Number of Americans renouncing U.S. citizenship jumps 20% in 2015
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http://money.cnn.com/2016/02/08/news/americans-citizenship-renunciation/>
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http://money.cnn.com/2016/02/08/news/americans-citizenship-renunciation/>
Number of Americans renouncing U.S. citizenship jumps...
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http://money.cnn.com/2016/02/08/news/americans-citizenship-renunciation/>
The number of American citizens and long-term residents cutting their
official ties to the U.S. jumped more than 20% last year to a new record of
4,279.
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http://money.cnn.com/2016/02/08/news/americans-citizenship-renunciation/>
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Record number of Americans dump U.S. passports
by Jethro Mullen _at_CNNMoney
<
https://twitter.com/intent/user?screen_name=CNNMoney> February 8, 2016:
9:27 AM ET
[image: powerful passports us]
More Americans than ever before are turning their backs on the United
States.
The number of citizens and long-term residents cutting their official ties
to Uncle Sam jumped more than 20% last year to 4,279, according to a
CNNMoney analysis of the latest government data.
It's a trend that's been increasing in recent years. Many of those severing
links are Americans living overseas who are tired of dealing with
complicated tax paperwork, a headache that has worsened since new
regulations came into effect.
Eighteen times as many Americans renounced their citizenship or long-term
residency in 2015 compared with 2008. Last year was the third
record-breaking year in a row.
Unlike most other countries, the U.S. taxes its citizens on all income, no
matter where it's earned or where they live. For Americans living abroad,
that results in a mountain of paperwork so complex that they are often
forced to seek professional help, forking out high fees for accountants and
lawyers.
[image: chart-american-passports-2015-animated]
The burden has gotten heavier in recent years with the Foreign Account Tax
Compliance Act, which became law in 2010.
It requires individuals to report certain foreign assets and banks to
disclose all foreign accounts held by Americans. That comes on top of
another rule that requires Americans to disclose foreign bank holdings
above $10,000.
The regulations are part of a U.S. government campaign to fight tax evasion
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http://money.cnn.com/2015/01/28/pf/taxes/hiding-money-offshore/index.html?iid=EL>,
given added impetus after major Swiss banks admitted to helping Americans
hide assets offshore.
But those efforts are making life difficult for the 7.6 million Americans
living abroad.
Related: How you'll benefit from the new tax deal
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http://money.cnn.com/2015/12/16/pf/taxes/tax-breaks/index.html?iid=EL>
As financial institutions grapple with FATCA, some overseas banks -- both
big and small -- have ditched their U.S. clients
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http://money.cnn.com/2013/09/15/news/banks-americans-lockout/index.html?iid=EL>,
leaving some without even basic checking and savings accounts. That's
because banks that mistakenly fail to report any accounts held by Americans
outside the U.S. can face steep penalties.
Some wealthy Americans who are renouncing their citizenship may end up
paying lower taxes in the future. But it's illegal to give up U.S. status
to dodge paying a tax bill -- and doing so doesn't mean authorities won't
come looking for back taxes.
*-- Sophia Yan contributed to this report.*
CNNMoney (Hong Kong) First published February 8, 2016: 5:21 AM ET
Received on Wed Feb 24 2016 - 20:24:17 EST