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Accountancy Slice
North America
IRS drops final version of Form 708

The IRS has released final Form 708, enforcing a 40% transfer tax on U.S. recipients of gifts or inheritances from "covered expatriates" — former citizens or long-term residents who renounced status after 2008 and met wealth or compliance thresholds. The tax applies to worldwide assets received from January 1, 2025, and is paid by the recipient, not the donor. Limited exclusions and a $19,000 annual allowance apply, making the rules highly significant for cross-border estate planning.

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