Want to Shed US Citizenship? Get In Line
A controversial tax deal with the United States, under which Canadian banks agree to try to find U.S. citizen clients and report them to the IRS, using the CRA (Canadian tax authority) as an intermediary, took effect July 1.
But many dual citizens in southern Ontario aren’t waiting to be found – they’ve decided to shed U.S. citizenship. In the process, they’ve created a backlog at the U.S. consulate in Toronto that stretches into the third week of January 2015.
Kevyn Nightingale, who specializes in tax advice for people giving up U.S. citizenship says his clients are driven to divorce Uncle Sam less because of actual U.S. taxes and more because of the costly demands of the tax bureaucracy, he says:
“Almost none of them have to pay any tax – it’s just the hassle and expense of dealing with the paperwork.”
“Filing U.S. tax returns is complex, and the reason is that everything that happens to a U.S. citizen in Canada is foreign. People who are able to do their Canadian tax returns easily and relatively cheaply, once you add the foreign layer on to it, ordinary people have problems that need to be dealt with sophisticated tax people.”
It's no wonder that people are seeking to divorce the US government. To address this topic we’ve prepared for International Man readers a free report called The American Expatriation Guide—How to Divorce the US Government. This report will guide you through the process of renunciation in amazing detail. To get a copy, simply log in to the International Man site and then go to the Free Guides & Resources section to download the PDF.