Careful Handling Of Expatriation / Repatriation Tax Issues

The Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy Act, or Expatriate Act, is legislation designed to impose a capital gains tax on U.S. investments made by individuals who renounce their U.S. citizenship in an effort to avoid paying U.S. taxes. At the law firm of Kundra & Associates, our U.S. expatriate lawyers in Washington, D.C., handle tax issues for U.S. citizens living in foreign countries and those affected by the IRS’s reach.

If you are an expatriate or a U.S. citizen living abroad, you may still have certain tax obligations to fulfill to the U.S. Contact our Maryland tax attorneys online or call 301-637-8130 to schedule a meeting to discuss your situation.

What Does The Expatriate Act Mean For Those Living Overseas?

If the Expatriate Act is passed, the IRS will make a presumption that individuals with either a net worth in excess of $2 million, or those with an average income liability of at least $148,000 over the last five years, who renounce their U.S. citizenship are doing so to avoid tax liabilities.

Individuals who meet certain requirements may be given an opportunity to overcome this presumption. If successful, no penalties will apply. However, if the IRS finds out that citizenship was renounced as a tax dodge, then the individual could face taxes of up to 30 percent on future investment gains. Furthermore, the individual will not be allowed to return to the U.S. until his or her tax responsibilities are satisfied.

This legislation has the potential to affect more than 3,000 people, including those who have renounced their citizenship at any point in the past 10 years in order to avoid taxes. Even if this legislation does not pass, expatriation tax provisions currently in existence will still apply. At the very least, offshore voluntary disclosures should be updated to help avoid potential penalties. The tax lawyers at Kundra & Associates can explain more about your specific obligations and what the Expatriate Act may mean for you.

Call For A Consultation With An Offshore Bank Accounts And Expatriate Lawyer

You may still have certain tax obligations to the U.S., even if you are no longer considered a citizen. To help protect your interests, contact our U.S. expatriate attorneys in Washington, D.C., online or call 301-637-8130 to schedule an initial consultation to discuss your situation.