Easier to make the decision to renounce US citizenship nowadays?

Recent increase of events of renouncing US citizenship cannot be ignored. More confusing is that people renounce their dual citizenship with other countries to strengthen ties with United States. The news that Eduardo Saverin co- founder of Facebook Inc. (FB) gave up U.S. Citizenship to settle in Singapore and Michele Bachmann, Minnesota congresswoman and former US presidential candidate and also Swiss citizen since 1978, giving up Swiss citizenship couldn’t have missed your eye. Saverin is one of many who are renouncing US citizenship lately and could have done so to reduce his tax bill. Reason behind Bachmann’s decision could be because Americans have troubled relationship with multiple citizenship’s.

According to reports as much as 1800 people have renounced their US citizenships during the last one year 2011. They have cited tax purposes as the reason. The number of U.S. citizens who have voluntarily expatriating in 2011 is supposed to be more than double the number in previous years. In fact U.S. citizens who have turned in their passports in 2011 are more than total number of people who have renounced US citizenship in 2007, 2008, and 2009 put together. Also a new tax law requires foreign banks and other financial institutions to disclose data about their U.S. clients finance data to the Internal Revenue Service (IRS) each year. If the US citizenship staying outside US failed to pay tax they are supposed to pay fine amount starting from $10,000 and also face criminal charges.

U.S. citizenship is priceless to some, worthless to others. But now the State Department has a dollar figure: U.S. citizenship is worth $450.At least that’s what it will cost you to renounce it. Under new consular fees published recently in the Federal Register, the cost of processing a formal renunciation of U.S. citizenship skyrocketed from $0 to $450. So apart from the exit tax the person renouncing US citizenship should make sure he has completed the formalities in US. The amount $450 should definitely not be an issue for billionaires like Saverin who should be more than happy to get things finished off and done with asap!

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