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Taxation
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U.S. State Department Reduces Renunciation Fee
On Thursday, March 12, 2026, the U.S. State Department announced a fee reduction for renouncing U.S. citizenship from the current amount of $2,350 to $450 to begin on April 12, 2026. $450 was the cost to renounce from 2010-2014 before the State Department raised the fee from 2014 to present day. The State Department has reduced the fee after pressure and a lawsuit from L'Association des Américains Accidentels (AAA). The lawsuit was filed on the basis it has “violated the U.S. Constitution and international law by charging a fee for individuals to renounce their American citizenship.”
In 2023, the State Department ran a comment period to solicit public feedback in its consideration to reduce the renunciation fee. Democrats Abroad ran a campaign encouraging Americans abroad to submit their individual comments to raise awareness that the increase in renunciations was due to the pain and suffering caused by the U.S. citizenship based tax system. The final rule from the State Department confirms that the comments received by Democrats Abroad members and Americans abroad-at-large were heard and entered into official record.
The most important takeaway from the State Department’s final rule is not just the fee reduction itself. In the government’s own words, the Department took into account “not insignificant anecdotal evidence” of the tax-related difficulties faced by Americans abroad, including in part because of FATCA. The rule further acknowledges that most commenters did not want to give up their citizenship at all. They wanted to remain U.S. citizens, but found that worldwide taxation, compliance costs, and ordinary financial barriers abroad had made that status increasingly unworkable. Reducing the renunciation fee addresses one symptom. It does not solve the underlying problem. Only Congress can do that through residence-based taxation.
We thank everyone who participated in this public comment in 2023. It is hugely beneficial in our tax advocacy work to have these comments on official record with the U.S. government.
More info:
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2026 Tax Webinar Series
The Democrats Abroad Taxation Task Force is proud to announce our 2026 Tax Webinar Series Wednesdays from January 14 to March 4!
- Jan 14 - How To Survive Tax Day As An American Abroad
- Jan 21 - FREE Demystifying Taxes and Voting For Americans Abroad
- Jan 28 - FREE Clarifying Birthright Citizenship and the Child Tax Credit for American Families Abroad
- Feb 4 - Retirement and Taxes for Americans Abroad
- Feb 11 - How to Avoid Double Taxation for Americans Abroad
- Feb 18 - How To Invest For Americans Abroad & Dual Citizens
- Feb 25 - How to File the FBAR for Americans Abroad
- Mar 4 - How to Catch Up on Filing Tax as an American Abroad
General Admission tickets cost $12.50 or $15, depending on the event, and discounted tickets are available for retirees, students, unemployed, and veterans. All proceeds go to Democrats Abroad to help rally the overseas vote.
All events take place online via Zoom, and anyone who RSVPs will receive the recording within 24 hours after the event ends.
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Taxation Task Force Meets with Treasury to discuss the Executive Order, ‘‘Modernizing Payments To and From America’s Bank Account’’
On August 6, Democrats Abroad met with Treasury officials to provide constructive feedback for the Executive Order, ‘‘Modernizing Payments To and From America’s Bank Account’’. This was a follow-up conversation after submitting our formal comment last month.
Click here to download Democrats Abroad's slides presented to Treasury officials at the meeting.
Highlights from the discussion include Treasury officials confirming:
- They heard similar concerns expressed by individuals during the comment period that Americans abroad need the ability to make and receive payments from the IRS via international transfer if paper checks are being removed.
- Although no IRS officials were on the call, the Treasury officials in charge of implementing the new policy would pass on our comments to the IRS.
- Treasury officials recommending following this website https://tfx.treasury.gov/eo-resources for updates on implementation of the Executive Order.
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Taxation Task Force's Response to Treasury Comment Period on the Executive Order, ‘‘Modernizing Payments To and From America’s Bank Account’’
Below is a copy of the submission the Democrats Abroad Global Taxation Task Force submitted to Treasury for the public comment period on the Executive Order, ‘‘Modernizing Payments To and From America’s Bank Account’’.
Click here to download a pdf of DA's submission to Treasury in full.
