From Moodys Gartner Blog, Roy Berg, February 11, 2015: US proposes relief for some who renounce US citizenship: Is FATCA a motivating factor?
The details of the Proposal, and the chances of being given the effect of law, while interesting, are less so than the Administration’s motive for advancing it. Politicians don’t get re-elected by winnowing away their constituency base or enacting legislation that has the effect of raising tax (even in small measures). Normal people, even politicians, behave rationally so there must be a reason for the Proposal. Could the Proposal play a small part in a more subtle strategy that might involve foreign opposition to FATCA and IGA-partner domestic legislation?
- Some Canadian dual citizens who wish to renounce US citizenship may qualify
- Will the Proposal become law, and is the back door unlocked?
- Termination of United States Citizenship
- Why would the Administration propose relief to people who wish to renounce US citizenship?
- Is there another motive to relieve these dual citizens from tax and filing obligations?
- Conclusion – Regardless of the Proposal’s chance of being given the effect of law, the Administration’s motivation for bringing it forward, or the narrow class of individuals to whom it would apply, the Proposal is positive step. It is evidence that the unenviable predicament faced by dual citizens living abroad has been heard in Washington, DC and there may be the political will to affect change. Change may come quickly or not at all, but it will never come until there is understanding of the issue. The Proposal is an indication that understanding may be taking hold.
Eric’s February 3, 2015 post, “Obama FY2016 budget proposes limited relief for accidental duals-at-birth who give up U.S. citizenship”
Analysis from Virginia La Torre Jeker JD, February 5, 2015, “Relief for Accidental Americans: Obama Administration’s 2016 Revenue Proposal“.
and, one more, to keep analysis (so far) all together in one post:
The 2015 Obama budget proposal for “dual citizens” cannot be implemented without Congressional approval
Part 1 – The Obama 2015 Budget Proposal – Change you can believe in?
Part 2 – My thoughts on this part of the Obama budget proposal
Part 3 – Differing perspectives on exempting a “sub-group” of “technical U.S. citizens” from the compliance and tax horror which is part of the U.S. “Tax responsibilities of expatriation“
Part 4 – Can this Obama budget proposal be implemented by Treasury without Congress?
Well, the acid-test will be how the IRS treats it (if by chance it goes through) and it still does nothing for the many disabled children in that situation who don’t have the mental faculties to understand what it is that renunciation entails. They’re forever trapped by the United States.
As far as I’m concerned. Too little; too late. My view is FUCK THE USA. Tough.
I agree with The Animal.
“6. Certifies under penalty of perjury his or her compliance with all U.S. Federal tax obligations that would have applied during the five years preceding the year of expatriation if the individual had been a nonresident alien during that period.
Doesn’t mean you don’t have to file.”
Perhaps it is Roy Berg who is advising the Obama administration. Berg has an interest in weakening the lawsuit by providing relief for the plaintiffs as well as making sure that any relief being given sends some more compliance work his way.
Call me a tin-foil hatted conspiracy theorist, but I put nothing past Democrat tax lawyers who are turning FATCA into one giant cash making machine for themselves.
BTW, how the hell did Roy Berg manage to infiltrate the Canadian Parliament hearings on FATCA?
The Animal. Sorry, it does mean you wouldn’t have to file because you would have no tax filing obligation. You would be under all the thresholds.
Good question. I am guessing he is not ‘one of us’.
Jingoistic hyperbole has become, “…an indication that understanding may be taking hold”
LOL. F.U. Mr. Berg.
It is not designed to help “accidentals”, or this would not be stated as it is:
“5. Relinquishes his or her U.S. citizenship within two years after the later of January 1, 2016, or the date on which the individual learns that he or she is a U.S. citizen; and”.
As an accidental, with a renunciation date in 2013, I guess I’m still a tax evader and criminal. They can kiss my Canadian flag, as they try to take the wind out of the sails of our Canadian lawsuit.
@WhiteKat, well said. Wish we could run that guy out on a rail.
Roy Berg is no friend of US tainted persons or any other Americans abroad for that matter.
He should be tarred and feathered and thrown back across the border.