Renouncing US Citizenship

Below is a brief synapsis of the procedures and effects of a U.S. citizen renouncing US citizenship.

 

PROCEDURE

  1. One must “voluntarily and with intent, relinquish US Citizenship;”
  2. Appear before a US Embassy/Consulate in a foreign country to renounce, and sign an oath of renunciation;
  3. Complete a IRS Form 8854, DS 4079 and Expatriation Information Statement.

RESULT

  1. After US State Dept reviews and approves, they will issue a “Certificate of Loss of Nationality (COLN);
  2. If applicable, an Exit tax must be paid within 90 days of COLN issuance
  3. Even if approved, the person must still file US taxes for the year of expatriation/renunciation.

EXIT TAX

A citizen who renounces citizenship, may still be subject to an exit tax, which is basically the net gain of all worldwide assets the person has (as if he/she was going to sell all assets at that time). The Exit Tax is applicable if:

  1. Person has US liability of more than $124,000 for the prior year; OR
  2. Has a net worth of over $2 million; OR
  3. Has failed to comply with ANY US tax/IRS regulations in the last 5 years.

 

IMMIGRATION CONSEQUENCES

  1. Person will have a very tough time entering the US, connecting flights in the US, and/or obtaining a tourist visa (or any other US visa);
  2. If the person has no other nationality, the person will become stateless, and have trouble travelling worldwide;
  3. Cannot transmit US citizenship to children or grandchildren
  4. If the US government determines that you renounced citizenship to avoid US taxes, then you will be found inadmissible to the US under Section 212(a)(10)(E) of the INA.
  5. May still be bound to complete military service.

 

CONCLUSION

As per the information above, besides consulting on the immigration consequences of renouncing US citizenship, this is really more of process for a tax expert to handle. The forms are IRS forms, asset evaluation is involved, etc, and a proper financial evaluation is recommended before making the final decision.

Israel

“I’m very grateful to you for the professional and quick handling my case in receiving the Green Card in a very short time !!”
Amnon Karmi
Family Based Green Card
March 31st, 2018
“I would like to thank you for your great professional work. The papers whom I carried to the interview were impressive and I felt confident that this process will be approved for sure. Best, Ronen Rick”
Ronen Rick
E-1 Work Visa
March 2nd, 2017
DC LAW OFFICES לכבוד משרד עורכי דין אני מבקש להודות לכם על הליווי המדהים שלכם בתהליך קבלת הגרין קארד. הייתם מצויינים. הרגשתי שהיה לי על מי לסמוך בכל נושא לאורך הדרך, איסוף הנתונים, הכנת התיק לשגרירות, לראיון האישי וההתמודדות עם גורמי ראשויות החוק האמריקאים. הייעוץ והיחס היה חם לכל אורך הדרך. המענה שלכם לכל בקשה שלי היה מהיר ועינייני. לכל מי שמצויי בתהליך בקשת גרין קארד או כל התנהלות מול ממשלת ארצות הברית (או ממשלה אחרת) אמליץ בחום על משרד עורכי הדין שלכם. תודה רבה, ד“ר בעז מזרחי
Boaz Mizrahi
DV-2014
March 18 2015
DC LAW OFFICES לכבוד משרד עורכי דין אני מבקש להודות לכם על הליווי המדהים שלכם בתהליך קבלת הגרין קארד. הייתם מצויינים. הרגשתי שהיה לי על מי לסמוך בכל נושא לאורך הדרך, איסוף הנתונים, הכנת התיק לשגרירות, לראיון האישי וההתמודדות עם גורמי ראשויות החוק האמריקאים. הייעוץ והיחס היה חם לכל אורך הדרך. המענה שלכם לכל בקשה שלי היה מהיר ועינייני. לכל מי שמצויי בתהליך בקשת גרין קארד או כל התנהלות מול ממשלת ארצות הברית (או ממשלה אחרת) אמליץ בחום על משרד עורכי הדין שלכם. תודה רבה, ד“ר בעז מזרחי
Boaz Mizrahi
DV-2014
March 18 2015
“This letter is our personal recommendation for Dotan Cohen, Law Offices. In the last year they took care of our Green Card application. We found Dotan and his team very cooperative and very helpful they are professional, we got very detailed answers to our concerns and primarily they are consistently pleasant to work with. We defiantly can say that without the escort we got from Dotan and his team throughout the application process we would never got our Green Card. From our experience we would like to recommend to all the GC applicants if you really want to be a green card holders do not save the cost of a lawyer and hire Dotan Cohen, Law Offices.” Amit M./ DV-2009/ July 28th 2009/ Israel “Thanks very much for your help with my application. The interview was successful and everything ran very smoothly. Your input was very valuable, both while filling the forms and while preparing for the interview. You were thorough, responsive to my many questions, and most importantly, supportive. Thanks again,”
Shaul & Esty S.
DV-2009
November 23rd 2009
“I would like to thank the staff at Dotan Cohen Offices for all their efforts in assisting me to achieve my Green Card. In my case, I needed help in defining my occupation so that I can get my Green Card. If it wasn’t for the experienced lawyers at Dotan Cohen Law Offices, I would not have received my Green Card.”
Yossi C.
DV-2008
August 31st 2008
Bantsi Gafni
Shira Gafni
Another satisfied customer! Shira received American citizenship

I only have a question