It's April again: time to add up receipts, find little-known tax breaks, and, in some cases, renounce US citizenship altogether. In fact, a record number of Americans abroad renounced their citizenship last year as complaints increased about IRS rules, Reuters reports. One rule forces all Americans to file forms for foreign accounts containing at least $10,000. Another, newer rule stipulates that financial institutions must cough up information on US clients to the IRS.
Those banks, hedge funds, and private equity funds are " going to drop Americans like hot potatoes," says one analyst. "The foreign banks are upset enough about the regulations that they're saying they just won't keep American customers." Meanwhile, more Americans abroad are speaking up on the issue and disputing the label of "tax evader." Says one American in Canada, who blogs about expatriation: "It's making life difficult for a lot of people. It's driving us away."