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Even if you renounce your US citizenship you're still considered a US person for a few years, and still required to file. The most important thing to remember t
by smutticus 12y ago
Even if you renounce your US citizenship you're still considered a US person for a few years, and still required to file.
The most important thing to remember to do is file every year. The US is the only country in the World which requires it's non-resident citizens to file tax returns every year. Also, don't forget to do your FBAR, or face huge penalties like $10,000 fines.
I'm an American who has lived in The Netherlands since 2002. I engage a competent tax preparer every year and pay through the nose for him, you should expect to do the same. When I last lived in the USA my tax return was 2-4 pages. Now it's over 70 pages long and incredibly complex. It's just something you have to deal with if you live overseas.
- scottlilly 12y agoThe day you renounce your US citizenship, you are no longer a US person (unless the State Department has a valid reason to deny your renunciation). It may take several months, or more than a year, for the State Department to issue you your Certificate of Loss of Nationality (CLN). However, the effective date of your loss of citizenship is the day you signed the papers and swore your oath of renunciation at the Embassy or Consulate. You are only required to file taxes with the IRS for the year you renounced, and only for whatever you earned up to the date of your renunciation. Before the HEART Act of 2008, you may have been required to continue filing, and paying US taxes. However, that has now been replaced with a one-time exit tax on unrealized gains, for "covered expatriates" (http://en.wikipedia.org/wiki/Expatriation_tax http://en.wikipedia.org/wiki/Expatriation_tax).