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Information for Lawyers and Judges. Advice about Possible Loss of U. Nationality and Dual Nationality. Dual Nationality.
Advice About Possible Loss of U. Nationality and Foreign Military Service. Non-citizen nationality status refers only individuals who were born either in American Samoa or on Swains Island to parents who are not citizens of the United States. Section a of the Immigration and Nationality Act 8 U.
Section a states:. A person who is a national of the United States whether, by birth or naturalization, shall lose his nationality by voluntarily performing any of the following acts with the intention of relinquishing United States nationality:. Renunciation is the most unequivocal way in which a person can manifest an intention to relinquish U. Since nationality is a status that is personal to the individual U.
Those contemplating a renunciation of U. Consequently, renunciation of U. In order for a renunciation under Section a 5 of the INA to be effective, all of the conditions of the statute must be met. In other words, an individual wishing to renounce U. Section b of the Act provides that:. Any person who has committed or performed any act of expatriation is presumed to have done so voluntarily, but such presumption may be rebutted upon a showing, by a preponderance of the evidence, that the act or acts committed or performed were not done voluntarily.
The U. Department of State and the U. Supreme Court have concluded that the intention to relinquish U. Renunciations which are not in the form prescribed by the Secretary of State have no legal effect. How to renounce US citizenship? It is casually used to describe people who gave up their U. They are listed in Section of the INA. That is not true, however, for tax purposes. If the expatriating act occurred after , people will continue to be taxed as a U. Practically speaking, this notification takes the form of going to a U.
Section of the INA 8 U. Briefly stated, these acts include:. Taking an oath, affirmation or other formal declaration of allegiance to a foreign state or its political subdivisions after the age of 18 Sec. Entering or serving in the armed forces of a foreign state engaged in hostilities against the United States, or serving as a commissioned or non-commissioned officer in the armed forces of a foreign state Sec.
Accepting employment with a foreign government after the age of 18 if a one has the nationality of that foreign state or b an oath or declaration of allegiance is required to accept the position Sec. Formally renouncing U.
Renouncing U. A conviction for an act of treason against the Government of the United States or for attempting to force to overthrow the Government of the United States Sec. This procedure takes place when a U. Unlike the relinquishment, the loss of citizenship occurs there and then when the U. As for a relinquishment, one would need to file Form in order to no longer be a U. The relinquishment allows you to stop being a U. This could be advantageous in a few scenarios:. You are considered a covered expatriate and have to pay the related Exit Tax if you meet any of the following criteria:.
Herewith, all property is subject to gift tax and all property where you hold a use right is included for purposes of the net worth test. The Exit Tax that you, as a covered expatriate, would have to pay is calculated as if you have sold all of your assets at Fair Market Value on the day prior to your relinquishment, and the associated capital gains are subject to this tax.
The tax payment is due within 90 days after giving up your U. Expatriation is considered to be effective for tax purposes, even if you fail to file the Expatriation Information Statement form The exceptions from the main rule are certain deferred compensation items, specified tax deferred accounts, and non-grantor trusts. As a covered expatriate, you will be able to visit and even stay for a certain time in the United States; the mere fact of being an expatriate does not make you a U.
You can still become taxable in the U. You will have to file your final tax return and attach Form Your final return will cover both periods when you were a resident and the period during which you were a non-resident. The first one covers the period when you were a non-resident and only applies to U. Form covers the period when you were a U.
You need to file all of the appropriate schedules and forms, including Form So it is similar to an estate tax on the gain in your assets, even though you are not really selling anything. Currently, the rate on net capital gains is If any of these factors apply to you, then be ready to calculate your Exit Tax.
There are some negative consequences of being a covered expatriate. For example, if you have friends or family in the U. Renouncing your U. Prior obligations remain, so you would only be a non-resident on an ongoing basis.
You must notify the IRS of the change in your status by filing Form and then filing a copy with the Department of Treasury as well.
The choice to renounce your American citizenship is irreversible, it is a decision for life You are obliged to declare up to and including the year of renouncing, even though you have renounced your citizenship.
Renouncing only does not relieve you of your obligation to declare, if you want to renounce and become compliant, the costs are high. After renouncing, you will not be able to give the American citizenship to your children born after cancellation of your renunciation.
Free travel on your Dutch passport with an ESATA to America is often no longer possible, in many cases you must apply for a valuable travel visa. The visa may not be granted because you have consciously renounced your citizenship. This makes working, internship or traveling to family in America more difficult. America can still call on you. You keep your US citizenship, what are the possible advantages? You have a tax declaration obligation and possibly also a tax payment obligation You cannot use all banking products that your bank or financial institution offers Your bank details are shared annually with the IRS You must travel in and out of America on an American passport What is the right moment to take action?
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