have  
allocated the exclusion amount to the gain properties,  
subtract the exclusion amount allocated to each gain  
property from the gain reported for that property in column  
(d), and enter the resulting amount of gain in column (e). If  
the total gain of the gain properties in column (d) is less than  
the exclusion amount (but greater than -0-), then you must  
use the total gain amount as the exclusion amount, and you  
must allocate the exclusion amount, as adjusted, to the gain  
properties under the method described above. The exclusion  
amount allocated to each gain property cannot exceed the  
amount of that gain property's built-in gain.  
Asset A:  
Asset B:  
1,800,000 − 738,900 = 1,061,100  
200,000 − 82,100 = 117,900  
Column (f). Complete this column in order to list the  
schedule or form on which you reported the deemed sale of  
each property listed in column (a) (for example, Form 4797 or  
Form 8949).  
Column (g). Complete this column only for those properties  
for which you are electing to defer the payment of tax. First,  
complete Section D to line 4. On a separate attachment,  
allocate the amount of tax eligible for deferral among all gain  
properties listed on line 2. The tax attributable to a particular  
property is determined by multiplying the amount on  
Section D, line 4, by the ratio of the gain for that property  
entered in line 2, column (e), over the total amount of gain of  
all gain properties in line 4, column (e). In line 2, column (g),  
enter the tax attributable to each property for which you are  
electing to defer tax. Then, enter the total deferred tax for  
those properties from line 4, column (g), on Section D, line 5.  
Example. Line 2 lists four assets, each resulting in a  
deemed gain in column (d). The amount of tax eligible for  
deferral on Section D, line 4, is $575,000. You must go back  
to line 2, column (g), to allocate the deferred tax among the  
individual properties.  
See Notice 2009-85, section 3B, for more information.  
Example. Xavier, a covered expatriate, renounced his  
citizenship on Date 2. On Date 1, the day before Xavier's  
renunciation of his citizenship, he owned three assets, which  
he had owned for more than 1 year. Asset A is business  
property and Assets B and C are personal property. As of  
Date 1, Asset A had an FMV of $2,000,000 and a basis of  
$200,000; Asset B had an FMV of $1,000,000 and a basis of  
$800,000; and Asset C had an FMV of $500,000 and a basis  
of $800,000. Xavier must allocate the exclusion amount as  
follows.  
You must attach a computation to show how you  
figured the tax attributable to each property.  
!
CAUTION  
See Section D, later, and Notice 2009-85, section 3E, for  
more information on deferring the payment of tax.  
Note. The address listed in section 3E of Notice 2009-85 for  
mailing your tax deferral agreement is no longer valid. See  
later, for the correct address.  
Step 1: Determine the built-in gain or loss of each asset by  
subtracting the basis from the FMV of the asset on Date 1.  
Reporting gain or loss. You must report and recognize the  
gain (or loss) of each property reported in Section C, line 2,  
-7-  
Instructions for Form 8854 (2023)  
column (a), on the relevant form or schedule of your Form  
1040 or 1040-SR for the part of the year that includes the day  
before your expatriation date. The return to which you attach  
your form or schedule will depend on your status at the end of  
the year. See chapter 1 of Pub. 519 to determine which form  
you should file. The gain from column (e) or loss from column  
(d) attributable to each property is reported in the same  
manner as if the property had actually been sold. For  
example, gain recognized from the deemed sale of a rental  
property that has been depreciated is reported on Form 4797  
as if it had been sold. Gain recognized from the deemed sale  
of personal property (such as stock or a personal residence)  
is reported on Form 8949 as if it had been sold. Capital gain  
retains its character as capital gain; ordinary gain retains its  
character as ordinary income.  
1. A bond that is furnished to, and accepted by, the IRS,  
that is conditioned on the payment of tax (and interest  
thereon), and that meets the requirements of section 6325; or  
2. Another form of security (including letters of credit) that  
is acceptable to the IRS.  
You must contact the following office in order to make the  
appropriate arrangements for providing security.  
Internal Revenue Service  
SBSE Advisory Office  
7850 SW 6th Court  
Mail Stop 5780  
Plantation, FL 33324-3202  
Telephone: 954-991-4455  
You must send your original tax deferral agreement  
request, marked “Original,with your Form 8854 for the year  
that includes your expatriation date to:  
Section D—Deferral of Tax  
If you expatriated in 2023, and you chose to enter into a tax  
deferral agreement with the IRS with respect to assets  
subject to the mark-to-market rules of section 877A, use lines  
2 through 5 of Section D to figure the amount of tax you can  
defer. Before completing lines 2 through 5 of Section D, you  
must fill out two hypothetical individual income tax returns  
using Form 1040 or 1040-SR. The first return includes all  
income, including the section 877A(a) gain and loss. The  
second return includes all income except the section 877A(a)  
gain and loss. Attach both hypothetical returns to this Form  
8854.  
Internal Revenue Service  
3651 S IH35  
MS 4301AUSC  
Austin, TX 78741  
If you are required to file a Form 1040, 1040-SR, or  
1040-NR for the year that includes your expatriation date,  
also attach a copy of the tax deferral agreement request,  
marked “Copy,” to the Form 8854 that you include with your  
tax return.  
Line 1  
Note. The address listed in section 3E of Notice 2009-85 is  
If you aren't electing to defer the payment of tax on the gain  
reported in Section C, line 2, column (e), report on the  
appropriate income tax return schedule or form the gain  
amount attributable to each particular property as listed in  
Section C, line 2, column (e), and report the loss amount  
attributable to each particular property as listed in Section C,  
line 2, column (d).  
no longer valid.  
If the IRS deems your collateral sufficient, and agrees to  
enter into a tax deferral agreement, you can pay any tax  
deferred, together with interest, at any time. However, the  
time for the payment of tax attributable to a particular deferral  
asset can be extended only until (a) the year the asset is  
ultimately disposed of, or (b) the year of death.  
You must file Form 8854 annually for years up to and  
If you are electing to defer tax, go to line 2.  
including the year in which the full amount of deferred  
!
CAUTION  
tax and interest is paid.  
Line 2  
Waiver of treaty benefits. As a further condition to  
making the election to defer the payment of tax on a  
particular asset, you must waive any right under any U.S. tax  
treaty that would preclude the assessment or collection of the  
tax.  
Satisfying your deferred tax liability. If you entered into  
an agreement for the deferral of tax with the IRS Advisory  
Office and dispose of one or more assets for which you  
elected to defer tax, you must contact that office to make  
arrangements to satisfy your tax liability. The address for the  
Advisory Office is shown above.  
Enter on line 2 the amount of tax on line 24 of the first return,  
which includes all income, including the section 877A(a) gain  
and loss.  
Line 3  
Enter on line 3 the amount of tax on line 24 of the second  
return, which includes all income except the section 877A(a)  
gain and loss.  
Line 5  
Part III—Annual Expatriation  
Statement for Persons Who  
This is the amount of tax you elect to defer. If you are  
deferring tax on all properties, enter the amount from line 4. If  
you are electing deferral on only certain properties, go to  
Section C, line 2, column (g), to show how much deferred tax  
is allocated to each property. Attach a computation.  
Procedure for requesting a deferral of the payment of  
tax. In order to defer any part of the mark-to-market tax, you  
must enter into a tax deferral agreement with the IRS and  
provide adequate security. Notice 2009-85 contains a sample  
agreement (Appendix A). Adequate security can be either:  
Expatriated Before 2023  
You must file Part III if you:  
1. Deferred the payment of tax on any property on a Form  
8854 filed in a previous year,  
2. Reported an eligible deferred compensation item on a  
Form 8854 filed in a previous year, or  
-8-  
Instructions for Form 8854 (2023)  
       
3. Reported an interest in a nongrantor trust on a Form  
8854 filed in a previous year.  
distributions of property (including money) from a nongrantor  
trust in 2023. Enter the part of the distribution that you would  
include in gross income if you continued to be subject to tax  
as a U.S. citizen or resident. Also enter the total amount of  
tax withheld by the payor(s) of any distribution.  
Line 1  
If you deferred the payment of tax in an earlier year, refer to  
the Form 8854 you filed for that earlier year to complete  
columns (a), (b), and (c). If you expatriated in 2019 or later,  
use the information from Part II, Section C, line 2. If you  
expatriated in 2018 or earlier, use the information from Part  
III, line 1, of the earlier year's Form 8854.  
Don't include any distribution from a trust if your  
interest in the trust was treated in an earlier year as a  
!
CAUTION  
deferred compensation item or part of a specified tax  
deferred account.  
Exception. Don't check the “Yes” box if you elected on a  
previously filed Form 8854 to be treated as having received  
the value of your entire interest in the trust as of the day  
before your expatriation date.  
If you disposed of any property in 2023 on which you  
deferred the payment of tax on a previous return, also  
complete column (d). You must report the gain or loss from  
the property disposed of on the appropriate line (or schedule)  
of your income tax return.  
Signature  
You must pay the deferred tax, plus interest, on any  
Form 8854 is not considered valid unless you sign it. If you  
have someone else prepare Form 8854, you are still  
responsible for its correctness.  
property you disposed of, no later than the due date  
!
CAUTION  
(without extensions) of your 2023 income tax return.  
Paid preparers. Generally, anyone you pay to prepare Form  
8854 must sign it and include a preparer tax identification  
number (PTIN) in the space provided. The preparer must  
give you a copy for your records. Someone who prepares  
Form 8854 but does not charge you a fee should not sign it.  
information on arranging payment.  
See Section D under Part II, earlier, and section 3E of  
Notice 2009-85 for more information on deferring the tax.  
Note. The address listed in section 3E of Notice 2009-85 for  
mailing your tax deferral agreement is no longer valid. See  
under Section D, earlier, for the correct address.  
Paperwork Reduction Act Notice. We ask for the  
information on this form to carry out the Internal Revenue  
laws of the United States. You are required to give us the  
information. We need it to ensure that you are complying with  
these laws and to allow us to figure and collect the right  
amount of tax.  
Line 2  
Check the “Yes” box if you received any distributions of  
eligible deferred compensation items in 2023. Enter the part  
of the distribution that you would include in gross income if  
you continued to be subject to tax as a U.S. citizen or  
resident. Also enter the total amount of tax withheld by the  
payor(s) of any eligible deferred compensation items.  
You are not required to provide the information requested  
on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number. Books  
or records relating to a form or its instructions must be  
retained as long as their contents may become material in the  
administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by  
section 6103.  
Don't enter the part of any payment that is  
attributable to services performed outside the United  
!
CAUTION  
States before or after your expatriation date while you  
weren't a citizen or resident of the United States.  
The average time and expenses required to complete and  
file this form will vary depending on individual circumstances.  
For the estimated averages, see the instructions for your  
income tax return.  
Line 3  
Unless the exception at the end of this section applies, check  
the “Yes” box if you received any direct or indirect  
-9-  
Instructions for Form 8854 (2023)