What Is a 2801c Letter for Gifts from Expatriates?

A certification statement for gifts from expatriates is a document for individuals receiving gifts or inheritances from someone who has given up U.S. citizenship or long-term residency. Its function is to certify that the person giving the gift is not a “covered expatriate.” This certification is important for the U.S. recipient, as it helps them avoid a substantial tax liability on the gift they receive.

The Tax on Covered Gifts and Bequests

The Internal Revenue Code imposes a tax on U.S. persons who receive “covered gifts or bequests.” This tax is not paid by the person who gave up their citizenship, but by the U.S. citizen or resident who receives the property. The tax is calculated at the highest federal estate tax rate—currently 40 percent—applied to the value of the gift received, minus the annual gift exclusion amount of $19,000 for 2025. This rule was designed to prevent wealthy individuals from avoiding U.S. transfer taxes by renouncing their citizenship and then giving their assets to U.S. heirs.

A gift or bequest becomes “covered” when it comes from a “covered expatriate.” An individual is designated a covered expatriate if they relinquished their U.S. citizenship or long-term residency on or after June 17, 2008, and meet any one of three specific tests at the time of expatriation.

The first is a net worth test, which is met if the individual’s net worth was $2 million or more on the date of expatriation. The second is an income tax liability test. For an individual expatriating in 2025, this test is met if their average annual net income tax liability for the five years preceding expatriation was greater than $206,000. This threshold is indexed for inflation and changes annually.

The final criterion is the certification test. An individual becomes a covered expatriate if they fail to certify, on Form 8854, Initial and Annual Expatriation Statement, that they have complied with all U.S. federal tax obligations for the five years before their expatriation date. A “covered gift” is any property transferred during the donor’s lifetime, while a “covered bequest” is property transferred upon death from such an individual.

Required Information for the Certification Statement

There is no official IRS form for this statement; it is a self-certified document that the donor or the executor of the decedent’s estate provides to the U.S. recipient. For the statement to be valid, it must contain specific information.

The statement must include:

• The full name and address of the donor (or the decedent).
• The donor’s or decedent’s U.S. taxpayer identification number (TIN), if they had one.
• The full name, address, and TIN of the U.S. recipient of the property.
• A direct declaration, made under penalties of perjury, that the individual is not a “covered expatriate” as defined in the Internal Revenue Code.

The penalties of perjury clause adds legal weight to the certification, making the statement reliable evidence for the recipient’s tax records.

Recipient Obligations and Filing Requirements

The U.S. recipient is ultimately responsible for determining whether the transfer is taxable. Receiving a properly executed certification statement is the primary way a recipient can satisfy this obligation and treat the gift as non-taxable, as it proves the donor was not a covered expatriate.

In the absence of such a statement, the law creates a presumption that the donor is a covered expatriate. This means the IRS will assume the gift is a “covered gift” and is subject to tax unless the recipient can prove otherwise. This places a burden on the recipient, who may not have access to the donor’s private financial information.

If a gift is determined to be a covered gift, or if no certification is provided, the recipient must report and pay the associated tax. This is done using IRS Form 708, United States Return of Tax for Gifts and Bequests Received From Covered Expatriates. The due date for filing and paying the tax is the 15th day of the 18th month following the year in which the gift was received.

Therefore, obtaining a certification statement is a proactive step for any U.S. person expecting a substantial gift from someone who has expatriated. Without it, the recipient faces a default assumption of tax liability that can be difficult and costly to overcome.