text: People giving up U.S. nationality may be subject to an expatriation tax. Originally, under the Foreign Investors Tax Act of 1966, people determined to be giving up their nationality for the purpose of avoiding U.S. taxation were subject to ten years of continued taxation on their U.S.-source income, to prevent ex-nationals from taking advantage of special tax incentives offered to foreigners investing in the United States. Since 2008, these provisions no longer apply; instead, ex-citizens who meet certain asset or tax liability thresholds pay a capital gains tax on a deemed sale of their U.S. and non-U.S. assets, including retirement accounts, regardless of their reasons for giving up citizenship. The Reed Amendment, a 1996 law, bars former nationals as inadmissible to the United States if the Attorney General finds that they renounced citizenship for purposes of avoiding taxes; however, it has never been enforced. Proposals such as the Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy Act to rewrite the Reed Amendment and make it enforceable failed in committee in both 2012 and 2013.
  Dual nationality
  The Supreme Court ruled in Kawakita v. United States, 343 U.S. 717 (1952) that dual nationality is a long-recognized status in the law and that "a person may have and exercise rights of nationality in two countries and be subject to the responsibilities of both. The mere fact he asserts the rights of one nationality does not, without more, mean that he renounces the other". In Schneider v. Rusk, 377 U.S. 163 (1964), it found that persons who have been naturalized in the United States have the right to return to their native countries and to resume a former nationality while remaining a U.S. national. This applies even if they never return to the United States. Since 1990, the State Department has allowed multiple nationalities. Official policy is one of recognition that such a status exists, but the U.S. government does not endorse a policy of having multiple nationalities, though it is permitted. Dual nationality may run counter to expectations of government agencies in matters of security clearance or access to classified information. The State Department issued a memorandum in 2016, advising agencies of proper evaluation procedures to weigh the risks of plural nationality.