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Giving up your U.S. passport? It’s going to cost you

FOX 61

HONG KONG (CNNMoney) — Thinking about bidding Uncle Sam goodbye? Not so fast. Renouncing U.S. citizenship isn’t cheap, and can result in enormous tax bills for decades to come.

A record 3,000 Americans chose to give up their passports last year, driven in part by new regulations that have turned tax preparation into a massive headache for the 7.6 million U.S. expats required to file returns while living abroad.

But as more Americans are finding, ditching the U.S. can be an expensive affair. Earlier this year, the government increased the renunciation fee to $2,350, more than four times what it used to cost.

On top of that, some U.S. citizens are slapped with a giant “exit tax” bill — sometimes millions of dollars — when they renounce.

The increased renunciation fee alone “is frustrating enough for the little old lady school teacher down the street,” said Chris McLemore, senior counsel…

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