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| Expatriation Tax Rules to Change Significantly |
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The President on 17 June 2008 signed the Heroes Earnings Assistance and Relief Tax Act of 2008. This enacted the proposed changes regarding the exit tax for those US Citizens and long term residents giving up their citizenship or “Green Card”.
As previously explained the new law will impose a mark-to-market-tax if the gain on those assets exceed $600,000, please see previous articles for more details. In addition to the Exit tax other measures within the Act include an increase in the minimum penalty for failure to file a US return and the provision to treat certain foreign persons as American employers for purposes of FICA (Social Security) taxes. The new rules will now supersede the old rules whereby a person had to file tax returns for 10 years after relinquishing their green card or citizenship. Those that were caught under the old rules will continue to file returns and will not be affected by the new rules.
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About The Author Mark J. Hooper is a US Enrolled agent with 20 years experience of preparing US Individual Tax returns for expatriates and US non resident aliens living in the UK. He worked for Big 4 Accountancy Firms before starting own practice in the West Country 2 years ago. For more information on his background and services, please visit www.expattax.org.uk |
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Article Added Tuesday, 17 June 2008 | 1805 Hits |
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