More Americans Are Renouncing Citizenship Due to Tax Rules

Nevada Set to Give Tesla Motors Huge Tax Deal; More Americans Are Renouncing Citizenship Due to Tax Rules; Investing for Growth

Does it seem to you that more Americans are renouncing citizenship due to tax rules?  For most Americans, their citizenship is a source of pride. Citizens and foreigners alike, often recognize America as the world’s greatest country.

Of course, America is not perfect, but for the most part, the United States is a great place to live, where people can enjoy freedoms and opportunities not found in many other countries. However, one of the biggest complaints amongst U.S. citizens is the country’s tax policies and procedures.

Goodbye USA

In fact, according to a recent report, a record number of American’s are breaking up with the country they call home.

U.S. offices in other countries have reported that in just the first three months of the year, more 1,001 Americans and green-card holders had already renounced their citizenship. If those numbers continue, this year will easily top last year’s renunciation total of 2,999.

It’s About the Money

So what’s causing all of these citizens to say goodbye to the country they used to love? No one can say for sure as each case is different, however, many experts believe you can put the blame squarely on “Uncle Sam.”

According to these experts, the government’s campaign to find undeclared accounts held by Americans who live abroad is a big reason for so many people renouncing their citizenship.

Big Collections Leading to Renouncing Citizenship?

This collection campaign by the U.S. government has amassed at least $6 billion from more than 40,000 U.S. taxpayers in taxes, penalties and interest since it began five years ago. However, the government isn’t stopping there.

Federal prosecutors have also issued at least 100 criminal indictments against people for tax evasion. The main reason behind the increased renunciations, however, is that the government’s campaign is also hurting many middle-class citizens who are living abroad.

Implications for Citizens

While giving up your citizenship does not free you from paying any past due to taxes, it does prevent the U.S. from going after you and your family in the future with large taxes and penalties.

There is more evidence that the renunciation trend appears to be growing, as almost 8,000 taxpayers have given up their citizenship in America in just the last five years alone. In the 10 years before that, less than 5,000 people renounced their citizenship. That’s a sizable increase.

Middle America Being Hurt

Although the federal government’s campaign is aimed at finding wealthy individuals who are dodging their tax bill, it’s also hurting many middle-of-the-road citizens who are living abroad. These people are not wealthy, they pay their taxes to the country in which they live, and they aren’t trying to hide anything from the U.S. government.

What Does The Future Hold?

The problem could get even worse, as some experts believe that as more Americans become aware of the campaign, more of them will choose to renounce rather than be the target of the federal government.

For their part, the government claims that although nearly 7.5 million Americans live abroad, only a fraction of those people has filed the necessary disclosure forms. That’s why the Treasury Department will continue to go after these individuals to make sure they aren’t cheating on their taxes.

At GROCO we not only handle domestic tax issues, but we can also help you with your international taxes as well. If you live abroad and you don’t want to give up your citizenship but you don’t want to be unfairly targeted by the federal government either, then just contact us today and we can help.

We hope you found this article about “More Americans Are Renouncing Citizenship Due to Tax Rules” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.

Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness.

True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in
Nick Sonnenberg

Nick Sonnenberg – Founder of Leverage

Nick Sonnenberg, Founder of Leverage Leveraging Your Business Operations About Nick Sonnenberg   Nick Sonnenberg is the founder and CEO of Leverage, a business efficiency consultant, columnist and author of the upcoming book, Come Up For Air: How Teams Can Leverage Systems and Tools to Stop Drowning in Work. Nick’s mission is to create companies…

The New Bull Market

The New Bull Market

The New Bull Market This article is adapted from an exclusive interview with Robert Zuccaro, CIO of Golden Eagle Strategies, in August 2022.   Question: Right now, there are a lot of people scared saying that we’re on the brink of a recession, but you say that we entered a new bull market at the…

importance of honesty and integrity in business

Why Integrity is Key for Success in Business

Why Integrity is Key for Success in Business Integrity Means There are a few key reasons why integrity in business is so important for success in business: – Personal values such as integrity build trust with customers and clients. If you’re known for being trustworthy in your personal and professional life, people will want to…

Jim Kwik - Unlocking Your Brain's Limitless Potential

Jim Kwik – Unlocking Your Brain’s Limitless Potential

Jim Kwik Unlocking Your Brain’s Limitless Potential Jim Kwik knows a thing or two about learning. After suffering a traumatic brain injury as a child, Jim was faced with many challenges. He was teased by classmates and referred to as “the boy with the broken brain.” But Jim didn’t let his injury hold him back.…