26 Adar 5786
Shavua tov!
WASHINGTON (AP) — The State Department has slashed by about 80% the fee for Americans to formally renounce their U.S. citizenship.After years of legal battles with several groups representing Americans wanting to give up their citizenship, the department on Friday published a final rule in the Federal Register that reduces the cost from $2,350 to $450.The new fee, which took effect on Friday, had been promised in 2023 but had never been implemented. The cost is now the same as it was when the State Department first started charging Americans to formally renounce their citizenship in 2010.Renouncing U.S. citizenship can be an intensive and lengthy process. Applicants must repeatedly confirm in multiple written and verbal attestations to a State Department consular officer that they understand the implications of the step before being allowed to take a formal oath of renunciation. It must then be reviewed by the department.The fee was raised from $450 to $2,350 in 2015 to cover the administrative expenses as the number of people wanting to renounce their citizenship surged in part due to new U.S. tax reporting requirements for American expatriates that angered many.That dramatic fee increase drew significant opposition from groups such as the France-based Association of Accidental Americans, which represents people mainly living abroad whose U.S. citizenship is due purely to their having been born in the United States.The association filed several lawsuits challenging the constitutionality of the fee, including one that remains pending that argues there should be no cost at all for renouncing one’s citizenship.“The Association of Accidental Americans welcomes this decision, which acknowledges the necessity of making this fundamental right accessible to all,” its president, Fabien Lehagre, said in a statement. “This victory is the direct result of six years of relentless legal action and advocacy.” (Source)
It's not just the fee, which is still high compared to most countries, where it is nominal or free. It also triggers a tax event, which could be very costly. You need to consult with a specialised accountant and lawyer. You might be barred from ever entering the US again.
ReplyDeleteOnly two countries have citizenship based taxation. The other one is Eritrea. It's only when you try to leave you realise just how unfree you are.
It was free for me in 1999. And it only took two visits, not multiple ones. Everything of value costs more the longer you wait.
DeleteAnyone wishing to do it today needs up to date professional advice. It can be highly complex and trigger a tax debt going back years. It's not just a matter of 450 dollars. And it may have other legal ramifications. This is basic good advice for people making such a decision.
DeleteIt's uncanny how I am about to write about a particular topic, and then see that Tomer Devorah already has. Great minds think alike?
DeleteAnonymous is correct. Good idea to get the help of professionals. Also Eritrea is the only country controlling its citizens abroad like the U. S. A lot of helpful people online with lots of experience. Nevertheless, get professional help. I was surprised to find two American CPAs willing to help. Both gave free advice. One offered to take care of the tax part for a fee. (U. S. citizens are required to file one of the 1040 series annually even if you don't owe anything. Also FBAR - foreign bank account report) The other said I could do it myself, and told me what I needed to do.
While writing my recent post, I found this on the U. S. State Dept. website:
"A former U.S. national may still face deportation from a foreign country to the United States as an alien."
Such hutzpah!
The U. S. Has Lowered The Cost Of Renunciation Of Citizenship. So What?
I get small amount of SS so I won't be renouncing citizenship. It helps if someone kidnaps G F but I would just let it be. I don't know...it's all about money.
ReplyDelete