“Americans abroad are terrified. We’ve had people pay tens of thousands of dollars in fines. We’ve had people … pay huge amounts of back taxes. Up to this point, we never heard of anyone renouncing, or if they did, they didn’t talk about it, now we’re seeing a lot of people speak openly about it and come to us for information.”-Marylouise Serrato,  American Citizens Abroad

April 17, 2012, according to the Internal Revenue Service (IRS) National Taxpayer Advocate’s Office, 1,788 people renounced their United States citizenship in 2011.

That’s another record.  The National Taxpayer Advocate’s Office has been keeping track since 1998, and it’s been going up every year.

However, the U.S. Department of State keeps their own records of who gives up U.S. citizenship, and they say it’s been a steady average loss of 1,100 people every year.  Still not good if the United States is such a great place to live; 1,100 people give it up every year, that’s 11,000 people in the past ten years.

The number one reason for leaving the land that’s no longer of the free is taxes!  If you know your U.S. history, taxes were the number one reason for the 1776 Revolution that created the U.S. of A.

In fact one of the rallying cries for the Revolution was “No taxation without representation!”   We’ll that’s exactly what’s happening to the approximately 6.3 million U.S. citizens living in other countries, they’re being taxed and fined more than if they were living in the U.S., and they have no true representation in the U.S. government.

Another problem is that foreign banks say the U.S. government is interfering in their business so much that it’s not worth it to take on U.S. customers: “They’re going to drop Americans like hot potatoes. The foreign banks are upset enough about the regulations that they’re saying they just won’t keep American customers, and it’s giving (Americans living abroad) a lot of sleepless nights.”-Francisca N. Mordi, American Bankers Association

Even the IRS’s National Taxpayer Advocate’s Office blames the U.S. government: “The complexity of international tax law, combined with the administrative burden placed on these taxpayers, creates an environment where taxpayers who are trying their best to comply simply cannot. For some, this means paying more U.S. tax than is legally required, while others may be subject to steep civil and criminal penalties. For some U.S. taxpayers abroad, the tax requirements are so confusing and the compliance burden so great that they give up their U.S. citizenship.”

A major problem with the U.S. tax law is that not only does the U.S. citizen have to report their own income and assets, but they must report the income and assets of their non-U.S. citizen spouse: “When they decide to come clean and report everything, they have to go ask their husbands for all of their bank information, retirement funds, and investment accounts, everything. Your options are to ignore the IRS and stick your head in the sand; take your name off of all the accounts and live in a completely cash economy; divorce; or renounce U.S. citizenship.”-Lucy Stensland Laederich,  Bordeaux Women’s Club

“I grew up in a military family where patriotic feeling was very strong. I’m amazed at how terrible I felt renouncing. But it was the only way to get them off my back. It’s very distressing and time consuming to keep up with all the paperwork. But if it’s this bad when I’m 64, how bad will it be when I’m 74?”-Genette Eysselinck, renounced all ties with the United States

But don’t think renouncing your U.S. citizenship will solve your tax problems, in fact they could get worse: “First of all, there is over a 2 year wait in several countries. Secondly, you are still liable for taxes for the next 10 years. Finally, on the day that you renounce your citizenship, you are considered by the IRS to have made a fictive sale of all of your assets worldwide, and you will be taxed on that sale.”–American Women’s Club Düsseldorf

For an idea of what it takes to officially/legally renounce your citizenship, you can check out the U.S. embassy website in Germany here.