Government report indicates another increase in US expatriation
The IRS Commissioner has indicated that funding cuts have resulted in a loss of over 15,000 IRS employees. Because of this, audits are down by 22% and a resulting loss in revenue to the government of $4 billion a year between 2011 to present, considerably less than the costs the government has saved in budget cuts to the IRS.
On the flip side, expatriations are up for 2015. For the first quarter over 1,300 US citizens renounced their citizenship. This was followed in the second and third quarters by 460 and over 1,400 respectively, and these numbers would not appear to include those giving up their green cards.
In a recent government release, the IRS indicate that expatriation estimates are closer to 6,400. It should be noted that it now costs $2,350 to obtain a Certificate of Loss of Nationality. This does not include the tax compliance costs associated with expatriation or the potential “Exit Tax” that can be imposed.
If you are considering expatriation or have questions about your taxes contact us.