Michael Ben-Jacob

EXPATRIATION: THE FACTS AND THE FICTION

November 19, 2014

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Fact or Fiction?

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Q. Giving up your citizenship is of questionable legality.

A. As a US citizen you have a constitutional right to give up your citizenship.

Q. Giving up your citizenship will result in inquiry from US governmental agencies (the IRS, SEC, FINRA, etc.).

A. False.

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Fact or Fiction?

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Q. I will not be able to travel to the US if I give up my citizenship.

A. You can still obtain a tourist or work visa and still travel to the US if you have a passport from a country that is part of the US visa waiver program.

Q. I will be placed on a blacklist and questioned at the border.

A. There is no “blacklist”, although the border officer will know that you previously had citizenship. Provided your visa is in order you will be provided entry (but carry a copy of your “CLN”).

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Two Statutory Systems – Immigration and Tax

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I. Immigration

A. Who is a US citizen?

B. What is the process for releasing citizenship?

i. The paperwork

ii. The interview

C. Timing considerations.

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TAX – IRC sec. 877A

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II. Covered and non-covered expatriatesA. Non-covered

1. The rule.2. The consequence.

B. Coveredi. The rule.ii. The consequences.iii. The exception.

C. The greencard problem.D. Planning considerations.

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