Don't do it!!! (Score 4, Informative)

I've lived and breathed the US tax system as an immigrant to the US. I know just how hideously complex the citizenship-based US tax system is. I (and my family) live in NZ and I'm not a US citizen but my wife is, and my NZ-born daughter automatically inherited US citizenship from her. I plan on keeping my daughters US citizenship hidden from the world for her own benefit. Her birth is not registered with the US govt and she travels on a NZ passport. She technically has all the US tax and reporting obligations from birth with no choice in matter (on her part or my part). At great expense she is required to report annually her income, assets, trusts, and company directorships to the US govt. The US govt imposes fines for failing to do so accurately and they are draconian. She is required to pay taxes to the US beyond what she owes to the NZ govt. Thanks to the new FATCA regime imposed upon the world, banks in NZ are tying to detect her US citizenship so her details and financial info can shared with the NZ IRD who will then pass it on to the US IRS.

All this is and she is barely 2 years old.

If you are CERTAIN she will be living in the US in the future then sign her up for citizenship. And leave it to the last minute so she can give her informed consent when she is most able to give it. But US citizenship is more of a burden than a blessing so she is generally better off without it.