Navigating the U.S. tax code is complex enough, but what happens when a gift or inheritance comes from someone living outside the country? If you’ve received money or property from a person who has given up their U.S. citizenship or long-term residency, you may need to understand IRS Form 708.
At Royalty Tax Services, your trusted tax preparer in Harrisburg, PA, we specialize in demystifying complex forms like these. Here’s what you need to know about the “United States Return of Tax for Gifts and Bequests Received from Covered Expatriates.”
What is Form 708, and Who Needs to File It?
Form 708 comes into play when you receive a gift or bequest (inheritance) from a “covered expatriate.” A covered expatriate is generally someone who has formally renounced their U.S. citizenship or ended their long-term resident status for tax purposes.
This form is the IRS’s way of ensuring transparency and collecting a potential tax on the transfer of wealth from these individuals back to people in the United States. It’s a niche but critical area of tax law that requires a local tax expert in Harrisburg, Pennsylvania, with a keen eye for detail.
Why This Form Matters for You
While the recent IRS draft release for December 2025 is not yet final, it signals that the rules are active and evolving. Understanding your obligations is crucial for several reasons:
- Avoid Penalties: Failure to file Form 708 when required can lead to significant IRS penalties and increase your risk of an audit.
- Complex Determinations: Not every gift from someone abroad triggers this filing requirement. The rules are particular. As an IRS-approved tax preparer in PA, we can help determine if your situation qualifies.
- Financial Clarity: Properly handling cross-border gifts is a key part of economic empowerment. It protects your assets and ensures you are in full compliance with the law.
Don’t Navigate Cross-Border Gifts Alone
The intricacies of expatriate tax can be overwhelming. Is the giver a “covered expatriate”? What is the value of the gift? What are the reporting thresholds? These are questions we at Royalty Tax Services are equipped to answer.
Our expertise extends beyond standard professional income tax filing. We provide specialized royalty tax services for complex situations, including small business tax preparation and international tax matters like Form 708. We turn your tax challenges into confident solutions.
Trust Royalty Tax Services, Your Harrisburg Tax Expert
You don’t have to decipher IRS drafts and international tax rules on your own. If you’ve received an overseas gift or inheritance, let our team of experts provide clarity and peace of mind. We stay on top of these updates so you don’t have to.
Received a gift from an expatriate? Let’s review your situation before filing.
📞 Call or text 717-623-2043 or visit MyRoyaltyTax.com to schedule a consultation. Ensure you’re compliant and protect your financial future.
