According to the latest research conducted by Amanda Klekowski von Koppenfels from University of Kent, 31 per cent of American citizens living outside the United States are going to renounce their citizenship. Three per cents are in the process right now.
The reason of such citizenship renunciation is the intrusive filings that expats should deliver. It is the Foreign Account Tax Compliance Act (FATCA) that requires all of their overseas bank accounts and financial instruments to be met with Internal Revenue Service new regulations.
As a result of such onerous requirements, foreign financial institutions refuse to serve the American expats, that account for about 7-8 million people.
Half of the people ready to relinquish their American citizenship have less than $100,000 pre-tax annual income.
Although the Republican Senator Rand Paul made a resolution to repeal FATCA last year, nothing has been done so far.
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