Renunciation Questions Thread
Ask your questions about Renunciation here.
This thread will be focused closely on renunciation questions and answers. If the conversation starts to ramble, those comments will be moved to another thread.
Previous Renunciation Threads:
Renunciation and Relinquishment of United States Citizenship: Discussion thread (Ask your questions)
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Sub-topics (more will be added as they occur):
Farrell v. Tillotson. Plaintiff is contesting Bern Embassy’s rejection of his CLN application due to his not having appeared in person at the embassy and his having been issued a passport after the relinquishing act.
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I’m exploring renouncing my US citizenship. I actually feel like I’m maybe up to date on everything? I’ve filed what I think are all the right forms and am up to date. Do I need to consult with a lawyer? An accountant? Do I just…set up an appointment at the embassy (in Toronto)? If I do want to consult with someone to make sure I’ve thought of everything, who would I talk to?
SO. No need for a lawyer. No need for an accountant in order to renounce. You might want an accountant if you choose to file tax returns after you renounce. It is quite a straightforward process. You make an appointment, fill in a few forms, pay $2350 US and you’re done We can help you with most questions. That’s what we’re here for.
@soconfused
If you are compliant with US tax filing and plan to exit cleanly with filing 8854 post renunciation etc then you should also consider if your net worth is over $2,000,000 which would put you in the ‘covered ‘ label’ which would mean you would have to pay a further 15% on any unrealized gains above aprox $699,000 that you may have made. Your net worth is assessed the day before you renounce. If you are in this situation then an accountant/ lawyer could advise you how to divide or gift assets to a spouse of family member before renouncing to lower your net worth or of course you can do this yourself.
“Do I just…set up an appointment at the embassy?
Yes. Very simple, very easy.
Gather your documents and forms, turn up on the day, pay, go through the interview, swear the oath, and you’re finished with the renouncing.
Wait for the CLN to arrive.
Next tax day, file your last tax return, together with the expatriation form, and then you’re finished with the IRS.
If you haven’t been filing US tax returns, you can renounce and decide not to enter the US tax system. That’s what I did. I have no US assets and I’m a financial minnow.
“If you haven’t been filing US tax returns, you can renounce and decide not to enter the US tax system.”
True. If there’s no tax to pay, there’s no need to file. However, the poster says:
“I’ve filed what I think are all the right forms and am up to date.”
In that situation, it’s reasonable (and tidy
) to continue filing for the last part-year of citizenship and the first part-year of NRA status, and file the expatriation form to finish it off.