U.S. proposes $2,350 fee to document relinquishment of American nationality

Flooded with requests from former US citizens for protection against the onerous reporting requirements of FATCA, the US State Department will propose tomorrow to begin charging a fee of $2,350 to issue a certificate that the former citizen relinquished American nationality.  The State Department already charges this exorbitant fee when an individual renounces citizenship.

U.S. law spells out the differences between renunciation (taking an oath before a US diplomatic or consular officer) and relinquishment (performing specific actions with the intention of relinquishing American nationality).  Read more HERE.  Relinquishment of American nationality takes place when an individual becomes naturalised in another country, serves in a foreign military service, or takes an oath upon entry into certain types of employment with a foreign government. [8 USC § 1481(a)].

Presently, the U.S. charges a fee only for services in connection with renunciation. If the new rule is approved,  as of 9 November, the State Department will begin to charge for all consular services related to obtaining a certificate of loss of nationality. The proposed rule will be published tomorrow  (8 September 2015) in the US Federal Register.   

Obtaining a Certificate of Loss of Nationality does not provide guaranteed protection from the Internal Revenue Service. In comments to the IRS, the American Bar Association's Section of Taxation shows how the current tax laws can be interpreted to measure loss of citizenship from the date the State Department issues the Certificate of Loss of Nationality - even if the "relinquishing act" took place decades earlier.  Read more HERE.

Seminar: Get your FATCA & FBAR questions answered!

Please join us in Rotterdam (17 September) and The Hague (24 September) to learn more about the latest developments in the U.S. Internal Revenue Service’s hunt for Americans abroad.

Photo by Scott Olson/Getty Images News / Getty Images
Photo by Scott Olson/Getty Images News / Getty Images
  • Find out what you can do to protect your financial assets and build wealth while living abroad. 
  • What do FATCA and FBAR mean for you?
  • How will your savings and investments be taxed in The Netherlands?
  • What U.S. tax obligations follow U.S. citizens and Green Card holders living abroad? 
  • What strategies are available for tax-efficient inheritance and retirement planning?


Presented by International Financial Advisor Clare Summerfield of Elliot Lloyd Wealth Management, U.S. Attorney Christine Dahl of TaxHelp for US Expats, and Wim Bull, DK Accountants & Advisors

Dates and Locations

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