Taxes

Why Some Americans Living Abroad Would Rather Renounce Their Citizenship Than File Taxes

Most Americans who reside overseas owe the IRS nothing, but complying with U.S. financial regulations can cost them their foreign bank accounts.

Tosin Akintola | 10.15.2026 5:15 PM

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(Illustration: Midjourney/Fatima Ruiz.)

For many Americans overseas, the scariest day this month is not Halloween, but October 15—the final extended deadline for filing income tax returns with the Internal Revenue Service (IRS).  

An estimated 3.3 million U.S. citizens live abroad, although the number is likely an undercount because the government doesn't keep a comprehensive list or require Americans overseas to register their residence. Still, American citizens and resident aliens living abroad must pay U.S. income taxes and comply with domestic tax filing requirements, regardless of where they live or work. They must also complete the dizzying process of reporting any foreign bank accounts, assets, and financial interests in foreign institutions. 

When filing their income tax returns, most Americans living abroad have zero tax liability. In its 2025 Annual Report to Congress, the Taxpayer Advocate Service—an independent organization within the IRS that helps people navigate tax problems—found that for Americans overseas, "the percent of individual international tax returns reporting no tax liability is significantly higher than domestic taxpayers." Yet, the agency reports........

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