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Desperate Americans Facing Closed US Embassies

3 min

Published on: 03-09-2020

Desperate Americans Facing Closed US Embassies research Americans Overseas

Americans wanting to renounce are facing closed doors at the US consulates. The US authorities are resuming work but are severely limiting renunciation services and social security services. Meanwhile, banks are still freezing and closing accounts of US citizens until they can prove they’re no longer Americans or compliant.

Americans Overseas ran a survey among 8000 Americans in Europe on the problems with their banks and the US government.

Research US consulates:

Germany	Frankfurt; visitors with a scheduled appointment faced a closed door
France	States that all renunciation services are suspended worldwide
Switzerland	200 waiting in queue with no date available
Netherlands	Waiting time is unclear and phone lines are busy
Belgium	Stated no renunciations accepted. Online agenda allows appointment

Research Challenges Americans in Europe:

20%	Faced FATCA restrictions; accounts frozen, mortgage terminated, loans refused
80%	Stated their bank provided them with no, wrong or limited information
73%	No appointment or a response from the US authorities to renounce
71%	Use their savings to pay the renunciation fee and preparation
15%	Can’t afford the fees and preparation to renounce
35%	Renounced but did not see themselves in the federal registry
77%	Never lived in the US or moved back to Europe before the age of 10
91%	Don’t owe taxes but face yearly US tax filing expenses

Closed US consulates: Americans living overseas at wit’s end

Americans Overseas has received hundreds of calls from everyday people at wit’s end. They’re in a squeeze between the US and their bank. An elderly English woman with a frozen bank account, a German entrepreneur who can’t pay his suppliers, or a couple that got their mortgage rejected, are just a few examples.

They’re not getting through to the US consulates to renounce their citizenship or apply for a SSN (American fiscal Number) as demanded by their local bank. We now see individuals traveling to other countries just to get an appointment and hoping the door is actually open.

Banks have been obligated since 2012 under a US law called FATCA to provide the US with all of their American clients. Since the US law comes under threat of severe penalties European banks are overly complying and trying to shake their US customers.

Individuals have two options with their European bank. Either show proof of US renunciation or submit a seldom readily available SSN. Both are issued by the consulate.

The discrepancies between the federal registry and the survey (30% more renunciations) confirm once again that renunciation numbers given by the US government are on the low side.

More information about renunciation and bank services for Americans living Overseas?

We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fines or pick up other problems?), and panic (what should I do?).

It is (unfortunately) true that there is an additional American tax levy. But there’s no information from local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.

That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.

If you have more questions about closed US embassies, renunciation or the American tax obligation you can contact us at Americans Overseas.

Frequently asked questions

Understanding the US tax system, the obligations, and all the additional terms can be difficult. Especially if one lives outside of America. Is your question not answered? Contact us.

Who is required to file taxes in the US?

U.S. citizens and resident aliens who live abroad are generally required to file a federal income tax return and pay taxes on their worldwide income.
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Do US citizens living abroad still have to file taxes in the US?

Yes, US citizens are required to file taxes on their worldwide income, regardless of where they are living.
Read more... about Do US citizens living abroad still have to file taxes in the US?
How can I cash my US check?

Received an American check? You can cash your check in the following ways: cash the check at your own bank, transfer to another person (endorsement), cash checks using an online service or cash the check by another bank.
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Are there any special tax forms required for US citizens living abroad?

US citizens living abroad may be required to file Form 2555 and/or Form 1116 to claim the foreign-earned income exclusion.
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What is FBAR filing?

FBAR (Foreign Bank Account Report) filing is the requirement for certain U.S. individuals and entities to report their foreign financial accounts to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. The FBAR filing requirement applies to U.S. persons who have a financial interest in, or signature authority over, one or more foreign financial accounts if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.
Read more... about What is FBAR filing?