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One of those #Americansabroad describes renouncing US citizenship

The article was published on December 27, 2013. A rough translation of the title would be:

“The experience of renouncing U.S. citizenship”

This  account was written in German. Here is the English version as per Google Translate.

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#Americansabroad coming to realization that US citizenship not compatible with globalization

Nice post about the “coming together” of American Expats Abroad to fight U.S. citizenship based taxation.

It’s all very sad, but the FATCA of the matter is that  U.S. citizenship is not compatible with life outside the United States. The article includes:

Ferauge said despite the complications she has not thought about renouncing her U.S. citizenship. She said she will exhaust all options before going that route. She does say it’s been increasingly difficult to remain optimistic about the situation.

“On a last note, to be brutally honest with you, I’m just very tired” she wrote in a recent blog post. “I’m tired of writing letters, tired of explaining and tired of fighting.  There is so much about this that I simply cannot change.  I cannot make homeland Americans feel differently about their expatriates.  My influence — even as a U.S. voter — is practically nil. I have lost all faith in the U.S. government (Obama and company included).  I no longer think it will improve – on the contrary I can think of a hundred ways it could get worse.  And I have slowly come to the realization that American citizenship and globalization are an imperfect fit these days.  Perhaps it will get better with time but that, it seems to me, is something I can hope for my children’s sake, but not something I am coming to believe that I can realistically expect to have for myself.”

How can a government be as stupid as the current U.S. government?

 

 

RenunciationGuide.com gets “shout out” from Geneva Launch

Giving up US citizenship, useful guide

December 8, 2013 by 0 Comments

uspassportproxyFor those whose New Year’s resolution is to join the crowd, especially in Switzerland and Canada, who are renouncing their US citizenship, this US Citizenship Renunciation Guide was recently brought up to date and is now being maintained.

You’ll find answers to most of your questions here and while you might not agree with some of the comments, there is a wealth of practical information that’s worth exploring.

 

 

Robert Wood writes on rising renunciations of U.S. citizenship and #Americansabroad

This is a good article. As always the comments add great value.

The article includes:

Most expatriations are probably motivated primarily by factors such as family and convenience. Many people like Ms. Turner have built a life somewhere else and may not plan to need a U.S. passport.

Complex or costly taxes can help sway a decision but are often only one factor. Although statistics are not available for why people say a final good-bye, many now find America’s global income tax compliance and disclosure laws inconvenient and nettlesome. Some go so far as to say that the U.S. tax and disclosure laws are downright oppressive.

No group is more severely impacted than U.S. persons living abroad. For those living and working in foreign countries, it is almost a given that they must report and pay tax where they live. But they must also continue to file taxes in the U.S. What’s more, U.S. reporting is based on their worldwide income, even though they are paying taxes in the country where they live.

Many can claim a foreign tax credit on their U.S. returns, but it generally does not eliminate all double taxes. These rules have long been in effect, but enforcement was historically less of a concern with expats. Today enforcement fears are palpable.

Moreover, the annual foreign bank account reports known as FBAR forms carry civil and criminal penalties all out of proportion to tax violations. The penalties for failure to file these forms, civil and criminal, are severe. Even civil penalties can quickly consume the balance of an account.

The coup de grace is FATCA, which is ramping up now worldwide. It requires an annual Form 8938 to be filed with income tax returns for foreign assets meeting a threshold. And foreign banks are sufficiently worried about keeping the IRS happy that many simply do not want American account holders. Americans abroad can be pariahs shunned by banks for daily banking activities.

 

 

 

Protecting children from transmission of U.S. citizenship to children born abroad

Big problem. There was a time when U.S. citizenship was considered to be a great gift. As the above discussion makes clear many consider it to be a toxic liability. Obama promised “change we can believe in”. Nobody could seen the destruction of the value of U.S. citizenship.

It’s change we never could have believed possible!

Here is the comment that started this discussion:

I am a US citizen and have lived abroad for 13 years. I now qualify for Norwegian citizenship. My kids have dual citizenship. Due to FACTA, FBAR reporting, taxes, etc… I am investigating the pros and cons of renunciation. Also, I am wondering why I ever saddled my kids with life long tax reporting burdens when they are US citizens in name only. They will probably never live there and clearly consider themselves Norwegian. So, does anyone have any experiences, first or second hand, with this? I think my main concern would be how it could effect my relationship with family and friends in the States.

Edit: Thanks for all the comments. For me the issue is not the process/bureaucracy but rather the impact it could have on family and friends. So if anyone has experience on how renunciation effected your US relationships, I would love to hear from you. Thanks.

 

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.