What Questions Need to be Asked if You Live (with a “green card”) in one of the 67 Countries – with a U.S. Income Tax Treaty?

Depending upon the factual circumstances of each individual, they may be able to benefit from the international tax treaty law articulated by the U.S. Federal District Court in Aroeste v United States – Order (Nov 2023).  Future posts will explore the legal relevance of some of the following questions to consider:

• • Does the individual reside in one of the 67 countries affected by a U.S. income tax treaty with the United States?  See, DHS Report: 3.89M Emigrated LPRs — Who Falls Under the Tax Treaty Escape Hatch?

• • Does the individual have a “green card” they never formally abandoned (has it “expired” on its face; of the document)?

• •  Was no USCIS Form I-407, Record of Abandonment of Lawful Permanent Resident filed with the U.S. federal government?
• • If one was filed, when, from where, and how was it filed?
• • Has the individual affirmatively filed USCIS Form – I-90, Application to Replace Permanent Resident Card (Green Card)?
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• • Has the individual filed any U.S. federal income tax returns since leaving the United States?
• • Was a professional tax return preparer hired or consulted about the filing of a federal income tax return (e.g., a certified public accountant, an enrolled agent, a full time tax return preparer,  ta tax attorney, etc.)?

• • Has the individual been filing IRS Form 1040 Resident Tax Returns in the same way Mr. Aroeste was filing – based upon the advice (that turned out to be erroneous -although given in good faith) from their U.S. tax return preparer?
    

    

• • Has the individual been filing IRS Form 1040NR, Non-Resident Tax Returns?  If so, when and how?

• • Has the individual ever filed IRS Form 8854, Initial and Annual Expatriation Statement?  If so, when and how (was it attached to a federal tax return 1040 or 1040NR)?

• • Has the individual ever filed IRS Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)?
• • What steps if any have been taken to notify the U.S. federal government (irrespective of the agency) regarding their physical residency outside the United States?
    

 There are important unintended tax consequences that can befall individuals here:  see, Oops…Did I “Expatriate” and Never Know It: Lawful Permanent Residents Beware! International Tax Journal, CCH Wolters Kluwer, Jan.-Feb. 2014, Vol. 40 Issue 1, p9).

This information is intended to provide general information about tax expatriation legal concepts under U.S. law to help readers better understand often very complex issues within the U.S. international tax field for citizens and lawful permanent residents.  General legal information is not the same as legal advice, that is, the concrete application of law to a specific case with unique and particular facts. 

Legal advice also should include strategic planning and advice to a particular case.  A legal adviser should be able to assist an individual in taking important decisions and steps, related to the specific goals of the individual, while understanding the legal and tax consequences of each step.  There are a range of consequences that the “U.S. tax expatriation” laws impose upon different types of transactions, transfers, reorganization of assets, etc.  None of these items are discussed in this Tax-Expatriation.com   This is not legal advice.