The Foreign Account Tax Compliance Act, aimed at stamping out tax evasion, has complicated the filing of U.S. tax returns, CNNMoney reported Thursday.
Among its provisions, the law requires foreign institutions to report all assets owned by Americans.
So far this year, 1,809 Americans have surrendered their passports or turned in their green cards, government data shows. In all of 2012, 932 Americans renounced their citizenship.
Most of the people giving up their U.S. citizenship are not "'fat cat' tax exiles," but "really very ordinary people," said Eugene Chow of the immigration firm Chow King & Associates in Hong Kong.
Melissa Vincenty, an attorney with the New York law firm Fragomen, Del Rey, Bernsen & Loewy, said one woman gave up her citizenship after filing her taxes from abroad for nearly 40 years. Continual changes in the tax codes made the task ever more difficult.
Some Americans have found lower tax rates in other countries, Vincenty said, and are looking to preserve retirement funds.
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