Ralph

My scenario:
I have a Green Card that will expire in 2011.
However, I left the US on March 2004 with intention to take up permanent
residency outside of US and not returning to the US in the foreseeable
future (currently in London, UK, but immigrating to Australia soon).

1) As I understand, as soon as I was more then 1 year outside the US (which
I have), and do not have any real "ties" to the US, I am considered to be a
non-resident....bet not for tax purposes?
2) If I fill in form I-407 (Abandonment of Lawful Permanent Resident
Status), will I be treated as a non-permanent resident for year 2005
onwards, or do I still have to file 2005 taxes as a US perm. resident
(although no income in the US for that year)?
3) Would it pay _not_ to fill in form I-407, and if yes, why not?

Thanks!

Ralph

Frank

In short, residency for tax purposes and immigration purposes are very
different things. You may be a resident for tax purposes and not for
immigration purposes --- and perhaps vice-versa.

Formally giving-up your permanent residence status would in general have no
effect on your taxes by itself.

To understand and determine your tax issues you should read and understand
the (quite detailed) tax guides and examples from the IRS.


-F


--


"Ralph" <[email protected]> wrote in message
news:[email protected]...
    > My scenario:
    > I have a Green Card that will expire in 2011.
    > However, I left the US on March 2004 with intention to take up permanent
    > residency outside of US and not returning to the US in the foreseeable
    > future (currently in London, UK, but immigrating to Australia soon).
    > 1) As I understand, as soon as I was more then 1 year outside the US
    > (which I have), and do not have any real "ties" to the US, I am considered
    > to be a non-resident....bet not for tax purposes?
    > 2) If I fill in form I-407 (Abandonment of Lawful Permanent Resident
    > Status), will I be treated as a non-permanent resident for year 2005
    > onwards, or do I still have to file 2005 taxes as a US perm. resident
    > (although no income in the US for that year)?
    > 3) Would it pay _not_ to fill in form I-407, and if yes, why not?
    > Thanks!
    > Ralph
    >

Rhein

Ralph wrote:
    > My scenario:
    > I have a Green Card that will expire in 2011.
    > However, I left the US on March 2004 with intention to take up permanent
    > residency outside of US and not returning to the US in the foreseeable
    > future (currently in London, UK, but immigrating to Australia soon).
    > 1) As I understand, as soon as I was more then 1 year outside the US (which
    > I have), and do not have any real "ties" to the US, I am considered to be a
    > non-resident....bet not for tax purposes?
    > 2) If I fill in form I-407 (Abandonment of Lawful Permanent Resident
    > Status), will I be treated as a non-permanent resident for year 2005
    > onwards, or do I still have to file 2005 taxes as a US perm. resident
    > (although no income in the US for that year)?
    > 3) Would it pay _not_ to fill in form I-407, and if yes, why not?

The important thing here is that people filing as US residents are
taxed on their worldwide income whereas people filing as non-residents
are only taxed on US-source income.

I assume you filed as a resident for year 2004. For the year 2005, you
don't actually need to file a US return if you have no US-source income
and consider yourself a non-resident.

The Abandonment of Lawful Permanent Resident Status processing is for
Immigration purposes only.

Folinskyinla

Hi Ralph:

Your posting poses some quite sophisticated legal questions.