Dual Citizens At Birth: Is A Certificate Of Loss Of Nationality Really Required To Lose U.S. Citizenship For #FATCA Purposes?

<p>July 17, 2022 - Participants Include:</p> <p> </p> <p>Dr. Karen Alpert - <a href='https://www.twitter.com/fixthetaxtreaty'>@FixTheTaxTreaty</a></p> <p>Dr. Laura Snyder - <a href='https://www.twitter.com/tapinternation'>@TapInternation</a></p> <p>John Richardson - <a href='https://www.twitter.com/expatriationlaw'>@ExpatriationLaw</a></p> <p>Background:</p> <p>Those "Born In The USA"are (without a "Certificate Of Loss Of Nationality") presumed to be U.S. citizens. The FATCA IGAs require U.S. citizens to provide a U.S. Social Security Number and sign a W9. This has resulted in many individuals (largely Accidental Americans with a U.S. birthplace) having problems maintaining access to financial accounts.</p> <p>The key points to understand are:</p> <p>1. Section 1 ee) (page 7) of the FATCA IGAs specifies that whether someone is a U.S. citizen is determined by the Internal Revenue Code.</p> <p><a href='https://home.treasury.gov/system/files/131/FATCA-Agreement-Canada-2-5-2014.pdf'>https://home.treasury.gov/system/files/131/FATCA-Agreement-Canada-2-5-2014.pdf</a></p> <p> </p> <p>2. Sec. 877(g)(4) of the Internal Revenue Code states that (at least for expatriating acts committed after June 16, 2008) that a Certificate Of Loss Of Nationality is required to cease to be a U.S. citizen for tax purposes.</p> <p><a href='https://www.law.cornell.edu/uscode/text/26/877A'>https://www.law.cornell.edu/uscode/text/26/877A</a></p> <p> </p> <p>3. Sec. 7701(a)(50) of the Internal Revenue Code states two things:</p> <p>(A)  Generally Sec. 877A(g)(4) applies for the purposes of determining when and whether U.S. citizenship is terminated for tax purposes; and</p> <p>(B) Treasury can by regulation create different rules for individuals who were dual citizens at birth. (In other words dual citizens from birth  may NOT be required to have a "Certificate Of Loss Of Nationality" to lose U.S. citizenship for tax purposes.)</p> <p><a href='https://www.law.cornell.edu/uscode/text/26/7701'>https://www.law.cornell.edu/uscode/text/26/7701</a></p