Share:

There are several reasons why an American may consider renouncing their U.S. citizenship—for example, if you live abroad and you’re tired of filing taxes annually, relinquishing your citizenship could seem like an attractive option. However, there are both advantages and drawbacks to filing a renunciation. A tax attorney at Lance S. Cox Attorney at Law in Cincinnati, OH will familiarize you with the relinquishing process and some of its possible ramifications. 

According to the U.S. Department of State, Americans who wish to relinquish their citizenship must voluntarily appear before a U.S. diplomatic officer at a U.S. embassy or consulate and sign the oath of renunciation. After you file your renunciation, you must then file a final return for the portion of the year during which you were still a U.S. citizen. You must also file Form 8854, also known as the Initial and Annual Expatriation Statement.

Depending on youtax attorneyr financial situation, you may be responsible for paying an exit tax, as well. The IRS details requirements regarding this tax on their website— however, you should talk to a tax attorney regardless of your situation to ensure you understand the financial consequences of renouncing your citizenship.

Relinquishing your citizenship will have no effect on past tax, child support, or military obligations, nor will it prevent you from being prosecuted for crimes you committed in the U.S. Though, it may increase your estate tax obligations on any U.S. property you retain.  

If you’re considering renouncing your citizenship for financial reasons, a tax attorney will ensure that doing so serves to improve your situation. To discuss your financial goals with an experienced lawyer, turn to Lance S. Cox Attorney at Law in Cincinnati, OH. Visit the firm online to learn more about the legal services they provide, including tax preparation and estate planning, and call (513) 528-6000 to schedule your initial consultation today. 

tracking