My net worth is far below $2 million and my tax has always been low. Do I still need Form 8854 when I expatriate?
I am from Mexico and I expect to fall well below the covered expatriate thresholds. Because of that, I assumed Form 8854 would not matter for me. Then I saw references saying the form is required even for people who are not covered expatriates, which seems backwards at first glance.
I want to make sure I do not create a technical failure by ignoring the form. If the IRS requires an initial Form 8854 in the year of expatriation even when a person is not covered, I need to treat it as a mandatory part of the exit file rather than an optional extra.
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