Leave U.S., Pay IRS Taxes Forever

Reports say there’s been a big uptick in interest in leaving America with the overruling of Roe v. Wade, gun violence, political turmoil and more. One popular post advises how to move out of the US and the best places to escape. There are numerous choices, including moving to Canada. But if you go, is it temporary or permanent? Either way, most people probably assume that it won’t impact their citizenship.

After all, there’s no reason that moving—moving anywhere—changes that. Yet it is surprising how many people get confused about U.S. taxes, and think that leaving the U.S. to live abroad means no longer paying taxes here—especially if you are paying taxes somewhere else. However, the mere fact that you live abroad—even forever—does not mean that you ever avoid U.S. taxes or the annual slog to file IRS returns.

You might be paying tax in two places, to the IRS and to your new country of residence. In fact, if you want to stop paying U.S. tax, you have to go a step further. It’s a step that is not unheard of. Official U.S. Treasury Department records show that 2020 set a record for the number of Americans who renounced their U.S. citizenship or gave up their long-term green cards. Common reasons for renouncing can be family, tax and legal complications for people who generally live outside the United States.