How Applicants Can Respond

Renouncing U.S. citizenship is one of the most serious and consequential legal acts an individual can undertake. For most, the process concludes with the issuance of a Certificate of Loss of Nationality (CLN), which serves as official proof that the bond between the citizen and the state has been severed. Yet for many, the process is not smooth. Applications are delayed, denied, or trapped in bureaucratic limbo for months or years.

This uncertainty can create severe practical, legal, and financial consequences. Tax obligations linger. Foreign governments may refuse to recognize residency or naturalization without proof of U.S. expatriation. Families find themselves split between members who are still U.S. citizens and those who are not. Businesses face compliance complications when executives cannot confirm nationality status.

Amicus International Consulting examines why CLNs are sometimes denied or delayed, tracing the history of U.S. policy, reviewing case law, and analyzing how applicants can prepare, respond, and protect themselves.

A Historical Timeline of CLN Policy

The U.S. government has long grappled with expatriation. Early nationality law reflected suspicion of dual allegiance. Voting in foreign elections, joining a foreign military, or marrying a foreign national could all result in the loss of citizenship.

• 1950s–1960s: The State Department began systematizing the issuance of CLNs, formalizing documentation of expatriation acts. Backlogs were rare, as the number of applications was minimal.
• 1967: Afroyim v. Rusk limited involuntary expatriation, but voluntary renunciations continued. The CLN became a central piece of evidence for expatriation.
• 1980s: Vance v. Terrazas underscored the importance of voluntariness and intent, reinforcing the need for consular officers to document each renunciation carefully.
• 1990s: The globalization and the rising number of Americans abroad led to an increase in renunciation requests. CLN processing times stretched to several months.
• 2000s: The introduction of the expatriation tax regime (IRC §877A) tied tax consequences to the date of CLN issuance, heightening the stakes of delay.
• 2010s: FATCA prompted a surge in renunciations, overwhelming consulates. Appointments were difficult to secure, and CLN backlogs reached record highs.
• 2020s: COVID-19 closures compounded delays, with many consulates suspending renunciation appointments entirely. By 2025, thousands of applicants remained in the backlog.

The timeline indicates that while CLNs were once routine, they have now become a bottleneck in global citizenship planning.

Why Denials Occur

The Department of State denies CLN applications for specific reasons:

• Voluntariness not established: Signs of parental pressure, coercion, or confusion undermine validity.
• Mental capacity in doubt: Applicants must fully understand the consequences of their actions. Cognitive impairment or psychological issues lead to refusal.
• Minors are included: Parents cannot renounce their children; minors must wait until they reach the majority.
• Statelessness risk: If no other nationality is secure, the CLN is denied.
• Procedural errors: Incorrect fees, missing forms, or improper oaths invalidate applications.
• Pending investigations: Renunciation cannot be used to evade accountability for criminal or national security matters.

Why Delays Persist

• Backlogs: The surge in renunciations since the implementation of FATCA has overwhelmed staff.
• Security checks: Name matches with watchlists trigger lengthy reviews.
• Foreign nationality verification: Conditional passports or residency-based citizenship may need confirmation.
• Incomplete documentation: Even minor omissions can suspend processing.

Expanded Case Studies

Case Study A: The Taxpayer in Backlog

A Canadian-American living in Toronto applied to renounce in 2018. The consulate completed his paperwork, but the CLN was not issued for 27 months due to the backlog. During that time, he remained subject to U.S. filing obligations, incurring penalties for late reports. His case illustrates how delay can result in financial exposure.

Case Study B: The Entrepreneur with Conditional Nationality

A technology founder in Singapore sought to renounce after acquiring citizenship through investment. The Department questioned whether the investment program granted immediate nationality or only permanent residence. His CLN was delayed until Singapore confirmed full citizenship status. Meanwhile, his corporate restructuring plans stalled, resulting in millions of dollars in deferred contracts.

Case Study C: The Dissident’s Dilemma

An American activist renounced while living abroad, citing political opposition to U.S. policies. The Department delayed approval, citing concerns about duress and the possibility that his decision was made under duress rather than voluntarily. He remained in limbo for over a year, unable to finalize his residency abroad.

Case Study D: The Family Split

Parents in Germany renounced, expecting their children to follow. Their attempts to renounce for minors were denied. Years later, the children, still U.S. citizens, faced IRS penalties for failing to file tax reports on small foreign bank accounts. The family discovered that partial renunciation creates ongoing obligations for children.

Litigation Over CLN Denials and Delays

Several federal court cases shed light on the Department’s discretion.

• Richards v. Secretary of State (1980s): Courts upheld the State Department’s refusal where voluntariness was in doubt. Judicial deference to executive determinations was emphasized.
• Doe v. U.S. (2000s): A dual national challenged a CLN delay, claiming harm from tax liabilities. The court found that administrative backlog, while burdensome, was not unconstitutional.
• Recent FOIA lawsuits: Applicants have sued to compel the State Department to disclose statistics on CLN backlogs, highlighting the lack of transparency.

These cases demonstrate that, although judicial review exists, courts rarely compel the faster issuance of decisions, leaving applicants with limited remedies.

Tax and Financial Impact of CLN Delays

The IRS ties expatriation to the date of CLN issuance. Delays can create significant consequences:

• Expatriation tax: Wealthy individuals may owe tax on unrealized gains if the CLN is delayed into a different tax year.
• FATCA reporting: Foreign banks may refuse to open accounts until proof of loss of citizenship is provided.
• Double compliance: Applicants remain liable for U.S. filings until the CLN is final, creating duplicate obligations.

Case Example: A dual national in London had his CLN delayed for 20 months, forcing him to continue filing U.S. taxes on a business he had already restructured under British law. The financial impact exceeded $250,000.

Step-by-Step Applicant Strategies

1. Pre-Appointment Preparation: Secure alternative nationality, gather certified documents, and confirm residency obligations.
2. Interview Readiness: Be prepared to demonstrate your willingness to participate. Officers often probe for signs of hesitation or family influence.
3. Documentation Precision: Complete all forms with exact detail; minor errors create long delays.
4. Anticipate Backlogs: Initiate the process well in advance of any critical deadlines (e.g., foreign tax filings, property transfers).
5. Mitigate Tax Exposure: Continue IRS compliance until the CLN arrives. Consider professional tax counsel to avoid penalties.
6. Monitor Progress: Communicate regularly with the consulate, request updates, and confirm whether the files have been transmitted to the relevant authorities in Washington.
7. Escalate if Necessary: If delays persist beyond two years, consider seeking administrative escalation or legal assistance.

Comparative Practices

Other countries provide clearer paths:

• Canada: CLNs are issued within 6–12 months; minors can renounce with parental consent and reclaim citizenship later.
• United Kingdom: Processing is faster, and applicants may later be eligible to resume citizenship under certain conditions.
• Germany and Switzerland: Renunciation is permitted only with secure alternative nationality; however, the process is transparent and efficient.
• Singapore: Strict but predictable, with military obligations enforced before approval.

Compared globally, the U.S. remains among the slowest and most expensive systems, with the fee exceeding $2,000 and processing often lasting years.

Policy Debates and Reform Proposals

Congressional hearings in recent years have scrutinized the high fee and backlog. Critics argue that slow processing violates international mobility norms, leaving families in a state of financial limbo. Proposals include reducing the cost, decentralizing approval authority, and streamlining verification of foreign nationality.

Yet national security concerns remain. Policymakers resist reforms that might allow individuals under investigation to exploit renunciation as a means of escape.

The Future of CLN Processing

Technology may reshape the landscape. Digitized nationality records could accelerate verification of foreign citizenship, reducing delays. Artificial intelligence screening may streamline background checks. At the same time, global instability and rising expatriation rates may continue to strain consular resources.

Climate migration, political polarization, and tax reform will also influence trends. More Americans may seek to renounce their citizenship, raising pressure on the Department to modernize.

Conclusion

Renunciation of U.S. citizenship is not a simple transaction. It is a legal journey requiring preparation, documentation, and patience. Delays and denials are inherent to a system designed to safeguard voluntariness, protect against statelessness, and maintain security. Yet for applicants, the consequences are heavy. Taxes linger. Families divide. Businesses stall.

For those considering renunciation, the lessons are clear: secure another nationality, document everything, prepare for long delays, and remain compliant until the CLN is final. For policymakers, the backlog and case studies reveal a need for reform.

Amicus International Consulting stresses that renunciation should only be undertaken with foresight and professional guidance. A denied or delayed CLN is not merely a bureaucratic inconvenience; it is a liminal state, trapping individuals between legal identities. With preparation, vigilance, and persistence, applicants can navigate the complexities, but the risks remain real.

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