Whats Driving Ex-Pats to Renounce U.S. Citizenship?

The video discusses the increase in U.S. citizenship renunciations, highlighting a significant rise in 2014. This trend is linked to the Foreign Account Tax Compliance Act (FATCA), which requires foreign banks to report on American account holders. FATCA aims to ensure tax compliance but is considered burdensome by many expats. The law mandates that Americans with over $10,000 in foreign accounts file reports, with severe penalties for non-compliance. Although the law has existed for decades, enforcement has intensified recently.

What trend was observed in the number of U.S. citizenship renunciations in 2014?

• A slight decrease compared to previous years

• A significant increase compared to previous years

• No change compared to previous years

• A decrease compared to previous years

What is the Foreign Account Tax Compliance Act (FATCA) primarily concerned with?

• Regulating domestic bank accounts

• Taxing foreign businesses

• Monitoring international travel of U.S. citizens

• Ensuring foreign banks report on U.S. citizens' accounts

How do expatriates generally view FATCA?

• As a beneficial law

• As an unnecessary regulation

• As an unjust law

• As a minor inconvenience

What must American citizens abroad do if they have more than $10,000 in a foreign bank account?

• Transfer the money to a U.S. bank

• Close the account

• File a foreign bank account report

• Nothing, as long as they pay taxes

What is the penalty for not filing the required paperwork under FATCA?

• No penalty

• A 40% tax on the highest value of the account

• A 20% tax on the account

• A 10% tax on the account