The United States is one of the only countries in the world to tax based on citizenship, which means if you’re a US citizen living outside the United States, you still have yearly IRS tax filing obligations. These tax filing obligations can be an expensive annual hassle (even if you owe no tax), and may even result in double taxation. Fortunately, properly renouncing your US citizenship can provide a way out.
Our free seminar covers the following topics of interest:
- Why do people renounce US citizenship and how do I know if renouncing is right for me?
- What are the pros and cons of renouncing – do the benefits of citizenship outweigh the costs?
- What happens if I haven’t filed US tax returns and am identified as a US person by my Canadian bank?
- Can renouncing help with the negative consequences of US tax reform legislation?
- Am I or a family member an “Accidental American”?
- I once had a US green card – do I still need to file with the IRS?
- How do I ensure I renounce the right way and avoid pitfalls like the US exit tax or becoming barred from visiting the United States?
- What will be my relationship with the United States after renouncing?
Frequently Asked Questions:
Is renouncing US citizenship a political decision?
Generally, no. Renunciation is often financially motivated, as all citizens with ties to the US (regardless of where in the world they live) are required to meet IRS reporting and filing obligations, which can come with a heavy cost.
What is an “Accidental American”?
Children born outside the United States to a US parent who lived in the US long enough, and individuals born in the US but who haven’t lived there since infancy, are US citizens regardless of where they live now. These citizens are still required to meet IRS reporting and filing obligations.
Who all may be required to meet IRS reporting and filing obligations?
- US citizens or green card holders living outside the United States (regardless of time spent outside the US).
- Any individual with US parents who lived in the US long enough.
- Any individual born in the United States, regardless of how long they lived there.
How much does it cost to maintain my US citizenship?
All US citizens are subject to the costs of annual filing, along with the potential costs of double taxation, US estate and gift tax, and more.
Is there a “right way” to renounce?
Yes. It’s essential to have professional guidance to avoid potential pitfalls of renunciation, such as the US Exit Tax, or becoming barred from visiting the US.