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Will Lowered Renunciation Fee Further Lengthen Already Record Wait Times? Yes!
On March 13, after a years-long court battle, the Department of State announced it will be reducing the fee to renounce US citizenship. The Department originally notified the court hearing the lawsuit of their "intent" to lower the fee on January 6, 2023, but never finalized the decision. As a result, renouncers continued to bear the burden of the high fee. Since 2014, the fee to renounce has been $2,350 USD. Now the Department has finally caved, reducing the fee by over 80% to the pre-2014 rate of just $450 USD.
The Department's statement on the issue said:
After significant deliberation, taking into account both the affected public's concerns regarding the cost of the fee and the not insignificant anecdotal evidence regarding tax-related difficulties many US nationals residing abroad encounter, including in part because of FATCA, the Department made a policy decision... to propose alleviating the cost burden for those individuals who decide to request CLN services by returning to the below-cost fee of $450 USD. This change will better align the fee for CLN services with fees for certain other services provided to US citizens abroad, including, for example, applications for a Consular Report of Birth Abroad, which are similarly set significantly below cost.
As part of the renunciation process, US citizens must personally appear at a US embassy or consulate to swear an oath of renunciation and pay the associated fee. Because of this requirement and limited availability at many consulates, the wait time for an appointment to renounce citizenship is often months long. In many cases, it can take the better part of a year. With the cost of renouncing decreasing, these wait times will only increase—likely significantly.
For individuals on the fence about renouncing, a critical window of opportunity is closing. Because of the lengthy wait times for appointments, if you want to complete your renunciation before the end of 2026, you must start the process and join the queue right away. Delay could push your renunciation into 2027, which may mean filing US taxes for another year and incurring thousands of dollars in extra costs. Make the 2026 US tax return your last one ever—get in line to renounce now!
If you or a family member is a US citizen or Green Card holder considering renunciation, we invite you to visit our dedicated webpage for more information. This page contains links to register for our upcoming renunciation webinars. You can find one tailored to your geographic location in our events listings.
These webinars thoroughly review everything you need to know about the US citizenship renunciation process and available options, allowing you to make an informed decision about what is best for you and your family.
Moodys Tax Law is only about tax. It is not an add-on service, it is our singular focus. Our Canadian and US lawyers and Chartered Accountants work together to develop effective tax strategies that get results, for individuals and corporate clients with interests in Canada, the US or both. Our strengths lie in Canadian and US cross-border tax advisory services, estateplanning, and tax litigation/dispute resolution. We identify areas of risk and opportunity, and create plans that yield the right balance of protection, optimization and compliance for each of our clients' special circumstances.
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