Pre-Renunciation Tax Compliance Package
Standard
A fixed-fee package covering the five years of U.S. tax compliance required before renunciation. Your final dual-status tax return and Form 8854 are prepared separately after expatriation.
- 20-Minute Consultation Meet one of our experienced international tax accountants before we begin.
- 5 Federal Tax Returns Preparation of your federal tax returns for the five years required before renunciation.
- 6 FBARs Preparation of six FBARs with unlimited foreign accounts.
- Form 14653 (when applicable) Prepared if you qualify for the IRS Streamlined Filing Compliance Procedures.
- Full Guidance Through the Renunciation Process
U.S. Citizens Preparing to Renounce Their Citizenship
This package is designed for U.S. citizens planning to renounce their U.S. citizenship who need to become fully tax compliant beforehand.
This package is ideal for:
- Americans living abroad who have fallen behind on their U.S. tax filings.
- Dual citizens preparing to renounce their U.S. citizenship.
- Individuals with foreign assets, rental income, or foreign businesses that require international tax reporting.
Tax compliance is not a legal prerequisite to renouncing U.S. citizenship. However, expatriation has separate U.S. tax consequences. To avoid covered-expatriate status under the tax-compliance test, unless an exception applies, you generally must certify on Form 8854 that you complied with your federal tax obligations for the five tax years preceding expatriation.
Our Pre-Renunciation Tax Compliance Package helps you complete every required filing accurately, so you can approach your embassy appointment knowing your U.S. tax obligations have been taken care of.
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Frequently asked questions
What Tax Returns Do I Need to File Before and After Renouncing U.S. Citizenship?
After your renunciation is complete, you must also file a final dual-status tax return and Form 8854, which certifies your U.S. tax compliance and determines whether the Exit Tax rules apply.
Our Pre-Renunciation Tax Compliance Package covers the tax compliance required before renunciation, including up to five years of federal tax returns and six years of FBARs where required. Your final dual-status tax return and Form 8854 are prepared separately after you renounce your U.S. citizenship.
What Does the Pre-Renunciation Tax Compliance Package Include?
– A 20-minute consultation with one of our international tax accountants
– Five federal tax returns
– Six FBARs (FinCEN Form 114)
– Form 14653, where applicable
– Standard tax schedules
– Foreign financial asset reporting (Form 8938), where required
– Rental property reporting
– Review by multiple tax professionals before filing
Some taxpayers have more complex reporting requirements that aren’t included in the package because they require substantial additional work. These include forms for foreign corporations (Form 5471), foreign trusts (Forms 3520 and 3520-A), foreign mutual funds and other PFICs (Form 8621), foreign partnerships (Form 8865), and foreign disregarded entities or branches (Form 8858).
If your tax return requires any of these additional forms, we’ll explain why they’re needed and provide a fixed quote before we begin the work. There are no unexpected charges.
Will I Be Subject to Exit Tax?
The Exit Tax generally applies only if you’re classified as a covered expatriate under the IRS rules. Whether you qualify as a covered expatriate depends on your net worth, your average U.S. income tax liability for the five years before expatriation, and whether you can certify that you’ve complied with your U.S. tax obligations for those five years.
If you’re a covered expatriate, the Exit Tax generally works by treating most of your worldwide assets as though you sold them for their fair market value the day before you expatriate. You pay tax only on the unrealized capital gain, not on the total value of your assets. In addition, the IRS provides a generous exemption. For expatriations in 2026, the first $910,000 of net unrealized gain is exempt from the Exit Tax. Only gains above that amount are potentially taxable. Certain assets, such as deferred compensation plans, pensions, and some trusts, are subject to separate rules.
Before preparing your final expatriation return, we’ll determine whether you’re a covered expatriate, calculate any potential Exit Tax, and explain the available planning opportunities based on your circumstances.
Who Is a Covered Expatriate?
You are generally a covered expatriate if you:
– Have a net worth of $2 million or more on the date of expatriation.
– Have an average annual U.S. income tax liability exceeding $211,000 (2026 threshold) for the five tax years ending before your expatriation. This figure refers to the U.S. tax you actually owe after credits and deductions—not your income.
– Cannot certify on Form 8854 that you have fully complied with all U.S. federal tax obligations for the five tax years preceding your expatriation.
If you’re classified as a covered expatriate, you may become subject to the Exit Tax, which generally treats many of your worldwide assets as if they were sold the day before you expatriate. Additional rules can also apply to deferred compensation, certain trusts, and gifts or inheritances made to U.S. persons.
Our team can review your circumstances before you renounce, determine whether you’re likely to be a covered expatriate, and explain the tax consequences that apply to your situation.
How Do You Renounce U.S. Citizenship Step by Step?
1) Bring your U.S. tax filings up to date.
2) Complete the required State Department forms.
3) Schedule and attend your renunciation appointment at a U.S. embassy or consulate.
4) Receive your Certificate of Loss of Nationality.
5) File your final dual-status tax return and Form 8854 after renunciation.
Our Pre-Renunciation Tax Compliance Package covers the tax filings required before renunciation. We also provide practical guidance and educational resources to help you complete the State Department forms, prepare for your embassy appointment, and understand each stage of the process.
Your final dual-status tax return and Form 8854 are prepared separately after renunciation.
