This blog originally appeared at The Guardian.
Former U.S. citizens file a lawsuit against the U.S. government, claiming that the ‘renunciation fee’ of $2,350 is ‘unreasonable, whimsical, and unlawful.’
Individuals who have renounced their U.S. citizenship are collectively suing the U.S. government, alleging that the fees associated with renunciation are excessively high and violate the Constitution.
A class-action lawsuit was filed on Wednesday by four former U.S. citizens in a federal court in Washington D.C. The suit alleges that the U.S. government has been unjustly profiting from the exorbitant fee it charges individuals who voluntarily renounce their U.S. citizenship. Since 2014, U.S. citizens living abroad who wish to renounce their citizenship or who are unable to meet the demanding U.S. tax requirements have been required to pay a “renunciation fee” of $2,350.
The lawsuit contends that this fee is “arbitrary, capricious, and illegal” because, among other reasons, it has been utilized to finance government functions entirely unrelated to the renunciation process, thus violating federal law.
Exact figures are unavailable, but estimates suggest that there are between 5 million and 9 million U.S. citizens residing overseas. This group includes expatriates who relocated for work or to pursue a different life abroad, as well as “accidental Americans” – individuals born in the U.S. who automatically obtained citizenship but have never resided in the country for an extended period.
The United States imposes some of the most onerous requirements on its citizens living abroad, rivaled only by Eritrea. Notably, it mandates that all U.S. citizens, regardless of their place of residence, must submit annual tax returns to the Internal Revenue Service.
Click here to see full blog: https://www.theguardian.com/us-news/2023/oct/04/renounce-american-citizenship-passport-fee-lawsuit
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