Another chance for our voices to be raised!! Sign the petition against the transition tax!!!
Category Archives: Issues regarding US persons abroad
FATCA, the Compliance Mafia, The Swamp & the Deep State in the League of Non- Aligned Nations
How does a country move from nobly declaring FATCA to be a breech of sovereignty — to signing a FATCA document with the Obama regime over the course of just a year? Well, the compliance-mafia / Deep State has either a Mustafa or a Slobo on call for whatever the Deep State needs in whatever country needed.
Perhaps you remember the days when we prayed for some FATCA IGA fightback? Country after country fell to the Nobel Peace Prize winner’s extra-territorial FATCA citizen-spy tool. First, the big 5 fell. Then Norway got the Deep-State John Doe payoff, and shortly afterward the entire world caved to FATCA IGAs. Finally, the never-tiring JustMe threw in the resistance towel and disappeared into mountain bliss.
Then, while a few of the expected put up some symbolic resistance and disinterest, a tiny bit of valiant resistance popped up. A tiny country publicized a resistance. This is a country known for resistance–A country who had lost 1/5 of its population fighting off its occupiers in the first world war (the Ottomans and the Austro-Hungarians), A country who had resisted the Nazi occupation, with both its communists and royalists, whilst fighting its own civil war between themselves, whilst rescuing 500 forgotten Americans expatriated behind enemy lines. It was also known as joining together others as non-aligned nations in resistance of both the east and the west.
Unfortunately this country known for its resistance, also takes pride in having lost its wars and sovereignty on a regular basis over the centuries. Beginning with things such as having its entire army defeated by the Ottomans while sleeping off a hangover, living centuries as slaves to the Ottoman occupiers, delivered to communists by spies as loot for the defeat of the Nazis, and finally destroyed by a Deep State / Jihadi alliance. All of this, while still resisting invaders with spirit. And then, the Stepford Wives got well appreciated by them, when the witch Madeleine Albright got herself stoned in the area she had “liberated”.
So, as another day in history, Aug 11 of 2014, the valiant Serbs put up resistance to America, and announce that real Serbians would be protected from the wrath of the long arm of the IRS and its FATCA. But actually, it was visible a year prior that non-submission would not be tolerated, that the Compliance Mafia deep state would be imported by an invading American McKinsey-firm accounting lackey to rule the Serbian Financial Sector as minister of Serbian finance.
Serbia has a history of resisting occupiers, like the 4-century occupying Turkish jihadists who maintained the right to break in and take pleasure of any house, business, or marriage . But there were small bits of resistance, such as the famous businessman Pirot Hrista Jovanavic, who built his office with a low ceiling so as the tall Turkish invaders would have to bow when they broke into his office.
However, Prime Minister Vucic is actually a master at announcing resistance to the Deep State, to foreign powers, and to the influence of foreign cultures. He typically makes such announcements of resistance to parties such as the Arabic nations, all-the-while selling off the most valuable downtown property to oil-rich barrons. He is known for feigning resistance to the EU, Turkey, Hungary, and US, all the while awarding sweet deals to foreigners for his country’s previously state-owned properties.
Unfortunately again this time FATCA resistance was not to be, as the currently-reigning vassal Prime Minister Vucic arranged for the McKinsey mafia to arrive and do the work of the Obama Deep State, one year prior to the announcement of resistance. In just a short year, the Deep State Mole landed in Serbia and implemented the Obama Ottoman-invasion extra-territorial FATCA edict. He left, just days after signing the FATCA surrender and months prior (12 Jul 2014) to the country, its media, and Brock Society even realizing (11 Aug of 2014) what had happened.
Prime Minister Vucic feigned resistance, which we had cheered, but Vucic resistance was actually well after the fact. Oh well, Vucic has often feigned similar resistance—afterall, he had hired a humanitarian progressive American-plant, neocon wet dream—a lesbian Croatian (Deep State) USAid graduate to be Prime Minister.
There is no better display of Deep State Compliance Mafia FATCA implementation than at the Obama / Deep-State vassal Vucic implementation of FATCA with Serbia’s temporary employment of an American McKinsey accountant to a place as finance minister. As a result, US citizens residing in Serbia will remain under the control of Obama-dominated FATCA / FISA / FINCEN Deep-State surveillance. Any returned war refugee or NGO baby will forever be a slave to the Obama FATCA Ottoman tax regime.
Dear Candidate Trump, would you like to rescind the Obama Executive IGA orders for FATCA and eliminate layers of expensive FATCA regulations?
Some of us look forward to the potential for Trump leadership to eliminate Obama regulations and intrusions upon American citizen–but no one is holding their breath. How about you Make It Great for American Citizens Again and eliminate FATCA and FBAR and eliminate Citizenship-Based-extraterritorial taxation? A few Executive orders of your own could undo 8 years of Obama Ottoman-like tyranny and allow 9 million U.S. expat Americans to live in peace and freedom…and to once again look back to their home country. Dear Candidate Trump—what say you #MakeItGreatforAmericansAgain?
What is Tax Residency? – Episode 2 with John Richardson & Olivier Wagner
“Tax residence American style” AKA : Imposing “worldwide taxation” on those with @taxresidency in other countries
The issue of tax residence has gained so much attention since the “crackdown” on non-resident US Persons began in 2009. It is commonly understood that you pay taxes to the country/state/city-town that you reside in. (For an interesting comparison of differences between countries please see this incredible list compiled by the OECD). It simply does not occur to anyone that they would be required to pay taxes to a foreign government.
However, the United States claims jurisdiction due to citizenship. One does not even have to have touched foot in the U.S., according to U.S. law. Of course, due to the viciousness of the U.S. “FBAR Fundraiser” many people began to resist whether of anger or fear.
Not much has changed* , in spite of all the factors that have contributed to this debacle (and debacle it is, what could one expect when a country tries to take what is someone else’s, based on an idea of fake residence?).
For a detailed discussion concerning the determination of tax residence and related factors, please see here.
In a #FATCA and #CRS world: There's "residence", "#taxresidence" and "@taxresidency American style (where you reside in the USA even if you don't) – @1040Abroad and @Expatriationlaw: ‘Episode 2: "A Tax Residency Primer"- Tax, Residency and #TaxResidency": https://t.co/n2xjvHDhqy
— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) August 8, 2018
In this interview, John Richardson speaks with Olivier Wagner about tax residency and how a seemingly simple concept has become so terribly important in the 21st century.
At the 38 minute mark, we talk about how to describe U.S. “tax residence”.
Comment on “Think You Can Leave U.S. – Think Again”
My comment on the superb article about the plight of #Americansabroad by @Laurasn1000 https://t.co/OPflDEmehD … Calling the other Laura – @Saunderswsj
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 18, 2018
Recently an excellent article Think you can leave the US? Think again!
appeared on the Thom Hartmann site.
Written by an expat laurainparis , it is one of the best summaries/sources of information available. This post is based on a comment to the article.
*******
Laura, this is one of the very best articles I have seen about the reality of this situation.
At the outset, I would like to explain that what most people call U.S. “citizenship-based taxation” (sounds kind of patriotic) is the U.S. policy of “imposing worldwide taxtion on the “tax residents” of other countries who do NOT live in the United States” (which is what it really is). In other words, let’s call it like it really is. It is NOT restricted to “so called Americans abroad”. The vast majority of people impacted by this are the citizen/residents of other countries.
You explain what it means when the United States claims the right to impose “worldwide taxation” on the residents of other countries. This of course means (as you know first hand) that a resident of France must pay U.S. tax on his/her French income. In addition (as you point out) the penalty regime imposed on assets that are local to the resident of France but “foreign” to the USA are draconian and completely idiotic.
I would also like to point out that although this discussion is frequently framed in terms of “taxation”, what this is really about is the United States exporting the Internal Revenue Code to other countries. This exports certain U.S. cultural values, reporting requirements and penalties on those who “commit personal finance outside the United States”. In other words, this is about much more than taxation.
Continue reading
One More Time! TTFI Petition Seeks Signatures
JC posts:
VERY IMPORTANT! You want a change, sign the petitions. You do not want a change, do nothing.
TTFI PETITION.
What is Tax Residency? – Episode 1 with John Richardson & Olivier Wagner
The issue of tax residence has gained so much attention since the “crackdown” on non-resident US Persons began in 2009. It is commonly understood that you pay taxes to the country/state/city-town that you reside in. (For an interesting comparison of differences between countries please see this incredible list compiled by the OECD). It simply does not occur to anyone that they would be required to pay taxes to a foreign government.
However, the United States claims jurisdiction due to citizenship. One does not even have to have touched foot in the U.S., according to U.S. law. Of course, due to the viciousness of the U.S. “FBAR Fundraiser” many people began to resist whether of anger or fear.
Not much has changed* , in spite of all the factors that have contributed to this debacle (and debacle it is, what could one expect when a country tries to take what is someone else’s, based on an idea of fake residence?).
For a detailed discussion concerning the determination of tax residence and related factors, please see here.
In this interview, John Richardson speaks with Olivier Wagner about tax residency and how a seemingly simple concept has become so terribly important in the 21st century.
In a #FATCA and #CRS world – the most interesting thing about a person is where has @taxresidency ESPECIALLY when he has > one. @Expatriationlaw interview with CPA @1040Abroad: ‘Episode 1 of: "A Tax Residency Primer"- Tax, Residency and #TaxResidency" https://t.co/6swfQmJO7i
— John Richardson – Counsellor for US persons abroad (@ExpatriationLaw) August 8, 2018
- *DOS says 9 million US citizens live abroad
- *from 2009-2016, 100,000 taxpayers came into compliance via OVDP and Streamlined
- * in 2011 449,277 Forms 2555 (FEIE) were filed; see breakdown by country;
- * in 2011 3,921,628 Forms 1116 (FTC) were filed; see breakdown by country
- *in 2015, 1,163,229 FBARs were filed
- The numbers above strongly suggest that a large majority of non-resident Americans are not tax compliant
It’s Happening Again – Enough is Enough is Enough
NB: STAY TUNED – a 7-part video on the Transition Tax, with
John Richardson & Karen Alpert are available here .
NB: For anyone with time to spare/the interest/needing specifics to make the point regarding the “intention” of the law, here are some of the relevant House/Senate hearings and/or documents:
Oct 3, 2017 Full Committee Hearing -Senate Finance
Nov 6 – 9, 2017 H W & M Markup
Nov 13, 2017 Open Executive Session to Consider an Original Bill Entitled the Tax Cuts and Jobs Act Sessions also continued Nov 14, 15, 16 with videos at the page)
Supporting Document Markup – Senate Finance Committee
*******
Another day, another set of articles and comments where the #TransitionTax & #GILTI are being stuffed down the throats of expatriates who have their own small corporations. The proliferation of articles on this issue, all proclaiming the U.S. can now inflict a deeper cut into the retirement savings of non-residents, is infuriating. The first two articles at least expressed the idea that these provisions do not might affect non-resident U.S. taxpayers.
Max Reed , posted on November 3, 2017:
As part of this transition, the new rules impose a one-time 12% tax on income that was deferred in a foreign corporation. Although perhaps unintentional, since US citizens will not benefit from a territorial model, the new rules impose a 12% tax on any cash that has been deferred since 1986.
Kevyn Nightengale, posted on November 10, 2017 (I have not included the updated comments because this is what we saw at that time):
This provision was not designed to catch individuals (I think), and certainly not Americans abroad – they are collateral damage. it’s incredibly unfair.
When I saw the House version, I expected that individuals would be exempted after a sober second (or third) thought. Or at least individuals living abroad would be exempted. But seeing a parallel provision in the Senate version makes me expect the worst.
Seems fairly obvious that the biggest clue that the #TransitionTax IS NOT meant to apply to small CFC’s is that they are not “transitioned” from a worldwide system to a territorial one. This is so basic it is hard to believe nobody just calls these people out on this. How many tax professionals watched all of the House/Senate hearings? Many of us did, all hoping to hear that the move to territorial would include individuals; or at least some mention of us. There simply was nothing to suggest that this tax applied to anyone except large multi-national corporations.This provides the context in which the law was conceived. It should be considered just as thoroughly as the plain reading that professionals claim catches expats in the net. Just exactly who is really making the law here?
Continue reading
John Richardson Interviewed by IRS Medic
Looking for Stories of People Who Have Renounced
UPDATE Our Stories
It’s Cruel how we Have had to Give up our Right to Return
A Dual who Managed to Relinquish!
I Renounced – for Human Rights, for Privacy Rights, & for Showing Respect for my Husband’s Privacy
I Lost Hope
I did not Leave America, the U.S. Government Left me
I Feel Cheated by my ex-Country who Treats its Citizens in This Way
How I Became Canadian and Ended up Renouncing US Citizenship
Last Generation American
Why won’t the USA Graciously let its People go?
*******
I would like to create a section on the Citizenship Taxation website that is devoted to the stories of those who have renounced/relinquised. The primary purpose is to demonstrate a different focus than that of trying to keep it, hoping for change in the political process, etc. Hopefully it would include what it felt like during the period of deciding (the OMG moment + any particular stresses that pointed you in that direction), could include the actual appointment(s) at the Consulate, the aftermath, family reactions, etc. Whatever you feel would be meaningful to communicate…….
Real names are not required. All requests for privacy concerning email, name etc will be strictly respected/followed.
Please email to:
information at citizenshiptaxation at dot ca
Thanks!
Meet the Proposed Commissioner of the IRS – A Welcome Change?
Politico announced Trump’s nomination Of Charles P. Rettig, including the following excerpts:
Rettig, who specializes in settling complex tax disputes between his taxpayer clients and authorities like the IRS, known as tax controversies, has for more than three decades represented clients before the IRS, the Justice Department, state tax authorities and other jurisdictions.
Rettig is no stranger to the Washington tax policy community. Many IRS officials would be familiar with him because of tax litigation in which he’s been involved.
Rettig’s nomination would break a nearly two-decade practice of naming commissioners from the general business world, a trend that began after the IRS Restructuring and Reform Act of 1998. Prior to that, commissioners generally had tax backgrounds.
Continuing with the conversation from Media & Blogs thread, I see many mentions of the fact that his firm represented some 100 UBS clients (which may be why some of his articles concern the OVDP). I am trying to locate some actual court cases but the site that keeps coming up in references seems to be down. He also clearly, is respected for his work representing clients by his peers:
Rettig would also oversee the implementation of tax reform. Rettig has been a friend and mentor to many of us in the tax controversy bar over the years, and we are encouraged by the selection of someone from the private bar to the post.
Given he is a tax litigator, I don’t expect he would support a change to RBT (hope I am wrong about that) but some of his comments certainly suggest he understands what has happened and that our situation is very different from that of U.S. residents with foreign accounts.
Forbes IRS FBAR Streamlined Procedures Revisited, Am I Non-Willful
If, as some believe, the Streamlined Procedures are being used to entice unsuspecting taxpayers into placing their head onto the FBAR chopping block, the government should be held accountable. However, if, as most believe and our experience seems to support, the Streamlined Procedures were designed to provide not quite willful taxpayers an opportunity back into compliance through a simplified and expedited process, the IRS should respect the vast majority of Streamlined submissions (and requests for transitional treatment) and move on.
Forbes IRS FBAR Voluntary Disclosure Program Taxpayer Interviews
It should be anticipated that the IRS will pursue examinations of the amended returns of taxpayers residing in the United States in some manner. It remains uncertain whether the IRS would or could effectively pursue those residing outside the United States in any realistic manner. It should also be acknowledged that there remain viable alternatives to the OVDP, including the voluntary disclosure practice of the IRS set forth in Internal Revenue Manual (IRM) 9.5.11.9 [see Example 6(A)], Section 4.01 of the Criminal Tax Manual for the U.S. Department of Justice, and Section 3, Policy Directives and Memoranda, Tax Division of the U.S. Department of Justice.
Certainly, given the complexities of the Internal Revenue Code, other relevant statutes and life in general, many of the indiscretions associated with an income tax return or FBAR are anything but willful or intentional and definitely not fraudulent or criminal in nature. In these situations, an interview of the taxpayer and/or their return preparer can lead to an extremely quick and reasonable resolution.
Many, many articles penned by Mr. Rettig are available via SSRN and listed here.
Bubblebustin asked for this post to be based upon this paper. Unfortunately the most we can offer is the link and a few excerpts. Strongly suggest everyone read this particular article- Why the Ongoing Problem with FBAR Compliance? from the Journal of Tax Practice & Procedure, August-September 2016, published by CCH, a part of Wolters Kluwer.
A major point in the article is when government is trusted, is seen as legitimate, compliance tends to be a result. It probably does not help that the IRS emphasizes submissions coming from OVDP and Streamlined will be examined “in an effort to uncover leads for criminal prosecutions.” Mr. Rettig is also aware that eighty percent of non-resident filers will have no U.S. Tax Liability. Though again, that is a reference to income tax and does not cover some of our worst grievances.
Potential government actions should consider the
impact on those six-plus million U.S. people (and their
advisors) sitting in the bleachers domestically or in various
foreign countries trying to determine how best to pursue
some form of voluntary compliance, expatriation or to
possibly just continue sitting in the bleachers … “History
repeats itself because no one was listening the first time.”