I know many here place blame for FATCA and the FATCA IGA on the Harper Conservatives, and I generally agree with that view. However, I do think in the video below John Robson (Canada’s equivalent of Daniel J Mitchell) makes some important points. I know many Brockers will not like the idea of shrinking government for the sake of shrinking government, but I do think Robson is on to something.
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Green card holders actually leaving the United States |
|||||||||
| DHS estimate of LPR emigration, 1980 to year start |
2,690,000 | 2,860,000 | 3,040,000 | 3,230,000 | 3,420,000 | 3,590,000 | 3,820,000 | 4,010,000 | |
| Net increase during year |
170,000 | 180,000 | 190,000 | 190,000 | 170,000 | 230,000 | 190,000 | — | 1,320,000 |
| Green card holders abroad whom the IRS no longer considers U.S. Persons |
|||||||||
| USCIS: I-407 filers |
14,843 | 13,091 | 16,938 | 17,445 | 16,191 | 19,545 | 17,267 | — | 115,320 |
| Others losing U.S. Person status |
c. 15,000 per year? Fewer than four thousand Form 8833 filers Around ten thousand ex-LPR deportees |
~105,000 | |||||||
As Patrick Martin, Phil Hodgen, and others have pointed out, if you previously immigrated to the U.S. as a legal permanent resident (LPR, “green card holder”), the IRS considers you a U.S. Person for tax and asset-reporting purposes even if you’ve left the country. Per 26 USC § 7701(b)(6), the only way this changes is if you either take a treaty-based return position that you are a resident of another country, or get a determination from USCIS or a court that your LPR status is gone. You usually do the former by filing IRS Form 8833. You usually get the latter by filing USCIS Form I-407 or by being deported.
Absent that, you remain a “U.S. Person” even if your green card expires or you’ve been out of the country so long that it’s clear you’ve abandoned your residence in the United States. In other words, you are a resident of the U.S. for tax purposes, but not for residence purposes. How many people are stuck in this tax limbo? The Department of Homeland Security estimates that more than 1.3 million LPRs moved out of the U.S. from 2005 to 2012. Generously speaking, perhaps six hundred thousand took action during that period to retain their green cards by applying for re-entry permits from USCIS (whether or not they knew about the tax consequences of keeping their LPR status). Another 115,000 actually filed Form I-407 to cancel their green cards; there appear to be a similar number of Form 8833 filers and deportees.
That leaves possibly as many as half a million emigrants who no longer have any right of residence in the U.S. but remain subject to that country’s worldwide “citizenship-based taxation” net.
On Friday, bills were introduced in the House (H.R. 5706) and Senate (S. 2920) “to deny Social Security benefits and other benefits to individuals who participated in Nazi persecution”.
This sudden legislative attention to a decades-old problem stems from an Associated Press story two weeks ago about Social Security payments to Nazi war criminals. The Nazis in question immigrated to the U.S. after World War II, worked there long enough to qualify for Social Security, but then departed in the middle of Department of Justice investigations against them and then renounced their U.S. citizenship to head off the denaturalisation and deportation cases against them.
I was initially concerned that this bill might be used to attempt to deny Social Security benefits to other people who gave up citizenship, but as it turns out, the bill is written narrowly enough to target only Nazi war criminals — not even war criminals from other countries, let alone ordinary emigrants.
Today I have heard of two stories regarding citizenship which lie outside the normal naturalization process (at least in terms of establishing permanent residence first, for a specified number of years, etc). Both involve a type of selling if you will. The first is a deal between two governments with the people gaining only marginal status and benefits (which they already should be entitled to). The second is more like a straightforward business deal between individuals and business, brokered through a government.
Peter Spiros, at at Opinio Juris says:
Citizenship for sale schemes have become an increasingly common phenomenon as the rich from non-Western states look to upgrade their travel privileges. The likes of Malta, Cyprus, and St. Kitts have had some success selling citizenship to plutocrats from Russia, China and other non-visa waiver countries. The revenues supply a nice fiscal bump at low marginal cost to these small states. The price is fairly steep (more than a million Euros in the case of Schengen-advantaged Malta) but the number of buyers has been relatively small. That’s cash-for-passports on a retail basis. We now have reports of the first wholesale purchase.
(Interesting that he does not mention the sale of those citizenships are also to those wishing to escape from tax evasion prosecution).
The “wholesale purchase” is a deal between the governments of Kuwait and the Comoros Islands (off the African coast). More than 100,000 Kuwait residents are legally stateless, and the country refuses to recognize them as its own, saying they entered the country illegally.
Comoros will issue passports in exchange for direct Kuwaiti investment into the building of schools and charities. With Comoros citizenship (though remaining in Kuwait), the illegal status will end allowing for some health and education benefits. I am not quite sure just what it is the Kuwait government actually gains from this agreement. It sounds like the benefits to its “resident aliens” will be minimal.
Atossa Araxia Abrahamian, a name early Brockers will recognize, has also weighed in on the plight of the Bidoon.
The Comoros-Gulf alliance presents a new model for governments trying to deal with stateless people in their countries without giving them the rights that come with full political and civic membership.
The citizenship could also put them at risk of deportation. While stateless people are difficult for countries to get rid of — their lack of documentation actually protects them from being sent away — foreign citizens can be kicked out at a moment’s notice. Jarrah said Kuwait did not have plans to deport the Bidoon wholesale, but that those who commit certain crimes could be liable for deportation.
International rights groups have also lambasted the scheme. The Islamic Human Rights Commission called Kuwait’s strategy “an affront to human dignity and justice” and “a cynical ploy to relieve itself of its own obligations to the Bidoon.
On the other end of the spectrum one finds the U.S. EB-5 investor program. Created in the 1990’s, it was intended to stimulate the economy through the creation of jobs via foreign investment. In return for putting up the funds, immigrants receive visas to live in the U.S.
Continue reading
I have attempted to gather the comments on this subject, identified by comments from Neill, so they will be in one place for further discussion by those able to review:
Neill says
November 13, 2014 at 11:10 am
This has got to be worth digging into: http://finance.yahoo.com/news/brager-tax-law-group-obtains-182000920.html
FOIA request on OVDP dump. Not locked.
On OVDP dump. First document has great cartoons in it.
http://www.bragertaxlaw.com/files/lbI_doc_1.pdf
This is a powerpoint of the IRS bragging about them bowing UBS
**********
That first document clearly shows that it’s all a big joke inside the IRS. See that PowerPoint an the picture on page 78. It shows a massive chalk board filled with equations and diagrams. Caption says ‘Clearly this taxpayer qualifies for the 5% penalty’. Other pictures show taxpayers doing hurdles to get into these groups.
**********
We need a coordinated effort were we give a person a doc to skim through and we keep track of what’s been looked at. We will be ready this way for when there is a class action lawsuit. Maybe we find something to give to the press.
Bastards.
Tricia Moon says
November 14, 2014 at 9:36 am
Thanks for bringing this to my attention. I have not heard of it before. For those who want to start reading: http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html
No Word says
November 14, 2014 at 10:09 am
Can someone bring this treasure trove to the attention of Allison Christians. I think someone of her calibre is able to make sense of what has been released.
YES, I agree — would be good to have a legal eye looking if possible and Tricia has forwarded to Allison as requested.
Finally from badger, today: https://isaacbrocksociety.ca/2012/01/28/the-ovdi-drudgery-for-minnows/comment-page-23/#comment-4272818
From find by Neill and posted on another thread https://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments/comment-page-73/#comment-4244472
See:
http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html
and entire list of documents obtained:
http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html
Importantly, as badger points out:
Note, this is just an FYI, not an endorsement of any kind or advertising the law firm who made the FOIA request and posted it on their site.
Review Previous Isaac Brock Society Post and Comments re Boris Johnson, Mayor of London
and then listen to this current interview of Mayor Johnson’s feelings about his own US citizenship (he renewed that US passport in 2012):
The Diane Rehm Show – Interview with Boris Johnson, November 13, 2014, which begs someone to contact him again regarding our existence and his possible assistance in the cause as he is one of them there “Accidentals” having apparently left the US when he was five years old. This will best be a job for someone who can get through the layers of bureaucracy to actually reach and communicate with Mr. Johnson.
It certainly would be significant to get the attention of someone like Commander Chris Hadfield. I wish you all the best in your attempt, JC. He became a hero to Canadians, someone for Canadian children to look up to. Will he recognize some of our Canadian children who are defined by the U.S. as having U.S. citizenship and all of the same U.S. tax compliance consequences he will have?
@Calgary411
Request for IBS Feature: Contact with Chris Hadfield
By Tuesday 18 Nov: I will attempt contact with Commander Chris Hadfield – very high profile Canadian with US personhood (snowbird rules). Hadfield has flown two space shuttle missions and served as commander of the International Space Station.
He also sang the Canadian anthem during the Toronto Maple Leafs and Montreal Canadiens game on 18 January 2014. He is famous for a rendition of David Bowie’s Space Oddity which he sang on the International Space Station and posted a popular video on YouTube, among many videos.
This may be subject of IBS commentary the message and the medium for such contact. He only has 1+ Million Twitter followers so I thought about contacting him there. Here are three Tweets that I thought of sending starting Tuesday (that might get modified tweaked depending on comments):How best to appeal to him without scaring him away? Do we send him to just the home page of IBS?
@Cmdr_Hadfield Esteemed Canadian/US needed for mission: Ground Control to Uncle Sam. Re: unjust US taxes https://isaacbrocksociety.ca/ #FATCA
@Cmdr_Hadfield Esteemed Canadian/US needed to highlight unjust US tax laws applying to Canadians https://isaacbrocksociety.ca/ #FATCA
@Cmdr_Hadfield Canadians Ginny & Gwen need support to fight American Financial Imperialism/Savings Confiscation https://isaacbrocksociety.ca/ #FATCA
I also found out that he has his own website with potential for attempted e-mail contact: http://chrishadfield.ca/
Will Commander Hadfield have completed all necessary paperwork for his times in the USA http://en.wikipedia.org/wiki/Chris_Hadfield — Form 8840 http://www.irs.gov/pub/irs-pdf/f8840.pdf for his Closer Connection Exception Statement for Aliens? Canadians here hope so!
Fearing Up for #FATCA– with all Necessary Propoganda from the Administration
As the administration and friends were looking for someone else to fund both their deficit and their new domestic jobs bills (such as 2010 HR 2847 Jobs for Mainstreet Act), they looked around for new ways to get money from people they didn’t like. However, they needed to get it from people who couldn’t fight back. They also needed to make sure that no one else would come in and defend those people.
G.Obombda Barracks (G.O.B. or OB for short) asked his team: “What is the largest segment of US citizens that can’t fight back?” His team answered: “There are 7.6 million US citizens living outside the USA, and we make it difficult for them to vote–as difficult as we can, that is”
OB: “Any others?” Team: There are 10’s of millions of legal immigrant residents, whom we don’t need to please because most of them can’t vote.
OB: “Is that all you got?” Team: “Course not—they all got spouses and kids”
OB: “Better. But not good enough.” Team: “A bunch of ‘em got business partners, too”
OB: “What else can you get me?” Team: “We can get you entire families overseas with green cards”
OB: “Looking better and better.” Team: “And their green cards don’t even need to be active or usable.”
OB: “I like it. Let’s call them all “US Persons” What else?” Team: “Here’s the best part–they don’t have to BE those things, they just need to be SUSPECTED to be those things”
or copy past link: http://bancdelasteroideb612.wordpress.com/2014/11/11/america-gang-bangs-its-own-citizens/
What’s most upsetting to us is the meme manufactured and controlled directly out of that big white house. It is nearly impossible to take on this attack upon on head on. The resources that are devoted to screwing us are way too high.
The post is meant to instill the importance of what we all know–that something is needed to start a new meme about US expatriates (and green card holders, and immigrants, and spouses, and business partners……). Some new meme needs to overtake Schumer’s and Levin’s and Bill Nelson’s and Barbara Boxer’s smearing of US persons.
An author, John Gaver, has recently opened a window to allow “the real story”
Here is how he responded to some multiple blasts from one of our colleague dissidents:
@… @kred65 @… Tell me how that story can be written 2 address the reader’s question “How does it affect me?” & I will.
This gives an opening to either present US citizens in a good light, or to present the administration in a bad light, depending upon how the author skews the information.
Here is the incorrect information he provided in his article, which ellicited some nasty feedback from Brockers and others
http://www.examiner.com/article/obama-drives-record-10-000-wealthy-u-s-taxpayers-to-renounce-citizenship
On Friday, November 7th, I attended the Remembrance Day ceremony at the elementary school where I live. I wore my ceremonial dress, as requested, and joined a couple of veterans who were also in attendance. During the singing of “O Canada”, for the first time in my life, I felt really conflicted. After 30+ years as a law enforcement officer in Canada, during the singing of our national anthem, it started to really hit home that the current Canadian government does not consider me to be a Canadian.
