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‘‘(i) the individual became at birth a 
citizen of the United States and a citizen 
of another country and continues to be a 
citizen of such other country, and 
‘‘(ii) the individual has had no sub-
stantial contacts with the United States. 
‘‘(B) SUBSTANTIAL CONTACTS.—An indi-
vidual shall be treated as having no substantial 
contacts with the United States only if the indi-
vidual—
‘‘(i) was never a resident of the 
United States (as defined in section 
7701(b)), 
‘‘(ii) has never held a United States 
passport, and 
‘‘(iii) was not present in the United 
States for more than 30 days during any 
calendar year which is 1 of the 10 calendar 
years preceding the individual’s loss of 
United States citizenship. 
‘‘(3) CERTAIN MINORS.—An individual is de-
scribed in this paragraph if—
‘‘(A) the individual became at birth a cit-
izen of the United States,
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‘‘(B) neither parent of such individual was 
a citizen of the United States at the time of 
such birth, 
‘‘(C) the individual’s loss of United States 
citizenship occurs before such individual attains 
age 181⁄2, and 
‘‘(D) the individual was not present in the 
United States for more than 30 days during 
any calendar year which is 1 of the 10 calendar 
years preceding the individual’s loss of United 
States citizenship.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
2107(a) is amended to read as follows: 
‘‘(a) TREATMENT OF EXPATRIATES.—A tax com-
puted in accordance with the table contained in section 
2001 is hereby imposed on the transfer of the taxable es-
tate, determined as provided in section 2106, of every de-
cedent nonresident not a citizen of the United States if 
the date of death occurs during a taxable year with respect 
to which the decedent is subject to tax under section 
877(b).’’. 
(b) SPECIAL RULES FOR DETERMINING WHEN AN 
INDIVIDUAL IS NO LONGER A UNITED STATES CITIZEN 
OR LONG-TERM RESIDENT.—Section 7701 (relating to 
definitions) is amended by redesignating subsection (n) as
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subsection (o) and by inserting after subsection (m) the 
following new subsection: 
‘‘(n) SPECIAL RULES FOR DETERMINING WHEN AN 
INDIVIDUAL IS NO LONGER A UNITED STATES CITIZEN 
OR LONG-TERM RESIDENT.—An individual who would 
(but for this subsection) cease to be treated as a citizen 
or resident of the United States shall continue to be treat-
ed as a citizen or resident of the United States, as the 
case may be, until such individual—
‘‘(1) gives notice of an expatriating act or ter-
mination of residency (with the requisite intent to 
relinquish citizenship or terminate residency) to the 
Secretary of State or the Secretary of Homeland Se-
curity, and 
‘‘(2) provides a statement in accordance with 
section 6039G.’’. 
(c) PHYSICAL PRESENCE IN THE UNITED STATES 
FOR MORE THAN 30 DAYS.—Section 877 (relating to ex-
patriation to avoid tax) is amended by adding at the end 
the following new subsection: 
‘‘(g) PHYSICAL PRESENCE.—
‘‘(1) IN GENERAL.—This section shall not apply 
to any individual to whom this section would other-
wise apply for any taxable year during the 10-year 
period referred to in subsection (a) in which such in-
155
dividual is physically present in the United States at 
any time on more than 30 days in the calendar year 
ending in such taxable year, and such individual 
shall be treated for purposes of this title as a citizen 
or resident of the United States, as the case may be, 
for such taxable year. 
‘‘(2) EXCEPTION.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual described in any of the following sub-
paragraphs of this paragraph, a day of physical 
presence in the United States shall be dis-
regarded if the individual is performing services 
in the United States on such day for an em-
ployer. The preceding sentence shall not apply 
if—
‘‘(i) such employer is related (within 
the meaning of section 267 and 707) to 
such individual, or 
‘‘(ii) such employer fails to meet such 
requirements as the Secretary may pre-
scribe by regulations to prevent the avoid-
ance of the purposes of this paragraph. 
Not more than 30 days during any calendar 
year may be disregarded under this subpara-
graph.
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‘‘(B) INDIVIDUALS WITH TIES TO OTHER 
COUNTRIES.—An individual is described in this 
subparagraph if—
‘‘(i) the individual becomes (not later 
than the close of a reasonable period after 
loss of United States citizenship or termi-
nation of residency) a citizen or resident of 
the country in which—
‘‘(I) such individual was born, 
‘‘(II) if such individual is mar-
ried, such individual’s spouse was 
born, or 
‘‘(III) either of such individual’s 
parents were born, and 
‘‘(ii) the individual becomes fully lia-
ble for income tax in such country. 
‘‘(C) MINIMAL PRIOR PHYSICAL PRESENCE 
IN THE UNITED STATES.—An individual is de-
scribed in this subparagraph if, for each year in 
the 10-year period ending on the date of loss of 
United States citizenship or termination of resi-
dency, the individual was physically present in 
the United States for 30 days or less. The rule 
of section 7701(b)(3)(D)(ii) shall apply for pur-
poses of this subparagraph.’’.