Want to shed U.S. citizenship? Get in line

https://twitter.com/USCitizenAbroad/status/502737909196128256

In the meantime, Nightingale warns, the tax side of renouncing U.S. citizenship can be expensive:

“If somebody comes to us and says, ‘I’m a U.S. citizen, I’ve never filed tax returns, I’ve got a pretty ordinary life, but I’ve got an RRSP, an RESP, a TFSA and some mutual funds, and can you prepare all my returns and get me ready for expatriation?’, by the time we do all that, it’s not hard to spend $15,000 or $20,000 for a fairly ordinary person.”

Global News

A controversial tax deal with the United States, under which Canadian banks agree to try to find U.S. citizen clients and report them to the IRS, using the CRA as an intermediary, took effect July 1.

But many dual citizens in southern Ontario aren’t waiting to be found – they’ve decided to shed U.S. citizenship. In the process, they’ve created a backlog at the U.S. consulate in Toronto that stretches into the third week of January 2015.

Dundas-based tax and immigration lawyer David Lesperance said on Twitter yesterday that he booked 2014’s last renunciation appointment at the Toronto consulate for a client on Tuesday.

In an e-mail Tuesday, the Toronto consulate said the earliest date they could book for a renunciation is January 22, 2015.

Until recently, appointments to renounce U.S. citizenship in Toronto could be made within three to six weeks, said Toronto-based cross-border tax accountant Kevyn Nightingale, who…

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