Americans who have relinquished their citizenship or long-term residents that have ceased to be lawful permanent U.S. residents must submit Form W-8CE to notify the payer of their covered expatriate status and to provide notification of their special tax rules.
What is Form W-8CE?
Form W-8CE is a tax form used to notify the payer that the individual is a covered expatriate subject to special tax rules. To be considered a covered expatriate, the individual must have an average annual net income tax for the 5-year period ending the year before their expatriation date higher than $145,000, a net worth of $2 million or more, or have not certified under penalties of perjury that they met all federal tax obligations for the preceding 5 years. Upon filing the form, expatriates must also file Form 8854 with the Internal Revenue Service.
IRS Form W-8CE – Who Needs to Fill It Out?
Form W-8CE is used by covered expatriates—U.S. citizens who have relinquished citizenship or a long-term resident who has ceased to be a lawful permanent resident. These individuals must fill out the form if they had any of the items identified in Boxes 1 through 4 on the day before their expatriation date. Additionally, all expatriates must file Form 8854 with the Internal Revenue Service. Deferred compensation items, eligible or ineligible, and tax-deferred accounts may need to be reported, along with any interest in a nongrantor trust that existed on the day before expatriation. Form W-8CE should be filed on the earlier of the day before the first distribution or 30 days after the expatriation date for each item.
Step-by-Step: Form W-8CE Instructions For Filling Out the Document
Form W-8CE is used by individuals who have expatriated from the U.S. and are now subject to special tax rules. If the individual’s average annual net income for the 5-year period before expatriation exceeded $145,000, their net worth was $2 million or more, or if they have not certified under penalty of perjury that they have met all federal tax obligations for the preceding 5 years, they must fill out and submit Form W-8CE to the payer. If the individual meets one of the listed exceptions, they must also indicate that in the form. Additionally, deferred compensation items (such as an interest in a foreign pension plan or similar retirement arrangement) must be accounted for, along with specified tax deferred accounts (as described in section 219(g)(5)) or a nongrantor trust. Form W-8CE must be filed on the earlier of (a) the day before the first distribution on or after the expatriation date, or (b) thirty (30) days after the expatriation date, along with Form 8854.
Below, we present a table that will help you understand how to fill out Form W-8CE.
| Information Required for Form W-8CE | Details |
|---|---|
| Expatriation and Special Tax Rules | Fulfilling IRS requirements for individuals who have expatriated from the U.S. |
| Filing Deadline | Filing within 30 days after the expatriation date |
Do You Need to File Form W-8CE Each Year?
Covered expatriates are required to file Form W-8CE with their payers if they have items identified in Boxes 1 through 4 on the day before their expatriation date. All expatriates must also complete Form 8854 and file it with the Internal Revenue Service. Form W-8CE should be filed prior to receiving the first distribution or within 30 days after an expatriation date for each specified tax deferred account, item of deferred compensation, or interest in a nongrantor trust. An election to be treated as receiving the value of an interest in a nongrantor trust may be made by first obtaining a letter ruling from the IRS. This election must be filed with Form 8854 with an appropriate tax return by its due date plus extensions for the election to be valid.
Download the official IRS Form W-8CE PDF
On the official IRS website, you will find a link to download Form W-8CE. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form W-8CE
Sources:
