Procedure
To give up U.S. citizenship you:
1) Open a bank and investment account with a bank or investment firm that has no U.S. connections.
2) Get a citizenship in another country.
3) Leave the U.S.
4) Appear before a U.S. consul in that country and renounce your U.S. citizenship.
5) Transfer assets into the non-U.S. bank or investment company.
6) File Form 8854 Expatriation Information Sheet.
7) Pay the tax when due.
Conclusion
Leaving the U.S. and giving up your U.S. citizenship is possible, but it is complicated and costly. For some people, it may be a better option than waiting around until the tax law or party in power changes. But you should not do so without a great deal of planning.
Matthew Erskine is managing partner of Erskine & Erskine, which provides legal and fiduciary services for unique assets.