Record Numbers Are Giving Up US Citizenship

By and on August 8, 2017
Posted In Uncategorized

The US government has reported that more than 1,750 people gave up US citizenship in the second quarter of 2017.

Tax practitioners speculate that the increase in expatriations is likely due to ever-increasing tax and financial reporting and compliance requirements. For example, the 2010 Foreign Account Tax Compliance Act requires overseas banks to disclose financial information to the Internal Revenue Service (IRS) about US citizen-owned accounts. US citizens who live overseas must comply with numerous reporting regimes regarding foreign financial assets and their sources of income. Failure to comply comes with steep penalties.

Practice Point: Expatriation from a tax perspective can be a very complicated endeavor. It is essential to consult with a tax professional that understands the rules and can assist in the efficient and effective renouncing of US citizenship.

McDermott Will & Emery

Kevin Spencer
Kevin Spencer focuses his practice on tax controversy issues. Kevin represents clients in complicated tax disputes in court and before the Internal Revenue Service (IRS) at the IRS Appeals and Examination divisions. In addition to his tax controversy practice, Kevin has broad experience advising clients on various tax issues, including tax accounting, employment and reasonable compensation, civil and criminal tax penalties, IRS procedures, reportable transactions and tax shelters, renewable energy, state and local tax, and private client matters. After earning his Master of Tax degree, Kevin had the privilege to clerk for the Honorable Robert P. Ruwe on the US Tax Court. Read Kevin Spencer's full bio.




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