Expatriates giving up their
nationality at U.S. embassies climbed to 1,131 in the three months
through June from 189 in the year-earlier period, according to Federal Register
figures published today.
That brought the first-half total to
1,810
compared with 235 for the whole of 2008.
The U.S. is the only nation in the
OECD that taxes its citizens wherever they reside.
Shunned by Swiss and German
banks and facing tougher asset-disclosure rules under the Foreign Account
Tax Compliance Act, more of the estimated 6,000,000 Americans living
overseas are weighing the cost of holding a U.S. passport.
Factors causing U.S. Citizens to
renounce:
1.
Since 2011, Americans, who disclose
their non-U.S. bank accounts to the IRS, must file the more expansive 8938 form that asks for all foreign financial
assets, including insurance contracts, loans and shareholdings in non-U.S.
companies as well as the traditional FBAR Form TD 90.22.1.
2.
Failure to file the 8938 form can
result in a fine of as much as $50,000.
3.
Clients can also be penalized 50% of
the amount in an undeclared foreign bank account under the Banks Secrecy Act of 1970 for failure to file and report
their account(s) on the FBAR form.
4.
It is estimated that the additional
compliance costs for companies that employ Americans abroad and want to
ensure that they are filing the correct U.S. tax returns and asset-declaration
forms are at least $5,000 per person annually.
5.
The resulting increased U.S.
accounting costs alone are around $2,000 per year for a U.S. citizen residing
abroad. and
6.
They are shunned by Foreign
Banks and cannot open nor maintain their accounts with foreign
banks that are facing tougher reporting rule under FATCA.
Need
Advice On "Should I Stay or Should I Go"?
Contact the Tax Lawyers
At
Marini & Associates, P.A.
For a FREE
Tax Consultation at:
Toll Free at
888-8TaxAid (888 882-9243).
Sources:
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