Patrick Cain, Global News, August 21, 2014: Want to shed U.S. citizenship? Get in line.
UPDATE: August 27, 2014
UPDATE: August 22, 2014
The Patrick Cain article itself can use some comments, which uses Facebook, Yahoo, AOL or hotmail. There are only four there — the last saying “Being little brother has its benefits. But it also comes with a cost.”
(Correct!: Costs to stay within the new Berlin Wall and cost to get over it.)
One comment (Innocente) reports:
When the US DOS set the renunciation price at $450 in 2010, it stated that it covered less than 25% of the cost. Will the new price be increased to $1,800 ($450/.25) or perhaps $2,250 ($450/.20)?
Also, see the reasoning for the subsidized $450 below:
“Schedule of Fees for Consular Services, Department of State and Overseas Embassies and Consulates
A Rule by the State Department on 06/28/2010
Documentation for Renunciation of Citizenship
The CoSS demonstrated that documenting a U.S. citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases. A new fee of $450 will be established to help defray a portion of the total cost to the U.S. Government of documenting the renunciation of citizenship. While the Department decided to set the fee at $450, this fee represents less than 25 percent of the cost to the U.S. Government. The Department has determined that it must recoup at least a portion of its costs of providing this very costly service but set the fee lower than the cost of service in order to lessen the impact on those who need this service and not discourage the utilization of the service, a development the Department feels would be detrimental to national interests. See 31 U.S.C. 9701(b)(2).”
Today I visited the consulate in Vancouver. … Both the clerk and the Consular encouraged me to renounce not relinquish as my relinquishment would be denied and I would have to come back later to renounce and then the fee would be going up to I think they said 2800.00 but it might be 2400.00 I stopped listening after they repeated no relinquishment one too many times. I insisted they forward my file to Washington.
So what will be the new fee that is a guaranteed right to renounce and when will it be implemented?
As is pointed out, in Patrick Cain’s article:
Pushing the appointment into next year doesn’t just frustrate the impatient, however – it adds an entire year to U.S. tax reporting. Someone making an appointment now to renounce in Toronto in January wouldn’t be able to log out of the U.S. tax system until June 2016.
However, people can work the phones and find a U.S. consulate that can give them an earlier appointment, Nightingale says:
“If Toronto is booked up, you can go somewhere else. You can go to the Montreal consulate; you can go to the embassy in Ottawa.”
The U.S. State Department estimates that about a million people considered American under U.S. law (who may also be Canadian citizens) live here. In theory, all of them, unless their income falls under minimum levels, are supposed to file tax returns with the IRS, and report their bank accounts to an arm of the U.S. Treasury Department called the Financial Crimes Enforcement Network, on pain of heavy fines.
In practice, few did until recently.