IRS Form 8854 must be filed by individuals who have expatriated from the United States and are required to report their expatriation and certify compliance with all federal tax obligations for the five tax years preceding the year of expatriation. This form is used for the initial and annual expatriation statement required under Section 877A of the Internal Revenue Code.
For further information, we recommend reviewing the Form 8854 Instructions.
To complete Form 8854 in TaxSlayer ProWeb, from the Federal Section of the Tax Return (Form 1040) select:
- Miscellaneous Forms
- Other Miscellaneous Forms
- Initial and Annual Expatriation Statement
The following information is needed to complete the form in ProWeb:
- Mailing address after expatriation - Country, Address, ZIP code, City, & State
- Address of principle foreign residence - Country, Address, ZIP code, City, & State
- Country of tax residence
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Select type of phone number
- U.S. phone number
- Foreign phone number
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Select expatriation date:
- Initial Expatriation Statement for Persons who Expatriated in 20XX
- Annual Expatriation Statement for Persons who Expatriated before 20XX
- Select a Residency status:
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Citizen
- Enter Date notification given to Department of State
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Long-term resident
- Enter Date notification given to Homeland Security
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Long-term resident with dual residency in a treaty country
- Enter Date commencing to be treated as a resident of the treaty country
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Citizen
- Select country (other than the U.S.) of which you are a citizen
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Select how you became a U.S. citizen
- By Birth
- By Naturalization
- Date you became a U.S. lawful permanent resident
- Date your U.S. lawful permanent resident status was revoked or abandoned
- Date you relinquished your permanent resident card
More information will be needed for taxpayers that are filing an Initial Expatriation Statement for those Expatriated in the current year:
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Section A- Expatriation Information
- Enter the U.S. income tax liability for all 5 years before expatriation
- Enter Net worth on the date of expatriation
- Select Yes or No for a series of questions about the nature of citizenship or residency
- Schedule B - Assets - Enter amounts
-
Schedule B - Liabilities
- Enter Installment obligations
- Enter Mortgages, etc.
- Select icon to enter Itemized Amounts
- Select Yes or No for series of questions related to Property Owned on Date of Expatriation
- Select Add Property to give more details related to the property
- Description of Property
- Fair market value on day before expatriation
- Cost of other basis
- Select Yes or No, Are you making the special basis election under section 877(h)(2) for this property?
- Gain after allocation of the exclusion amount
- Select dropdown to select type Form or schedule on which gain or loss is reported
- F4797
- F8849
- F1040 SCHD
- Enter Tax deferred on prior year
- Select Continue, to the Property Attached to Form 8854 Menu & have option to edit property or add another property. When finished select Continue to complete Form 8854.
- Select Add Property to give more details related to the property
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Deferral of Tax
- Select Yes or No, Are you electing to defer tax under section 877A(A)(b)
- If Yes, enter amounts:
- Total tax with regard to section 877A(a) amounts
- Total tax without regard to section 877A(a) amount
- If Yes, enter amounts:
- Select Yes or No, Are you electing to defer tax under section 877A(A)(b)
Note: This is a guide on entering Form 8854 into TaxSlayer ProWeb. This is not intended as tax advice.
Additional Information: