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Record 4,279 Americans renounced citizenship in 2015

Saturday, 06 February 2016 5:14 AM [ Last Update: Saturday, 06 February 2016 7:04 AM ]

A record 4,279 individuals renounced their US citizenship in 2015, according to Treasury Department data. (file photo)

The number of people renouncing their US citizenship or long-term residency hit a new record last year, according to official data.

A record 4,279 individuals cut official ties with the United States in 2015, marking the third consecutive year for record renunciations, the Wall Street Journal reported on Friday, citing Treasury Department data.

The number saw an increase of 25 percent from the previous year, with a total of 3,415 renunciations, and a 42 percent jump from 2013, when 1,130 Americans gave up their citizenship.

Increased efforts by US officials to enforce rules against citizens holding undeclared offshore accounts have contributed to the rising trend, according to the Journal.

Since 2009, the US has collected more than $13.5 billion in taxes and penalties from people and financial firms that used such accounts to hide money abroad.

A growing number of individuals and companies have in recent years moved their tax addresses out of the United States in an attempt to reduce taxes.

“Many Americans abroad are finding that retaining their ties is not worth the cost and hassle of complying with the US tax laws,” said Andrew Mitchel, a lawyer in Centerbrook, Conn., who analyses quarterly data by the Treasury Department.

The Obama administration has previously called for "economic patriotism" in keeping corporate money in the country.

The individuals who choose to give up their US citizenship will lose some benefits granted to citizens, including government protection, access to federal jobs, and unrestricted travel into and out of the United States. They will also lose their right to vote in US elections.

The US State Department has raised the cost of renunciation, which is a lengthy legal process, from $450 to $2,350, more than 20 times the average fee in other high-income nations, according to reports.

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