Most Renounced Their Citizenships For Tax and Privacy Reasons
According to a recent report on CNBC.com, "at least" 1,788 people renounced their US citizenships last year.
According to the report, many of the people who renounced their citizenships did so for tax reasons. The only way for a person to legally escape their filing requirements with the IRS, whether they are living at home or abroad, is to legally renounce their US citizenship.
The total number of people who renounced their citizenships in 2011 is staggering when compared to previous years.
According to the IRS, eight times as many people renounced their citizenships in 2011 as compared to 2008, which was the last year of George W. Bush’s presidency. In addition, the IRS notes that more people renounced their citizenships last year than in 2007, 2008 and 2009 combined.
Many of the people who have recently renounced their citizenships point to the Report of Foreign Bank and Financial Accounts and the Foreign Tax Compliance Act as their primary reasons for doing so. Penalties for noncompliance of these laws have increased in recent years.
These people argue that the tax laws for Americans living abroad are too cumbersome and too invasive, which has led them to cut ties to the country altogether.
Source: CNBC.com - Taxes prompt More Americans to Renounce Citizenship
Filed under: General Knowledge