Date of this version


Document Type



United States, expatriation, taxation, HEROES Act


The United States taxes its citizens on their world-wide income. To remove oneself from the U.S. tax system citizens need to expatriate. The Heroes Earnings Assistance and Relief Tax Act of 2008 amended significantly the anti-avoidance provisions of the Internal Revenue Code for an expatriating taxpayer. The new law requires expatriating taxpayers to report a deemed taxable sale and repurchase of assets at the time that they expatriate. This is a change from the prior law where an expatriating taxpayer could be taxed by the U.S. for ten years after expatriation and had a tax avoidance motive. This paper details the new legislation and shows its possible effects.

Published in

International Tax Journal

Citation/Other Information

May –June 2009 Pg 89-95