On Oct 17 2009 by William A. Stock

Tax Consequences of Losing US Resident Status

We’ve seen an increase in inquiries about tax matters from permanent residents, particularly those who have relocated abroad.  While we don’t provide tax advice, we have assisted in numerous matters where tax law and immigration law collide, including advising permanent residents about to spend time abroad what they have to do to avoid losing residence.

Since last summer, permanent residents with significant net worth have an important reason not to lose their “green card” status – saving themselves from a big tax bill.  Over on the main site, we’ve posted an update on the HEART Act, which imposes an “exit tax” on permanent residents who lose that status.

We hope this general summary, along with our guide to maintaining permanent resident status while residing abroad, provide a helpful summary.  This area of law is complicated, however, so we’d be happy to speak with you about your particular situation.