More Americans Are Abandoning the U.S.





This year will set a record for expatriations by U.S. taxpayers, with at least a 33% increase from the previous high in 2011.

The Treasury Department published the names of 560 people who either were U.S. citizens renouncing their citizenship or long-term residents who turned in their green cards during the third quarter. The department doesn't distinguish between those giving up passports and those turning in green cards.

That brings the total so far this year to 2,369, according to Andrew Mitchel, a tax lawyer in Centerbrook, Conn., who tracks the data. For all of 2011, the number of published expatriates was 1,781, he said.

Taxpayers who expatriate aren't required to give a reason, but experts said the overall increase was likely because of tougher enforcement of U.S. tax laws. It is believed current or anticipated changes in tax law and enforcement are driving this increase.

People who renounced last year might have avoided higher taxes on income and estates - including those on long-term capital gains - that took effect in 2013. Those who renounce citizenship or turn in green cards can be subject to an exit tax.

All income earned by U.S. citizens and permanent residents, even those who live abroad, can be subject to U.S. tax. The U.S. also confers citizenship on people born on American soil. Penalties for failing to report assets can be severe, including up to 50% of an account balance a year.Are taxes really enough reason to abandon your country? What are your thoughts?

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