Why some Americans give up their citizenship

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    Why some Americans give up their citizenship

  • 1 IRS tax penalty

    The IRS, the regulatory body that collects taxes in the US, applies severe penalties on US expats who don't file important tax forms. The fine for one document can reach 100,000 USD or half of what the person has in the foreign bank depending on which is greater.

  • 2 Paying taxes while living somewhere else

    US citizens are obliged by the IRS to pay income tax even when they are living outside the US and making a living in a different country.

  • 3 Double taxation

    The US doesn't account for the fact that the international citizen might be already paying taxes in the foreign country and so this usually results in double taxation where the citizen living aboard pays taxes twice.

  • 4 Foreign banks refuse their applications

    The penalty for not submitting information about US citizens to the US government on foreign banks is severe and can lead to holding 30% of the bank's transactions in the US. This is why many foreign banks refuse to create accounts for US citizens.

  • 5 Aggressive tax collection process

    The US has an aggressive tax collection process that includes serious penalties that get applied on US expats. The aggressive collection process has motivated some Americans to give up their citizenship. 

  • 6 Maintaing dual citizenship can be hard

    In some countries, it's not easy for a person to maintain dual citizenship. In such a case, expats might be forced to give up their US citizenship in favor of keeping the citizenship of the country they are living in.

  • 7 Tax disclosing is a burden

    Many expats don't like the fact that they have to fill complicated documents every now and then just to report their income to their home country.