Tag Archive for Immigration and Nationality Act

Part 3 – Understanding “Exit Taxes”

John Richardson 10
“The “Exit Tax” affects “covered expatriates” – what is a “covered expatriate”?”

In a FATCAesque world, where “relinquishments” are becoming a form of “self defense”, it’s important that you understand:

Issue A – Who is affected by the Exit Tax? What is a “covered expatriate”? Only “covered expatriates” are subject to the “Exit Tax”

1. What are the sections of the Internal Revenue Code that govern the Exit Tax?

2. Who is subject to the “Exit Tax” and why? Read more

US Increases Fee For “Relinquishment of Nationality” – Maybe It Is Worth The Increased Cost?

Ronald Marini picture14

On Thursday, September 5, 2014, we posted The Cost To Renounce Your US Citizenship Just Increased By 422%  where we discussed that the number of Americans renouncing U.S. citizenship stayed near an all-time high in the first half of the year before rules that make it harder to hide assets from tax authorities came into force (FATCA – Effective Date July 1, 2014) and how the State Department interim rule just raised the fee for “Renunciation of U.S. Citizenship” to $2,350 from $450. Critics noted that it’s more than twenty times the average level in other high-income countries. The State Department says it’s about demand on their services and all the extra workload they have to process people who are on their way out.

For the second time in a year, the State Department just did another hike which Read more