The Treasury Department published the names of 560 Americans who renounced their citizenship or are long-term residents who gave back their green cards during the third quarter of 2013, The Wall Street Journal reported. According to tax lawyer Andrew Mitchel who tracks the data, these expatriations reached a record high of 2,369 for the year. The prior highest number of published expatriates was in 2011, said Mitchel. Continue reading
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. Continue reading
“Your options are to ignore the IRS and stick your head in the sand; take your name off of all the accounts and live in a completely cash economy; divorce; or renounce U.S. citizenship,” Laederich says. “We’ve seen all of these things happen.”
Genette Eysselinck, a friend of Laederich’s, renounced early this year. Her husband, a European Union civil servant, saw no good reason to share his account information with the IRS, she says. And after considering all her options, Eysselinck decided that renouncing was the best path.
“It created a lot of tensions around here,” she says. “Divorce seemed a little extreme, so I asked myself, ‘What am I gaining as an American?’ And the cons outweighed the pros.”
Eysselinck was born in Fort Bragg, North Carolina, and says she grew up on military bases all over the world. Her father, she says, was an Air Force pilot. Eysselinck has lived abroad for decades and no longer has any close connections in the United States.
She spent her final months as an American collecting paperwork and filing tax returns from the past five years, even though she says she owed nothing. Her last act as a citizen was to swear before an American flag that she renounced all ties with the United States. She called the process “gut wrenching.”
“I grew up in a military family where patriotic feeling was very strong” Eysselinck says. “I’m amazed at how terrible I felt renouncing. But it was the only way to get them off my back. It’s very distressing and time consuming to keep up with all the paperwork. But if it’s this bad when I’m 64, how bad will it be when I’m 74?”
Full article: Taxes Prompt More Americans to Renounce Citizenship (CNBC)