Question on Terminating a Green Card
Moderator: Mark T Serbinski CA CPA
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baileybones
- Posts: 14
- Joined: Mon May 30, 2005 8:56 pm
Question on Terminating a Green Card
I am a Canadian citizen and after spending 9 years in the U.S., I was transferred back to Canada in June 2006. I am or was a green card holder. My question is, do I 'have' to officially terminate my Green card by filing the I-407 and 8854 forms with the U.S. Consulate? The reason I'm asking is because last month when I went to cross into the U.S. for a 3 day business trip (I currently work for a Canadian employer), at the border I was told I needed to turn in my Green Card with the Consulate. I checked the Consulate web-site and it doesn't mention anything saying 'you must turn in your Green Card upon departing the U.S.'. So - is it a requirement or is it optional? Thanks
Yes, if you really want to no longer be considered permanent resident, you need to formally do so. Doing so will take care of both the CIS requirements, as well as the IRS.
"Letting it die", or having CBP officer take it away from you, doesn't take care of the IRS.
"Letting it die", or having CBP officer take it away from you, doesn't take care of the IRS.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
My wife turned in her green card last year. Any green card, active or expired, that has not been formally turned in, leaves you liable for worldwide American taxes. Because you held the green card for more than 8 tax years, you're right in saying you'll need to file 8854. From the IRS's perspective, you are mostly treated like an American citizen. This is not a good thing.
Technically, you must do your IRS tax returns for the past 5 years. Form 8854 asks you if you have met your tax-filing obligations for that period. The TDF form is also required, although backfiling is a somewhat murkier issue (some say to backfile, others don't, FWIW we backfiled).
Also, when you file form I-407, be sure to get a signed receipt from the Consolute. You'll need this to prove to the IRS that you no longer have any obligation. When my wife went throught this process, they gave her no receipt, so we had to go back and contact the Consulate.
Finally, you'll need to do a final return for tax year 2008.
Technically, you must do your IRS tax returns for the past 5 years. Form 8854 asks you if you have met your tax-filing obligations for that period. The TDF form is also required, although backfiling is a somewhat murkier issue (some say to backfile, others don't, FWIW we backfiled).
Also, when you file form I-407, be sure to get a signed receipt from the Consolute. You'll need this to prove to the IRS that you no longer have any obligation. When my wife went throught this process, they gave her no receipt, so we had to go back and contact the Consulate.
Finally, you'll need to do a final return for tax year 2008.