Post by Deleted on Dec 22, 2015 20:22:18 GMT 7
The U.S. allows its citizens to have more than one passport, but often there isn’t any tax advantage to doing so, tax experts say.
“No matter how many citizenships they hold, Americans still owe U.S. taxes on their world-wide income,” says Philip Hodgen, an international tax lawyer who practices in Pasadena, Calif.
There is a more extreme, and permanent, maneuver: renouncing U.S. citizenship outright. People considering that should be aware that the process can be long, complex and costly, tax experts say. Here are some issues to be aware of.
Tax-Compliant
Renouncers must certify that they have been tax-compliant for the last five years—and sometimes produce the returns to prove it. For this reason, renouncing citizenship isn’t a ready solution for coping with past tax errors, tax experts say.
Continues
www.wsj.com/articles/what-giving-up-u-s-citizenship-really-costs-1450780200?mod=e2fb
“No matter how many citizenships they hold, Americans still owe U.S. taxes on their world-wide income,” says Philip Hodgen, an international tax lawyer who practices in Pasadena, Calif.
There is a more extreme, and permanent, maneuver: renouncing U.S. citizenship outright. People considering that should be aware that the process can be long, complex and costly, tax experts say. Here are some issues to be aware of.
Tax-Compliant
Renouncers must certify that they have been tax-compliant for the last five years—and sometimes produce the returns to prove it. For this reason, renouncing citizenship isn’t a ready solution for coping with past tax errors, tax experts say.
Continues
www.wsj.com/articles/what-giving-up-u-s-citizenship-really-costs-1450780200?mod=e2fb
