Three Steps of Renouncing U.S. Citizenship
Renouncing U.S. citizenship is a significant decision as it is irreversible. Please assess and consider carefully before you renounce U.S. citizenship. It is advisable to consult with your accountant for professional advices.
If you've decided to renounce U.S. citizenship, there are three steps you need to take:
1. If you are a U.S. citizen, please complete the forms:
Loss of Nationality Questionnaire, Forms DS-4080 and DS-4081, and prepare the required documents (Refer to the Document Checklist provided by the American Institute in Taiwan (AIT): https://www.ait.org.tw/renounce-u-s-citizenship/#DC).
After completing the forms, you need to schedule an interview with AIT to pay the USD 2,350 application fee, take the Oath of Renunciation, and sign the forms DS-4080 and DS-4081 in the presence of a consular officer.
If you are a green card holder, please complete the forms:
Form I-407 “Abandonment of Lawful Permanent Resident Status” You should file Form I-407 by mail directly to USCIS Eastern Forms Center (For more details, refer to the American Institute in Taiwan: https://www.ait.org.tw/abandonment-of-lawful-permanent-resident-status/ )
2. If you are a U.S. citizen or a long-term resident, you must file accurate tax returns for the past five years, and the “Expatriation Statement” forms with the IRS.
3. If all the above steps are completed and you want to confirm if you renounce U.S. citizenship successfully, you can check the quarterly expatriation list published by the National Archives and Records Administration at: https://www.federalregister.gov/quarterly-publication-of-individuals-who-have-chosen-to-expatriate
USCPA Sophie Luo (羅霞) reminds you that if you have decided to renounce U.S. citizenship, you must follow the steps above to complete the entire renunciation process. If you fail to fill out and submit the Expatriation Statement forms when renouncing, you may be in a situation where you have renounced citizenship but still have tax obligations. It could lead to penalties for unsubmitted forms, with a maximum fine of $10,000. Additionally, if you have outstanding tax payments before leaving the United States, the penalties and interest will accumulate continually.
Read more: How to determine a Long-Term Resident of USA?
If you have any questions or need any further help,
please contact us at the USCPA Sophie Luo (羅霞) +886 980919600
or Email: ustaxproservice@gmail.com
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