According to the U.S. Treasury Department there has been a sharp rise in the number of American expats renouncing their U.S. citizenship. The Tax Foundation has provided data suggesting a strong correlation between the passage of the Foreign Account Tax Compliance Act (FATCA) in 2010 and the major increase in U.S. citizenship renunciations. This article discusses how the (FATCA) legislation might not be the only factor causing more people to renounce their citizenship, but it is an important contributing factor. The charts provided by the tax foundation do show a major rise in renunciations since 2010. This is going to continue to be a major issue as congress looks for ways to reform tax policy. It is important for expats living abroad to stay informed about current policies when making their decisions.
See David H. Lenok, FATCA: Is the Juice Worth the Squeeze?, Wealth Management, February 10, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
