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February 25, 2015

Fee to renounce US citizenship goes up fourfold to $2,350

You have to pay to get it and you have to pay to renounce it.

The cost of getting rid of US citizenship has quadrupled to $2350, up from $450. The changes will come into effect on September 6th and the State Department says it is necessary to cover the real cost of processing an application to lose citizenship.

Reuters/Fred Greaves

The price hike marks a sharp u turn from 2010 when the State Department decided on the $450 fee “in order to lessen the impact on those who need the service and not to discourage the utilization of the service, a development the Department feels would be detrimental to national interests.”

Announcing the move this week, the State Department defended it the price tag saying it had to reflect the true cost of the process.

“Demand for the service has increased dramatically, consuming far more consular officer time and resources. Documenting a US citizen’s renunciation of citizenship is extremely costly, requiring American consular officers overseas to spend substantial amounts of time to accept, process, and adjudicate cases. The Department believes there is no public benefit or other reason for setting this fee below cost,” wrote Under Secretary of State Patrick Kennedy.

But Kevyn Nightingale, a tax adviser to people who want to give up their US citizenship, said that he could not believe the process really costs that much.

“It’s supposed to be a cost recovery change and not a tax revenue generator. Having watched the process with so many of my clients, I have trouble believing that it really costs $2,350 apiece,” he told Global News, a Canadian news and current affairs television network.

Nightingale pointed out that the State Department notice gives an estimate of a consular officer’s time at $135 an hour working for 20 hours.
Source: 
http://rt.com/usa/183972-fee-renounce-us-citizenship/

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