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View Diary: All Secessionists Can Self-Secede By Renouncing Their Citizenship (185 comments)

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  •  Actually, not really (9+ / 0-)

    You only owe the US taxes if you retain your citizenship or live in this country.  If you renounce and move overseas, you don't owe anything.  The US has no further claim on you if you're outside the country.

    However, your renunciation can be denied if they think you are doing it for purposes of tax evasion.

    I don't think that ever happens though.

    If they renounced, but then lived in the US as a foreign resident, then they'd owe taxes like everyone other foreigner who is resident here.

    •  And in most cases (if there's a tax treaty) (1+ / 0-)
      Recommended by:

      between the country you're a citizen of and the US, you owe based on what you would pay if you were living in your home country.  No idea what would happen if you're stateless though...

      When I was a postdoc, that meant that I paid more taxes than most of the foreign postdocs, because their countries treated what we were paid as a stipend received for schooling (and therefore not taxable) while the US treated it as straight income.

    •  They would owe their final taxes (4+ / 0-)
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      Deejay Lyn, tofumagoo, drmah, BYw

      When you renounce your citizenship, as of that day you are deemed to have disposed of all your assets.

      Your last tax return will include any capital gains from that deemed disposition.

      •  Nope, they will often go after people beyond that (0+ / 0-)

        date.  The renouncers and their accountants would like the rule to be as you say, but the IRS often goes beyond that, operating on the presumption that renunciation is for tax purposes.

    •  Not true. (4+ / 0-)
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      Gary Norton, tofumagoo, Cobbler, BYw

      I know for sure this is not true because I investigated emigrating to Canada in 2004.

      The Treasury operates on the presumption that a person renounces to avoid taxes, and they will still aggressively go after people.

      I don't remember the details on one is supposed to try to overcome the presumption.

    •  Nope. The Heroes Earnings Assistance and Relief (1+ / 0-)
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      Act of 2008 imposes a special exit tax in addition to all other taxes owed. See link in story.

      Further, affiant sayeth not.

      by Gary Norton on Wed Nov 14, 2012 at 01:05:18 PM PST

      [ Parent ]

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