Surrendering a Green Card:           If you are a US Green Card holder planning to surrender your green card you may have to consider different tax implications for that year. You will not be considered as a U.S. resident for the year during which you surrender your green card and generally, your residency termination date will be last day of that calendar year or you may be eligible to claim earlier termination date i.e. date on which you surrender your green card.     If you are a Long-Term resident (Green card holders present in US in at least 8 of the last 15 tax years before termination of resident status), you have to comply with following special rules to terminate your resident status:       1] You need to file Form 8854 with the IRS 2] Notify the Department of Homeland Security by completing Form I-407 before a diplomatic or consular officer of U.S. or at a Port of Entry of the U.S. before a U.S. Immigration official.       Unless you comply to the above, you are subject to US tax on your worldwide income.       You may also required to file Form 8854 for next 10-years if: 1] Your average annual net income tax liability for the 5 years ending before the date of your termination of residency is more than a set amount ($124,000 for 2004, $127,000 for 2005, $131,000 for 2006), 2] Your net worth is $2 million or more on the date of your termination of residency, or 3] You fail to certify on Form 8854 that you have complied with all of your U.S. federal tax obligations for the 5 years preceding the date of your termination of residency.           If you fail to do so, you may be subject to a $10,000 penalty each year that the form is required but not filed.