Record Number of Americans Renouncing Citizenship Because of Overseas Tax Burdens
Frustration over taxes is as American as apple pie, but some U.S. citizens are becoming so overwhelmed by the Internal Revenue Service that they’ve decided to stop being Americans altogether.
There’s also the problem of so-called “accidental Americans,” who were born in the United States but have lived most of their lives in Canada. American tax law mandates that citizens pay U.S. taxes regardless of the country in which they reside, meaning that in the last five years, when the U.S. government started cracking down on foreign tax evaders, many Canadians born in the U.S. realized for the first time that they might owe the IRS back taxes.
Among them was one man who was born in the U.S. but was brought to Canada right after birth, who insisted on anonymity because he is still in the process of renouncing his American citizenship – which he didn’t even realize he had until, on a 2011 trip south of the US-Canada border, he was told he needed an American passport in order to re-enter the United States.
“I don’t break any laws,” he said. “It’s an accident of birth.”
We recently had the chance to speak with one of these “accidental Americans.” It’s a shocking story that you should know about it. Article link is here.