More U.S. Citizens Renouncing Citizenship
The amount of U.S. taxpayers renouncing their citizenship has more than doubled to 1,534 from 2009 to 2010, which is more than the amount of individuals who have renounced in the past three years combined. This increase is due to the U.S. government seeking hidden assets of U.S. citizens around the world. Those who are expatriating must appear before a U.S. consular or diplomatic officer and sign an oath of renunciation. For 2011, those citizens whose net worth is more than $2 million or with an average annual income tax exceeding $147,000 for the past five years are required to pay income taxes on assets as if they were sold the day before the expatriation, benefitting from an exclusion of $636,000. The increase in penalties has caused many U.S. citizens with dual citizenship to view their U.S. citizenship as not worth the stress and hassle of the U.S. tax-filing rules. Starting in 2013, banks overseas will begin to face a 30% withholding tax on income from U.S. assets for failing to share information on American account holders. The uncertainty of the estate tax has also caused wealthy taxpayers to give up their U.S. citizenship.
To read more on this article, visit More U.S. Citizens Toss Passports as IRS Seeks Hidden Assets.
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