Because when you live overseas, you have to file a tax return to the IRS. You don’t have to pay taxes necessarily, but you have to file a return. This is inconvenient.That is the main reason.Another reason is working for a foreign government. Many governments, even US allies, do not allow you to hold foreign citizenship and have a security clearance.Actually, I have found it is less inconvenient than I thought it would be. All I have to do is file a 1040 and a 2555-EZ, which takes like 30 minutes, stick it in an envelope, walk to Australia Post, pay $4 and away it goes.If you make less than around $100,000 overseas, and spent 330 days overseas, you typically don’t owe the IRS anything because the IRS knows you have to pay taxes in most countries.Yes, millions of Americans don’t know how to do their taxes and hire people to do it, and a subset of those spends $2,000 or $3,000 preparing their taxes hiring a lawyer in a foreign country to do it for them.Filing taxes overseas is even easier than in the US. You don’t need to send the IRS your pay stubs or keep track of anything unless they audit you. The 2555-EZ does not ask for it. It takes 30 minutes, an ability to read numbers from your bank account and addition (specifically hitting the ‘search’ button, typing in your employers name, and search for the deposits and add them together), and an ability to write.I might renounce my citizenship one day though if I feel like there is no chance I will reside in the US again, want to reside in the US, and when I have kids it might be more complicated doing tax returns for them in addition to me, and when they become adults being US citizens might make their lives more complicated.