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The number of Americans choosing to give up their citizenship has spiked dramatically this year as the government works to implement a new disclosure law aimed at stamping out tax evasion.
Some of the rush may be caused by Americans hoping to avoid the new disclosure requirements. Others living abroad say they are giving up their U.S. passport because they are tired of dealing with overly complicated tax filings.
Unlike most countries, the U.S. continues to tax citizens on all income, regardless of where it is earned or where they reside. For expats, filing taxes in two countries often means wrestling with a huge mountain of paperwork.
The increase comes as the U.S. prepares to implement the Foreign Account Tax Compliance Act, a new law that requires foreign institutions to report all assets owned by Americans.
The measure, approved by Congress in 2010, is aimed at recouping some of the hundreds of billions the government says it loses each year in unpaid taxes. The law also requires individuals with overseas assets to file additional forms.
Even individuals who are not among the super rich are considering giving up their citizenship -- especially when lower tax rates beckon in other countries.
For those who haven't paid their taxes, giving up citizenship isn't an easy way out. The government can still go after former citizens if evidence of tax evasion surfaces.
Plus, there's no statute of limitations and the IRS could then collect back taxes, said Scott Michel, president of Caplin & Drysdale, an international tax law firm.....snip~
Americans Turn In Passports as New Tax Law Hits - Yahoo! Finance
We do need to deal with Tax reform.....that is a fact. How much longer can we put it off? What do you think about people who would give up their Citizenship to avoid or try to avoid paying their taxes owed here?
What do you think about the issue of Dual Citizenship? Should there be such a thing? If one doesn't want to be part of that Country anymore. Why should they still carry that citizenship?
Some of the rush may be caused by Americans hoping to avoid the new disclosure requirements. Others living abroad say they are giving up their U.S. passport because they are tired of dealing with overly complicated tax filings.
Unlike most countries, the U.S. continues to tax citizens on all income, regardless of where it is earned or where they reside. For expats, filing taxes in two countries often means wrestling with a huge mountain of paperwork.
The increase comes as the U.S. prepares to implement the Foreign Account Tax Compliance Act, a new law that requires foreign institutions to report all assets owned by Americans.
The measure, approved by Congress in 2010, is aimed at recouping some of the hundreds of billions the government says it loses each year in unpaid taxes. The law also requires individuals with overseas assets to file additional forms.
Even individuals who are not among the super rich are considering giving up their citizenship -- especially when lower tax rates beckon in other countries.
For those who haven't paid their taxes, giving up citizenship isn't an easy way out. The government can still go after former citizens if evidence of tax evasion surfaces.
Plus, there's no statute of limitations and the IRS could then collect back taxes, said Scott Michel, president of Caplin & Drysdale, an international tax law firm.....snip~
Americans Turn In Passports as New Tax Law Hits - Yahoo! Finance
We do need to deal with Tax reform.....that is a fact. How much longer can we put it off? What do you think about people who would give up their Citizenship to avoid or try to avoid paying their taxes owed here?
What do you think about the issue of Dual Citizenship? Should there be such a thing? If one doesn't want to be part of that Country anymore. Why should they still carry that citizenship?