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You can head for the farthest reaches of the Earth, but you’ll never escape the U.S. tax man.
More than 20% of the Americans abroad polled by Greenback Expat Tax Services said they are “seriously considering” giving up their U.S. citizenship.
The firm polled more than 3,100 U.S. expats from March through May.
Among the participants who said they would give up their citizenship, close to four in 10 cited the tax burden they face as a reason. In all, 1,018 U.S. citizens renounced their citizenship between Jan. 1 and March 31, according to the Internal Revenue Service.
U.S. citizens and resident aliens abroad must file income, estate and gift tax returns, as well as paying U.S. income taxes on worldwide income.
Americans holding certain foreign financial accounts also need to report them to the proper federal authorities. Civil penalties for willfully failing to do so can be steep: the greater of $129,210 or 50% of the account balance.