ExpatBriefing: Jump In US Expats Renouncing Citizenship

By by Mike Godfrey, Tax-News.com, Washington 04 August, 2017

According to Treasury Department statistics, the number of taxpayers renouncing their US citizenship in the second quarter of 2017 hit 1,759 – the second highest on record.

The numbers of taxpayers renouncing their US citizenship grew by over a third (34 percent) from the previous quarter. The current record quarter – the fourth quarter of 2016 – saw 2,365 US citizens renounce their passports or green cards.

The total figure for the first half of 2017 (3,072) has already exceeded the total for 2013 (2,999).

The number of expatriations from the US has been on an upwards trajectory since 2013 in large part due to increased awareness of, and an increase in the number of reporting obligations on non-resident persons.

For instance, the introduction of the Foreign Account Tax Compliance Act (FATCA) in 2010 required foreign financial institutions to report information on assets held by US citizens overseas. This is in addition to the existing obligation for all US citizens to declare foreign accounts with an aggregate balance of over USD10,000.

Tags: Individuals | Expatriates | Foreign Account Tax Compliance Act (FATCA) | Tax | FATCA | Internal Revenue Service (IRS) | United States | Compliance | Expats | Tax |