Lawful Permanent Residency: A Status Not Without Its Burdens

legal permanent residency

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3. Can LPR Status Be Abandoned?

If there is one issue that any prospective LPR should consider it is whether her future travel plans could trigger the abandonment of LPR status, which, among other things, assumes that the LPR intends on actually residing permanently in the U.S. 

Under immigration regulations, an LPR living outside of the U.S. for more than 1 year is considered to have abandoned LPR status.

For LPRs living outside the U.S. for less than a year, there is no bright line test, the issue being whether the evidence considered in its totality indicates by clear, unequivocal, and convincing evidence that the LPR no longer intends on residing in the U.S. For example, if an LPR files a non-resident tax return, it can raise a rebuttal presumption that the LPR has abandoned LPR status. 

For LPRs that plan on spending substantial time outside the U.S. it is therefore important for them to be concerned about the prospect of abandonment and therefore maintain a U.S. residence, pay utility and maintenance bills, and file U.S. tax returns.

If the plan is to spend more than a year outside the U.S. consideration should be paid to obtaining a re-entry permit before leaving the U.S. Although re-entry permits will not immunize an LPR from an inquiry into his or her intentions to abandon U.S. residence, it will preclude the authorities from coming to an abandonment determination solely on the basis of the length of time the LPR remained outside the U.S.

There are, of course, other ways in which LPRs can lose their status, i.e. if an LPR commits a serious criminal violation that triggers removal, or has improperly obtained LPR status by way of misrepresentation or fraud, but inadvertent abandonment of LPR status remains one of the more gotcha issues confronting LPRs which can also result in the imposition of the Exit Tax.

The Take Away:

  • When it comes to applying for Lawful Permanent Residency, the prospective applicant should consider the downside of this status as well as the upside and retain tax professionals in addition to immigration law professionals to advise them concerning potential tax liabilities.
  • If an LPR plans on relocating outside of the U.S., an immigration professional should be considered to explore in advance the prospects of meeting re-entry permit requirements.
  • LPR status has its restrictions and may not be the optimal status for everyone.

Related articles:

The Immigrant Investor Meets Realities, Part I

Immigration News Business Owners Need to Know 


Five Insights on the State of Immigration, Politics and Business 

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