Americans are rushing to relinquish their passports and give up their citizenship as new tax laws aimed at uncovering evaders — but criticized as complicated paperwork headaches — are due to take effect.
"Every year, I was spending about $600 to $700 having somebody do the tax paperwork," said Kim-Fredrik Schneider, who moved to the United Kingdom after living 13 years in the United States and has no plans to give up his Swedish passport, CNN reported. Holding on to an American passport would mean he would have to file complication paperwork to abide by new U.S. income reporting requirements.
Instead, he's joined the ranks of about 1,809 who have just renounced U.S. citizenship or handed in green cards in just the few months, CNN reported.
By comparison, only 932 Americans renounced citizenship in 2012.
Tax experts see the big difference because of new requirements in the Foreign Account Tax Compliance Act, which requires all foreign facilities to report all the assets of Americans living abroad.
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