U.S. Hikes Fee To Renounce Citizenship By 422%

[senheiser]

U.S. Hikes Fee To Renounce Citizenship By 422% - Forbes

individuals who renounced is up. For 2013, there was a 221% increase, with record numbers of Americans renouncing. The Treasury Department is required to publish a quarterly list, but these numbers are under-stated, some say considerably.

The presence or absence of tax motivation is no longer relevant, but that could change. After Facebookco-founder Eduardo Saverin departed for Singapore, Senators Chuck Schumer and Bob Casey introduced a bill to double the exit tax to 30% for anyone leaving the U.S. for tax reasons. That hasn’t happened, but taxes are still a big issue for many.

U.S. flag (Photo credit: Wikipedia)

To leave America, you generally must prove 5 years of U.S. tax compliance. If you have a net worth greater than $2 million or average annual net income tax for the 5 previous years of $157,000 or more for 2014 (that’s tax, not income), you pay an exit tax. It is a capital gain tax as if you sold your property when you left. At least there’s an exemption of $680,000 for 2014. Long-term residents giving up a Green Card can be required to pay the tax too.

Now, the State Department interim rule just raised the fee for renunciation of U.S. citizenship to $2,350 from $450. Critics note that it’s more than twenty times the average level in other high-income countries. The State Department says it’s about demand on their services and all the extra workload they have to process people who are on their way out.


The notice says:

1. Consular officers must confirm that the potential renunciant fully understands the consequences of renunciation, including losing the right to reside in the United States without documentation as an alien.

2. Consular officers must verify that the renunciant is a U.S. citizen and they must conduct a minimum of two intensive interviews with the potential renunciant. Consular officers must even review at least three consular systems before administering the oath of renunciation.

3. The final approval of the loss of nationality must be done within the Directorate of Overseas Citizens Services in Washington, D.C. After that, the case is returned to the Consular officer overseas for final delivery of the Certificate of Loss of Nationality to the renunciant.

4. These steps add to the time and labor be involved in the process. Accordingly, the Department is increasing the fee for processing such requests from $450 to $2,350.

Apparently, dual citizens in Canada trying to shed their U.S. citizenship have created a backlog at the U.S. consulate in Toronto that stretches into the third week of January 2015. A decision to expatriate should never be taken lightly. Taxes or not, it can be a big step. And around the world, more people are talking about taking it.

Contact me at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

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seems america doesnt like its people to leave their country

 

[VCheng]

The fees for renunciation have been adjusted based on the work involved. Nothing unique about this, it is typical of how most fees are set by the State Department.

 

[Aepsilons]

@senheiser , what is the basis of your seething Anti-Americanism ?

 

[XenoEnsi-14]

Those who renounce there citizenship in America as a way to evade taxes and who were/are an owner or CEO of a corporation or business with an income at or above a certain amount (haven't decided yet but above middle class) should be charged with Treason.

 

[TheNoob]

@senheiser , what is the basis of your seething Anti-Americanism ?

It is simple.
Tick, Click...
BOOM!

 

[gambit]

@senheiser , what is the basis of your seething Anti-Americanism ?

The Soviet Union collapsed. The funny part is this kid was probably borned after the collapse.

 

[Aepsilons]

It is simple.
Tick, Click...
BOOM!

Majority of his posts in the Americas section are all rather Anti-American, ironically.

Too subjective.

The Soviet Union collapsed. The funny part is this kid was probably borned after the collapse.

This is what I don't understand. One of my colleagues in my university, a Ph.D post doc in Mechanical Engineering, who happens to be a citizen of the Russian Federation, does not hide his contempt for his life during the USSR waning years of the late 80s. There must be something good about America since there are plenty of Russian graduate students in my university who do not hide their goal of living and working in the US and to "never go back" to Russia afterwards.

Then again I admit that those Russians are academics. Perhaps Russians who are in other fields of work -- might have varying views. That may be a possibility.

 

[TheNoob]

The Soviet Union collapsed. The funny part is this kid was probably borned after the collapse.

Lets have stalin replace obama and have him ruthlessly kill his own people while sending the others to a war unprepared.
Lets see how far you can hold out.

 

[Aepsilons]

Lets have stalin replace obama and have him ruthlessly kill his own people while sending the others to a war unprepared.
Lets see how far you can hold out.

Nothing of the sort will ever happen in the United States. Democrat or Republican, the moment a US president implements the kind of policies that Stalin was fond of would lead to the impeachment proceedings.

You have to understand that in the United States, there is a very profound understanding of Constitutional proceedings and checks and balances of the divisions of government: Executive, Legislative and Judicial.

 

[gambit]

This is what I don't understand. One of my colleagues in my university, a Ph.D post doc in Mechanical Engineering, who happens to be a citizen of the Russian Federation, does not hide his contempt for his life during the USSR waning years of the late 80s. There must be something good about America since there are plenty of Russian graduate students in my university who do not hide their goal of living and working in the US and to "never go back" to Russia afterwards.

Then again I admit that those Russians are academics. Perhaps Russians who are in other fields of work -- might have varying views. That may be a possibility.

Either this kid was not alive during the Soviet yrs or he was too young to know anything about it. But regardless which, you can see similar symptoms in every young generation of any country where said country was once great for some reasons. The first of those symptoms are the gross romanticization of a past that they have neither physical nor emotion ties with, next on the list is the longing for that past based upon false memories and ties, next is overly nationalism. You can see that best with the Chinese members here.

 

[Viper0011.]

The first of those symptoms are the gross romanticization of a past that they have neither physical nor emotion ties with.

You are so right. This very forum is an example of that. You see romanticizing going on with the past between Indian and Pakistani members.

 

[senheiser]

Those who renounce there citizenship in America as a way to evade taxes and who were/are an owner or CEO of a corporation or business with an income at or above a certain amount (haven't decided yet but above middle class) should be charged with Treason.

and if russian or chinese person would do so its political refugee?

 

[BigDaddyWatch]

America doesn't offer the opportunities to people that its use to do. So people leave for greener pastures elsewhere. Nothing strange.

 

[senheiser]

Either this kid was not alive during the Soviet yrs or he was too young to know anything about it. But regardless which, you can see similar symptoms in every young generation of any country where said country was once great for some reasons. The first of those symptoms are the gross romanticization of a past that they have neither physical nor emotion ties with, next on the list is the longing for that past based upon false memories and ties, next is overly nationalism. You can see that best with the Chinese members here.

history is written by the winners, its pointless to talk to people like you

 

[XenoEnsi-14]

and if russian or chinese person would do so its political refugee?

If a Russian or Chinese does the same under same circumstances that I stated above they should be charged with treason to their respective countries not political refugees.