Report: Complicated Tax Codes Forcing Americans To Give Up Citizenship

Report: Complicated Tax Codes Forcing Americans To Give Up Citizenship

Source: www.expatfocus.com

Tax and financial regulations “In 2008 just 231 Americans gave up their citizenship but this number rocketed to 4,279 in 2015, a rise of 20% on the year before. One survey found that 70% of those who had given up their citizenship pointed to tax and financial regulations for being the motivation.”2

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http://www.expatfocus.com/



Fed up expats

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“One reason for the frustration is that the US is one of just two countries that taxes every citizen regardless of where they live.” Im

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Foreign Account Tax Compliance Act

“Since FATCA law first surfaced in 2010 and it immediately hit the headlines because of the intrusive measures to find US citizens with overseas accounts.“

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Double taxation

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“The big issue for US expats is that they will be paying taxes in the country where they live and work but still have to file a tax return for the IRS and potentially pay US taxes on top of their current liabilities - even if they haven't spent a single day on US soil in that tax year!”

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Under great strain “The Guardian newspaper reported research published by Democrats Abroad which revealed that FATCA is having an impact on US expats with their financial accounts being closed and relationships with non-American spouses coming under great strain.“

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American citizen

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“Another problem with FATCA is that it deems anyone born in the US to be an American citizen so they may have left the country as a baby or small child to live elsewhere in the world but they are still compelled under the law to reveal their financial assets.”




National Taxpayers' Union

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“A tax system needs to be based on five basic principles which are transparency, simplicity, responsiveness, predictability and efficiency; our system fails all of those principles.”

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Form 1040

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“The NTU says the basic 1040 form is used for filing federal income taxes along with the simplified versions, the 1040A and the 1040EZ. The organisation says that many middle-class citizens use the standard 1040 form which takes around 16 hours on average to prepare and submit.”




US citizens living overseas

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“US citizens living overseas are the only group of taxpayers who saw their chances of being audited increase. And even with FATCA in place, it's estimated the US Treasury is losing around $100 billion every year through offshore tax non-compliance.”

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Failure to comply with FBAR

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tack when dealing with Americans for failing to comply with FBAR by inadvertently not disclosing an offshore account.”



ThankYou

Economy & Finance

Report: Complicated Tax Codes Forcing Americans To Give Up Citizenship