Renounce US Citizenship: Process and Implications
Section 349 of the Immigration and Nationality Act (INA) – located in 8 U.S.C. 1481 – governs the loss of US citizenship through voluntary personal action. Short of committing treason, taking a foreign government post requiring an oath, or pursuing other activities which would cause the Department of State to revoke your citizenship, the way to renounce US citizenship is to make a formal declaration.
Of course, making this formal declaration to renounce US citizenship isn’t easy. First, it cannot (except under some unusual war-time circumstances) be done within the United States or its territories. You must appear in person at a US consulate in another country, presumably the country in which you already reside legally and intend to reside thereafter. You must then sign an oath of renunciation and hand over your US passport. Even if you take all these steps, your renunciation may not be accepted by the State Department, especially if they believe that you plan to return to the United States (even for a visit) within a short period of time. If you renounce US citizen formally and it is accepted, your name is then published in the Federal Register as a legal notice to anyone who might be trying to locate you – including the IRS.
A renunciation of US citizenship should go hand-in-hand with a naturalization process in another country. In fact, it is advised (and practically required) that you obtain full, permanent citizenship in another country before even trying to renounce American citizenship. In other words, you basically need to hold dual citizenship, even if only briefly, because the US is loathe to see people go without an official nationality.
[By the way, if you plan to renounce US citizenship but fear becoming stateless, you can actually “purchase,” for lack of a better term, citizenship in a handful of countries for a hefty price. St. Kitts and Nevis, a Caribbean nation, is one such example; they’ll let you invest about $100,000 in the country and pay some fees in exchange for a relatively fast citizenship process.]
You may be wondering what the implications are if you renounce US citizenship. The move is almost entirely irrevocable; signing away your rights means that it’s nearly impossible to get them back unless there was an administrative error or some sort. Also, the renunciation is an all-or-nothing venture. Case law has reinforced the principle that people cannot give up some citizenship rights while retaining others.
Renouncing us citizenship does not obviate any existing tax liability, as you can be responsible for US taxes for up to ten years. The government recognizes that some people, especially those with overwhelming tax obligations, sometimes seek a renunciation as a way of shirking their financial responsibility. Accordingly, very specific statutes govern tax liability for people giving up citizenship, and these are retroactive back to 1995. And in case you were wondering, tax liability is not all that remains after you renounce US citizenship. You are still subject to the criminal process for any wrongdoing, and debt incurred while still a citizen remains valid and collectable, even if that becomes more difficult for your creditors.
Other implications? You lose the right to reside here. You lose the right to federal financial aid if you ever return on a visa to pursue education. You lose the protections accorded by the Fair Debt Collection Practices Act (which may be significant if you are trying to avoid financial obligations). You can’t run to the US Embassy for protection in the event of a problem in your new country – or any other country for that matter. In short, you no longer have a relationship with the US and are afforded none of the protections and rights you once had. That may be okay with you if you’ve secured citizenship in a stable new country – but you’d better be certain about the renunciation process and its implications. Or else the State Department won’t even let you do it in the first place!
