- You run the risk of statelessness
If you haven't made arrangements to be a citizen of another country, you could end up stateless, making it difficult to travel. Also, you can still be deported back to the U.S. if you run into legal problems elsewhere.
- You can't escape Uncle Sam
Renouncing your citizenship does not release you from military service, nor does it protect you from prosecution for crimes committed in the United States, and most importantly — it does not release you from your tax obligations...
- In fact, you may end up owing him
Before renouncing your citizenship, you have to pay all back taxes and an exit tax. 45 per cent on the market value of all your worldly property, including pension plans, goes to the government. The first $636,000 in capital gains is exempt.