Bank Statement for the Expatriation Exit Tax

US citizens and long-term green card holders who expatriate may owe an exit tax if they're covered expatriates — meeting a net worth or tax liability threshold. Bank statements document the account balances that feed the net worth calculation on Form 8854, alongside the mark-to-market computation of unrealized gains. This guide covers what to prepare.

Key Benefits

• Documents account balances for the Form 8854 net worth test
• Supports the mark-to-market calculation of deemed asset sales
• Provides evidence of tax compliance for the five prior years
• Helps a cross-border advisor assess covered expatriate status

How It Works

1. Step 1: Gather statements for all accounts as of your expatriation date as PDFs
2. Step 2: Convert them to Excel with Bank Statement Converter to total your net worth
3. Step 3: Compile the prior five years of statements to support tax compliance certification
4. Step 4: Provide the full package to a cross-border tax advisor for Form 8854

Frequently Asked Questions

What is the expatriation exit tax?

A tax on covered expatriates that treats most assets as sold at fair market value the day before expatriation, taxing the unrealized gain above an exclusion amount.

Who is a covered expatriate?

Someone who exceeds a net worth threshold ($2 million), had high average tax liability, or fails to certify five years of tax compliance — bank statements support all three tests.

Why do I need five years of bank statements to expatriate?

Form 8854 requires certifying you complied with all tax obligations for the five years before expatriation, and statements help demonstrate that compliance.

Does renouncing citizenship always trigger the exit tax?

No — only covered expatriates owe it. If your net worth is below the threshold and you're tax-compliant, you generally avoid the exit tax, which is why documenting net worth matters.

Convert Your Expatriation Statements