Americans Living Abroad Set Another Record for Giving up Citizenship
More Americans living outside the U.S. gave up their citizenship in the first quarter of 2015 than ever before, according to data released Thursday by the IRS.
The 1,335 expatriations topped the previous record by 18 percent, according to data compiled by Bloomberg. Those Americans are driven to turn in their passports in part because of laws that have expanded bank reporting and tax compliance requirements for expatriates . . .
An estimated 6 million U.S. citizens are living abroad, and the U.S. is the only country within the Organization for Economic Cooperation and Development that taxes citizens wherever they reside.
In many cases, those choosing to give up their citizenship have limited connections to the U.S. and have lived outside of the country for most of their lives. Anyone born in the U.S. automatically receives citizenship, and people born abroad to U.S. parents are typically citizens as well.
“The cost of compliance with the complex tax treatment of non-resident U.S. citizens and the potential penalties I face for incorrect filings and for holding non-U.S. securities forces me to consider whether it would be more advantageous to give up my U.S. citizenship,” Stephanos Orestis, a U.S. citizen living in Oslo, wrote in a March 23 letter to the Senate Finance Committee. “The thought of doing so is highly distressing for me since I am a born and bred American with a love for my country.” (Read more from “Americans Living Abroad Set Record for Giving up Citizenship” HERE)
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