US Citizenship Renunciation

---

 Renouncing your U.S. citizenship shouldn't be taken lightly, as you must give this decision much thought and careful consideration. Renouncing American citizenship is a profound and irrevocable decision that involves a formal process overseen by the U.S. Department of State at a Consulate or Embassy located outside the U.S.  Individuals who wish to renounce their U.S. citizenship must follow strict procedures outlined in the Immigration and Nationality Act (INA). 

The process typically includes:

• Reviewing information provided by the Department of State.
• Attending interviews with U.S. diplomatic or consular officers.
• Completing all required forms.
• Taking an oath of renunciation in person before a designated official.

It is crucial to understand that renouncing U.S. citizenship may have significant implications. These include potential statelessness, visa requirements for entering the United States, tax obligations, and limitations on future travel and legal rights. It's essential to fully comprehend these potential consequences before making a decision. 

It's crucial to understand that once a Certificate of Loss of Nationality (LON) is issued, the loss of U.S. citizenship is considered final and irrevocable, except under specific circumstances outlined in the law. Therefore, individuals considering renunciation should carefully weigh all consequences before proceeding. This decision may have significant implications, including potential statelessness, visa requirements for entering the United States, tax obligations, and limitations on future travel and legal rights. It's essential to fully comprehend these potential consequences before making a decision. 

The Clegg Law Group is here to assist you in officially renouncing your American citizenship, regardless of where you live. 

We can guide you through the process and ensure all necessary steps are taken. 

Important Tax Considerations Regarding Long-Term Residents and Form 8854:

The Initial and Annual Expatriation Statement, IRS Form 8854, is required for U.S. citizens and long-term residents who have expatriated (i.e., renounced their citizenship or abandoned their lawful permanent resident status). This form aims to certify compliance with U.S. tax obligations in the five years preceding expatriation and report certain financial information. 

Understanding Long-Term Residents and Covered Expatriates

To determine whether a long-term resident qualifies as a covered expatriate under the Internal Revenue Code (IRC), we must first define what constitutes a long-term resident and the criteria for being classified as a covered expatriate.

Definition of Long-Term Resident

Per IRC 7701(b)(6), a long-term resident is a person who has been a lawful permanent resident of the United States for at least eight tax years out of the last 15 tax years ending with the year in which the person is no longer a green card holder. In short, this means that if an individual has held a green card for this duration, they meet the definition of a long-term resident.

Criteria for Covered Expatriate Status

According to IRC sections 877 and 877A, an individual is a covered expatriate if they meet any one of the following criteria:

1. Average Annual Net Income Tax Liability: The individual's average net annual income tax liability for the five years immediately preceding the year of expatriation exceeds a specified threshold. For example, this threshold was $190,000 for expatriations occurring in 2023.
2. The individual's net worth on the expatriation date is $2 million or more.
3. Failure to Certify Compliance: The individual must certify on Form 8854 under penalty of perjury that they have met all U.S. federal tax obligations for the five tax years preceding their expatriation.