Roger Ver Fights Back
Let’s be real—who wants to pay an “exit tax” just to say goodbye to their citizenship?
Roger Ver is calling it out.
He filed for dismissal of his tax case, arguing that the US government’s “exit tax” is unconstitutional and, quite frankly, makes no sense. He claims that the IRS’s requirements for anyone with over $2 million in assets who decides to renounce their US citizenship are not just vague—they’re straight-up illegal.
The keyword here is unconstitutional.
Ver argues that this exit tax violates both the Apportionment Clause and the Due Process Clause. He thinks the IRS rules are so vague that they can’t possibly be applied fairly, especially regarding digital assets. And let’s face it: If there’s one thing that’s been unclear, it’s how the IRS treats crypto.
What’s the IRS Exit Tax About Anyway?
The IRS put in place this “exit tax” to make sure no one can skip out on their tax bill by simply renouncing their citizenship.
Except, Ver and his lawyers argue that the system doesn’t work, especially when it comes to folks like Ver, who have a lot of assets tied up in crypto. If you’ve ever dabbled in Bitcoin or other digital currencies, you’ll know what we’re talking about—these assets aren’t just sitting around like cash, and the market for them can be anything but stable.
Did the IRS Overstep?
Ver’s team says absolutely. They claim that prosecutors unlawfully questioned one of his lawyers, and even ignored documents that show Ver had no intention of filing a fake tax return.
He’s not just saying, “I didn’t do it,” but that the process itself has been messed up from the start. According to Ver, the US government ignored the real obstacles, like the liquidity of Bitcoin at the time he filed his exit tax request.
The reality is, Ver renounced his US citizenship in 2014 and took up a St Kitts and Nevis passport instead—but things didn’t go smoothly with the IRS.
The Allegations
In April, US prosecutors arrested Ver in Spain and hit him with charges of tax evasion and fraud. They’re claiming he dodged more than $48 million in taxes by not reporting the capital gains from selling tens of thousands of Bitcoin for $240 million.
Not a small amount, right?
And these aren’t minor charges either—Ver’s looking at potentially 30 years in prison if found guilty. He’s facing charges for mail fraud, tax evasion, and filing false tax returns.
So, what does Ver say?
He claims that at the time he tried to comply, it was basically impossible to properly submit the exit tax forms. Why? Because of the illiquid nature of the Bitcoin market. He couldn’t cash out all that Bitcoin easily, and the rules were so vague he couldn’t figure out how to comply.
Why Does This Matter for You?
This isn’t just about Roger Ver. If you’re thinking of renouncing your US citizenship and living somewhere a little more… chill… then this case could be huge.
Right now, the IRS makes it tough for anyone who wants out. There’s a hefty exit tax, and Ver’s situation highlights just how messy and complex the system can be.
If you’ve got more than $2 million in assets and want out of the US tax system, you’re going to have to deal with this “exit tax”.
What Should You Do If You’re Considering Renouncing?
If you’re thinking about getting a second passport and leaving the US, you’ve got to get the right guidance. It’s not just about paying the tax—it’s about understanding what the IRS wants, and making sure you’re set up the right way.
A few things to keep in mind:
- Get a second passport. You can’t just renounce US citizenship without having somewhere else to go. Learn how to do it here.
- Know your rights. You need to know exactly what the IRS wants, and what your rights are when dealing with their rules. Check out our guide on legally avoiding tax here.
- If you’re holding assets like Bitcoin or other cryptos, make sure you’re prepared for how they’ll be treated during the exit process.
Need help protecting your assets? Get rock-solid offshore protection. It’s not as hard as you think. Here’s a good place to start: Bulletproof Asset Protection.
Roger Ver: No Stranger to Drama
If you’ve followed Ver over the years, you know he’s been through his share of legal trouble.
He spent ten months in federal prison back in 2002-2003 for selling explosives on eBay—yep, real explosives.
Fast forward to 2017, and he was all-in on Bitcoin Cash (BCH), pushing it after the Bitcoin network forked. He’s known as one of the original “Bitcoin Jesus” figures, spreading the word about crypto long before it was cool.
In 2022, he got into it with CoinFlex, which said Ver owed them $47 million in USD Coin (USDC). Let’s just say the drama has never stopped.
FAQs About the IRS Exit Tax and Renunciation
1. What is the IRS exit tax?
The IRS exit tax is a tax imposed on US citizens who renounce their citizenship if they have over $2 million in assets. It’s essentially a tax on the unrealized gains of your worldwide assets.
2. Why is Roger Ver challenging the exit tax?
Ver believes the exit tax violates the US Constitution and that the IRS rules are so unclear, it’s impossible to comply—especially for those holding digital assets like Bitcoin.
3. What happens if you’re found guilty of not paying the exit tax?
You could face serious charges like tax evasion or fraud, which can lead to hefty fines or even prison time.
4. How do you avoid getting caught up in an exit tax issue?
The best way is to plan ahead. Secure a second citizenship or residency, and get expert advice before you renounce. Also, consider how your assets are structured—setting up an offshore trust might help.
5. Where can I find countries without an exit tax requirement?
Look into countries with territorial tax systems that don’t tax you on global income. Here’s a list.
What’s Next for Roger Ver?
Who knows? The US government isn’t backing down, and neither is Ver. He’s still fighting the case, claiming he did everything right and that the IRS is in the wrong here.
But whatever happens, one thing is clear—this case is shedding light on a big issue that many people thinking about renouncing their US citizenship need to pay attention to.
Want to protect your wealth and escape the tax trap? You’re in the right place.
Bulletproof Asset Protection is your first step.
Stay informed and take control. Living life on your own terms should never mean losing everything you’ve worked for.