Renouncing U.S. citizenship is about to get a lot more expensive

A State Department official who requested anonymity linked the fee hike directly to the escalating numbers of people casting off their citizenship — technically known as “expatriations.” The new fee goes into effect on September 12.

The amount certainly doesn’t seem likely to be a deterrent for some people who might be inclined to give up citizenship or permanent resident status. Highly affluent people shedding their U.S. citizenship to avoid taxes can afford to pay more. And families going home after a long stint working in the United States on a green card may not view the additional cost as much of an obstacle, particularly if they are hoping to stop paying their U.S. taxes.

But Mitchel told Yahoo News by telephone that the State Department’s intent in increasing the fee might make some people think twice before taking an irrevocable step.

“They want to impress upon those individuals that there’s no going back,” he said. “They’re making sure that you really, really want to renounce your citizenship.”

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