DS-4080
Published on November 07, 2024
by Clark Stott
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.
Table of Contents
I want to renounce my US citizenship. What form should I use?
The official IRS form is DS-4080, known as the Oath of Renunciation of the Nationality of the United States. It is a document used in the formal process of renouncing US citizenship.
This form records the individual’s official intent to give up their citizenship status. The filing of DS-4080 is done through a US Embassy or Consulate as part of an in-person appointment, which finalizes the renunciation process.
Are there other documents in conjunction with DS-4080?
Yes, there are. Other related forms may also be required, such as:
- Form DS-4079: Determines possible loss of nationality.
- Form DS-4081: Covers acknowledgment of the consequences of renouncing U.S. citizenship.
- Form DS-4082: Declaration of intent to renounce.
These forms ensure that the applicant fully understands the rights and responsibilities they are giving up. After taking the oath, the Department of State processes these documents and issues a Certificate of Loss of Nationality (CLN).
Are there cost and processing fees?
Yes, there are. According to current regulations, the Department of State charges a renunciation fee, which typically ranges around US$2,350. However, processing times can vary, but the certificate confirming renunciation (CLN) usually takes several months to be issued.
Exit Tax. What is that?
The Exit Tax is a US tax that applies to some people who decide to give up their US citizenship or Green Card. This tax mainly affects individuals who have a high net worth or a high income.
If your total assets (everything you own) are worth US$2 million or more, or if your average yearly income tax owed over the last five years was around US$201,000 or higher, the IRS considers you a “covered expatriate.”
As a covered expatriate, you may owe Exit Tax on the money you would have made if you sold all your assets the day before you gave up your citizenship or Green Card. The IRS allows a certain amount of “gain” to be tax-free, but anything above that amount may be taxed, even if you didn’t actually sell anything.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
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What is the required documentation used for Form DS-4080?
- Proof of Identity and Nationality:
- Valid US passport or proof of US citizenship (such as a birth certificate).
- Proof of any other nationality or citizenship you hold, like a passport from another country.
- Supporting Documents:
- Completed Form DS-4079 (Request for Determination of Possible Loss of United States Citizenship), which helps the consulate understand your reasons for renunciation.
- Form 8854 (Initial and Annual Expatriation Statement) if applicable, which certifies that you have complied with US tax obligations in the five years prior to renunciation.
- Additional Form:
- Any additional paperwork relevant to tax compliance (such as Form W-8CE if deferring specific tax payments) may also apply.
It’s recommended to get a tax professional’s support, as they may have specific guidelines or will inform you of additional documentation based on individual circumstances.
How does renouncing US citizenship impact social security and retirement benefits?
If you renounce US citizenship, you can still receive Social Security, but the process may be more complex. Whether you continue to receive these benefits depends on whether the US has a totalization agreement with your new country.
Medicare generally isn’t available outside the U.S., so you’ll need other health coverage.
Distributions from US retirement accounts like 401(k)s or IRAs may face higher taxes or withholdings after renunciation, so it’s better to plan ahead to avoid surprises.
How will renouncing affect my ability to visit the US in the future?
After renouncing, you lose the automatic right to enter the US and may need a visa to visit. Some former citizens might qualify for visa-free travel if their new country is part of the Visa Waiver Program, but others will need to apply for a visa to reenter.
Can I reverse my decision after taking the oath?
Once you’ve taken the Oath of Renunciation, the decision is typically permanent.
If you want to regain US citizenship, you’d have to reapply, which can be a lengthy and difficult process.
Do I need a second nationality before renouncing?
Yes, you need another nationality before renouncing your US citizenship to avoid becoming “stateless,” which means not having any citizenship.
Without citizenship, you won’t have the legal protections a country provides, and it would be very hard to travel, get a passport, or access basic rights like healthcare, employment, and legal residency.
What happens to my US bank accounts after renunciation?
Renouncing your US citizenship doesn’t automatically close your US bank accounts, but it can impact your access to certain banking services. Most US banks let non-citizens keep accounts, though some may require extra paperwork, such as proof of residency in another country.
Certain banks might restrict services for non-citizens or apply different fees, especially if you live abroad. It’s best to check with your bank about its policies to understand how renunciation might affect your account access and service options.
Will renouncing my citizenship affect my family or just me?
No. Renouncing your US citizenship is an individual decision and only affects your status, not your family’s. Each family member would need to renounce separately if they also want to give up their US citizenship.
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