Can I renounce my US citizenship to avoid paying US taxes?

Factual Questions
1

Let’s say I have all my investments outside the US. Can I move to a country with low taxes to get out of paying US taxes. I understand I would still have to pay taxes in the countries where I have my investments.

2

IANAL but I think if you are not a U.S. citizen and do not live in the U.S., and derive no income from U.S. investments, it seems that they can’t touch you.

I don’t think you can just renounce citizenship unless you hold citizenship of another country, though. Not sure about how that works–I don’t know if there is international law on this.

3

Here’s Cecil on Renouncing U.S. Citizenship. See, in particular, the last link. From what I understand, you can do it, but the U.S. tax authorities are going to make it tough.

4

That’s for taxes already owed, of course. I think the OP was more concerned about ongoing income taxes.

5

Fat chance!

6

There’s a little article in Harper’s this month (I think it’s still on the stands) about how to renounce citizenship.(In this case, not about taxes but if the wrong person happens to win in November.) Anyway, as has been noted, it’s not easy. You have to get someone else to take you or the US will still claim you as it’s own. If you have a whole lot of money you want to protect, there are places you can essential buy citizenship in. Thought not as many as there used to be.

Forming your own country apparently won’t work :stuck_out_tongue: .

7

As mentioned in the various links, even if all your investments and income sources are abroad, if your reported net worth is greater than $500,000 + the inflation adjustment since 1995, the IRS/INS will presume you a tax refugee and may take reprisals against you, up to even considering you still liable for taxes onthe foreign income for the next 10 years, and blacklisting you from re-entry.

8

I don’t recall the details but a number of years ago one of those right-wing militia types filed some papers with a county(?) court, declaring himself a “sovereign”.

9

Happens all the time, with redictably poor results. That site has virtually every tax-protester legal argument for why a person doesn’t have to pay income taxes ever tried, and the legal grounds on which they were refuted.