IS IT RIGHT FOR YOU

While there are a number of reasons to renounce your US citizenship, the process can be overwhelming. If not done properly, the consequences could include the imposition of the US Exit Tax, being barred from entering the US, and burdening your heirs with the US inheritance tax at your death.

Pros and Cons to Renunciation

Has your bank asked you to confirm whether you are a US citizen? Are you emotionally and financially drained after the process of becoming (and staying) US tax compliant, and continually planning for cross border US estate and gift tax issues? If the high costs, non-compliance penalties, and arrival of the Foreign Account Tax Compliance Act (FATCA) have you thinking about renouncing, take a look at some of the pros and cons:

CONS

Potential restrictions on travel to the US if you do not renounce properly.

Loss of US Consular Services.

Publication of your name in the Federal Registrar as an individual who has lost their US citizenship.

Loss of privileges US citizens are afforded, such as protection abroad if travelling to unstable areas, the ability to vote in US elections and, in some situations, access to the US job market.

PROS

Elimination of:

US citizen-based taxation, reporting, and filing obligations.

The US citizen-based gift tax regime during life and estate tax regime at death.

Potential double taxation in life, as you will no longer be taxed as a US citizen on your worldwide income.

At Moodys Gartner Tax Law, we’ll help you weigh the pros and cons to make an informed decision.

 

To connect with us regarding renunciation, please email renunciation@moodysgartner.com

OUR APPROACH

Moodys Gartner Tax Law has represented hundreds of US Citizens in renouncing their US Citizenship not only in Canada, but on five continents and in countless different countries. Our approach involves a unique combination of Domestic and US tax law, Domestic and US Immigration Law, and US Tax Compliance. Our team of US and domestic lawyers and accountants will help you evaluate if renouncing your US citizenship is right for you, and the consequences of doing so. Our experience extends not only into the tax issues associated with renunciation, but also into the immigration, social security, State Department, and Homeland Security issues and procedures that must be addressed when renouncing US citizenship. If you decide to renounce, we will work with you to do it the right way. We will guide you through every step of the process with the goal of avoiding the pitfalls along the way. We’re here to help.
   

Roy A Berg JD, LLM (US TAX), TEP, US Tax Lawyer, Canadian Tax Lawyer

Roy is the partner in charge of all US tax matters at Moodys Gartner Tax Law. He has more than 22 years of experience in international tax matters and is called to the bar in both Canada and the US. Roy’s experience includes: The Foreign Account Tax Compliance Act (FATCA); Renouncing US Citizenship; Canada-US estate planning; IRS Litigation; Foreign reporting obligation on US forms 5471, 5472, 926, 8865, 8621, 3520, 3520-A, 706-NA, 1040-NR.
   

Alexander Marino JD, LLM (US TAX) US Tax Lawyer

Alex leads our expatriation group at Moodys Gartner Tax Law, and has assisted high volumes of clients in renouncing their US citizenship. He regularly speaks on the topic of renunciation and expatriation in Canada and internationally.

   

FATCA’S EFFECTS

Until recently, renouncing your US citizenship may not have been a priority for you. But with the implementation of The Foreign Account Tax Compliance Act (FATCA) on July 1, 2014, record numbers of US citizens living abroad are renouncing. FATCA affects US citizens living outside the US in the following ways:

Accounts held by US persons at non-US financial institutions will be reported to the CRA or your domestic tax authority, which will then report that information directly to the IRS.

Non-US accounts held by people born in the US are reportable under FATCA, unless they can provide a certificate of loss of nationality.

Click here to watch the FATCA overview
   

Roy A Berg JD, LLM (US TAX), TEP, US Tax Lawyer, Canadian Tax Lawyer

Roy is the partner in charge of all US tax matters at Moodys Gartner Tax Law. He has more than 22 years of experience in international tax matters and is called to the bar in both Canada and the US. Roy’s experience includes: The Foreign Account Tax Compliance Act (FATCA); Renouncing US Citizenship; Canada-US estate planning; IRS Litigation; Foreign reporting obligation on US forms 5471, 5472, 926, 8865, 8621, 3520, 3520-A, 706-NA, 1040-NR.
   

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