Saturday, August 10, 2013
The number of U.S. taxpayers renouncing citizenship or permanent-resident status surged to a record high in the second quarter, as new laws aimed at cracking down on overseas assets increase the cost of complying and the risk of a taxpayer misstep.
A total of 1,130 names appeared on the latest list of renunciations from the IRS, according to Andrew Mitchel, a tax lawyer in Centerbrook, Conn., who tracks the data. That is far above the previous high of 679, set in the first quarter, and more than were reported in all of 2012.
Taxpayers aren't required to explain the move, but experts said the recent rise is likely due to tougher laws and enforcement. "The IRS crackdown on U.S. taxpayers living abroad seems to be having an effect," said Mr. Mitchel.
- Bloomberg, Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom
- International Tax Blog, Number of Expatriates Skyrockets Again (Second Quarter of 2013)