New Expatriation Forms 8854 and W-8CE Now Available

A new version of Form 8854, Expatriation Information Statement, and new instructions were posted on the IRS Web site on May 14. The form expands the previous Form 8854 into parts A and B, with part B aimed at those new to the expatriation regime.

The IRS has also issued the new Form W-8CE, Notice of Expatriation and Waiver of Treaty Benefits, which relates to deferred compensation at the time of expatriation. The new form was posted on the IRS Web site on April 28. A new development that is contained only on the form is a box under item 4 that allows a covered expatriate to elect to be treated as having received the value of his or her interest in a nongrantor trust. The trustee will be required to provide certain information to calculate the value of the trust.

A covered expatriate should file Form W-8CE with the payer of the deferred compensation within 30 days of expatriation for each specified tax deferred account, item of deferred compensation, or interest in a nongrantor trust. Individuals who expatriated after June 16, 2008, but before the availability of Form W-8CE, must file the form within 30 days of the availability of the form (which the AICPA understands from the IRS will be the date when the paper form is available, which has not yet been determined). The AICPA Expat Task Force will continue to be in touch with the IRS regarding this.

For more information on the expatriation rules enacted in June 2008, see “News Notes: New Expatriation Tax Rules Enacted,” The Tax Adviser, Aug. 08, page 481, or AICPA Tax Section members can see the Tax Section’s June 27, 2008, e-alert.

—Eileen Reichenberg Sherr, CPA, M. Tax., is a senior manager with the AICPA in Washington. Her e-mail address is esherr@aicpa.org.