Record Number of U.S. Citizens, Green-Card Holders Cut Ties With U.S. in 2015

passport-WSJ

Increase attributed to recent enforcement campaign against U.S. taxpayers with undeclared offshore accounts.

Laura Saunders reports: A record 4,279 individuals renounced their U.S. citizenship or long-term residency in 2015, according to data released by the Treasury Department.

“An increasing number of Americans appear to believe that having a U.S. passport or long-term residency isn’t worth the hassle and cost of complying with U.S. tax laws.”

— Andrew Mitchel, an international lawyer in Centerbrook, Conn., who tallies and tracks renunciation data

Last year was the third year in a row for record renunciations, according to Andrew Mitchel, an international lawyer in Centerbrook, Conn., who tallies and tracks renunciation data. The Treasury Department renunciation list for the fourth quarter, which contained 1,058 names, was released on Friday.

“An increasing number of Americans appear to believe that having a U.S. passport or long-term residency isn’t worth the hassle and cost of complying with U.S. tax laws,” Mr. Mitchel said.

Experts say the growing number of renunciations by citizens and long-term holders of green cards is related to an enforcement campaign by U.S. officials against undeclared offshore accounts. It intensified in 2009, after Swiss banking giant UBS AG admitted that it encouraged U.S. taxpayers to hide money abroad.

[Read the full story here, at WSJ]

Since then, the U.S. has collected more than $13.5 billion from individuals and foreign financial firms in taxes and penalties due on such accounts. This week, Swiss bank Julius Baer Group AG admitted it encouraged U.S. taxpayers to hide money abroad and agreed to pay $547 million to settle potential charges.

However, the campaign by U.S. officials also has complicated the financial lives of an estimated 7 million or more Americans living abroad, leading growing numbers to sever their U.S. ties.

Unlike many countries, the U.S. taxes nonresident citizens on income they earn abroad. According to Philip Hodgen, an international tax lawyer who practices in Pasadena, Calif., the law provides only partial offsets for …(read more)

Source: WSJ

Write to Laura Saunders at laura.saunders@wsj.com


One Comment on “Record Number of U.S. Citizens, Green-Card Holders Cut Ties With U.S. in 2015”

  1. […] Source: Record Number of U.S. Citizens, Green-Card Holders Cut Ties With U.S. in 2015 […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.