US Citizens Continue To Ditch Passports In Droves

By Hans Esser, for 03 November, 2017

US expatriation numbers are on track for another record year, with 4,448 passport-holders renouncing their citizenship in the first three quarters of 2017.

The number of taxpayers who renounced their US citizenship or terminated their long-term US residency was up 46 percent year-on-year in the third quarter. Repatriations so far this year have now exceeded the full value for 2015, by four percent, with one quarter to go.

The US Treasury is required by law to publish a quarterly list including the name of each individual who has lost or renounced US citizenship during the period. For the purposes of this listing, long-term residents or green card holders are treated as if they were citizens of the US who lost citizenship.

Released on November 1, the latest figures show a decline in the number of citizens giving up their US residency or citizenship, from 1,759 in Q2 (the second-highest level ever) to 1,376 in Q3. A total of 1,313 US citizens expatriated in Q1.

The number of expatriations has grown consistently over the past four years. In 2016, there were 5,411 expatriations; in 2015 there were 4,279, in 2014 there were 3,415, and in 2013 there were 2,999. The previous year there were just 932.

The acceleration in the number of individuals giving up their citizenship has coincided with increased actions by the US Treasury and Internal Revenue Service to trace American undeclared assets and income held abroad, particularly by enforcing the Foreign Account Tax Compliance Act (FATCA) and the requirement to file a Report of Foreign Bank and Financial Accounts.

Tags: Individuals | Expatriates | Foreign Account Tax Compliance Act (FATCA) | FATCA | United States | Compliance | Tax |


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