Also in this playlist...
This transcript is automatically generated
I think death and taxes are the two things you cannot beats but if you live and work abroad you can escape the IRS but only you renounce your citizenship Ashley Webster says that's an option more Americans are taking cash.
Alright well thank you very much you know what's up.
A record number of Americans are a -- saying you know what enough is enough and taking the drastic move really drastic move.
Of giving up their citizenship -- -- handing in their Green -- the US.
The only industrialized country.
Really took to require citizens to pay income tax on offshore earnings and for many that costs.
It's becoming too much let's take a look at some of these numbers is quite impressive.
According to a government report nearly 18100 ex patriots -- about their citizenship rights last year.
That is an average of nearly 400.
Back in 2008 a total of 231.
Americans renounce their citizenship for the entire year.
And many citing increased reporting rules is the reason and the enactment of the so -- hire act.
Which -- requires.
Foreign banks to report to the IRS look at these numbers and gives you a sense that.
The number of people renouncing your citizenship last year was more than 20078.
Some leave America purely for money reasons for others say it's more about privacy and red tape.
A tax compliance act is asking foreign financial institutions such as banks and hedge funds and a private debt equity funds to provide the IRS with information and in many cases -- These financial institutions.
Just don't want to deal directly with the US agency they'd rather have their governments deal with us something like that and what -- seeing now.
Is -- some of these foreign banks are closing down the accounts of Americans simply because the tax reporting requirements are way too complicated.
And Americans that not only having their accounts closed the having a hard time opening an account.
At any of these banks because of these new rules that require a lot more information because of -- because of the headaches.
These people taking a very drastic move and saying goodbye to the United States.
Hurdles it's really -- yeah I think if you're you.
I'll -- -- not actually so it's not just a case of people just trying to avoid paying taxes.
No not at all for instance if you are an American living abroad married to a -- on the American and in many cases the IRS requires all the joint account information -- investment accounts.
Including that all the banking information as well and in many cases the -- Americans is a part of that relationship.
As low desire and old -- to by divulge their information to a foreign agency the IRS's say they want to do -- so the American citizen.
Is left -- -- that difficult position what do you do you get divorced.
Not gonna happen in most cases they say it is backed -- To renounce citizenship and not have to go through all of that problem so.
They -- these new roles the US government getting far more aggressive and in many cases these US citizens living abroad there's over six million of them.
Are being forced to renounce their citizenship.
Interesting -- actually thank you I.
Filter by section