Why a Naturalized Citizen cannot avoid “Covered Expatriate” status under IRC Section 877A(g)(1)(B)

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A previous post explained why lawful permanent residents (LPRs) can never satisfy this exception in the law to avoid “covered expatriate status.”  See, Why a “long-term” LPR can NEVER avoid “Covered Expatriate” status under IRC Section 877A(g)(1)(B) if Asset or Tax Liability Test is Satisfied!

For the same reasons, a naturalized citizen cannot satisfy the statutory requirement since they will never be able to meet the  IRC Section 877A(g)(1)(B)(i)(I) requirement of becoming ” . . . at birth a citizen of the United States . . . ”

See the relevant provisions of the statute as follows:US Passport

(B) Exceptions

An individual shall not be treated as meeting the requirements of subparagraph (A) or (B) of section 877 (a)(2) if—
(i) the individual—
(I) became at birth a citizen of the United States and a citizen of another country and, as of the expatriation date, continues to be a citizen of, and is taxed as a resident of, such other country, and
(II) has been a resident of the United States (as defined in section 7701 (b)(1)(A)(ii)) for not more than 10 taxable years during the 15-taxable year period ending with the taxable year during which the expatriation date occurs,  . . . 

Of course a naturalized United States citizen by definition was not a citizen at birth and only became one upon completing the lengthy legal requirements of naturalization.  See, USCIS website – Citizenship Through Naturalization

On a related topic in determining when U.S. citizenship terminates, see, Who makes the loss of US nationality determination? [Guest Post from Immigration Lawyer]

Posted on May 19, 2014


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