Renouncing US citizenship? Get the tax right first: compliance, exit tax and Form 8854.
Before you renounce US citizenship, the IRS expects you to be up to date on the last five years of filing. Our US attorneys and IRS Enrolled Agents get you compliant first, calculate any exit tax, and file Form 8854, all in one firm.
Renounce US citizenship: the order of steps
Why tax compliance comes before you renounce US citizenship.
Many Americans, and many ‘Accidental’ Americans, who have lived outside the United States for years find it harder and harder to report worldwide income to the US. Some decide to renounce US citizenship.
When you renounce, the US may charge an expatriation tax, or “US exit tax”. One of the triggers is not having met your US tax obligations for the last five years. So if you are behind, you catch up first, then expatriate.
Form 8854 confirms that five-year compliance and lists your assets. It is filed with your US return for the year you expatriate.
Your net worth is over $2 million. Or your average US tax liability over the last five years is above $178,000 (adjusted for inflation). Or you cannot certify five years of US tax compliance. It can also apply to long-term green card holders: 8 of the last 15 years.
Before and after
Before and after you renounce US citizenship with the right tax help
Before: wanting out, but not sure of the tax
- Years abroad, still reporting worldwide income to the US
- Not sure if you are fully compliant for the last five years
- Worried the exit tax applies to you
- Do not know what Form 8854 needs
After: compliant, calculated, expatriated
- Five years of US filing brought up to date first
- Exit tax calculated, with planning where it helps
- Form 8854 prepared and filed on time
- A smooth exit, with US attorneys and EAs in one firm
Expatriation tax services
What we do when you renounce US citizenship.
Compliance first
If you are behind, we catch you up, for example through the streamlined procedures where eligible, before you expatriate.
Exit tax calculation
We work out whether the US exit tax applies and what it would be, based on a deemed sale of your assets.
Form 8854
The Expatriation Information Statement, prepared and filed with your final-year return. Failing to file it can mean a $10,000 penalty.
Planning above $2 million
If your net worth is over the $2 million trigger, there are planning opportunities that may help.
Green card holders
Long-term residents can face the exit tax too. A card left in a drawer still counts until it is formally given up.
Accidental Americans
Dual citizens from birth may be outside the $2 million trigger in some cases. We check whether that applies.
How it works
Renounce US citizenship in the right order.
- Step
Check where you stand
We review your last five years of US filing and your assets.
- Step
Get compliant
Any missing returns and FBARs are filed first.
- Step
Calculate and plan
We calculate exit tax and look at planning options before your date.
- Step
Expatriate and file Form 8854
After you renounce, we file Form 8854 with your final-year return.
Who you will work with
The specialists who handle expatriation.
Glenn Snow and Patricia Lydon are the named specialists for our expatriation service in London, with US attorney Andrew Aldridge and IRS Enrolled Agent Tas Meghani.
Glenn Snow
US/UK Tax Director, Private Client Group, London
Dual-qualified tax adviser with over 16 years advising individuals on US and US/UK tax. Joined from EY Frank Hirth, where he worked in London and New York. IRS Enrolled Agent and member of the Association of Taxation Technicians (ATT).
Spear’s 500 Recommended Advisor. Shortlisted, Citywealth Accountant of the Year 2020.
Patricia Lydon
US Tax Director, Private Client Group, London
Part of the London Private Client Group, working on US tax returns, compliance and expatriation for US-connected individuals.
Andrew Aldridge
Tax Director & US Attorney, London
Over 40 years of domestic and international tax experience, including five years in the UK as Tax Counsel for Phillips Petroleum. Assists US taxpayers who wish to give up US citizenship while minimising the impact of the Exit Tax. Licensed attorney, Oklahoma.
Tas Meghani
Tax Director, Head of Trusts & Estates, London
20 years of US and US/UK tax experience, previously with EY Frank Hirth, Buzzacott and PwC. Significant experience helping individuals expatriate from the US, and helping delinquent taxpayers get back into the IRS system under the IRS amnesty programmes. IRS Enrolled Agent, LL.M in Taxation (UCL).
Offices
Renounce US citizenship with a London team behind you.
Meet our team in London, or call us wherever you live.
London WC1V 7QH
+44 20 7357 8220
CH 8004 Zurich
+41 44 387 8070
CH 1205 Geneva
+41 22 700 2500
Questions
Renouncing US citizenship and tax: common questions.
Do I have to pay tax to renounce US citizenship?
Not always. The US exit tax applies if you meet one of the triggers: net worth over $2 million, average tax liability above $178,000 (adjusted for inflation), or not being compliant for the last five years.
What is Form 8854?
The Expatriation Information Statement. It establishes that you have expatriated, confirms five years of tax compliance and lists your assets. It is filed with your income tax return for the year you expatriate.
I am behind on US filing. Can I still renounce?
You can, but being non-compliant is one of the exit tax triggers. That is why we get you compliant first. See streamlined filing compliance procedures.
I am an ‘Accidental’ American. Does the exit tax apply?
If you were a dual citizen at birth, still hold the other citizenship and have had no substantial contacts with the US, the $2 million trigger may not apply. We check your facts.
I have a green card but left the US years ago. Am I affected?
Possibly. Green card holders for 8 of the last 15 years are long-term residents, and remain liable for US tax until the card is formally given up.
Confidential introductory call
Plan your renunciation with the tax done right.
Tell us briefly where you are. A specialist will arrange a confidential introductory call.
London office, Staple Court, 11 Staple Inn, WC1V 7QH.
- Compliance first, then expatriation
- US attorneys and IRS Enrolled Agents
- Exit tax and Form 8854 handled