October 3, 2019 - Douglas Myser

Tax relief for former citizens. The IRS announced procedures for certain persons who have relinquished or intend to relinquish their United States citizenship and who wish to come into compliance with their U.S. income tax and reporting obligations and avoid being taxes as a "covered expatriate" under section 877A of the U.S. Internal Revenue Code (IRC). Relinquishing U.S. citizenship and the tax impacts of relinquishing U.S. citizenship are serious matters that involve irrevocable decisions. The Department of the Treasury, the Department of State, the Internal Revenue Service, and the Social Security Administration have prepared a brief, "frequently asked questions" document on obtaining social security numbers, expatriation, and the tax implications of expatriation. Tax relief for former citizens.

The 14th Amendment to the United States Constitution provides that "all persons born or naturalized in the United States" are citizens of the United States. With very limited exceptions for individuals born in the United States with diplomatic agent level immunity, all persons born in the United States acquire U.S. citizenship at birth. A person born abroad to a U.S. citizen parent or parents acquires U.S. citizenship at birth if the parent or parents meet conditions specified in the U.S. Immigration and Nationality Act (Section 301). Some U.S. citizens born in the United States to foreign parents or born outside the United States to U.S. citizen parents, may be unaware of their status as U.S. citizens or the consequences of such status. By law, U.S. citizens, regardless of whether they live in the United States or abroad, are required to report and pay to the Internal Revenue Service all applicable taxes on their worldwide income, including on their income from foreign financial assets.

Set by the Department of State, the U.S. consular fee for "Administrative Processing of Request for Certificate of Loss of Nationality" is $2350, and the fee cannot be waived. Compliance with all U.S. IRS income tax filings or obtaining a Social Security number is not a pre-condition to relinquishing citizenship under the Immigration and Nationality Act.

If you came into the country and didn't know the tax rules and ended up with a back tax debt, call this Seasoned Tax Resolution Company for Tax Relief options. Our Tax Resolution firm can help you figure out your options and whether you qualify for the IRS Fresh Start Program, or any other options in the IRS Revenue Code. Our Tax Resolution Services feature Superior Tax Professionals.