Trump administration to slash fee to renounce US citizenship from $2,350 to $450

"The number of people seeking a Certificate of Loss of Nationality (CLN) has soared in recent years, with 2024 recording the third highest annual total of 4,820, according to Internal Revenue Service (IRS) figures. Analysts say political changes in the US are a driving factor in many cases—the start of Donald Trump's first presidency in 2017 saw an immediate spike."

"So-called accidental Americans, those who acquired citizenship through birth in the US or through parents, but who have lived most or all of their lives abroad, are required to file an IRS tax return annually, prompting many to seek a breakup. An analysis by the Outbound Investment Group in May reported rising frustration at the outsized cost of a CLN, and a cumbersome application process that often lasts months to more than a year."

"It said a global backlog for renunciation appointments exceeded 30,000, and that the government's efforts to deal with the surge was like a game of Whack-a-Mole, with more applications arriving quicker than others are finalized. The slashing of the fee by 80% was announced in a final rule published to the federal register on Friday—and which will take effect on 12 April."

The Trump administration reduced the cost of renouncing US citizenship from $2,350 to $450, effective April 12, accepting a financial loss below the government's processing costs. This reverses an unpopular 2015 fee increase. Renunciation requests have surged to record levels, with 4,820 applications in 2024, the third-highest annual total. Political changes, particularly Trump's 2017 presidency, triggered initial spikes. Americans abroad, especially "accidental Americans" born in the US but living overseas, face complicated annual tax filing requirements, motivating citizenship abandonment. A global backlog exceeds 30,000 renunciation appointments. The application process is cumbersome, often lasting months to over a year, with the government struggling to process applications faster than they arrive.

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