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Thursday, April 19, 2012

Americans Living Abroad Ditching Citizenship Because of Tax Reasons

Almost 1,800 people renounced their U.S. citizenship or handed in their Green Cards last year, according to the Internal Revenue Service. That's a record amount since the IRS started keeping track of people who renounce their citizenship in 1998.

According to an article from Reuters, more people are parting ways because of financial reasons, mainly taxes. The United States is the only country that will tax its citizens on income they earned abroad. The National Taxpayer Advocate's Office released a report in December, describing the process as difficult and time consuming for taxpayers living overseas.

Some take issue with two filing requirements: the Report of Foreign Bank and Financial Accounts and the Foreign Account Tax Compliance Act.

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