This post is from the RenounceUScitizenship blog.
Citizenship-based taxation – Residence based life control
All U.S. citizens abroad are living the reality that the tax and reporting requirements of U.S. citizenship abroad have meant that U.S. citizenship has been priced out of the market. Many U.S. citizens abroad simply do NOT have the money to pay the compliance costs. Furthermore, it has become clear that what the U.S. refers to as “citizenship-based taxation” is actually a deliberate form of “residence based life control“. Let’s at least understand what we are talking about.
The role of the IRS – “It’s about the control stupid”
As you know the IRS is working hard to extend its regulatory reach over all aspects of tax compliance. Attorneys, CPAs, EA, and anybody else (whoever that might be) are already subject to IRS Circular 230. In simple terms: this means that their livelihood is subject to compliance with IRS rules. It has reached the point where many believe (with justification) that the the tax professionals are a greater threat to U.S. citizens abroad than the IRS could ever be.
Recently the IRS has attempted to:
1. Impose licensing requirements on all tax preparers; and
2. Require “tax preparers” to pass an IRS licensing exam.
As I once tweeted:
There is a big difference between tax preparers being regulated as a general principle, and tax preparers being regulated directly by the IRS.