Please Note: The US State Department under John Kerry, who served in Viet Nam, is now charging $2350 to receive any CLN whether one has relinquished or renounced. So if you are coming to this only now, you are SOL when it comes to getting a free CLN.
See also Relinquishing your US citizenship in Germany
Those of us who have participated in the Expat Forum have seen that one of the first things that many many newbies say is, “I am going to renounce my US citizenship as soon as I have my Canadian citizenship.” Now, I want to suggest that one should never renounce their citizenship if they can relinquish it instead. Months ago I wrote a post on this subject, which I provide below.
But first, some explanations: Renouncing is one of seven ways to lose your citizenship. It requires swearing an oath in front of an official of the US government and it now has a $450 fee attached to it. Relinquishing does not require a US government official, for it is one of several acts that a US citizen can perform that can result in a loss of citizenship, provided the person intends to lose it. Then, the former citizen must only inform the State Department, not so as to validate the relinquishing act, but to make sure that the US government understands what your intent was when you performed it.
It has become clear that there are several advantages to relinquishing over renouncing:
(1) Relinquishment takes the act of losing your citizenship out of the hands of the US government. This has two benefits. (a) There should be no fee because it doesn’t require a US government official–it doesn’t take place in a US Consulate–you only go to the consulate to inform them of a fait accompli, and it only takes one visit, unlike renunciation which usually take two visits. (b) This saves you $450, or it should, because you are not requiring the services of the Consulate–you are there only to inform them of your intention when you committed a potentially expatriating act such as making a pledge to a foreign power.
(2) Relinquishment is usually a positive act which cannot be confused with an expatriation to avoid taxes. You do it so that you can take part in foreign government or to vote in the country you live in, not so that you can avoid US taxes.
(3) Relinquishment is not a renunciation of your citizenship, so much as a positive act vis-a-vis your new home and country. It is not a repudiation of your country but an acknowledgement that dual citizenship is an unworkable absurdity. Thus, relinquishment comes with less stigma, potentially.
Finally, a caveat is in order. Don’t do one thing and say another. That is don’t relinquish your citizenship then travel on US passport, pay tax in the US, register your children born abroad as US citizens, or take up a residence or a job in the USA, except as one holding a legitimate permit to reside or work in the US as an alien. If a person does any of these things, the State Department may not accept your relinquishment. Those who desire to lose their citizenship but who have done such things after the relinquishing act, may need to renounce their citizenship after all.
So without further ado, here is my original post, “Renunciation of US citizenship: On avoiding the new $450 renunciation fee (update 2), which explains in greater detail, what would constitute a relinquishing act:
Renunciation of US citizenship: On avoiding the new $450 renunciation fee (update 2)
I’ve been pretty upset that it would cost me $450 to renounce my citizenship now that the US consulate in Toronto has instituted a fee. But today I was looking at the various government websites: Consider this website from the US state department and its explanation of how to renounce US citizenship:
Section 349(a) of the Immigration and Nationality Act (8 U.S.C. 1481) governs how a U.S. citizen shall lose U.S. nationality. Section 349(a) states:
A person who is a national of the United States whether, by birth or naturalization, shall lose his nationality by voluntarily performing any of the following acts with the intention of relinquishing United States nationality:(5) making a formal renunciation of nationality before a diplomatic or consular officer of the United States in a foreign state, in such form as may be prescribed by the Secretary of State; or(6) making in the United States a formal written renunciation of nationality in such form as may be prescribed by, and before such officer as may be designated by, the Attorney General, whenever the United States shall be in a state of war and the Attorney General shall approve such renunciation as not contrary to the interests of national defense.
Now perhaps it would interest readers to know that this government website is not telling the whole story: The U.S.C. 1481 lists several other ways that a natural born US citizen may lose their citizenship. Here is the full text (emphasis mine):
§ 1481. Loss of nationality by native-born or naturalized citizen; voluntary action; burden of proof; presumptions
(a) A person who is a national of the United States whether by birth or naturalization, shall lose his nationality by voluntarily performing any of the following acts with the intention of relinquishing United States nationality—
(1) obtaining naturalization in a foreign state upon his own application or upon an application filed by a duly authorized agent, after having attained the age of eighteen years; or(2) taking an oath or making an affirmation or other formal declaration of allegiance to a foreign state or a political subdivision thereof, after having attained the age of eighteen years; or(3) entering, or serving in, the armed forces of a foreign state if
(A) such armed forces are engaged in hostilities against the United States, or(B) such persons serve as a commissioned or non-commissioned officer; or(4)
(A) accepting, serving in, or performing the duties of any office, post, or employment under the government of a foreign state or a political subdivision thereof, after attaining the age of eighteen years if he has or acquires the nationality of such foreign state; or(B) accepting, serving in, or performing the duties of any office, post, or employment under the government of a foreign state or a political subdivision thereof, after attaining the age of eighteen years for which office, post, or employment an oath, affirmation, or declaration of allegiance is required; or(5) making a formal renunciation of nationality before a diplomatic or consular officer of the United States in a foreign state, in such form as may be prescribed by the Secretary of State; or(6) making in the United States a formal written renunciation of nationality in such form as may be prescribed by, and before such officer as may be designated by, the Attorney General, whenever the United States shall be in a state of war and the Attorney General shall approve such renunciation as not contrary to the interests of national defense; or(7) committing any act of treason against, or attempting by force to overthrow, or bearing arms against, the United States, violating or conspiring to violate any of the provisions of section 2383 of title 18, or willfully performing any act in violation of section 2385 of title 18, or violating section 2384 of title 18 by engaging in a conspiracy to overthrow, put down, or to destroy by force the Government of the United States, or to levy war against them, if and when he is convicted thereof by a court martial or by a court of competent jurisdiction.(b) Whenever the loss of United States nationality is put in issue in any action or proceeding commenced on or after September 26, 1961 under, or by virtue of, the provisions of this chapter or any other Act, the burden shall be upon the person or party claiming that such loss occurred, to establish such claim by a preponderance of the evidence. Any person who commits or performs, or who has committed or performed, any act of expatriation under the provisions of this chapter or any other Act shall be presumed to have done so voluntarily, but such presumption may be rebutted upon a showing, by a preponderance of the evidence, that the act or acts committed or performed were not done voluntarily.
I swear or affirm that I will be faithful and bear true allegiance to her Majesty Queen of Elizabeth the Second, Queen of Canada, Her Heirs and Successors, and that I will faithfully observe the laws of Canada and fulfill my duties a Canadian Citizen.
An individual who has performed any of the acts made potentially expatriating by statute who wishes to lose U.S. citizenship may do so by affirming in writing to a U.S. consular officer that the act was performed with an intent to relinquish U.S. citizenship. Of course, a person always has the option of seeking to formally renounce U.S. citizenship abroad in accordance with Section 349 (a) (5) INA.
Update 2: Today a consular officer called me from the US consulate in Toronto. She confirmed what I’ve said in this post, that relinquishing US citizenship and renouncing US citizenship are two different processes that are treated in a different manner by the consulate (including the fee structure).
IRS practices are even more awful for “accidental citizens.” Did you read about the mayor of London being targeted by the IRS for taxes on a property he owned and sold in LONDON?
I do not live in Canada, but I wish you well in your litigation efforts.
@ Dottie There have been many discussions here about the Mayor of London. He may become the “poster child” for many of us. What is really wrong here is that the US equates citizenship with taxation, read “tax slavery”. I live in Canada but was born in the US to Canadian parents and left as a young child. In no way should I be considered a US taxpayer but the US has claimed me and others as their property. This is morally wrong, I did not choose my place of birth. The US used to have a law that required US residency for a period of time during your young adult years to retain your US citizenship or a visit to the US consulate to “claim” your US citizenship if you lived outside the US. This was much more fair than the present system of declaring everyone their property, including those not even born in their country.
Hopefully, our litigation efforts will encourage other countries to do the same.
Here are posts, using the search term “Boris” in our Archives on the home page: http://isaacbrocksociety.ca/?s=boris if you want to read comments from readers here on that phenomenon. Boris has put other “Accidental American’s” plight into the media. We wish him success in his fight and wish that he, too, would join those here. Are you in the UK, Dottie?
Good luck in your path to freedom!
@ Dottie
“Did you read about the mayor of London being targeted by the IRS for taxes on a property he owned and sold in LONDON?”
LOL! You are indeed a Babe in Brockland. Boris Johnson has been a very hot topic here for weeks. I can safely say that EVERYONE here has read all about it. Anyway, I’m glad you are free of your USness but there are still many who have that toxic US taint who have miles to go before they will be free and some, like myself, who refuse to even take that journey.
Yes, US citizens are nothing but slaves. Too bad more of them don’t realize it, even those who have never thought of leaving the US, much less renouncing.
I was born a US citizen an I lived there until the last 10-plus years when I moved to Panama. On October 31st of this year I received my CLN and I am free at last!
For those wondering about duals and the 8854, I may be a bit of a test case. I mailed it in late, only to Treasury (no copy to IRS because I did not file tax returns), and did not obtain a SSN or ITIN. And a snarky statement as to why I would NOT be obtaining an ITIN, among other things. Tax liabilty for five years preceding renunciation : $0. 🙂
Six months later…crickets.
That’s encouraging, The Mom! And, you’ve got the ‘intestinal fortitude’ to be a test case. Bravo.
I left my 8854 mostly blank because I had not shown enough income to be “required” to file income tax for the last eight years. And on the CLN application forms where it asked if I had filed income tax returns, I put the same thing.
(“Required to file?” Never mind that the IRS and income tax requirement for most people is illegal to begin with. But that’s another story and one I wasn’t about to get into when trying to get my final “divorce paper” from the US fascists.)
@Calgary411, intestinal fortitude, stupidity, or I just like to yank chains where yanking is called for! LOL
NB: Use of the word “yank” shall not be construed as acceptance of the imposition of unwanted US personhood for tax purpose.
😉
Dottie,
And, you have it — that most important document. Congratulations in completing your successful Get Out of the US process!!
Dottie,
The reason I had to get a SSC was because I went to file my 5 tax returns and I couldn’t do it without getting a SSC. 🙁
PL
OK, I gather that you had income to report and/or taxes to pay to the jackbooted thugs.
None of us had any choice where we were born, but I feel special empathy for those of you who were born in the US but had not lived there after childhood or earned any money there. They make it as difficult as possible for the slaves to escape the prison.
This is good info, but how does one renounce/ relinquish based on 349(a) 6?
In a nutshell how does the letter have to be written? I understand what formal means but the word written is confusing. Does written mean hand written like a holographic will or can it be typed and signed? From what
I understand it makes no sense, meaning the 349(a)6. If US is in a state of war the attorney general prescribes how the letter should be formatted and what officer is designated and not to contrary to the interest of national defense.
It makes no sense, if the US is at war on domestic or foreign soil and a citizen wants to renounce/relinquish based on 349(a)6 how can they if we are at war? How long will it take before they approve the your renunciation? The attorney general doesn’t have anything in place for this situation or prescribed or officer designated to date, which seems odd after 911, the marathon bombing and foreign conflicts. We as the citizens are just sitting ducks with no remedy in place before hand, only
when the attorney general prescribes a format for the letter and has designated an officer for this.
This is un just, these public servants are determining our faiths and lively hood and making US citizens targets and residents targets. My concern is if we are in a state of war how long will it take for the attorney general
to provide remedy for 349(a)6, waiting until a state of war is in affect just seems ignorant. The truth is we are in a state of war, it doesn’t have to be declared publicly, as long as domestic or foreign enemies attempt to commit acts of war it’s a state of war. So legally speaking we are in a state of war, which gives us the rights to formally renounce by written letter.
The only thing is how to write the letter, since it says the attorney prescribes that implies he must give the format the letter should be and he must appoint a officer to take these letters and pass on to him to approve unless the officer is being appointed to approve these letters on on behalf of the attorney.
So we are in a state of war and the attorney general has not taken any steps to provide remedy for 349(a)6
Does anybody know how a formal written renunciation should be formatted? Is it just like a resignation letter? I’m from Massachusetts and was at the marathon, wasn’t near the bombing scene but could have been if I didn’t keep walking. Now if I was one of the people who got hurt because of being in the wrong place at the wrong time would I have remedy then? It seems like it takes more than just being shot, bomb etc
before they say the US is in a state of war. But that’s sb they know we are in a state of war, they keep referring to the president as commander and chief, the only time the can address the president like this is when
we are in a state of war. The word commander says it all. Even the president has stated ” in these times of war” in certain speeches since his presidency.
I personally feel we have been in a state of since 1933, but 911 is the icing on the cake, and after the marathon bombing we are definitely in a state of war and have the right to renounce in the US domestically.
I’m no politician or lawyer I just know how to read legalize and it’s different from lawful. If any one can point me in the right direction to how the formal written renunciation should be formatted I’d very much appreciate it. I also see it as they work for us not the other way around.
@Haute: Renunciation of U.S. citizenship is generally for people who intend to live permanently outside of the U.S. and have the legal right to do so (i.e. citizenship or legal residence in a foreign country).
Recent efforts to renounce inside the US based on 349(a)(6) have not been successful. See the Wikipedia article “Renunciation Act of 1944”. The “state of war” thing is not the problem. A few years ago a guy named James J. Kaufman sued the State Department in the DC District Court and actually got a ruling that the US is in a state of war for purposes of 349(a)(6). The Justice Department decided not to appeal, probably because they didn’t want the circuit court to get a chance to rule on the meaning of “state of war”.
Since then a few more people (Aaron Schnitzler, Matthew Davis Sluss, Alan Horowitz) have actually inquired with USCIS about renouncing under 349(a)(6). USCIS told them to come in for in-person interviews and prove that they would leave the US upon having their renunciation approved. I am not sure whether that was a genuine statement of USCIS policy, or just a delaying tactic (all three of those guys were in prison or similar, so they weren’t free either to attend the interview nor to leave the country afterwards.)
In any case, if you already have foreign citizenship/legal residence, it is much simpler to go overseas and renounce at a consulate under the well-established procedures of 349(a)(5) rather than try to fight with USCIS about 349(a)(6). If you do not have foreign citizenship/legal residence, renouncing U.S. citizenship probably is not the right way to try to make a political statement.
I am a US citizen that has lived in Germany for more than 30 years. I only learned of CBT, FATCA and FBAR a few months ago when my bank account was closed because I am American. I qualify for German citizenship and intend on becoming a German citizen with the intent of relinquishing my US citizenship.
So…. as I understand it, I will not have to go to the consulate and will not have to pay the $2300 fee. Will I receive my CLN even though I have never filed US taxes or FBAR reports? Will I automatically be deemed a “covered expatriat”?
Keith. You have some reading to do . Start with ‘how to renounce/relinquish’ link at upper right.
The CLN will not be automatic. You will have to go to the consulate and tell them you obtained German citizenship with the intent to relinquish. There is no fee and there should be no argument. However there will be considerable delay.
You get the CLN irrespective of tax filings. After that, you are supposed to file an IRS form 8854. If you don’t, or if you don’t certify you have been tax compliant for the previous 5 years, then you will be deemed a ‘covered expatriate’
Whether or not that is a problem is up to you. If you have no US connections, there isn’t much they can do. Some people will tell you that you wouldn’t be able to travel to the US. That’s not correct. I suppose it could be in the future. Nobody knows for sure.
@ Keith,
Welcome to Brock! Here’s some general info about relinquishment and tax.
A person’s citizenship (or lack of it) is not dependent on their tax status. The consulate doesn’t want to see tax forms. Not their department.
The consulate officer is not supposed to ask why you chose to relinquish (or if you did so for tax purposes). It has happened, though pretty rarely. If you are asked, I think the most efficient way to handle it (rather than object) is just be prepared with a short neutral answer, something to the effect of I came to realise that my entire life takes place, and will always take place, in Germany, so I decided to become 100 percent German.
BTW, they generally don’t ask much, period, as they read your file before they meet with you, and that usually tells them all they need to know.
Regarding IRS, to avoid being a covered expatriate, a person has until June 15th of the year following renunciation to wrap things up with IRS (form 8854, 1040s etc for the five years preceding renunciation and the partial year of renunciation). If they never do this, that could cause problems with IRS, a particular concern if one has assets in the US, but their CLN remains valid and they remain a non-US-citizen. So, with a 2015 renunciation, one has til June 15th, 2016, to complete filings with IRS. That gives one plenty of time at this point to decide what to do, or not do, about filing. But it’s still important to think out what you plan to do, or not do, about IRS before proceeding with DoS.
Dept of States’s only involvement/connection with tax is the following:
(1) At the consulate the person signs DS-4081, Statement of Understanding of Consequences; one of the 12 items on it is Item 10, that renouncing “… may not exempt me from US tax income taxation [etc] …”
(2) Dept of State is to provide IRS with a copy of each CLN they issue as per DoS Interagency Coordination and Reporting Requirements, 7 FAM 1243(a).
(3) The questionnaire, DS-4079, at q. 13 (e) asks “Do you file US income or other tax returns?” The tax question on the DS-4079 is there as an indicator of your ties and connections to the US, which is important if you’re claiming to have relinquished some time ago. Otherwise, it’s pretty irrelevant as whatever you answer, it will not prevent DoS from issuing a CLN.
I second Portland’s suggestion. Check out How to the Relinquish, under Important Information in the SIdebar. There’s links to quite a few useful posts and information there.
@Keith
In the interim (after applying for German citizenship), you should not travel on an American passport). This implies that you are still acting as an American and did not mean to relinquish. You would then have to renounce and pay the fee.
Not sure what the wait time for an appointment is like in Germany but you may want to try other embassies like Luxembourg.
I don’t know how German naturalisation works. But the key date to cease acting as a US citizen is the day the relinquishing act (naturalisation) takes place, which may vary in different countries. Here in Canada, naturalisation takes place the day one takes the oath of citizenship, not the date one applies for the Canadian citizenship, so you’re not faulted for using your US passport whilst your citizenship application is in process (which is fortunate because the processing time for citizenship applications here is currently about two years.)
PS. @Keith If you decide that you want to become tax compliant so as not to be a covered expat, then you would need to file 5 yrs of tax returns and 6 yrs of fbars by june the yr following your relinquishment through the Streamline’s program. You would have to state that you had no knowledge of the filing requirements to be approved.
On the other hand if you have no US sourced income and no inheritance and no plans to return , then you may chose to forget it.
Question:
When I went to renounce, the US thing, in November 2014 at the Embassy in London I was informed that it would take up to 6 – 8 weeks. That was 6 months ago.
Is anyone else experiencing this hiccup?
@Patrick,
Going by other people’s turn-around times, I was prepared to wait about 10 months. It’s been over a year now.
@Patrick,
I should have mentioned that _generally_, renunciations don’t seem to take as long as relinquishments. My case is a relinquishment.
@ Patrick,
If they told you it should be 6-8 weeks, it seems reasonable to e-mail them about it at this time. Often the embassy replies that it’s in DC awaiting approval. However, a few times, the file was lost in the shuffle and an inquiry got things moving.
FWIW, we have 5 reports of CLNs from London on our Tracking Chart. One month (3 people), two months (1 person), 5 months (1 person). They’re all from 2012 and 2013, though – and things seem to have been slowing down in a lot of places since then.
So, I don’t know if your wait is inordinately long. But it definitely seems long enough, particularly in light of them having told you 6 to 8 weeks, to do a follow up. I’d check with the embassy.
After that, if you feel that your file might be lost in the cracks and that the embassy is blowing you off, you can also contact your Division Office at DoS American Citizen Services in DC. They’re the ones that handle issuance of CLNs. A few people, who had been waiting an abnormally long time and felt their embassy was blowing off their inquiries, have done that and that got things moving.
Page 18 of DoS telephone directory. Patricia Aguilera, Division Chief, Europe, 202-485-6239. The DoS telephone directory can also be accessed through the sidebar under “Important Info/How to Renounce-Relinquish/ Dept of State Forms, Procedure Manuals and Contact Info” or on this page.
I wish I had known about contacting the DoS American Citizen Services in DC. I renounced in Paraguay and my CLN was finally issued in October of 2014– 20 MONTHS after I applied. It was not the fault of the person in Paraguay. She was wonderful and she frequently contacted the State Department on my behalf. But finally, I am free at last, free at last!
By the way, I am sure that the numbers of people who renounced that are reported quarterly by the State Department are far less than those who have renounced. I suspect the names that appear are only those of the very wealthy. My name did not appear in the list and therefore I suspect there are many others that are not reported.