US Citizenship Renunciation
The United States is one of the only countries in the world to tax based on citizenship.
If you’re a US citizen living outside the United States, you still have yearly IRS tax filing obligations. These tax filing obligations can be an expensive annual hassle (even if you owe no tax). They may even result in double taxation. Fortunately, properly renouncing your US citizenship can provide a way out.
Is Renouncing Your US Citizenship Right for You and Your Family?
Renouncing your US citizenship is a very personal decision. If you’ve made a permanent home outside of the US and find the benefits of maintaining US citizenship no longer outweigh the costs, we can help. The process of renouncing one’s US citizenship is complex and can seem overwhelming. If not done correctly, the consequences can include the imposition of the US Exit Tax, a permanent ban on entering the US and burdening your heirs with the US inheritance tax in life and at your death. Our priority is to help you make an informed and educated decision. One that best suits your situation and your family’s needs.
Pros & Cons of Renouncing Your US Citizenship
PROSElimination of double taxation (US tax + the tax in your home country)Elimination of reporting and filing obligations and associated costsElimination of US gift tax regime and estate taxInsulation from US tax changes on expatsAlleviate business sale taxes
CONSLoss of US citizenship privileges (voting in US elections, access to US job market, US passport, US residency, etc.)Loss of US Consular ServicesRenouncing your citizenship is a permanent decisionOne-time fee of $2350 to the US Government (plus applicable legal fees)- Need one more if possible -
Articles on Renouncing US Citizenship or a Green Card
Is renouncing US citizenship a political decision?
Generally, no. Renunciation is often financially motivated. All citizens with ties to the US (regardless of where they live) must meet IRS reporting and filing obligations. These obligations can carry a high cost.
What is an “Accidental American”?
Most children born outside the United States to a US parent and all individuals born in the US are US citizens regardless of where they live now. These citizens are still required to meet annual IRS reporting and filing obligations.
Who is required to meet IRS reporting and filing obligations?
- US citizens or green card holders living inside or outside the United States
- Any individual with a US parent(s) who lived in the US long enough to pass such citizenship on at their birth
- Any individual born in the United States
How much does it cost to maintain my US citizenship?
All US citizens are subject to the costs of annual filing, along with the potential costs of double taxation, US estate and gift tax, and more.
Is there a “right way” to renounce?
Yes. It’s essential to have professional guidance to avoid potential pitfalls of renunciation, such as the US Exit Tax or becoming barred from visiting the US. What you say during a renunciation interview is also crucial as there can be severe immigration consequences. Individuals deemed to have renounced to avoid tax can be barred permanently from returning to the United States, even as tourists. Our team of US lawyers ensures this does not happen. Renunciation requires careful planning on all fronts.
Our method involves a unique combination of Domestic and US tax law, Immigration Law, and Tax Compliance. Our team of US lawyers represent over 400+ US citizens to properly renounce their citizenship every year. They will help you assess if renouncing your US citizenship is right for you. If you decide to renounce, we work with you through every step to make sure the process is as smooth as possible, while avoiding the negative consequences of renouncing the wrong way.
Moodys Tax has represented more successful renunciation clients than any firm in the world. The benefits of renouncing your US citizenship using our professional legal guidance include:
- Renounce the right way
- No restrictions on US travel (not disbarred from the US under the Reed Amendment)
- Proper planning to avoid costly taxes levied on renouncers (avoid the US exit tax and inheritance tax)
- No loss of social security benefits or access to Medicare
- Ease of travel into the US after renouncing as a visitor
- Ability to work in the US after renouncing as a non-US citizen
From Canada to Australia, New Zealand, the UAE, the UK, Singapore, and beyond. No matter where you live in the world, we can help. Our integrated team of US lawyers and Certified Public Accountants know the intricacies of the US legal and tax systems inside and out. We work with our global network of legal professionals to cover every circumstance unique to your current country of residency.
Alexander Marino JD, LLM (US TAX)
Director, US Tax Law | Co-Leader, US Tax Practice Group
Alexander Marino has years of experience in cross border tax law, estate planning, corporate tax, and US expatriation law. In addition to co-leading the US Tax Practice Group at Moodys, Alexander also heads the US renunciation practice, annually representing hundreds of clients worldwide in properly giving up their US citizenship or terminating their US green card status. He regularly speaks on the topic of US renunciation and expatriation in Canada and around the world as one of the foremost experts in this area of law.
Alexander is a member of the New Jersey State Bar, Pennsylvania State Bar, American Bar Association Tax Section, and the Society of Trust and Estate Practitioners.
After graduating from the University of Pittsburgh with a B.S. B.A. in Finance and Marketing in 2006, Alexander received his JD from Duquesne University School of Law in 2010 and an LLM in taxation from the University of Florida Levin College of Law in 2011.