Tax Law (Questions About Taxes)/Form 8854

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Question
Hi,
am I correct in assuming that if an alien who has been a lawful permanent resident for less than 8 tax years surrenders his green card he/she does not have to file form 8854 since he/she is not considered to be a long-term resident? Thanks.

Answer
Yes, that is correct. To recap the instructions for Form 8854:

"You are a "Long Term Resident" (LTR)  if you were a lawful permanent resident of the United States in at least 8 of the last 15 tax years ending with the year your status as an LTR ends. In determining if you meet the 8-year requirement, do not count any year that you were treated as a resident of a foreign country under a tax treaty and did not waive treaty benefits applicable to residents of the country."

As long as you followed the guidelines to terminate your long-term residency (i.e. green card) and were an LTR for less than 8 years, then the Form 8854 is not required. Please note that not renewing your green card does not equate to terminating your LTR

Best regards,
Randall

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Randall Brody, EA, MBA, CCP

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Tax Samaritan is a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the unique tax issues that apply to taxpayers that are gamblers, teachers, nurses and military.

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