VATICAN CITY – Pope Leo XIV is reportedly considering renouncing his United States citizenship, a decision prompted by concerns ranging from potential legal exposure to the complexities of American tax law, according to sources cited by The Pillar.

Sexual Abuse Claims and Vatican Assets

The Pillar,citing anonymous Vatican sources,reported that the Vatican State Secretariat is seriously considering asking Pope Leo XIV to relinquish his American citizenship. This consideration stems from the risk that American victims of sexual abuse committed by priests might pursue civil proceedings targeting Vatican assets,arguing they are effectively the property of an American citizen,the Pope.

SNAP (Survivors Network of those Abused by Priests) has accused Leon XIV of protecting a chicago priest in 2000, following charges of sexual abuse, and also two others in Peru when he was a bishop.

Over the past 20 years, forty American dioceses and religious orders have declared bankruptcy due to the financial strain of settlements paid to victims. In May, a judge approved the bankruptcy of the diocese of New Orleans, limiting payments to 600 victims to $179 million.

Sarah Pearson, director of communications for SNAP, suggests that while the legal basis for targeting the Pope’s assets is tenuous, the election of Leon XIV might encourage the Vatican to adopt American standards of justice, perhaps benefiting victims seeking compensation.

Tax Implications for the Pontiff

Another factor influencing the potential renunciation is the reach of the U.S. tax system. Jared Walczak, vice-president of the Tax Foundation, explains that all American citizens must file annual tax returns, regardless of where they reside.

Walczak notes that while Americans earning over US $130,000 abroad are subject to U.S. taxes, Pope Leo XIV’s income is highly likely lower. He adds that the Pope’s expenses,such as accommodation,clothing,and travel,could be considered non-taxable representation costs.Furthermore, his vow of poverty as an Augustinian could also be a factor in the analysis.

Regarding the possibility of the Vatican’s assets being considered the Pope’s personal property, Walczak believes it is unlikely the IRS would pursue such an analysis. However, as the head of Vatican institutions, including papal banks, Leon XIV could be required to fulfill IRS reporting requirements for Americans in positions of authority in financial institutions worldwide, as part of anti-money laundering efforts.

Political Repercussions and Anti-Americanism

Edward David, a theologian at King’s Collage in London, suggests that the political consequences of Leon XIV renouncing his American citizenship would outweigh any tax or judicial benefits.

David believes such a decision would be seen as a rejection of the United States, notably the Trump administration, potentially diminishing the Pope’s influence on Republicans in the U.S.

Precedents: Boris Johnson and Mohamed Abdullahi Mohamed

Former Prime Minister of the United Kingdom Boris Johnson, who was born in New York, renounced his U.S. citizenship in 2017. In 2006, he was denied boarding a flight to the United States as he lacked a valid American passport, as the U.S. requires its citizens to present an American passport to enter the country.

Mohamed Abdullahi Mohamed, the former president of Somalia, also renounced his American citizenship in 2019 to avoid criticism in his country, according to the New York Times.

Paul Hunker, a Texas immigration lawyer, explains that while an American can theoretically lose their nationality for treason or for being elected head of another state, in practice, an American elected in another country must request to renounce their citizenship.

Hunker notes that visits by foreign heads of state to the U.S. are managed by the State Department,which can waive passport requirements.

Additionally, The Pillar reports that the Pope cannot hold a Vatican passport because he is the one who issues them.