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An expatriation tax is a tax on somebody who gives up their citizenship. In United States, the expatriation tax provisions under Section 877 and Section 877A of the Internal Revenue Code (IRC) pertain to U.S. citizens who have gave up their citizenship, and long-term residents who have broken their U.S. resident status for federal tax objectives. Diverse rules apply, as per the date upon which one expatriated.
As many people who expatriated did so to keep away from tax laws concerning their assets, the IRS has forced more strict tax implications for expatriates. The IRS supposes reasons for expatriation are tax evasion if the person who did this has an annual income over a particular standard figure. The ex pat tax does not be relevant to individuals who can show in a ruling with the Secretary of Treasury that their cause for expatriation was not to avoid taxes, like a person with dual citizenship selecting the other country for lasting citizenship.
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