More than five million United States citizens live outside of the U.S., according to estimates by the federal government. Regardless of where they live, all citizens are required to pay federal income tax to the IRS. Federal law provides several methods for renouncing or relinquishing U.S. citizenship, but doing so comes at a significant cost. The U.S. Department of State (DOS) requires citizens seeking to renounce their citizenship to pay a substantial fee, and the IRS imposes an expatriation tax on some former citizens and others living abroad. Recently, the IRS announced new procedures, known as the Relief Procedures for Certain Former Citizens (RPCFC), that streamline the process for certain former U.S. citizens to resolve tax compliance issues.
Under the Fourteenth Amendment to the U.S. Constitution, any person born on U.S. soil is a citizen by birth, or natural-born citizen. The only exceptions are children born to foreigners who are in the U.S. in diplomatic capacities, and therefore subject to diplomatic immunity from U.S. laws. Immigrants to the U.S. can become naturalized U.S. citizens by following the procedures set forth by the Immigration and Nationality Act (INA).
Section 349(a) of the INA, codified at 8 U.S.C. § 1481(a), identifies seven ways that a U.S. citizen can lose their citizenship. The U.S. Supreme Court has ruled multiple times, such as in 1967’s Afroyim v. Rusk, that the government cannot involuntarily strip a person of their citizenship. Under § 349(a)(5), an individual can renounce their citizenship by voluntarily and knowingly “making a formal renunciation of nationality” at a U.S. consulate or embassy abroad.