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A US green card holder can voluntarily abandon their permanent resident status in the US by mailing the form I-407 and the green card to the USCIS. Then, the USCIS sends the ex-holder a document to acknowledge the receipt and confirm the change of the status.
In what moment does the change of status take place? When the person mails the documents, or when USCIS processes them?
USCIS may take months to acknowledge the abandonment of the green card, so this can have tax implications.
Publication 519, section "Green Card Test", subsection "Resident status abandoned", says:
If you initiate the determination, your resident status is considered to be abandoned when you file either of the following documents with your U.S. Permanent Resident Card (green card or Form I-551) attached with the USCIS or a U.S. consular officer.
- USCIS.gov/Form I-407 (Record of Abandonment of Lawful Permanent Resident Status).
- A letter stating your intent to abandon your resident status.
When filing by mail, you must send by certified mail, return receipt requested (or the foreign equivalent), and keep a copy and proof that it was mailed and received.
I believe that this means that the date that the application was received by USCIS, as indicated on the I-407 receipt, or on the mailing return receipt, can be used as the date that you ceased to pass the Green Card Test for tax purposes.
