More Americans than ever are renouncing their U.S. citizenship – because of taxes.
New IRS practices are making it easier to tax Americans who are living abroad.
From 2011 to 2013, 3,000 people gave up citizenship. In 2014, that number was 3,415.
The trend likely is accelerating because of a 2010 law that gives the Internal Revenue Service unprecedented access to U.S. citizens’ foreign bank accounts, said Stephen Flott, an attorney at Flott & Co. P.C. in Arlington, Virginia, whose clients include expatriates
“If they have no real desire to work or live here, then the question for them is: What’s the point?” Flott said. “For those who feel no real affinity to the U.S., it’s a no-brainer.”
…The reporting requirements under Fatca and foreign banks’ actions to avoid penalties made many people aware of U.S. tax obligations they didn’t know they had, Flott said.
“They wake up one morning and learn about citizenship taxation and birthright citizenship and the two together create for some people a real problem,” he said.
Has the United States turned into the home of the brave and land of the taxed?