Renounce U.S. Citizenship Fee Cut To $450—But Tax Traps Remain

The U.S. Department of State just cut the citizenship renunciation fee from $2,350 to $450, but exit tax rules, Social Security limits, and transfer tax traps still create major consequences. For Americans contemplating expatriation, the change may seem like a major victory. For years, critics argued that the United States imposed the highest administrative fee … Continue reading Renounce U.S. Citizenship Fee Cut To $450—But Tax Traps Remain →

Own A Foreign Corporation? New Case Lets IRS Collect $10K Immediately

A new court case now allows the IRS to immediately collect $10,000 penalties from U.S. owners of foreign corporations who fail to file Form 5471. For taxpayers with foreign corporations, the IRS just strengthened its hand in collecting reporting penalties without going to court. The so-called “Farhy defense” suffered another major blow on February 27, … Continue reading Own A Foreign Corporation? New Case Lets IRS Collect $10K Immediately →

Kwong Case: IRS May Owe You Money, Cut Penalties

Taxpayers have often struggled with shifting tax filing deadlines and complex IRS penalty calculations. But if some of those filing deadlines were legally postponed by an act of Congress, certain penalties and refund interest may have been incorrectly calculated by the IRS, entitling impacted taxpayers to relief. A recent federal court case may offer some … Continue reading Kwong Case: IRS May Owe You Money, Cut Penalties →

Collecting Social Security Abroad: Understanding SSA Country List 4

For Americans considering giving up U.S. citizenship or abandoning a green card, understanding how Social Security benefits are treated abroad is essential. Many assume that once they qualify for Social Security based on U.S. work history, payments will follow them anywhere on the globe. For U.S. citizens, this is basically correct. For non-U.S. citizens, including … Continue reading Collecting Social Security Abroad: Understanding SSA Country List 4 →

IRS Drops Form 708: 40% Tax, Gifts & Bequests, “Covered Expatriates”

The Internal Revenue Service has released the final version of Form 708, titled “United States Return of Tax for Gifts and Bequests Received from Covered Expatriates,” (revision dated December 2025) along with detailed draft instructions (revision dated December 2025). As of today’s publication, the accompanying instructions remain in draft form available only as a draft … Continue reading IRS Drops Form 708: 40% Tax, Gifts & Bequests, “Covered Expatriates” →

Receiving U.S. Social Security Abroad: Understand SSA Country List 1

For many Americans, relinquishing U.S. citizenship or green-card status offers an exit from U.S. tax and filing obligations. I have previously written about the harsh tax consequences on Social Security for those who give up U.S. status. Many individuals who are contemplating giving up their U.S. citizenship or relinquishing a green card focus on the possibility of having to … Continue reading Receiving U.S. Social Security Abroad: Understand SSA Country List 1 →

Exclusive Citizenship Act: Unintended Consequences Continue To Emerge

I have previously written how changes to U.S. citizenship and expatriation rules often produce consequences far beyond what legislators appear to anticipate. Whether in the tax arena or in the administration of federal benefits, citizenship status functions as a foundational legal concept, not a standalone policy. Senator Moreno’s proposed “Exclusive Citizenship Act” underscores this point. … Continue reading Exclusive Citizenship Act: Unintended Consequences Continue To Emerge →

Global Assets, U.S. Persons: Cross-Border Tax Planning Mandatory

In her recent Forbes article “Foreign Trusts – How Structure Can Prevent a Million-Dollar Penalty,” Priya Royal emphasizes a core maxim of cross-border tax planning: whenever U.S. persons are part of the “clan,” heightened vigilance is required. The same principle holds true when U.S. situs assets are involved in foreign families or their structures. Global … Continue reading Global Assets, U.S. Persons: Cross-Border Tax Planning Mandatory →

Unregistered U.S. Citizenship: Hidden Risks For American Born Abroad

Each year, thousands of children are born overseas to one U.S. citizen parent and one non-U.S. parent. Under U.S. immigration law, many of these children are U.S. citizens from birth, provided the American parent satisfies a relatively simple test: at least five years of physical presence in the United States, with two of those years … Continue reading Unregistered U.S. Citizenship: Hidden Risks For American Born Abroad →

A Complicated U.S. Tax Life: Foreign Spouses And Community Property

When love crosses borders, tax complexity often follows. I know this from first-hand experience having married a Swiss national almost 4 decades ago. When U.S. citizens marry foreign nationals who are not U.S. tax residents a host of U.S. tax rules can upend marital bliss by causing tax compliance complexities that are often difficult to … Continue reading A Complicated U.S. Tax Life: Foreign Spouses And Community Property →