NEW YORK (MainStreet) -- Some 73% of Americans living abroad are considering renouncing their U.S. citizenship in response to additional tax reporting required by the Foreign Account Tax Compliance Act (FATCA), according to a new survey. The number of Americans renouncing U.S. citizenship increased by 39% in the three months leading up to September 2014 after the new global tax law entered into force, according to Federal Register data.
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As eager as many are to reap the tax benefits of renouncing their citizenship, it's not a completely joyous scenario.
"It is our experience that most Americans are extremely saddened at the prospect of giving up their U.S. citizenship to avoid the harsh implications of a new and utterly flawed tax law," said Nigel Green, founder and chief executive of deVere Group.
A deVere Group global poll found that 16% Americans abroad would not consider relinquishing their U.S. citizenship and 11% did not know.
But experts agree that giving up a U.S. passport is an extreme reaction to the new requirements.
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