Consular Reports of Birth Abroad

U.S. citizens abroad can go to the local consulate in the host country to report the birth of a new US citizen (a child born abroad to parent(s) who fulfill the requirements to pass along their U.S. citizenship to their offspring).  The purpose of such a pilgrimage to the local consulate is to get a determination that the child was indeed born an American citizen and acquire the documentation necessary to, say, apply for a US passport.

But here's the kicker - this is entirely voluntary.  No American parent abroad has to make such a report and furthermore reporting or not reporting the birth makes no difference whatsoever in the status of that child:  if his parent(s) fulfilled the requirements for passing along US citizenship then that child is a US citizen by birth, albeit an undocumented one.  Nothing prevents that child from claiming US birthright citizenship later in life.  It's just a matter of gathering the right paperwork.

So put yourself in the position of an American abroad with a new baby.  Do you report the birth and get the passport/social security number right away? Or do you wait until the child can make up his or her own mind whether he wishes to claim US citizenship or not?

There is anecdotal evidence that the latter is becoming more and more common and that would make sense.  But is it true?  No one knows.

Both of these things should be looked into by an intrepid, inquisitive soul in order to get a much better perspective on the state of US citizenship today.  A simple Freedom of Information Act request should suffice.

(Before I forget, there are rumours that the current US citizenship renunciation fee will be raised from 450 USD to over 1,500 USD , the DOS stated that the current $450 is less than 25% of their actual costs to handle an expatriation case and they probably want to recover the remainder given the volume. )  

And the American Chamber of Commerce notes that it is a growth industry worth exploring from the business perspective;
“……Here’s a hot tip for accountants and tax attorneys: now is a good time to develop specialized expertise in advising clients who may be seeking to expatriate from the United States. That demographic looks more and more like a real growth opportunity…….”
from;
‘Exit Strategy: FATCA Tax Law Keeps Pushing Americans To Give Up Citizenship’
— Written by
David Kinkade
https://www.uschamber.com/blog/exit-strategy-fatca-tax-law-keeps-pushing-americans-give-citizenship