A large number of Americans have reportedly given up their citizenship.
The record numbers of Americans renouncing their citizenship is based on statistics reported by a New York accountancy firm.
Bambridge Accountants reported that in the fi six months of 2020, 5,816 people gave up their US citizenship. This represents a 1,210 per cent increase on the previous six months where only 444 people renounced their citizenship.
In 2019, only 2,072 Americans gave up their citizenship.
The first two quarters of 2020 have ranked as having the first and second highest numbers on record at 2,909 and 2,907 respectively.
Bambridge specialises in preparing and filing taxes for US and UK ex-pats, particularly those in creative fields such as acting.
According to the Accounting firm, the pandemic is a motivating factor for US ex-pats to cut ties and avoid the current political climate and onerous tax reporting.
Speaking to CNN, Alistair Bambridge, a partner at the firm, said,: “These are mainly people who already left the US and just decided they’ve had enough of everything.
“What we’ve seen is people are over everything happening with President Donald Trump, how the coronavirus pandemic is being handled, and the political policies in the US at the moment.”
According to reports, there are approximately 9 million Americans living outside of the US and they are required to file tax returns and report all of their foreign bank accounts, investments and pensions, at the end of each year.
The firm explains that: “The current pandemic has allowed individuals the time to review their ties to the US and decide that the current political climate and annual US tax reporting is just too much to bear.”
Looking at the positive side of the development, the firm explains that those who have retained their citizenship remain eligible for any stimulus payments authorised by the US government in response to the coronavirus pandemic.
Asked about the impact of the November election on the number of people giving up their citizenship, Mr Bambridge said:
“If President Trump is re-elected, we believe there will be another wave of people who will decide to renounce their citizenship.”
As a requirement for denouncing their citizenship, Americans must pay a $2,350 government fee, and those based overseas must do so in person at a US Embassy.
The US government publishes the names of those who have given up their citizenship every three months.
While a huge chunk of Americans gave up their citizenship, records from the Department of Homeland Security show that in 2018, the year with the most recent data available, 761,901 people were naturalised as US citizens.