November 14, 2013
Apparently for some U.S. citizens it’s true—you can’t go home again!
The Treasury Department published the names of 560 Americans who renounced their citizenship or are long-term residents who gave back their green cards during the third quarter of 2013, The Wall Street Journal reported. According to tax lawyer Andrew Mitchel who tracks the data, these expatriations reached a record high of 2,369 for the year. The prior highest number of published expatriates was in 2011, said Mitchel.
How’s this for a parting gift? Taxpayers who renounce their citizenship or turn in their green card can be subject to an exit tax. People who renounced last year might have avoided higher taxes on income and estates—including those on long-term capital gains—which took effect in 2013.
“The reality is that the U.S. tax system gives dual citizens a good reason to walk away from their U.S. citizenship or permanent-resident status,” said Jeffrey Neiman, a former federal prosecutor now in private practice in Fort Lauderdale, Fla. “It’s a painful process but easier than staying in compliance with the law.”
To read the full Wall Street Journal story click here .