How a Treaty-Tie Breaker Provision May Save Departing Long-Term Green Card Holders from the Expatriation Tax

How a Treaty-Tie Breaker Provision May Save Departing Long-Term Green Card Holders from the Expatriation Tax

Tax Law
By Anthony Diosdi A record number of individuals have expatriated from the United States in 2020. Much of this expatriation is from citizens of other countries who were issued green cards. People from around the world are attracted to the United States because of lucrative employment or business opportunities. However, a significant number of these individuals decide to either return to their home countries or seek opportunities elsewhere. The U.S. tax system (which taxes U.S. residents on their worldwide income) makes holding on to a green card too expensive to keep and many decide to relinquish it. To the surprise of many, the relinquishment of a green card can trigger a very expensive expatriation tax. This article will explain the mechanics of the expatriation tax. This article also discusses how…
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