Thursday 4 September 2014

Good News and Bad News – New visa fees announced for E applications and Renunciations of U.S. Citizenship

The State Department announcement I received in my inbox late last week looked promising – “Fees decreased” was what caught my eye.  A quick glance through the Federal Register confirmed that the fee for E-1, E-2 and E-3 applications, were being reduced to $205, down from $270.  Fortunately, fees for H-1B applications along with L-1s were not increased (how much higher could they go at this point?).  This is great news for all those E-3 applicants out there.  The State Department made a point of saying that the new reduced fee was a reflection of the “actual cost of services”.  (Which doesn’t exactly make sense to me due to the large disparity in the time spent by a consular officer in the review of documents for an E-1 or E-2 application compared with the amount of time spent on an E-3 application.)   
The bad news came for all those would-be renouncers of their U.S. citizenship.  The new fee is a whopping 422% higher than it is now, a jump from $450 to $2,350.  This can not possibly be reflective of the “actual cost of services”.  An application for renouncement is not very document intensive.  The process consists of two short in-person interviews (and sometimes the first interview is over the phone) and a couple of forms. Unless you have an enormous portfolio and there are serious exit tax issues, very few supporting documents are required.  The State Department notes that the large increase in the filing fee is justified as the demand for the renunciation requests has ballooned and they need additional staff to process the applications. According to a February 2014 post in the International Tax Blog, a record 2,999 people renounced their US citizenship in 2013, a 221% increase over the 2012 figure.  However, a total of 3,000 applicants worldwide does not seem to justify this high fee, in my opinion.  In contrast, 3,946 E-3 visas were issued in 2013, yet the fee is around 10% of the cost of a renouncement application.   
I find it interesting to note the filing fees for renouncing citizenship in other high-income countries:
Australia - $265
United Kingdom - $240

New Zealand - $335
Canada - $90

Anyone making applications for the visa categories mentioned on or after September 6, 2014 need to remit the correct fee amounts. 
For individuals who seek to travel to the US, it is strongly recommended to contact a qualified US Immigration Lawyer to discuss your visa options.



To connect to a qualified US Immigration Lawyer contact our specialist US Immigration team

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