Renouncing green card as a long term resident and form 8854 and 3520
I need to renounce my green card. I have held it for 9 years, making me a long term resident. I have been living abroad for a few years with a re-entry permit.
Form 8854 states that If I do not comply with all of my tax obligations in the past 5 years I can be deemed a covered expatriate, which I want to avoid. In some of the past 5 years when I was a student I did not file an income tax as I was under the <12k threshold to need to file. If the IRS sees that I did not file an income tax in some of those years will I be audited and assumed to be a covered expatriate after I file form 8854? Should I file an income tax for those years just in case?
I made a mistake on form 3520 this year. I wrote the book value instead of the fair market value for the property that I received as a gift. Can I amend it and what is the likelihood I will receive a penalty?
Can I submit my I-407 ( renounce my residency) before making amendments or is it better to make the amendments before?
Renouncing green card as a long term resident and form 8854 and 3520
I'd also like to know:
4. When I file form I-407 in abandoning my residency, what would be the date of termination of residency when I later fill out form 8854. Is it the day I filed or when it is processed (which takes 60 days)?
Since you are inquiring about a scenario (and forms) that are not supported by TurboTax, you should really seek guidance from a local tax professional.
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