The Association of Accidental Americans (AAA) has appealed a judgement in the US after the district court dismissed its lawsuit against the Department of State.
The AAA sought to legally challenge the “imposition” of a $2,350 (£1,950, €2,200) fee to Americans looking to renounce their US citizenship.
The Department of State announced in January it was going to lower the cost to $450 – the same level as when the fee was introduced in 2010. It is also the same year as when the Foreign Account Tax Compliance Act (Fatca) was enacted.
On 10 February, judge Taya Chutkan ruled that the AAA, and the plaintiffs who brought the lawsuit alongside the association, did not have a fundamental right to expatriate, as they alleged. She added that, even if that was the case, the renunciation fee satisfies the ‘strict scrutiny’ test as the money is intended to cover the costs of providing governmental services.
The AAA noted, however, that the judge made no mention of the Department of State’s intention to lower the fee.
As a result, the association filed a notice to appeal against Chutkan’s decision on 13 February, which will be heard by three judges at the United States Court of Appeals for the District of Columbia circuit. A date for the appeal hearing has not been set yet.
Fabien Lehagre, founder and president of the AAA, said: “Our fight for the rights of accidental Americans continues to the appellate level. We are obviously disappointed by the ruling. The court committed several significant and material errors that must be reviewed by the court of appeals.
“We have appealed the decision and will raise our arguments before the court of appeals. It is our hope that the court of appeals will give the right to expatriate the importance it deserves. Our battle has just begun.”
The defeat comes shortly after the association started a fundraiser for $200,000 to finance lobbying and public affairs services which will accompany it latest lawsuit in the US, this time looking to challenge the country’s citizenship-based taxation model.
