Renouncing your US citizenship is a significant legal, personal, and financial decision. For many expatriates, it marks the final step in cutting through the red tape of tax obligations, reporting requirements, and financial complexity tied to the U.S. government.
At 1040 Abroad, we’ve helped thousands of U.S. citizens, green card holders, and Accidental Americans become fully tax compliant and renounce properly — with full understanding of the process, the legal framework, and the tax implications. In this detailed guide, we explain what to expect when meeting with a consular or diplomatic officer, how to prepare your required documents and forms, and what happens after the interview.
What the Law Says About Renouncing U.S. Citizenship
Under Section 349(a) of the Immigration and Nationality Act, a U.S. citizen can relinquish citizenship voluntarily by performing an expatriating act — in this case, renouncing their citizenship — before a U.S. consular or diplomatic officer in a foreign state. This must be done in person and with full understanding of the consequences.
In short, to renounce your U.S. citizenship, you must:
Appear in person before a consular officer or diplomatic officer at a U.S. Embassy or Consulate.
Be physically present in a foreign country (renunciation cannot occur on U.S. soil).
Sign an Oath of Renunciation, affirming your voluntary and intentional decision.
Who Is Eligible to Renounce?
To begin the citizenship renunciation process, individuals must:
- Be at least 18 years old
- Be of sound mind and not under the care of a legal guardian
- Speak and understand English or demonstrate comprehension
- Fully understand and accept the consequences of giving up U.S. citizenship
Tax Compliance: Your First and Most Crucial Step
Before renouncing, tax compliance is non-negotiable. You must certify, via Form 8854, that you have filed U.S. tax returns for the previous five years and are in full compliance with all tax obligations to avoid being labeled a covered expatriate. Covered expatriates may face the exit tax, which taxes unrealized capital gains based on net worth and other criteria. Individuals are taxed on these unrealized gains when they renounce their citizenship, highlighting the importance of compliance with U.S. tax regulations.
If you’re behind on filings, 1040 Abroad can help you get caught up — quickly and without penalties. Our Renunciation Tax Package is designed specifically for U.S. expats, and we can usually bring clients into full compliance within 2 weeks.
Exit Tax: Understanding the Implications
The exit tax is a U.S. federal tax assessed on a “deemed sale” of everything an individual owns when they cut ties with the United States. The exit tax can be triggered if an individual’s net worth or past tax liability exceeds certain thresholds, or if they fail to correctly certify that they are fully compliant with their U.S. tax requirements.
The exit tax can have significant implications for individuals who are considering renouncing their U.S. citizenship. It is essential to understand the rules and regulations surrounding the exit tax and to seek professional advice to minimize any potential tax liabilities.
The Renunciation Appointment Interview
Once you are tax compliant, you’ll begin the formal renunciation process by submitting an appointment request through your local U.S. Embassy or Consulate. Each post may have different requirements: some allow online scheduling, while others request emails with scanned copies of your required documents. Popular locations like London, Toronto, and Bern often have long wait times due to administrative processing and demand, while other posts may offer availability within a few weeks.
At the first interview, you’ll meet with a consular officer who will confirm your eligibility and assess whether you fully understand the legal and financial implications of relinquishing citizenship. You’ll be required to provide original or certified copies (not notarized) of key documents, including your U.S. passport, birth certificate or consular report of birth abroad, foreign passports, social security number, and any legal name change records.
During the interview, you’ll complete several required forms, including:
- DS-4079 – Intent and background questionnaire
- DS-4080 – Oath of Renunciation
- DS-4081 – Statement of Understanding
- DS-4082 – Final oral oath (administered by the officer)
After reviewing and signing these documents, you’ll pay the $2,350 USD fee using a major credit card or approved local currency. The diplomatic officer will then administer the Oath of Renunciation before the U.S. flag, confirming that you are acting freely, with full knowledge of the tax implications, and without undue influence.
At this point, the consulate will prepare your DS-4083 Certificate of Loss of Nationality (CLN), but you will not receive it immediately. Your renunciation application is forwarded to the State Department in Washington for final approval, which may take several months.
Interview Tip: Never state that you’re renouncing citizenship to avoid paying U.S. taxes. While many people begin the process due to the burden of global tax compliance, saying so directly during your interview may raise red flags. Tax evasion is a crime, and the consular officer must confirm that you’re not renouncing to escape legal obligations. Instead, keep your reasoning focused on personal, lifestyle, or long-term residency choices — for example, that you’ve built your life outside the U.S. and no longer identify as an American.
Renunciation Statistics and Trends
Renouncing U.S. citizenship has become increasingly popular in recent years, with a record number of individuals giving up their citizenship in 2020. According to the U.S. Department of State, the number of individuals renouncing their U.S. citizenship has increased by over 200% since 2010.
The reasons for this trend are varied, but some of the most common reasons include:
- Tax implications: The U.S. is one of the only countries in the world that taxes its citizens on their worldwide income, regardless of where they live. This can result in double taxation and significant tax liabilities for individuals who are subject to U.S. tax laws.
- Complexity of U.S. tax laws: The U.S. tax code is complex and nuanced, and individuals who are subject to U.S. tax laws may find it challenging to comply with the regulations.
- Increased scrutiny: The U.S. government has increased its scrutiny of individuals who are subject to U.S. tax laws, and this has resulted in a significant increase in the number of audits and penalties.
It is essential to note that renouncing U.S. citizenship is a personal decision that should be made after careful consideration. Individuals should consult with a qualified tax professional to understand the implications of renouncing their U.S. citizenship and to determine the best course of action for their specific situation.
A Word on Taxes and Legal Obligations
Renouncing your U.S. citizenship does not erase your prior tax liability or tax filing obligations. You must still file a final tax return for the year you expatriate and include Form 8854. You will also remain subject to U.S. laws related to gift tax, estate tax, and any unfulfilled obligations to the Internal Revenue Service.
What Happens Next?
Once approved, your CLN will be mailed to you, officially finalizing your renunciation. This is the only legal document that proves you have ceased to be a US citizen. From that point forward, you are no longer subject to most U.S. tax laws — except for any ongoing U.S.-sourced income, such as rental income or Social Security payments, which would require filing a 1040NR tax return.
You’ll be treated like any other foreign national entering the U.S. Depending on your foreign citizenship, you may need a visa or qualify for the Visa Waiver Program.
Social Security, Benefits, and Access to the U.S.
- Social Security benefits remain payable after renunciation, subject to standard IRS thresholds for taxation.
- You will no longer be considered a U.S. person for tax purposes, reducing reporting burdens like FBAR and FATCA.
- Renunciation does not absolve criminal charges or military obligations if they applied prior to your expatriating act.
- Children born after renunciation are not U.S. citizens unless they have a citizen parent at the time of birth who passes on that status under the law.
Related: Social Security Taxes After Renouncing U.S. Citizenship
Final Thoughts from 1040 Abroad
The decision to renounce U.S. citizenship should never be taken lightly — but with proper planning, professional guidance, and full understanding of the legal, tax, and personal implications, it can be a freeing and empowering step forward.
At 1040 Abroad, we’ve helped many expatriates successfully complete the process. We don’t just give you information — we handle your tax compliance, simplify your filings, and make sure your citizenship renunciation is done right the first time.
Ready to take the next step? Contact us now — we’ll help you renounce properly, quickly, and with confidence.
