Covered Expatriates- Latest Tax Rules & Regs.

 

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As much as many believe the United States to be the "ultimate" destination to visit, work in and establish long term life & roots, there are others for many reasons who want to sever their ties with the US. 

We have seen an increasing number of expatriations in recent years because of the onerous reporting requirements under the Foreign Account Tax Compliance Act or FATCA and the Bank Secrecy Act. The expatriation process in itself was initially free of cost. A $450 fee was added in 2010 and this increased to $2,350 in 2014 to handle the unprecedented increase in expatriation.

This post will go briefly into rules for Expatriation and what happens if one is a Covered Expatriate. We will also briefly discuss when expatriation might be a good idea and when it might not be so. 

To start us off, let us break down the term Expatriation and see who is a "Covered Expatriate". 

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