Surge In US Residents Renouncing Citizenship Continues

Many Americans Renounce Citizenship, Hitting New Record

 

 

 

” It may seem like a drop in the bucket, especially when droves want to immigrate to America. Still, the newly published names of individuals who renounced their U.S. citizenship or terminated long-term U.S. residency is up, with 576 for the quarter and 1,577 so far this year. The growing trend is a sad one as Record Numbers of Americans Are Renouncing Their U.S. Citizenship.

  For all the immigrant arrivals, the trickle the other direction is becoming more pronounced. The tally was 2,999 for all of 2013, a 221% increase over the 932 who left in 2012. The Treasury Department is required to publish a quarterly list, a kind of public outing putting Americans on notice of who relinquished their rights. Consular expatriations, where people don’t file exit tax forms with the IRS, are apparently not counted.

  Indeed, the Treasury Department’s published list states explicitly this is just those about whom the Secretary of the Treasury has data. It means these numbers are under-stated, some say considerably. Although tax law used to impact how one is taxed on departing the U.S., is no longer relevant why someone expatriates.”

 

Forbes has more

 

 

 

 

 

 

 

 

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Why Are Americans Giving Up Their Citizenship?

Goodbye, US Passport

 

 

 

” That’s not a concept that Americans contemplate lightly. But it’s one that many of them seem to be considering – and acting on.

The number of expatriates renouncing their US citizenship surged in the second quarter of 2013, compared with the same period the year before – 1,131 cases to 189 in 2012. It’s still a small proportion of the estimated six million Americans abroad, but it’s a significant rise.

The list is compiled by the Federal Register and while no reasons are given, the big looming factor seems to be tax.

A new law called the Foreign Accounts Tax Compliance Act (Fatca) will, from 1 July next year, require all financial institutions around the world to report directly to the US Internal Revenue Service (IRS) all the assets and incomes of any US citizens with $50,000 (£31,000) on their books. The US could withhold 30% of dividends and interest payments due to the banks that don’t comply.

It’s an attempt by the US authorities to recover an estimated $100bn a year in unpaid taxes on US citizens’ assets overseas. Unlike other countries, Americans are taxed not only as residents of the US but also as citizens, wherever they live.”

 

 

 

 

 

 

 

 

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Taxes Fuel American Citizenship Renunciations

Americans Renouncing Citizenship To Become British Thanks To Tax Rise

 

 

 

” London-based American lawyers, who specialise in tax and immigration, report a threefold increase over the last five years in the number of American citizens who are giving up their citizenship – a process known as “renunciation”.

Across the world 1,781 Americans renounced their citizenship in 2011 compared with just 231 in 2008, when US tax laws changed, although it remains unknown how many are adopting British rather than any other nationality.

Many decide to give up their American citizenship after tiring of the lengthy US tax return process, which requires them to pay tax on their total income regardless of where they live.

“There’s no question that the number of people renouncing their US citizenship is increasing,” said Diane Gelon, a US tax and immigration lawyer based in London.”

 

Related articles

• Americans renouncing citizenship to become British… (telegraph.co.uk)
• Americans Renouncing Citizenship To Become British Thanks To Tax Rise (amresolution.com)
• Americans Renouncing Citizenship To Become British (patdollard.com)
• High taxes force more Americans to renounce their citizenship (sott.net)

 

 

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