Should clients renounce U.S. citizenships?

If your American client is considering renouncing his U.S. citizenship, warn him he might never be granted re-entry in the country if he completes the process, says Moody’s.

It adds, “Senators Jack Reed and Chuck Schumer [recently] filed an amendment to the immigration reform bill. If it passes, this amendment would exclude from re-entry not only former citizens who renounce for tax avoidance purposes, but also individuals who are considered “Covered Expatriates” under Internal Revenue Code Section 877A.”

Find out more about the bill, as well as its current status.

Also read:

4 ways to save cross-border tax

Tax problems with cross-border life insurance

Does your client have U.S. tax risk?

Additional tax requirements for U.S. companies