Americans abroad are renouncing their US citizenship in record numbers, a trend that reflects the real burden of US tax and reporting obligations for expats. The primary drivers are the Foreign Bank Account Report (FBAR) filing requirement, Foreign Earned Income Exclusion (FEIE) complexity, and the cost of hiring a tax professional who understands expat rules—often $1,500 to $3,000 per year even if you owe no tax.
Renunciation is a formal process: you must appear at a US embassy or consulate, pay a $640 fee, and sign an oath. The IRS also requires a final tax return and Form 8854 (Statement of Expatriation). Once renounced, you lose the right to live and work in the US without a visa, and you cannot easily reverse the decision.