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Renunciation and Relinquishment of United States Citizenship: Discussion thread (Ask your questions) Part Two

Ask your questions about Renunciation and Relinquishment of United States Citizenship and Certificates of Loss of Nationality.

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NB: This discussion is a continuation of an older discussion that became too  large for our software to handle well. See Renunciation and Relinquishment of United States Citizenship: Discussion thread (Ask your questions) Part One

 

10,433 thoughts on “Renunciation and Relinquishment of United States Citizenship: Discussion thread (Ask your questions) Part Two”

  2. @Somerfugl, congratulations! Glad you didn’t have to wait too long to receive your CLN. Now go out and celebrate.

  3. I received my CLN in February 2015, relinquished at Toronto U.S. Consulate in July 2014. Very relieved. Heard from IRS re my filing in 2012 my OVDI which seemed it was ok, but in Feb. they informed me they want to see copies of bank statements from 2005-2012. To verify my statements?

  4. Swanee. You give an inch and they want a mile. That’s how bureaucrats justify their jobs. At some point you say ‘enough’

  5. I’m so pleased for you, @Somerfugl! You must feel so relieved. Two months was quite fast these days too.

  6. Duke of Devon, I don’t really have a choice, do I? I was so upset after filing everything. I filed my 8854’s in 2012 and now they want account statements from 2005?? Who keeps that? I’m going to do the best I can and submit. I owe nothing, but of course, I’m worried that I miscalculated an amount on a checking account and they’re hunting. I’m so thankful I have my CLN, though. thanks.

  7. Swanee. I think you do have a choice. Tell them you don’t have the statements, you can’t get them, you owe nothing, you are no longer a USC and your done. What are they going to do?

  9. I agree with Duke. I would also tell them I don’t have the statements and can no longer access them. Congrats on the CLN!

  10. BC_Doc and Duke of Devon, you’re right….thanks! I will send what I have. As it turns out, I’m not able to get everything from the bank.
    Remind me again, since I relinquished Oct. 2013, Embassy interview July 2014, received CLN Feb. 2015, am I sending final paperwork June this year or next year? Thanks! I’ve supported the cause and will support again when this is all over.

  11. @Swanee
    If your interview at the Embassy was July 2014, then your last formal day as a US citizen was the day before the interview. Your final paperwork is due THIS June for 2014 tax year (up until the day before you informed the Embassy of your reliquishment).

    Somebody please confirm this, but this is my understanding.

    Good luck!

  12. @Swanee and Readytogo –
    Yes, if one has one’s renunciation “Ceremony” on, say, the 15th of July, the 14th of July is one’s “Tally-everything-you-own-in-your-life” day (for better or for worse). It’s best to have a good size distance between your assets a month prior to this “Ceremony” and the 2 million dollar mark of the “Covered” designation as the value of ones assets CAN change – – as well as the US exchange rate – – and these can catch you if you are at all close……

  14. @badger, I can see where they’re coming from, but the UK is trying to cut back on immigration numbers so I don’t think this’ll get off the ground. They’ve already got free movement with the EU so are not likely to add another open border agreement on top when they want to cut immigration numbers. Last year’s immigration figure was nearly 600,000; David Cameron wants to cut it back to 50,000. Of course if the UK leaves the EU then such a scheme could be more likely. Iirc Commonwealth citizens already enjoy “priority” status when it coming to immigration anyway.

  15. Simple questions, I think. We are considering giving up our US passport for Singapore passports. We are expats, have paid our taxes etc etc. But we are also PRs so we may transition to a passport in the coming year or two.

    We do not have net worth of US$2MM per adult so there’s no exit tax. Two questions.

    1. Do we give up our right to Medicare (we’ve already paid into the system) or SSN checks in the future? We would rely on medical care outside the US mostly but if we felt the need to use it, it would be nice to know we could since we paid into the system already and Medicare is fairly comprehensive.

    2. Do you come under some fine toothed IRS comb if you relinquish? We’ve had 2-3 different preparers ovr the years, and I think it’s all “good” but I don’t want to be put through an IRS ringer.

    Thanks
    Carolyn

  16. @Carolyn Roberta
    1. If you live outside the US and its terrorities you aren’t covered by Medicare now or in the future as far as I can see.

    “The single most basic fact is that you are not covered by Medicare while living abroad (with very rare exceptions). That said, you may still need to consider enrolling in one or more parts of Medicare.”

    https://americansabroad.org/issues/healthcare/general-information-about-medicare/

    Your Social Security checks would continue though.

    2. No.

  17. @CarolynRoberta
    You can still use Medicare when you visit the US but it does not extend abroad.
    You will be able to receive soc sec but I do not believe there is a tax treaty with Singapore so it will be taxed 30% in the US .

  18. @Carolyn Roberta
    If you renounce or relinquish, you will lose your entitlement to Medicare. Social Security will be unaffected.

  19. No you don’t lose your medicare entitlement if you renounce. You can use it if you visit but it does not extend abroad.

  20. @Carolyn Roberta
    First, welcome to IBS. This is a process and there are lots of details to learn and keep in mind. Keep exploring IBS and lots will be answered.

    Second, your “Simple questions” – – , I think. OK, you are expats who have paid your taxes; also, your net worth is below the “Covered Expat” level. These 2 things will make any life change in the future considerably more straight forward.

    Here in Canada, US Social Security payments are not discontinued for expats who renounce, but this may be due to treaty agreements. Hopefully others can answer this from your side of the world.

    As for Medicare, I strongly suspect that this would be lost if you renounce; it is a national program for citizens, not no-longer-citizens.

    RE coming under “some fine toothed IRS comb if you relinquish?”, this is the $64,000 we all have had in the back of our minds. No one here (or anywhere in this muck) wants to “be put through an IRS ringer”. There have been reports from IBS “members” that the IRS has come back asking for long-past statements and receipts. On the other hand, we all know that the IRS is horribly underfunded and over-burdened (and has been given the added responsibility of FATCA and ObamaCare-tax review. Is it a total crap-shoot? Who knows? If you have had professional preparers, then they, too, will be on the hook/have to come forth as their responsibility if there is a question about anything that was done with them, so that is at least some comfort.

    Lastly, if you have not yet renounced/relinquished, there is no crystal ball or tea-leaf reader for what the rules and policies will be in a year or two or three. Would we all have foreseen FATCA back in 2009?

    At least keeping in touch at IBS you will keep up to date with the conversations and news about real or potential movements one way or the other. You can add your good wishes, what information you learn and consider donating to the Canadian Constitutional Challenge through http://www.adcs-adsc.ca/ as this movement/effort is definitely helping increase the volume of “the conversation” for all “US Persons” and especially expats. Good luck and keep in touch.

    We’ve had 2-3 different preparers ovr the years, and I think it’s all “good” but I don’t want to be put through an IRS ringer.

  23. @LM and BC DOC
    NO NO NO
    You do not lose medicare if you renounce. But you can only access it if you visit. I still have it and will use it for emergencies when I visit.
    http://www.expatinfodesk.com/expat-guide/relinquishing-citizenship/renunciating-your-us-passport/misconceptions-about-renunciation-of-a-us-passport/

    Just google ‘medicare’ and ‘renounce’ and you will find multiply references to medicare availability. If you have paid into it for 10 yrs and continue to pay the monthly payment then you can access it when you visit.

  25. @BC Doc
    Don’t think it was me re Irish citizenship, but I do know that if she has an Irish grandparent she can apply at any age.

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