- A group of former Americans has filed a class-action lawsuit against the United States, seeking to recover the $1,900 fee they paid to renounce their citizenship.
- The State Department recently announced a reduction in the renunciation fee from $2,350 to $450.
- The plaintiffs are now requesting a refund of the price difference.
A group of former Americans has filed a class-action lawsuit against the United States, seeking to recover $1,900 in fees paid during the renunciation of their citizenship. They argue that the fee is excessively high.
This lawsuit follows the announcement by the State Department that the renunciation fee, which has been $2,350 since 2014, will now be reduced to $450.
The plaintiffs are simply requesting a refund for the difference in fees.
The lawsuit document obtained by Insider states that the US government has been unjustly benefiting from charging this high fee, which is unrelated to renunciation services, since 2014.
The plaintiffs argue that the fees are arbitrary, capricious, and illegal, especially considering that renunciation of US citizenship has historically been free.
The complaint also highlights that the State Department’s proposal to lower the fee to $450 is a direct result of a similar lawsuit filed in 2020 by 20 ex-citizens who also argued against the high cost of renunciation.
The State Department initially increased the renunciation fee to $2,350 in 2014, citing the cost of processing applications. However, the 2020 lawsuit prompted a review of the fee.
Despite the new proposal claiming that processing these requests remains costly, the State Department believes the reduced fee will alleviate the financial burden for those renouncing their citizenship.
Two plaintiffs interviewed by The New York Times shared their motivations for renouncing their US citizenship. They cited the burdensome financial reporting requirements and tax implications of being US citizens living abroad.
The lawsuit is seeking to address what the plaintiffs perceive as an unfair financial burden placed on those who decide to renounce their citizenship.
At the time of this report, neither the State Department nor the plaintiffs’ attorneys have responded to requests for comment outside of regular business hours.
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