Renouncing US Citizenship: Two Solitudes - Separating Immigration/Nationality From Tax

November 29, 2021 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

 

Two Solitudes = U.S. State Department and U.S. Treasury

Virginia and I continue our podcasts in which we clarify myths and misconceptions about renouncing US citizenship. This podcast emphasizes the difference between the immigration/nationality aspects of renunciation vs. the tax aspects of renunciation.

Although tax compliance is NOT required to renounce US citizenship, renunciation without tax compliance does have tax consequences.

This podcast focuses on more areas of misunderstanding and confusion ...

Renouncing US citizenship triggers issues under each of:

1. The Immigration and Nationality Act under 349(a); and

2. The Internal Revenue Code under sections under 7701(a)(50), 877A and 877, 2801

To put it simply: There are a lot of moving parts.

In this podcast Virginia La Torre Jeker and John Richardson continue our discussion including:

Immigration/Nationality Issues:

- is tax compliance required to be allowed to renounce US citizenship?

- what are the legal requirements to renounce US citizenship?

- is a second citizenship required in order to renounce?

Tax Issues:

- what is a covered expatriate?

- what does it mean to be subject to the US 877A expatriation tax?

- how are different kinds of assets treated for the purposes of expatriation?

- pensions vs. property ...

- ways of avoiding covered expatriate status (gifts, pre-renunciation sales, etc.)

- what about post-renunciation gifts from covered expatriates to US citizens?

- Relief Procedures For Former Citizens

Previous podcasts with Virginia include:

How Does Renunciation Of US Citizenship Affect Entitlement To US Social Security Payments?

Is It True That Renouncing US Citizenship Will Result In Being Barred From The United States?