An Overview of the US's S.877A Expatriation (Exit) Tax

14 November 2018
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Mateo Jarrin
Content Manager at taxlinked.net
Exit tax
Lined up for November, we had a special online seminar that provided you with an overview of the US's S.877A Expatriation (Exit) Tax.
 
If you think you can just renounce US citizenship and cease to be a citizen of the Land of the Free, you are wrong.
 
The United States imposes burdensome and punitive tax and reporting requirements on American citizens living outside the country. These requirements include citizenship-based taxation, FBAR, FATCA, PFIC and now the transition tax and GILTI. In fact, the regulatory weight of the whole far exceeds the sum of the individual parts.
 
Americans abroad are constantly told to just renounce their US citizenship. However, it's not as easy as that since the US imposes more punitive exit taxes than any other country in the world on those who renounce their citizenship.
 
Our event took place on Thursday, December 6th at 1:00 pm GMT.

Audio Recording & Transcript

Please feel free to download the full transcript below.

DOWNLOAD TRANSCRIPT

Here's the full audio recording.

Submit Your Exit Tax Questions

In this webinar, our expert explained the mechanics of the Exit Tax and covered the following questions:
  • Which people renouncing their US citizenship are subject to the Exit Tax?
  • What exactly is a "covered expatriate" and how can you avoid becoming one?
  • Is the Exit Tax really a collection of four separate taxes? How do these separate taxes work?
  • Why is the Exit Tax particularly confiscatory when applied to non-US pensions?
  • What are the exact requirements that must be met in order for those renouncing US citizenship to effectively log out of the US tax system?
  • How does the US punish future beneficiaries if they receive gifts or bequests from people renouncing their US citizenship?
  • And plenty more!
Do you have any follow-up questions that were not discussed? In that case, please submit them in the pertinent forum linked to below.

SUBMIT YOUR EXIT TAX QUESTIONS

Our Exit Tax Expert

John Richardson, Lawyer, Citizenship Solutions, Toronto, Canada

John Richardson is a Toronto, Canada based lawyer. He provides advice and assistance for  U.S. citizens and Green card holders who do not reside in the United States. He specializes in U.S. citizenship relinquishment, Green Card expatriation and assisting U.S. persons with their compliance obligations. You can contact him on his website www.citizenshipsolutions.ca.