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Can I renounce my passport/citizenship and never file?
No, you can renounce your US citizenship but be aware that renunciation may have no effect whatsoever on your US tax obligations. Upon renunciation you need to file in form 8854 that asks you clearly to state that you have filed all your taxes. If you aren’t compliant you might be able to renounce BUT the IRS will not let you go until you have filed up a number of years back until the dat…
If you’re considered a US citizen, do you always have a tax obligation?
If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside. Whether you actually owe taxes depends on the amount of tax you’ve already paid in your country of residence, …
I am a considered a US Citizen but I wasn’t born in the US; nor have I lived, worked or visited the US, does that still means I have a tax obligation?
Yes. You still have a US tax obligation, simply based upon the fact that you have US citizenship status. Where you are born, and where you live or work is not relevant to your obligation. Whether you have to pay tax in the US is dependent on your own personal situation.
I have dual citizenship. Do I still have to file taxes?
Yes. If one of your nationalities is American, you still have to file US taxes and report your financial interest here (bank accounts, investments etc.). Source
I don’t have a US passport, but I do have an American parent. Does that matter?
Not having a US passport doesn’t mean anything with regard to your tax obligation. You can be an US citizen without having a passport. The tax obligation is purely based on your US citizenship. Check here what the rules are on citizenship through parents.
I don’t have Social Security number. Does that matter?
Not having a Social Security number doesn’t mean anything with regard to your tax obligation. The tax obligation is based purely on your US citizenship. To file your tax forms, you will require a Social Security number . This is not the same as our passport number (see below). The US has a procedure for to obtain your SSN. Please have a look here Source
I wasn’t born in the US, nor have I ever lived, worked or visited the US. Does that mean I still have to file taxes?
Yes you do if you’re considered American. You have to file taxes, based purely on your American citizenship. Whether filing will result in you paying actual taxes in the US depends on personal circumstances, and double taxation treaties made with the country in which you live and or work. Not filing taxes in the US is a criminal offence. We therefore advise you to have your personal situat…
Why do I have to file and possibly pay taxes when I don’t live in the US?
We understand that it sounds unreasonable, but the United States is the only civilized country in the world that has a tax system based on your citizenship. This is an exceptional situation, as most countries in the world base their tax system on the country in which you live and or work. We strongly advise you to fulfill your US tax obligations. Once you are aware of your obligation, it is co…
Exit tax when renouncing US citizenship
If you are a US citizen and you decide to renounce your US citizenship this can still have substantial tax implications to you, as the US imposes an ‘Exit Tax’ when you renounce your citizenship if you meet certain criteria. Generally, if you have a net worth in excess of $2 million the exit tax will apply to you. This tax is based on the inherent gain (in dollar terms) on ALL YOUR ASSETS …