U.S. Citizenship Renunciation Program
For many expats, the confusion of tax season for a country in which they no longer live makes for a miserable few months out of the year. This administrative and expensive headache has caused many expats to renounce their American citizenship.
WHY ARE SO MANY GIVING UP THEIR U.S. CITIZENSHIP?
Tax treaties can help with double taxation, but they don’t cover everything. Selling your home in the UK, Australia, and many other countries can carry a large US capital gains tax bill with it.
Only a few years ago, the admin fee to renounce your US citizenship was $400. That fee is now $2,350 and could go beyond $5,000 in the coming years.
Investing for your future outside of the US can be an expensive ordeal due to heavy restrictions, tax compliance costs and additional taxes.
Little or no connection to the United States comes with a heavy tax burden, which to many, is reason enough to renounce their citizenship.
Why do I have to file US taxes when I live abroad?
In very simple terms, it’s United States law.
All US citizens, regardless of where they live, have to report their worldwide income every year by filing a US tax return.
The US is one of only two countries in the world where the taxation system is based on citizenship.
Almost every other country is residency-based, and this leads to a rise in confusion over filing US tax returns and obligations once you’ve moved abroad.
Do I need to be tax compliant to renounce my citizenship?
Expatriation is actually a two-step process.
Setting up an interview with the U.S. Consulate is the first step.
The second step is making sure you are clear on the tax side of things. This involves a few specific steps that you must complete to let the IRS know you have given up your citizenship and avoid any obstacles down the road.
Read more about the process here.
What is exit tax and who pays it?
Exit tax is a tax paid by US covered expatriates who want to renounce their US citizenship or Green Card.
Not every US expatriate is a covered expatriate, there are three tests to determine whether someone would be considered a covered expatriate or not.
Learn more about exit tax and covered expatriate here.
Standard Renunciation Program
If you don’t qualify for the Relief Procedure for Certain Citizens, then use this program.
1. You must have citizenship of another country.
2. You’ll need a Social Security Number, if you don’t have one, we can help.
3. Tell us if your net worth is above US$2m
Relief Procedures For Certain Citizens
If you meet all the criteria, you can use this program…
1. You’re a U.S. citizenship holder that has never filed a U.S. tax return, except a 1040NR.
2. You have U.S. citizenship but not necessarily a Social Security Number.
3. You have U.S. citizenship and your net worth is below US$2m
What if I’m way behind my U.S. tax returns?
There is a special IRS program to help you catch up on your U.S. taxes safely, without fines and penalties.
It’s for American citizens that didn’t know they had to file U.S. tax returns each year, and have therefore fallen behind. Some more than 30 years!
How I renounced my U.S. citizenship
What’s the process like when you renounce your U.S. citizenship?
Hear it from Stephen and Jenny, bonafide Americans who gave up their citizenship.
Why work with Expat Tax Online?
We’ve already taken over 500 people successfully through the Renunciation program. Do it once. Do it right.
At least 35 members of our tax team are licensed by the IRS. That’s easy to verify on the official IRS website.
You’ll have a dedicated team member by your side throughout the process. Our tax questionnaire is easy to use.
We’re proud to be the industry price leader. We include hundreds of extra IRS forms without additional fees. Expect a fixed price from the outset. No surprises.
Who prepares my tax return?
Your return will pass through 3 stages; Assessment, Preparation, and Approval. The Preparation stage is completed by licensed (EA, CPA) tax preparer. The Approval stage is completed by a senior tax specialist (EA, CPA) with a minimum of 8 years experience in international US tax preparation.
How long does it take?
Once we have all your information, you can expect prepared tax returns within 20 working days.
Allow around 20-25 days for the IRS Streamlined Amnesty program.
Money Back guarantee
If you’re not totally satisfied with the accuracy of your tax return you can have your money back.
Simply tell us before your return is filed and we’ll arrange a refund. Conditions apply.
WHO DO I CONTACT FOR HELP?
Live Chat is available at least 12 hours a day on business days.
We’re really fast on e-mail. We typically reply within 60 minutes during business hours.
Your welcome e-mail includes phone numbers for our team in the UK/EU, Australia/NZ and Canada.
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