In sum, I am of the view that both terms are in effect interchangeable for federal tax purposes.
The important time reference under the law of IRC Sections 877 and 877A is the “expatriation date” as defined in Section 877A(g)(3) – which focuses on specific dates tied to meetings or events with the U.S. Department of State.
Indeed the tax statute uses the terms “renounce” and “relinquish” in the same breath.
The key terms of the statute are set out below:
(3) Expatriation date
**
The term “expatriation date” means—
**
**
(B) in
the case of a long-term resident of the United States, the date on
which the individual ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701 (b)(6)).
**
**
A citizen shall be treated as relinquishing his United States citizenship on the earliest of—
**
(A) the date the individual renounces
his United States nationality before a diplomatic or consular officer
of the United States pursuant to paragraph (5) of section 349(a) of the
Immigration and Nationality Act (http://www.law.cornell.edu/uscode/text/8″>8 U.S.C. 1481 (a)(5)),
**
(B) the date the individual furnishes to the United States Department of State a signed statement of voluntary relinquishment
of United States nationality confirming the performance of an act of
expatriation specified in paragraph (1), (2), (3), or (4) of section
349(a) of the Immigration and Nationality Act (http://www.law.cornell.edu/uscode/text/8″>8 U.S.C. 1481 (a)(1)–(4)) . . .
Renouncing
citizenship is a way to relinquish it, so when discussing this form of
relinquishment, the two words can be used interchangeably.
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