Accidental American panic

Others may have said this but my advice, above all, would be not to rush into anything. Take your time figuring out what to do and do more research online (best source is Isaac Brock society).

My personal advice would be either:
1. Do nothing except throw the US passport in a bin and forget about it. That is what I would do and I, too, have a family etc.
or
2. Simply start filing US tax returns and FBARS moving forward. Simples.

A lot of people would disagree with me. But if you have no bank accounts or investments in the States you have absolutely nothing to worry about.

Others may have said this but my advice, above all, would be not to rush into anything. Take your time figuring out what to do and do more research online (best source is Isaac Brock society).

Isaac Brock Society is a bit shrill for my liking and has a massive agenda. It's probably not the best place to get oriented about US taxation.

My personal advice would be either:
1. Do nothing except throw the US passport in a bin and forget about it. That is what I would do and I, too, have a family etc.

This is very bad, head in sand advice.

2. Simply start filing US tax returns and FBARS moving forward. Simples.

Good advice. If you have no connection to the US and no need of US citizenship and want to avoid the inconvenience of the financial and tax issues think about renouncing.

A lot of people would disagree with me. But if you have no bank accounts or investments in the States you have absolutely nothing to worry about.

I agree not to worry, but the consequences for US citizens are potentially nasty if you don't tell the IRS about your foreign accounts. Just file FBAR and 8938 if you must. I think the biggest issue for Accidental Americans is unknowingly owning PFICs and losing tax benefits of things like ISAs.

Isaac Brock Society is a bit shrill for my liking and has a massive agenda. It's probably not the best place to get oriented about US taxation.

As a leading source of information regarding the process of becoming fully compliant with US tax, no, IBS would not be a first port of call. IBS is a completely open site and moderation is kept to a minimum. As a result, you will find the full spectrum of opinions. I don't think there is anyone who finds agreement with all views expressed there. Amongst the full spectrum, there are some sharp folks and IBS has become a leading source of information. Whether you agree or not is up to the viewer. Their momentum is definitely being felt in both awakening the media to the situation of 'accidental Americans' and CBT, and the US bureaucracy. It's important for the likes of willka76 to know there are those who understand the upset of the OMG! moment, they are not alone, and they are certainly not the first to go through this.

If one finds IBS a too shrill site, the same information is available on the Maple Sandbox site.

Willka76 has been caught speeding, doing 60mph in a 40mph zone. It's coming to terms with the fact the sign posting the speed limit was located in an obscure position behind a large bush.

Willka76 has decided, for now, to follow the compliance first approach. Once they have done that (or while they are doing that), they next need to decide whether or not to keep US citizenship and its obligations. If they are considering jettisoning the blue passport, then one of the two sites above are valuable sources of information. One need not agree with methods, but the information available is certainly something to ponder.
 

If you're thinking about just pretending you're not a USC remember you will face problems if you EVER travel back to the US for ANY reason.

"Jettisoning" the nationality is the most likely outcome.

As I have no plans to ever live in the USA I see no reason to keep it if the nationality comes with onerous yearly paperwork.

If you're thinking about just pretending you're not a USC remember you will face problems if you EVER travel back to the US for ANY reason.

Not if the OP uses his UK passport which does not say he was born in the USA. Moreover, as he says, he has no particular need to travel to the USA, no family there etc - he just happens to have been born there. If I were the OP I'd think VERY hard before doing anything at all. And don't believe everything international accountants, lawyers etc tell you - they have an interest in scaring the pants off you.

"Jettisoning" the nationality is the most likely outcome.

As I have no plans to ever live in the USA I see no reason to keep it if the nationality comes with onerous yearly paperwork.

Renouncing US citizenship is probably a good option for you as you have no connections to the US. But it will require you to be up to date with all your US tax filings and will cost $2350 and you'll have to have an interview.

Keeping the US citizenship will restrict your UK investment options and you'll have the hassle of annual tax filing.....or you could ignore the US citizenship and see what happens. You've been ok up to now, but you would be intentionally breaking US law and it's up to you how you feel about that.

You can renounce without submitting any tax forms. It will cost you $2350 but hey, as Americans say, freedom isn't free. It will make you a so-called covered expatriate but since you have no financial ties to the USA, this may not matter to you.

You would still owe them that massive stack of forms but if they never got them, only the compliance fetishists would consider that a moral outrage.

An alternative strategy may be to wait two years for regime change. Perhaps the next President won't hate expatriates so much.

Not if the OP uses his UK passport which does not say he was born in the USA.

My British passport lists my place of birth as the USA, so I presume the OP's will as well.

My British passport lists my place of birth as the USA, so I presume the OP's will as well.

It doesn't, it simply says a city name.

You can renounce without submitting any tax forms. It will cost you $2350 but hey, as Americans say, freedom isn't free. It will make you a so-called covered expatriate but since you have no financial ties to the USA, this may not matter to you.

That's fairly interesting and something I need to research. I'm not worth much, I have no house of my own and my two cars are rust buckets. I'm not sure how it would work if the IRS don't know anything about me though, if I don't submit any tax returns at all I can't see how they would be able to work out an exit tax. In reality I am a poor sod that slaves away for not much money, but how can the IRS know that if they don't know my finances?

You would still owe them that massive stack of forms but if they never got them, only the compliance fetishists would consider that a moral outrage.

Interesting. Once again will look into this.

An alternative strategy may be to wait two years for regime change. Perhaps the next President won't hate expatriates so much.

That's also crossed my mind, but we need to remember that the plight of 7 or so million people who haven't lived in the US for a long time is hardly top priority for any administration. Is it?

...... if I don't submit any tax returns at all I can't see how they would be able to work out an exit tax.

I see you've been doing your homework. 

If you were a dual citizen at birth, you will not need to consider the exit tax. It will not apply to those born in the US to UK citizen parents. In order to renounce you do need to complete form 8854 and have 5 years of past returns, but the exit tax portion does not apply.

Have you done your homework on relinquishing rather than renouncing? It avoids the $2,350 fee, although the folks at the Embassy may attempt to dissuade you.

This is an interesting read. For Accidental Americans it relinquishing rather then renouncing might save them a bunch of cash.

http://www.robertsandholland.com/siteFiles/News/03-05-13_Expats%20Live%20in%20Fear_MJM.pdf

I see you've been doing your homework. 

I am starting to yes

Have you done your homework on relinquishing rather than renouncing? It avoids the $2,350 fee, although the folks at the Embassy may attempt to dissuade you.

Not done that no. I won't be easily dissuaded I don't think, I feel pretty burnt by the blue passport

PS: Thanks for the link nun.

If you were a dual citizen at birth, you will not need to consider the exit tax. It will not apply to those born in the US to UK citizen parents. In order to renounce you do need to complete form 8854 and have 5 years of past returns, but the exit tax portion does not apply.

Have you done your homework on relinquishing rather than renouncing? It avoids the $2,350 fee, although the folks at the Embassy may attempt to dissuade you.

If you relinquish is 8854 and 5 years of up to date tax filings required?