The US State Department is hosting an open comment period to reduce the renunciation fee from $2,350 to $450. This is a great opportunity for your voice to be heard about the tax problems forcing Americans abroad to renounce their citizenship in the first place (aka the tax compliance nightmare suffered by Americans abroad).
Here’s all you need to do:
- Go to the relevant State Department page at this link.
- Click the big green button on the right side that says “SUBMIT A FORMAL COMMENT.”
- Leave a comment! We’ll include a template below - but the more personal your comment is the better!
Comments close November 1, so be sure to submit before the deadline.
Template Messaging (But the more personal the better!)
Asking Americans to pay $450 to renounce their citizenship is still exorbitant (as compared to other consular fees that are substantially lower), but at least it’s an improvement.
But the real tragedy is that so many Americans feel like they have to cut ties in the first place. The fact that more Americans renounce their citizenship than any other nationality is deeply embarrassing - instead of penalizing them on their way out the door, the State Department should be asking why they’re leaving in the first place.
The obvious answer is the uniquely unfair tax system to which the US subjects its citizens living abroad. The State Department’s mission includes “shape[ing] an international environment in which all Americans can thrive.” Surely that involves helping guide the government toward policies that don’t massively complicate life for Americans abroad.
Instead of nickel-and-diming Americans forced to renounce their citizenship to escape double-taxation, the State Department should push Congress to bring the US into line with the entire rest of the world in the way it taxes its expats.
Thanks for your help!!
DA Global Taxation Task Force
Please share this with any friend or family member that might be interested in submitting a formal comment!