Despite US citizenship being the most coveted in the world, the number of people who voluntarily choose to expatriate constantly rises. US tax filing burden and complexity, associated tax return preparation cost, potential steep penalties for even an innocent mistake in a tax return or a disclosure, and a wide reach of the IRS across generations are all contributing factors for many Americans who reside outside of the US and possess a citizenship of another country. The scrutiny will only intensify once the Foreign Account Tax Compliance Act of 2010 is fully phased in on January 1, 2015
To expatriate US citizenship is never an easy decision and no one can provide an assurance on what may happen in the future especially for professional clients who tend to often cross the border for business purposes.
Our network includes qualified immigration lawyers with whom we always suggest our clients consult before making the decision to expatriate. There are several ways expatriation can be accomplished from the legal perspective. It is important that an individual understands all the potential consequences which may result from this decision, including inadmissibility of entry into the United States. If clients nevertheless are determined to proceed with the process, we assist them with their last year of US tax compliance which can be extremely complicated and if incorrectly administered can lead to significant penalties or filing requirements even after the expatriation act.
