Sarah Liu is single, an attorney, and a U.S. citizen. Liu recently attended a seminar where she heard that she could give up her U.S. citizenship, move to Bermuda (where she would pay no income tax), and operate a law practice long distance via the internet with no U.S. tax consequences. Write a letter informing Liu of the tax consequences of the proposed actions. Liu’s address is 1005 NE Farwell Street, Gainesville, GA 32612.