# US citizenship renunciation questions



## elegy elf (Feb 4, 2013)

For anyone familiar with renouncing US citizenship I have a few questions I'd be quite grateful for getting help answering. But first to help anyone answering, some background:

- I'm a US citizen born in the US
- I have lived in Canada since 2010 and have Permanent Resident status since 2011, my wife is Canadian
- I have not filed any US tax returns since 2010 (for 2009) or 2009 (for 2008).
- My annual income in both US and Canada has very likely not been over $9,350 in any year since last filed
- I am eligible to become a Canadian citizen late 2014, we'll assume sometime in 2015 it happens.
- I do not own any assets, stocks, etc., nor do I have any significant savings or any of that.
- I intend to renounce US citizenship upon obtaining Canadian citizenship for both political reasons and extreme contempt for tax policy that, according to opinions from attempted internet searches, isn't likely to change in my lifetime
- I can easily make it to a US consulate in Toronto if that's the best place to physically renounce (I'm in the GTA)

Given those things, I have a few questions to try and avoid any issues later when this occurs:

- Is there any barriers or hindrances to renouncing citizenship successfully, like not having filed prior US taxes over the last few years due to low income? 
- Would any outstanding liabilities like hospital bills in bad standing hinder the renunciation process?
- If I get US citizenship for my daughter (who should be eligible since I'm a US citizen) within 2013, would that hinder my ability to renounce my own US citizenship later upon becoming a Canadian citizen?
- Is there a list of waiting times for renunciation at consulates? Trying to minimize dealing with backlog or see if perhaps there are better places to renounce US citizenship in this area than the consulate in Toronto.

I thank anyone in advance kind enough to answer. I've done searches for the last several hours but not much help in answering my specific questions.


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## WestCoastCanadianGirl (Mar 17, 2012)

1) I'd find and ask a good (ie competent) accountant who is familiar with US tax law and ask them. I would also assume that regardless of whether or not you renounced or not, you'd still be liable for any income tax payable. According to this Wikipedia article, you could very well be liable for an expatriation tax.

Why not just bite the bullet, file your taxes and then renounce? If your income is as low as you say, the bill shouldn't be very large (if anything at all), and it would be a small price to pay to get the IRS specifically and the US federal government generally out of your hair for the rest of your life.

2) I don't know about this, as it's more of a you vs the hospital issue. If it doesn't affect your ability to renounce, it could still very well affect your Equifax/TransUnion credit bureau report (i.e. your credit score) and will take at least 7 years for the record to be expunged. Keep in mind that Equifax USA and Trans Union USA share information with their Canadian counterparts (I used to work in the retail credit industry in Vancouver and have seen Chapter 11 Bankruptcies and other derogatory entries appear on inquiries to Equifax Canada for clients from the United States), so you can't completely run away from your financial past life without it coming back to haunt you.

3) I don't know how the law works in regards to this situation, but I shouldn't think that if you get US citizenship for your daughter this year and then renounce your own US citizenship next year (or in 2015, _after_ you get Canadian citizenship) that you'd be hindered from renouncing your own. After all, she'd be legally entitled to USC by virtue of your _current_ (at the time of her applying for citizenship) and it's within your right as a US citizen to renounce your citizenship (provided that you satisfy the requirements put forth by the US government to do so)... having a time lapse between when she gets her citizenship and you renounce would probably be a good idea... even to me, it would look rather fishy if she got USC and then you turned around and renounced.

4)I don't know how long it will take, but if you read this guide, it should be able to answer some of your questions for you.


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## Pacifica (Oct 19, 2011)

I don’t know anything about specifics of US tax law, such as requirements to file if low-income, but can provide some general info about tax and expatriation: 

A renunciation or relinquishment is processed by the State Department regardless of one’s tax status. But the IRS has a separate process for “logging” out of the IRS system. 

The consulate won’t ask you about your tax status, although the required questionnaire does ask if you have filed US taxes. Not having filed is not a hindrance to renouncing your citizenship, but renouncing does not absolve one from previous tax obligations.

After you renounce, you have until June 15th of the following year to file your expatriation return (8854). On this return, you are asked if you have been tax compliant for the past five years. So, a person has until they sign their 8854 to have their past five years taxes in order. 

The consulate at Toronto has a reputation for being excellent to deal with, both for routine US citizen services and for renunciations/relinquishments of citizenship. The wait time for appointments for the latter is currently is a couple of weeks.


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