Giving Up US Citizenship or Greencard

Some people are US citizens by birth, but grew up as a dual citizen in another country and feel closer ties and connections to the other country than to America. Greencards are often given up voluntarily when a person leaves the US, but they can also be revoked involuntarily if you do not return to the US a certain minimum number of days per year.

Whatever the reason, you may be contemplating giving up your citizenship or greencard or perhaps you have already done so.

If you gave up citizenship after 24 June 2004, then you are deemed to have given up your citizenship for tax avoidance purposes if your net worth was in excess of $2,000,000 or your aggregate tax for the past five years was in excess of $625,000. If you are under this threshold, you merely have a final tax return to file. If you are over this threshold, you are subject to US tax for the next ten years on all of your US source income, at special rates. You are also subject to US inheritance tax for the next ten years as well on your worldwide assets. If you gave up your citizenship or greencard before this date, different rules apply.

After 24 June 2004, the act of giving up your citizenship or greencard is not complete unless you file Form 8854. If you have not yet filed this form, you are still subject to US worldwide taxation.

We do not assist with any legal work nor provide any legal advice associated with giving up citizenship and greencards, though we will be happy to refer you to a lawyer who specializes in US emigration in your income bracket.

We do provide compliance work for persons after the legal work has been finalized. We will also assist with Form 8854 as part of finalizing the legal work.

Why Choose British American Tax?

  • Prearranged calls to tax specialists accepted as late as 11 p.m. GMT.
  • Streamlined Programme and reasonable cause disclosure  are the methods we will pursue before OVDP.
  • Work with your lawyer handling OVDP and Streamlined cases.
  • Managing Director Liz Zitzow, E.A. has more than fifteen years of experience waiving penalties for late filers.
  • Managing Director Liz Zitzow, E.A. has more than twentyfive years of US tax experience.
  • One hour of free tax planning per year for all clients.
  • Income tax planning inclusive of capital gains, primary residences, secondary homes, businesses, inheritance, gift, and trust tax planning to reduce the exit tax as much as possible.
  • Tax planning for LGBT and other alternative lifestyles.
  • Bespoke tax planning for inherited trusts.
  • Fixed fee or ceiling fees so you know ahead of time the total bill you will receive.
  • Accept payment in pounds, euros, or US dollars.
  • Accept Paypal, credit card, cash, cheque, wire, and BACS.
  • We work alongside your UK accountant to make the total tax between both countries as small as possible.
  • We provide legal referrals for all the legal work you need.
  • US Enrolled Agents and CPAs.

If your other prospective US accountants do at least seven of these, you’re doing well. If they are handling less than seven, we do all of them. Call us.