More Americans Drop Citizenship Over Taxes

By Neal Colgrass, Newser Staff

It's April again: time to add up receipts, find little-known tax breaks, and, in some cases, renounce U.S. citizenship altogether.

In fact, a record number of Americans abroad renounced their citizenship last year as complaints increased about IRS rules, Reuters reports.

One rule forces all Americans to file forms for foreign accounts containing at least $10,000. Another, newer rule stipulates that financial institutions must cough up information on U.S. clients to the IRS.

More from Newser
'iPad Mini' Coming for Less Than $300
13 Stars With Major Tax Issues
America's Weirdest State Taxes

Those banks, hedge funds and private equity funds are "going to drop Americans like hot potatoes," says one analyst. "The foreign banks are upset enough about the regulations that they're saying they just won't keep American customers."

Meanwhile, more Americans abroad are speaking up on the issue and disputing the label of "tax evader." Says one American in Canada, who blogs about expatriation: "It's making life difficult for a lot of people. It's driving us away."

--Written by Neal Colgrass of Newser

More from Taxes

How to Calculate Your Net Worth and Pin Down Your Financial Health

How to Calculate Your Net Worth and Pin Down Your Financial Health

Tax Tip: Small Businesses Get Big Benefits From the New Tax Laws

Tax Tip: Small Businesses Get Big Benefits From the New Tax Laws

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Why Nashville, Denver, LA Should Reconsider Bids for Amazon HQ2

Who Knew an IRS Tech Glitch Could Get You More Time To Prep Your Tax Return

Who Knew an IRS Tech Glitch Could Get You More Time To Prep Your Tax Return

Tax Snafus Can Block Legal Residents' Path to Citizenship

Tax Snafus Can Block Legal Residents' Path to Citizenship