I've been considering the same thing. My hope is that if I wait long enough they'll do it for me
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In my circle of friends none of the US Americans living abroad file their tax returns and haven't done so for many years.. especially if you're not planing to move back to the US, I really don't see the need to continue compliance with the IRS or renounce a citizenship. Keep that passport and keep voting. Throw dog shit over the embassy fence.
You have to really not want to go back, because they could charge you with tax evasion. And at the point you’re avoiding it anyway then there’s no reason to keep the citizenship. On the other hand, if you have assets in the states (401ks and retirement accounts like many of us), they can garnish or seize it for nonpayment of taxes. So sadly the decision is not so simple.
Voting is a good reason to keep the citizenship.
In regards of taxes, if your place of residence collects more than the US would, nothing is actually owed. In the EU most (if not all) countries have much higher tax rates than the US, so the only "crime" would be the failure to file. Not sure if this is why the folks I know are getting away with this.
But generally yes, my friends are not planing to go back and much prefer paying higher taxes in return for accessible healthcare and public transport.
I haven't filed since Trunps first term. Before that my tax bill was always 0 because Ireland collects more taxes than the US would. I've traveled to the US twice since 2016, wothout any issues. But not in the last two years, things have definitely changed since.
I lived in Ireland most of my life, so maybe the IRS forgot I exist. Also no assets states side to take away
Not trying to be "pro America" here, but whenever I see these stories I read the article and nobody ever mentions how much in taxes they pay as a US Citizen abroad.
Because right now, you pay zero income tax until you make $130k or more. If you make under that, you file and you get the foreign exclusion credit. And that's for a single individual. If you're married and you both work, it's double at $260k.
And if you use a service like FreeTaxUSA, you can file for free federally.
I just did my taxes and it cost me $20.
There is zero reason to renounce your US Citizenship unless you're making a fuck load of money and have zero plans on ever coming back to the USA.
Meanwhile every sane country lets you file for free without the use of proprietary software.
Fun fact it cost 2.3 fucking thousand dollars to renounce your citizenship
Better fun fact from the article ...
The U.S. State Department recently announced that starting in mid-April, it will reduce the fee to renounce U.S. citizenship from $2,350 US to $450.
It's better, but it's not enough. IRS will hunt you down for like 7 years after you renounce.
Meanwhile you're a persona non grata in your own home country because no banks want to deal with their reporting requirements (FATCA).
I had been living in a foreign country legally as a tourist for about 6 years.
I was not able to open a local bank account here because of that reporting requirement.
After getting married and getting residency they allowed it.
It may depend on the country and even the institution. I know of dual citizens from my home country, Norway, who were denied financial services there despite being born there and having citizenship.
If you're moving back permanently the only sane thing to do is to renounce US citizenship ASAP to get the clock started on becoming a non-US person.
However, I'm staying, because I have a wife and children here who are all single-citizenship natural born US citizens.
If those are your children, wouldn't they automatically get your citizenship?
No. Rules vary country to country. My children could have filed to get one of they did before age 21 and had spent something like 6 months total in Norway before that age. They're past that and they didn't have enough time in the country, though they have visited. They can still apply on grounds of my citizenship at the time of their birth, but it's a much longer process and they'd need to learn the language. If they have a spouse or children, they would have to go through that as well. Norway is harder to immigrate to than most countries.
If I had only predicted the demise of democracy 28 years ago, when I moved, I would have made sure they learned the language and had dual citizenship. Alas that didn't happen. These days there are online schools and such we could have used so it's a little easier and I see that lots of parentsb these days do exactly that.
We had no issues in the Netherlands. We did stick to the largest banks, who might have an easier time dealing with the additional regulatory compliance.
We had no trouble opening a bank account in Germany as a US citizen residing on a EU Blue Card visa.
I'll admit my evidence is only anecdotal, but it was what pretty recent (many others said they had no problem some years ago) and as mentioned in Norway not Germany.
My impression from that discussion is that the requirements have become stricter and the banks etc have no obligation to do business with you and will simply say no. That still leaves them open to allow it if they want your business anyway.
You're not the only one reporting those kinds of issues. My account was recent (last four months) too, but it was also with one of the biggest banks too. I could see how smaller banks would have more hurdles with how crazy the US regulations are getting. It places huge reporting burdens.
Are you saying FATCA continues to apply for 7 years after renouncing?
That was from memory. I'll have to find it. My understanding (I'll try to find references or retract my statement after work) is that at a minimum you have to file a tax return or submit some other form as long as you are a US person or up to 7? years after renouncing your citizenship or losing green card status.
Even if I was mistaken, it's hella complicated and expensive.
Edit: Okay, tried to find where I originally read that and came up empty. I found that there is expatriation tax and a form 8854^1^2 you can file. There is a 5-year compliance rule that maybe is what I was thinking of. Either way, talk to an accountant if you're planning to move. I think I'd rather piss off the Yakuza than the IRS in terms of who can make your life suck more.
Dual citizens weigh Trump
No need, his doctors already did and found that he's healthy and not obese at all
The only dual-citizens that need to leave are the Russian asset and her anchor baby currently stinking up the WH.
But I totally understand.