An article published on Forbes on Nov. 3rd reveals a spike in the number of people renouncing their U.S. citizenship this year for the third quarter this year. All indications show that this number will continue to rise until the end of the fourth quarter and will, in all probabiliy, surpass the previous record high in 2016 (5,411).
Although the number has risen, few realize that leaving the U.S. carries a cost as well. You are charged for handing in your passport and must prove 5 years of tax compliance. Since many people try to renounce the citizenship to avoid paying these taxes, it is usually only a red flag for the IRS.
We encourage you to keep all your taxes in line to avoid any issues that you may have with the IRS if they decide to audit or if you decide to drop your U.S. citizenship or green card.
For the full article by Robert W. Wood, click here.