The IRS had increased its efforts to bring down tax evasion. The newest result is that many Americans staying abroad are now renouncing their U.S. citizenship because of the strict regulations of the Foreign Bank and Financial Accounts (FBAR).
As the IRS has increased its efforts to increase tax compliance, U.S. citizens overseas are finding themselves in hot water. Some have surrendered their green cards, while others have renounced their U.S. citizenship, all in the name of taxes.
Tax evasion is one of the major reasons why the Treasury loses billions in revenue each year. To improve tax compliance, the IRS has the Foreign Account Tax Compliance Act (FATCA) and other enforcement efforts. The problem is that many do not know that they are required to report their assets or share their financial details with the IRS.
As the IRS cracks down on tax evaders, there will be many unexpected results. It might also lead to complicated cases of non-compliance because it is not always that a person does not comply with tax laws willingly. At present, stricter tax laws and high taxes are making both corporate and individual taxpayers unhappy.