More Americans Renounce Citizenship, With 2014 on Pace for a Record
Significant numbers of people are continuing to renounce their US citizenship.
There are 776 names on the Treasury Department list published Friday for the third quarter of 2014. According to Bloomberg, more than 9,000 Americans living overseas gave up their passports over the past five years.
That’s the third highest quarterly figure ever, according to Andrew Mitchel, an international tax lawyer in Centerbrook, Conn., who tracks the data. The total number of published renouncers so far in 2014 is 2,353, putting this year on pace to exceed last year’s record total of 2,999, adds Mr. Mitchel.
Unlike other developed nations, the US taxes citizens on income they earn anywhere in the world. The rule dates to the Civil War. US tax liabilities can also cover children born to Americans abroad, extending the reach of the Internal Revenue Service across generations as well as oceans. There are only partial offsets for double taxation for people who owe taxes both to the US and a foreign country, and the reporting rules are onerous, experts say.
To address this topic we’ve prepared for International Man readers a free report called The American Expatriation Guide—How to Divorce the US Government. This report will guide you through the process of renunciation in amazing detail. To get a copy, simply log in to the International Man site and then go to the Free Guides & Resources section to download the PDF.
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