The following article (pdf) appeared in the July 9 (2012) edition of Tax Notes. It is reproduced here with the express permission of the author.
Author Archives: Petros
CBC radio speaks with Russ Hunt and Marie Cashion
Here is the link to the CBC Radio (New Brunswick) of the interview with Profs. Russ Hunt and Marie Cashion:
They have asked for feedback:
infoam [at] fredericton [dot] cbc [dot] ca ; or talk back at 1-800-561-4222 (I don’t know if this number works outside of NB).
Welcome to Pennsylvania: the horrific abuse of police power in the case of Robert Leone
Former Pennsylvania police officer officer, Larry Hohol, has produced a video which exposes corruption in State of Pennsylvania regarding the case of New Yorker Robert Leone.
My plea with those who are planning to visit the United State that you realize that there are far greater risks with that country than just simply your fear of the IRS. The corruption is becoming systemic. At the end of the video, Mr. Hohol compares Pennsylvania to a Third World country. I laughed with bitter chagrin when he said that. Does anyone here believe that the United States isn’t already a police state?
[As a concession to Just Me’s being startled by the graphic photo of Robert Leone, I’ve moved the embed of the youtube video to after the “read more” click; Warning the video is somewhat graphic and violent, and the material may shock your pro-American sensibilities]
Russ Hunt and Marie Cashion on CBC New Brunswick 7:15 tomorrow (July 2)
Those of you who are not on the USTAX [at] stu [dot] ca listsrv that Russ Hunt is operating will not have received the following message:
I’ve added some information to my US Tax Web site about the recent announcement from the IRS announcement that it intends “to help dual citizens residing in Canada deal with their US tax filing obligations” and to “offer assistance to those with Canadian retirement plans.”
I was prompted to do a bit of research and add it to the site by the news that the IRS initiative had been “welcomed” by Jim Flaherty, and by a request to do an interview with the local CBC Information Morning show. Marie Cashion and I will be on at 7:15 tomorrow morning. If you’ve up at that hour on a holiday weekend, congratulations; you can hear it on line at http://cbc.ca/nb ; if not, sometimes interviews are posted on the Web site. In any case, my expectation is that it will be much more useful to have a look at my site:
http://people.stu.ca/~hunt/ustaxinfo/
— Russ
Steven J. Mopsick comments on IRS new filling procedure for Americans abroad: Too little but not too late
Steven J. Mopsick, 30 year IRS vet, commented on the procedures announced by the IRS 26 June 2012:
NEW FILING PROCEDURE
FOR AMERICANS ABROAD: TOO LITTLE BUT NOT TOO LATE
On June 26, 2012, the IRS announced a new filing compliance procedure for non-resident U.S taxpayers. The procedure provides that current non-residents including dual citizens, who have not filed U.S. income tax and information returns, may file three years of delinquent tax returns and six years of delinquent FBAR’s without fear of IRS punishment. Provided the delinquent returns are (a)“simple returns,” (b) the IRS determines that the taxpayer’s package presents a “low level of compliance risk” (c) and the returns show less than $1,500 of tax due for each year, the taxpayer can expect an expedited review process possibly resulting in no assertion of penalties or further follow up procedures. The notice makes it clear that this new procedure is not a substitute for a voluntary disclosure nor the more formal OVDI 27.5% tribute program and that if a taxpayer has a well-founded worry about the risk of criminal prosecution he better consult a lawyer.
The “Property of the USA” tattoo
I have recently commented that I have this tattoo, given to me on the eighth day after I was born. Here is a picture, though with any naughty bits cropped out:
I am told on good authority that everyone who is born in the United States has one of these rear-end marks. It is sometimes confused with a mole or a birth mark but with correct magnification, it proves to be the tattoo. It is also heredity (don’t ask me how I’m not a geneticist). It will appear on the bums of children born abroad to at least one American, father or mother–but in case your mother is a foreigner and your daddy didn’t marry your mommy, there is a good chance you didn’t get one of these. This is the case of half Korean, Russell David Green, who is fighting deportation from the United States. Apparently, the genes of his GI dad were not enough to pass the butt tattoo on to his son. Of course, poor Russell would become stateless if deported back to Korea.
Apparently, getting a tattoo after the fact from an improper tattoo authority will not work, because the authentic brand requires a special radioactive derriere tattoo ink. Illegal immigrants have tried to fake this, but alas, to no avail.
A Saudi lawyer advises Obama to end citizenship-based taxation
A reader posted a comment with this article:
Dr. Saud Al-Ammari is Managing Partner, Saudi Arabia & Gulf Region, Blake, Cassels & Graydon LLP, Al Khobar, Kingdom of Saudi Arabia. He has experience in a wide variety of corporate and commercial matters inside and outside the Kingdom. He served for ten years as special counsel and later general attorney for Saudi Aramco. Dr. Saud participated as legal counsel and a member of the team negotiating the Kingom’s accession to the World Trade Organization and served as chairman of OPEC’s legal defense team.
Here is a salient point:
The unintended consequences of taxing expatriate Americans by the US Government is that fewer of them seek employment overseas, and even fewer are hired by global firms. With fewer proponents of American goods and services who can influence buying decisions, there are fewer exports made by domestic companies, and in turn, fewer jobs in America. Ultimately, the US Treasury collects less overall revenue and America has a less competitive economy.
Thus Dr. Al Ammari agrees 100% with Roger Conklin.
Taxpayers abroad can now use SNAP (a.k.a. food stamps) screening tool
According to CNN (via Business Insider), the US government spent $3 million to inform the public about their eligibility for food stamps. I once lamented that I didn’t know where in Toronto to sign up for US Federal Welfare, Unemployment Insurance or Food Stamps. Now at least for Supplemental Nutrition Assistance Program (SNAP), there is a screening tool to see if I am even eligible. So I thought, “Why not, if the US wants to give me free money?” So I tried the screening tool. But I was thwarted by the first drop down menu. I couldn’t find Ontario. Crap!
Flaherty happy with IRS: Barrie Mckenna
Barrie Mckenna has recast his article from yesterday to include the following information: Flaherty pleased with IRS partial tax amnesty decision.
Here is my response:
Form Nation is stuck on stupid: IRS sends Petros a bill
I published a letter that I sent with my 2009 tax, which was late because of sheer frustration about what to do. In the letter, I explained that I had relinquished my US citizenship. Yet the IRS seems to think that I do not qualify for the Foreign Earned Income Exclusion. If you will recall, they sent me a threatening letter asking for more information, to which I replied about a month ago, possibly with insufficient time for them to take it into account (though I don’t see how they could not have received it before June 12, as it was sent in early May). The original 2555, filled out by my cheap tax preparer (no longer qualified according to the new rules), did not include the dates of my residence abroad. Thus, I amended that form and resent it. This shows the problem of finding a good tax preparer. If one is cheap, he will make mistakes. If a tax preparer makes no mistakes, expect to pay over a thousand dollars for a simple return. In any case, I will appeal this decision within the 60 days.
