This article is for U.S. citizens or long-term Green Card holders considering expatriation from the United States. Expatriation is the act of voluntarily renouncing your U.S. citizenship or formally giving up your Green Card, thereby ending your U.S. tax obligations as a resident alien.
If you are thinking about renouncing your U.S. citizenship or giving up your Green Card, note that your final tax filing requirements will differ from your regular tax filing. Taxes for Expats (TFX) has successfully guided hundreds of clients through this process. TFX's expatriation service is designed to help you:
Avoid the hidden traps of exit taxation
Get clarity on IRS requirements and timelines
Know exactly which forms to file and when
Eliminate the uncertainty of "covered expatriate" status
This article walks you through the most common paths, what each one costs, and how to get started.
The 6 most common scenarios
Below are the six paths we see most often. Find the one that matches your situation to understand what you will need to file, how long it will take, and what it will cost. For a deeper walkthrough of the renunciation process itself, see our renunciation guide.
Notes:
If you renounce in 2026, we will begin preparing your final dual-status return and Form 8854 in late December 2026 and file as early as January 2027.
Throughout all six scenarios, we will assume you expatriate in 2026 and file your final tax return in 2027. Substitute your own dates as needed.
The prices shown are starting points based on standard situations. Add-on services such as FBAR (Form FinCEN 114), FATCA (Form 8938), additional W-2s or 1099s, complex covered-expatriate Form 8854 work, etc., may increase the total. We will outline your full cost in an engagement letter after reviewing your tax questionnaire.
Please contact us before you start filing. Book a free consultation with one of our tax preparers, and we will guide you though the process.
Scenario 1: U.S. citizen, fully compliant
Who this fits: You have filed all your U.S. tax returns and FBARs through the most recent year, have no catch-up to do, and have scheduled your renunciation appointment at a U.S. embassy or consulate.
What we prepare:
Form 8854 (Initial and Annual Expatriation Statement).
Final dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for your year of formal expatriation.
Preparation timeline: ~1 month
Starting cost: $1,150
Scenario 2: U.S. citizen, compliant on returns but missing FBARs
Who this fits: You haven't filed FBARs (FinCEN Form 114) to report your foreign bank accounts, but you have filed all your U.S. tax returns on time and reported all interest income earned from foreign bank accounts (i.e., amending prior returns is not required).
What we prepare:
6 years of FBAR catch-up using the Delinquent FBAR Submission Procedures.
Form 8854 (Initial and Annual Expatriation Statement).
Final dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for your year of formal expatriation.
Preparation timeline: ~2 months
Starting cost: $1,660
Scenario 3: U.S. citizen, non-compliant (planning to expatriate, haven't filed prior returns)
Who this fits: You plan to renounce, but you have not filed U.S. tax returns for several years. You will use the IRS amnesty program, the Streamlined Foreign Offshore Procedures (SFOP), to come into compliance before expatriating.
What we prepare:
3 tax returns and 6 FBARs submitted under the SFOP and all required schedules/information returns (billed separately).
2 older tax returns and all required schedules/information returns (billed separately), if you haven't filed for 5+ years.
Form 8854 (Initial and Annual Expatriation Statement).
Final dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for your year of formal expatriation.
Preparation timeline: ~4 months
Starting cost: $3,500. Pricing depends on which tax years apply and whether you need us to prepare the Streamlined certification letter.
Suggested timing for scenario 3
When | What happens |
March 1, 2026 | Begin preparing tax returns for the past five years and FBAR reports for the past six years. |
April 1, 2026 | Mail three years under Streamlined procedures (FBARs can be e-filed). |
May 1, 2026 | Mail the remaining two years of tax returns and pay any tax due. |
July 1, 2026 | If no problems arise during the two months following the submission of your taxes to the IRS, schedule your expatriation interview at the embassy. Check the Timeline for IRS response after using Streamlined Procedures.
Although you are not required to present your tax returns for prior years at the embassy, it is prudent to know the outcome of filing delinquent returns before giving up citizenship. If IRS discovers problems with your previous returns, you may not be eligible for exemption from the expatriation tax. |
September 1, 2026 | Attend your expatriation interview. |
November 1, 2026 | Receive Certificate of Loss of Nationality (CLN, Form DS-4083). |
2027 (as early as possible) | Prepare and mail your final dual-status return for the 2026 tax year and Form 8854. |
Scenario 4: Already expatriated, non-compliant (never filed returns)
Who this fits: You have already renounced your U.S. citizenship, but you never filed U.S. tax returns. You may qualify for the Relief Procedures for Former U.S. Citizens — an IRS amnesty program that lets you become compliant without penalties or interest.
What we prepare:
Form 8854 (Initial and Annual Expatriation Statement).
5 back tax returns + 6 FBARs submitted under Relief procedures.
Dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for your year of formal expatriation; all submitted under Relief procedures.
Preparation timeline: ~4 months
Starting cost: $3,500.
❗ Important note: Relief procedures for former U.S. citizens is available only to non-covered expatriates. Specifically designed for "Accidental Americans" who have never filed and want to renounce their U.S. citizenship.
Scenario 5: Long-term Green Card holder (≥8 years)
Who this fits: You held a Green Card for at least 8 of the last 15 tax years, and you have formally abandoned it by filing Form I-407 (Record of Abandonment of Lawful Permanent Resident Status) with U.S. Citizenship and Immigration Services (USCIS).
Notes:
If you held a Green Card for at least 8 of the last 15 tax years, Form 8854 is required, and you may be subject to the exit tax just like a renouncing citizen.
Unlike citizens relinquishing their U.S. citizenship, former Green Card holders may file a resident return (Form 1040) for the full tax year instead of a dual-status return, when that produces a better tax outcome. We will determine which method works best for you during the review.
Scenario 5.1: If you are fully compliant
What we prepare:
Form 8854 (Initial and Annual Expatriation Statement).
Final resident return (Form 1040) OR dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for the year you filed Form I-407 and formally abandoned your Green Card.
Preparation timeline: ~1 month
Starting cost: $850.
Scenario 5.2: If you are non-compliant
To be fully compliant and avoid being classified as a “covered expatriate” (which carries tax consequences), you must file five U.S. tax returns and six FBARs in addition to your final return.
What we prepare:
3 tax returns and 6 FBARs submitted under the SFOP and all required schedules/information returns (billed separately).
2 older tax returns and all required schedules/information returns (billed separately), if you haven't filed for 5+ years.
Form 8854 (Initial and Annual Expatriation Statement), if you held a Green Card for at least 8 of the last 15 tax years.
Final resident return (Form 1040) OR dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for the year you filed Form I-407 and formally abandoned your Green Card.
Preparation timeline: ~4 months
Starting cost: $3,200. Pricing depends on which tax years apply and whether you need us to prepare the Streamlined certification letter.
Scenario 6: Short-term Green Card holder (<8 years)
Who this fits: You held a Green Card for fewer than 8 of the last 15 tax years and have abandoned it via Form I-407 (Record of Abandonment of Lawful Permanent Resident Status) with U.S. Citizenship and Immigration Services (USCIS).
Notes:
Form 8854 is not required for short-term Green Card holders, and you are not subject to the exit tax.
Unlike citizens relinquishing their U.S. citizenship, former Green Card holders may file a resident return (Form 1040) for the full tax year instead of a dual-status return, when that produces a better tax outcome. We will figure out which method works best for you during review.
Scenario 6.1: If you are fully compliant
What we prepare:
Final resident return (Form 1040) OR dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for the year you filed Form I-407 and formally abandoned your Green Card.
Preparation timeline: ~1 month
Starting cost: $450.
Scenario 6.2: If you are non-compliant
To be fully compliant and avoid being classified as a “covered expatriate” (which carries tax consequences), you must file five U.S. tax returns and six FBARs in addition to your final return.
What we prepare:
3 tax returns and 6 FBARs submitted under the SFOP and all required schedules/information returns (billed separately).
2 older tax returns and all required schedules/information returns (billed separately), if you haven't filed for 5+ years.
Final resident return (Form 1040) OR dual-status return (Form 1040 + Form 1040-NR) and all required schedules/information returns (billed separately) for the year you filed Form I-407 and formally abandoned your Green Card.
Preparation timeline: ~3-4 months
Starting cost: $2,800. Pricing depends on which tax years apply and whether you need us to prepare the Streamlined certification letter.
Fees
Service | Cost |
Free consultation with one of our tax preparers | $50 retainer is credited toward tax prep services |
Tax planning consultation | $250 |
Follow-up consultation | $200 |
Dual-status return (Form 1040 + Form 1040-NR):
| From $750:
|
Form 8854:
|
|
FBAR | $85 |
Streamlined procedures package (3 returns + 6 FBARs) | From $1,450 |
Relief procedures for former U.S. citizens (5 returns + 6 FBARs) | $2,350 |
Note: Add-on services such as FATCA (Form 8938), additional W-2s or 1099s, foreign business or trust reporting, and similar items are billed separately.
How to get started with the TFX expatriation service
Book a tax planning consultation ($250). We will walk you through the rules, requirements, and a filing plan tailored to your situation.
Go deeper if needed. A follow-up consultation is available for $200 if you'd like more time to map things out.
Sign up or log in to your TFX account. Complete and submit your tax questionnaires and supporting documents for our review.
We handle the tax preparation. Once you have expatriated, we prepare the final tax returns for your year of expatriation.
You handle the filings. Due to the IRS processing limitations, dual-status, amended, Streamlined, and Relief procedures tax returns cannot be e-filed. We will provide you with clear mailing instructions for your expatriation package.
How to complete a tax questionnaire (TQ) for a dual-status return
For a dual-status return, you will need to create two tax questionnaires (TQs):
Year-of-expatriation TQ (e.g., 2026): The information will be added to Form 1040 covering the portion of the year you were a U.S. citizen. Please report all worldwide income earned up to the date of expatriation.
Dummy TQ (use year 2005): The information will be added to Form 1040-NR covering the portion of the year after expatriation. Please report only U.S.-sourced income earned after the date of expatriation.
For detailed guidance, please refer to these articles:
$0 U.S.-sourced income after expatriation
If you renounced and have $0 U.S.-sourced income after that date, skip the income reporting in the dummy TQ (2005). Just answer No to all Life & Income questions and complete only the mandatory fields.