Monthly Archives: October 2013

How to renounce U.S. citizenship – The Reununciation Guide

Renounce U.S. Citizenship

U.S. will soon have a “free pass” to collect data & spy on its Citizen’s bank accts anywhere in the world

Many U.S. citizens abroad are considering renouncing their U.S. citizenship. The reasons are outlined in the media, the above video, Twitter handles, and blogs including: The Isaac Brock Society, Renounce U.S. Citizenship, Maple Sandbox and more.

American Citizens Abroad is a wonderful source of information for U.S. citizens abroad. To put it simply: Relinquishing U.S. citizenship, whether by renunciation or through another act of relinquishment is becoming a necessity for survival.

RenunciationGuide.Com – The Attack on U.S. Citizens Abroad

The attack on Americans Abroad began shortly after Barack Obama became President. The current U.S. government through a variety of laws and procedures presumes that U.S. citizens abroad are “tax cheats” and treats them accordingly. As a result,  many Americans Abroad recognize that they must either move to the United States or renounce their citizenship.

RenunciationGuide.com – The Historical Origins of the site

Interestingly, a site – renunciationguide.com – provided basic information about the “nuts and bolts” of renouncing U.S. citizenship. The site was generous and allowed for anyone to use the content. In February of 2013, renunciationguide.com ceased to exist.

The site has been reactivated in the hopes that it will continue to be a source of information, comfort and advice for Americans Abroad.

RenunciationGuide.com – Moving Forward

The law and circumstances of renunciation are evolving. I invite readers through their comments to add to and update this valuable resource.

As the above video makes clear, the start of “FATCA Hunt” will force many U.S. Citizens Abroad to play the “Expatriation Games”!

 

 

 

 

Nestmann – Why Have So Many Americans Considered #Expatriation?

 

So, while the media sound bytes tell you that expatriation is all about tax, don’t believe it. Sure, that’s a part of it, but the reality is much more complex.

 

My own experience with expatriated clients backs this up.

 

  • One who had lived in Switzerland for more than 40 years gave up her U.S. citizenship only after all of the banks she dealt with there closed her accounts. They didn’t want to deal with all the reporting requirements the USA requires if they accept U.S. account-holders. It’s easier just to fire their American customers.
  • Another client received a letter from the bank that had issued a mortgage years earlier for her home in Germany. The letter threatened to cancel her mortgage unless she could prove she was no longer a U.S. citizen. Rather than face a huge balloon payment, she gave up her passport.
  • A Canadian client contacted me after receiving a bill from the IRS for $20,000, despite being (he thought) 100% compliant with all U.S. tax and reporting obligations. He’d even hired a big-name U.S. accounting firm to prepare his tax returns each year, at a cost of more than $5,000 annually. He never owed any U.S. tax because taxes in Canada are higher than in the USA, but he still got screwed. It appears a Canadian educational savings plan account he’d set up for his daughter was the problem. Under Canadian law, gains in the account are tax-deferred—but not under U.S. law. That led to a big tax bill—and his decision to expatriate.

 

The fact is, more than 7 million Americans now live abroad. Many of them can no longer hold bank accounts, qualify for a mortgage, or set up a tax-deferred account for retirement or their children’s education.