PREP Podcaster - ”Success Favours The PREPared Mind”: Recent Episodes

prep

Discussion about current events, culture, independent candidates, business, education, travel, death and taxes, global mobility, citizenship and residence by investment options, Americans abroad, FATCA, CRS, citizenship renunciation, Green Card abandonment, citizenship taxation, PFIC, GILTI, foreign trusts and more ...

July 24, 2026 - A Podcast Based On A July 17, 2025 John Richardson Presentation About Canada's Bill C-3

Canada's Bill C-3 became law on December 15, 2025. The Bill clarifies who - if born outside of Canada to a Canadian citizen parent IS a Canadian citizen. Note that this is NOT a fast track to naturalization.

About Canadian citizenship:

Those born in Canada or naturalized as Canadian citizens ARE Canadian citizens.
Those born outside of Canada to a parent who was either born in Canada or naturalized is a Canadian citizen IS a Canadian citizen.
Those born outside of Canadian to a Canadian citizen parent who was born outside of Canada to a "first generation Canadian" IS a Canadian citizen.
Those born outside of Canada to A Canadian citizen parent who was a "second generation Canadian" is based on whether you were born before December 15, 2025 or after December 15, 2025:
If born before December 15, 2025 you ARE a Canadian citizen if your parent, grand parent, great grand parent, etc. was a Canadian citizen;
If born after December 15, 2025 you ARE a Canadian citizen if your parent, was a Canadian when you were born and had 1095 days of physical presence in Canada before your birth.

"First generation Canadian" = A Canadian citizen who was born outside of Canada to to a Canadian citizen who was born outside of Canada to a parent who was born or naturalized in Canada.

"Second generation Canadian" = A Canadian citizen was was born outside of Canada to a Canadian citizen who was born outside of Canada to a Canadian citizen parent who was born outside of Canada to a parent who was also born outside of Canada.

Sound confusing? This is explained in the podcast.

"This podcast examines the significant legal shifts introduced by Canada’s Bill C-3, which restores and expands citizenship by descent for individuals born abroad. The legislation is presented as a vital tool for U.S. citizens to achieve dual nationality, potentially allowing them to navigate restrictive tax regimes and secure mobility rights. Beyond the legal definitions of birthright and naturalization, the source details the practical benefits of Canadian status, including universal healthcare and simplified entry into the United Kingdom. However, obtaining a citizenship certificate requires rigorous documentation and a clear ancestral lineage to prove eligibility under the new rules. For those who qualify, the author frames this status as a valuable family legacy that facilitates residency in Canada without the need for a traditional retirement visa. While the bill offers many advantages, the text also notes the process for renunciation for those who wish to avoid the obligations of dual citizenship."

July 31, 2026 - PFIC Odyssey Part 2

The explanatory text of the 1986 PFIC rules is found here:

https://citizenshipsolutions.ca/wp-content/uploads/2023/12/jcs-10-87-PFIC-section.pdf

https://citizenshipsolutions.ca/2023/12/19/general-explanation-of-the-1986-tax-reform-act-pfic-edition/

AI Generated:

"This episode is a deep dive into PFICs (Passive Foreign Investment Companies) and how a technical area of U.S. tax law can unexpectedly punish everyday investors, heirs, startups, and new immigrants. It explains what triggers PFIC status, the punitive Section 1291 default, alternative elections like QEF and mark-to-market, and real-life examples of how the rules can devastate savings.

The episode also reviews proposed reforms from Monica Gianni’s "PFICs Gone Wild" — practical fixes to protect legitimate businesses and modern investors — and leaves listeners with a warning about the unseen risks of global investing today."

Thoughts:

The "Microsoft" example is compelling. It's okay for deferral to take place as long as it is NOT within a foreign corporation. But, those investing outside the USA will pay the price!

July 30, 2026 - The PFIC At Age 40 - What were the PFIC rules understood in 1986?

The explanatory text of the 1986 PFIC rules is found here:

https://citizenshipsolutions.ca/wp-content/uploads/2023/12/jcs-10-87-PFIC-section.pdf

https://citizenshipsolutions.ca/2023/12/19/general-explanation-of-the-1986-tax-reform-act-pfic-edition/

The podcast is based on the description in 1986 of what Congress was intending to do. This is a great help in understanding the PFIC regime as the rules are described in the Internal Revenue Code which is described as:

"Interest On Tax Deferral"

https://www.law.cornell.edu/uscode/text/26/1291

AI generated description of this podcast:

"This episode explains how the Tax Reform Act of 1986 created the Passive Foreign Investment Company (PFIC) rules to stop U.S. investors from using offshore funds to defer taxes. It covers the income and asset tests that replaced ownership thresholds, and why lawmakers built severe penalties to neutralize offshore tax advantages.

It also outlines the enforcement mechanics — the throwback tax and interest charges — and the voluntary Qualified Electing Fund (QEF) alternative that forces current taxation. Finally, it discusses the law's broad reach and why ordinary investors today can accidentally trigger these complex rules."

Of course in 2026 it's clear that the PFIC rules make retirement planning for Americans abroad exceedingly difficult.

July 21, 2026 - Participants include:

Dan Hughes - @RadikalHughes

John Richardson - @ExpatriationLaw

Host John Richardson speaks with Dan Hughes about Canada’s Bill C-3 and Dan’s personal journey discovering he may be a Canadian by descent. Dan describes how he found his Canadian ancestors on Ancestry.com, hired a genealogist, and traveled across Michigan to collect certified birth, marriage and death records to prove his claim to the Immigration, Refugees and Citizenship Canada (IRCC).

The episode explains the step-by-step proof process (primary and secondary documents, census and baptismal records), the urgency around filing due to application backlogs and possible legal changes, and the implications for future generations and family identity.

July 18, 2026 This podcast was motivated by a comment on X by a U.S. immigration lawyer who commented that his Canadian clients rarely consider the applicability of Canada's "Departure Tax". Canada actually pioneered the concept of the modern Exit/Departure Tax. Although Canada did NOT have the first version of taxes imposed on emigration, Canada's 1996 tax found in S. 128.1 of the Income Tax Act was unquestionably the first of the modern broad departure tax covering a wide range of assets. Interestingly in 1996 the United States considered enacting what would in 2008 become the 877A tax but decided against it. Interestingly the reality of Canada's 1996 Departure Tax (which could result in double taxation) is addressed in paragraph 7 of Article XIII of the Canada/U.S. tax treaty and reads: "7. Where at any time an individual is treated for the purposes of taxation by a Contracting State as having alienated a property and is taxed in that State by reason thereof, the individual may elect to be treated for the purposes of taxation in the other Contracting State, in the year that includes that time and all subsequent years, as if the individual had, immediately before that time, sold and repurchased the property for an amount equal to its fair market value at that time." https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/country/united-states-america-convention-consolidated-1980-1983-1984-1995-1997-2007.html (This provision of the treaty appears to reflect OECD tax treaty commentary governing departure taxes.) In any event ... The history of Canada's Departure Tax is fascinating. The history demonstrates how a government response to the conduct of one wealthy person or corporation can lead to legislation destroying the lives and opportunities of the average or middle class person. For a description of how Canada's current departure tax works, see this post that I wrote a number of years ago: https://ustaxationabroad.ca/2013/07/31/canadas-departure-tax-vs-the-us-expatriation-tax/ Here is an AI generated podcast describing these issues. "The provided sources detail the historical and legislative origins of Canada's departure tax, specifically the deemed disposition rules under Section 128.1 of the Income Tax Act. The text identifies the Irving family of New Brunswick as the primary catalyst for these laws, noting how patriarch K.C. Irving moved to Bermuda in 1971 to shield his multibillion-dollar empire from the introduction of capital gains taxes. Journalists like Jacques Poitras have documented how the family utilized offshore trusts and captive insurance companies to move wealth out of the Canadian tax net. In response to these high-profile tax avoidance strategies, the federal government enacted a major legislative overhaul in 1996 to close loopholes related to international tax treaties. Today, the system functions as a "last shot" for Canada to tax accrued gains on global assets before a resident departs. These measures ensure that wealth generated within the country is subject to domestic taxation regardless of the owner's future residency."

July 17, 2026 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

On June 30, 2026 the IRS removed the "Delinquent FBAR Submission Procedures" from its site. This ended the "FBAR Safe Harbour" that allowed for the (possible) filing of lates FBARs without penalty. This was discussed in the following two blog posts by John Richardson and Virginia La Torre Jeker.

https://citizenshipsolutions.ca/2026/07/02/irs-ends-delinquent-fbar-submission-procedures-leaving-no-guaranteed-penalty-free-option/

https://www.forbes.com/sites/virginialatorrejeker/2026/07/02/irs-quietly-ends-penalty-free-fbar-filing-procedure-whats-next/

In addition we did an initial podcast on July 2, 2026 giving our initial impressions.

https://prep.podbean.com/e/irs-removes-delinquent-fbar-safe-harbor-%e2%80%94-what-it-means-for-americans-abroad/

___________________________

Today, on July 17, 2026 Virginia and John shared our additional thoughts in this podcast. This podcast -as a follow up - is Part 2.

"John Richardson speaks with U.S. tax lawyer Virginia La Torre Jaker about the IRS decision to archive the delinquent FBAR submission procedures. They discuss how the removal eliminates a previously reliable safe harbor, shifting reliance to the harder-to-prove "reasonable cause" defense, and what that means for taxpayers, preparers, and costs.

The episode explains the practical differences between the old procedure and reasonable cause, the limits of relying on professional advice, and advice for taxpayers and preparers on handling late FBARs going forward."

July 6, 2026 - AI generated from the following two sources:Current reality:

https://citizenshipsolutions.ca/2019/03/12/the-united-states-imposes-a-separate-and-more-punitive-tax-system-on-us-dual-citizens-who-live-in-their-country-of-second-citizenship/

1776 - The origins of America:

https://web.archive.org/web/20260703132439/https://apps.bostonglobe.com/2026/07/storylab/250th-anniversary-boston/#independence-declared#independence-declared

Many people have suggested that the taxation of Americans abroad is incompatible with the historical origins of the United States. Some call the taxation of Americans abroad "Taxation Without Representation". Whether true or not, it's clear that in 1776 the Colonists were dealing with the extraterritorial application of British laws. In 2026, Americans abroad (including those who are dual citizens) are living with the extraterritorial application of American extraterritorial laws. The following podcast was generated from the above two sources which are separated in time by 250 years. What follows is an ai generated description of the podcast created from the two sources. "The provided source details how the United States tax system uniquely penalizes dual citizens and expatriates by taxing their worldwide income regardless of where they reside. Unlike most nations, the U.S. enforces citizenship-based taxation, which often subjects those living abroad to double taxation and complex compliance requirements that do not apply to domestic residents. This legal framework creates significant financial hurdles for retirement planning and the management of foreign assets, which the IRS views through a more punitive lens. The text argues that these policies constitute a form of discrimination, as expatriates face higher effective tax rates and aggressive reporting penalties for simply holding local accounts in their home countries. Consequently, many individuals, including accidental Americans with no functional ties to the U.S., feel compelled to renounce their citizenship to escape these administrative and financial burdens. Advocacy groups and specific legislative efforts are highlighted as potential avenues for reform to address these extra-territorial tax injustices."

July 2, 2026 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

On June 30, 2026 the IRS removed its "Delinquent FBAR Submission Procedures" page, ending the informal (guaranteed) penalty-free route for taxpayers who had only failed to file FBARs but otherwise reported and paid U.S. tax on foreign-account income.

The change means taxpayers now face the penalty authority (not a mandate) found at 31 U.S.C. 5321 and examiner discretion found in the Internal Revenue Manual. FBAR penalties are not automatic, but the safe-harbor promise found in the "Delinquent FBAR Submission Procedure" is gone, increasing uncertainty and the need for careful compliance and professional advice.

Virginia La Torre Jeker and John Richardson discuss the possible implications of this change.

June 10, 2026 - Podcast generated from this post at the IsaacBrockSociety.cahttps://isaacbrocksociety.ca/2026/06/09/tracking-income-in-your-tfsa-isa-or-other-account-that-is-not-taxable-in-your-country-of-residence/

______________________________________________

AI generated podcast and description:

"Tax Tracking Strategies for U.S. Citizens with Foreign Accounts 1 source·Jun 10, 2026 American citizens residing abroad often face punitive tax obligations because the United States taxes global income, including earnings from foreign accounts like the Canadian TFSA or British ISA. Although these accounts are tax-exempt in their home countries, the IRS generally views them as taxable, creating significant compliance hurdles and potential double taxation. Legal expert John Richardson advises expatriates to proactively track annual income within these accounts, as financial institutions rarely provide the specific documentation required for U.S. filings. Maintaining these records is essential for those currently filing, as well as for non-filers who may eventually need to formalize their tax status or renounce their citizenship. Furthermore, there is a growing call for diplomatic pressure to harmonize tax treaties so that foreign tax-advantaged accounts receive the same favorable treatment as American Roth IRAs. Ultimately, diligent record-keeping serves as a vital safeguard against the complexities and costs of navigating the international tax system."

June 7, 2026 - More on Mr. FBAR Podcast based on an old Phil Hodgen post from 2012 - Note how little has changed! https://web.archive.org/web/20130813183109/https://hodgen.com/what-hath-god-wrought-fbar-edition/ AI generated

"This source criticizes the aggressive enforcement of U.S. international tax laws, specifically focusing on the Foreign Bank Account Report (FBAR) and its impact on dual citizens living abroad. The author argues that federal agencies often ignore the unintended consequences of draconian penalties, which frequently penalize ordinary individuals who have no functional connection to the United States. By highlighting a specific case of a Canadian resident, the text illustrates how citizenship-based taxation can lead to significant psychological and financial distress for those caught in the regulatory "meat grinder." Commenters within the text further suggest that these policies represent a form of fiscal imperialism that contradicts fundamental human rights regarding movement and residency. Ultimately, the article serves as a plea for the IRS and Treasury Department to exercise more discretion and empathy rather than relying on intimidation tactics."

June 3, 2026 - AI Generated podcast from:

Why Treasury Should Exempt U.S. Citizens Resident Outside The United States From FBAR Filing - April 26, 2024John Richardson, JD

https://citizenshipsolutions.ca/2024/04/28/why-treasury-should-exempt-u-s-citizens-living-in-other-countries-from-fbar-filing/

AI generated description:

"This source is an advocacy piece arguing that the U.S. Treasury should stop requiring citizens living abroad to file the Foreign Bank and Financial Accounts (FBAR) report. The author, John Richardson, contends that these regulations unfairly target individuals with no physical or economic ties to the United States by forcing them to disclose their local bank accounts. He emphasizes that while the Treasury Secretary has the legal power to grant exemptions, the current system treats foreign residence as a potential indicator of financial crime. The text points out inconsistencies in the law, noting that certain non-citizens and residents of U.S. territories are often exempt despite having closer ties to the country. Ultimately, the article calls for a transition from citizenship-based reporting to a system based on actual residency and life circumstances. This perspective was prepared as a formal comment to the Office of Management and Budget to protest the ongoing burden of these filing requirements."

March 26, 2026 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

John Richardson interviews U.S. tax lawyer Virginia LaTorre Jeker about the State Department’s reduction of the Certificate of Loss of Nationality fee from $2,350 to $450 (effective April 13, 2026) and what that change actually means in practice.

They discuss who stands to benefit (mainly lower-wealth and accidental Americans), the limits of the fee cut given unresolved exit-tax and tax-compliance issues, the IRS relief procedure for certain former citizens, and broader considerations like banking access, dual citizenship, and travel to the U.S.

May 28, 2026 - This is an AI generated podcast based on the following blog post at Citizenship Solutions:

About The Expired U.S. Passport: Is It Proof Of Citizenship (Yes)? Or Can It Be Used As A Travel Document (No)?

https://citizenshipsolutions.ca/2026/05/28/about-the-expired-u-s-passport-is-it-proof-of-u-s-citizenship-yes-can-it-be-used-as-a-travel-document-no/

The AI generated summary description of the podcast is:

"This source at John Richardson's CitizenshipSolutions.ca examines the legal complexities of U.S. citizenship and the specific requirements for international travel. While an expired passport remains a valid way to establish your identity and citizenship, federal law generally mandates that citizens use a current, unexpired document to cross national borders. The text explains that although confirmed citizens have a right to enter the United States, failing to carry proper documentation can result in legal violations or significant processing delays. Additionally, it outlines various regulatory exceptions for military personnel, tribal members, and participants in trusted traveler programs like NEXUS. Ultimately, the author advises keeping old passports as secondary evidence of status while emphasizing the necessity of a valid one for frictionless transit.

AI generated podcast based on the Parviz Malakouti "X Spaces" discussion on April 27, 2026.

https://x.com/ParvizMalakouti/status/2048849607879508090

"This transcript explores the concept of "Fortress America," a term used to describe the increasing legal and financial barriers that restrict the mobility of U.S. citizens. The speakers argue that an amalgamation of laws, including worldwide taxation, exit taxes, and passport restrictions, creates a state of "friction" that effectively traps Americans within their own country. They contend that while the U.S. Constitution is often praised for its longevity, it lacks explicit protections for movement, leaving rights like entry, exit, and voting to government discretion. To address these vulnerabilities, the discussion proposes a constitutional mobility amendment to secure the right to travel and relinquish citizenship without encumbrance. Ultimately, the sources call for a new advocacy movement to protect the fundamental freedoms of citizens against government overreach and the tyranny of complexity in modern law."

April 20, 2026 - AI generated summary of an "X Space" discussion about the Trump v. Barbara case challenging "birthright citizenship" argued in the U.S. Supreme Court on April 1, 2026. A discussion of the oral arguments at the hearing are here:

https://prep.podbean.com/e/ai-analyis-of-the-legal-arguments-presented-to-the-supreme-court-in-trump-v-barbara/

In a transcript from an April 20, 2026 "X Space discussion", speakers Parviz Malakouti-Fitzgerald, John Richardson and others examine the Trump v. Barbara case - a U.S. Supreme Court case regarding birthright citizenship.

See the following tweet from Parviz Malakouti explaining the issues here:

https://x.com/ParvizMalakouti/status/2043798722203857032

The points covered include (but are not limited to):

They argue that the government’s attempt to require parental domicile for citizenship eligibility threatens the Fourteenth Amendment’s clear standards.

The speakers worry that moving away from a bright-line rule of birth on U.S. soil would grant the government dangerous power to arbitrarily strip rights.

They further suggest that the legal theory used by the administration could inadvertently eviscerate dual citizenship by treating foreign allegiance as a disqualifier.

Ultimately, the participants advocate for permanent constitutional protections to prevent citizenship from becoming a weaponized tool of political uncertainty.

"Legal uncertainty is a form of government tyranny!"

April 17, 2026 - Based on the work of Professor Francine Lipman Myth: The undocumented pay no taxes. Reality: The Undocumented pay higher taxes than legal residents. "Undocumented immigrantes operate as a massive fiscal asset!" Professor Lipman's article is available here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1292960 "This text argues that undocumented immigrants provide a massive fiscal windfall to the United States by contributing billions in taxes while remaining ineligible for most public benefits. The author refutes the common misconception that these individuals avoid taxation, highlighting that they pay sales, property, and excise taxes in addition to substantial income and payroll taxes. Furthermore, the source introduces the concept of an "undocumented immigrant tax," a higher effective tax rate caused by statutory exclusions from credits like the EITC and economic stimulus rebates. Immigrants also contribute billions to Social Security and Medicare each year despite being barred from ever collecting those benefits. These financial contributions are often overlooked due to complex tax laws and inflammatory rhetoric that scapegoats immigrants for economic instability. Ultimately, the author suggests that the American economy relies heavily on this low-cost, taxpaying labor force to maintain government solvency."

April 1, 2026 - AI generated discussion based on the transcript of the legal arguments in Trump v. Barbara

Trump v. Barbara was a fascinating hearing. A moment ago I posted (as a podcast) the actual oral argument of what take place in the hearing. It is more than two hours long and may be heard here:

https://prep.podbean.com/e/trump-v-barbara-oral-supreme-court-argument-april-1-2026/

This podcast is an AI generated analysis of the actual transcript of the oral arguments. The transcript is available here:

https://www.supremecourt.gov/oral_arguments/argument_transcripts/2025/25-365_1b8e.pdf

I will incorporate these podcasts into a post on my CitizenshipSolutions.ca blog.

April 1, 2026 - U.S. Supreme Court hears Trump v. Barbara - The Birthright Citizenship Case

The question the court is asked to determine is:

"Is birth on U.S. soil ALWAYS a sufficient condition to confer U.S. citizenship on that individual?"

On April 1, 2026 the Supreme Court of the United States heard oral argument on this question.

This "podcast" is simply a recording of the oral argument before the court. A transcript of the argument is here:

https://www.supremecourt.gov/oral_arguments/argument_transcripts/2025/25-365_1b8e.pdf

A second AI generated podcast is available which is based on the above transcript. You can hear it here:

https://prep.podbean.com/e/ai-analyis-of-the-legal-arguments-presented-to-the-supreme-court-in-trump-v-barbara/

I had written two blog posts before the April 1, 2026 argument. Those podcasts are available here and here.

March 14, 2026 - Podcast based on the following X Spaces discussion:https://x.com/i/spaces/1aKbdbMQDnRJX?s=20

Participants include:

Dr. Laura Snyder - @TAPInternation

Dr. Suzanne deTreville - @SdeTreville

John Richardson - @ExpatriationLaw

"This transcript features a discussion regarding a significant State Department notice that officially lowered the fee for renouncing US citizenship from $2,350 to $450. While the participants appreciate the reduced cost, they argue that the most critical aspect of the notice is the government’s formal acknowledgment that complex tax compliance is the primary driver behind renunciations. The speakers analyze how worldwide taxation and reporting requirements like FATCA create nearly impossible financial burdens for Americans living abroad, often forcing them to sever ties with their home country. They further debate the constitutionality of citizenship-based taxation, suggesting it may violate the Fourteenth Amendment by effectively destroying the rights of citizens. The conversation concludes by highlighting new legislative efforts and the psychological finality of renunciation, which can permanently separate individuals from their families and heritage."

March 13, 2026 - A "Deep Dive"

Conversation generated from a podcast about the Isaac Brock Society blog post discussing the reduction in the fee for a CLN from $2350 to $450.

https://isaacbrocksociety.ca/2026/03/12/effective-april-13-2026-the-fee-for-a-certificate-of-loss-of-nationality-should-be-450/

Description:

"This text reports on a significant reduction in the administrative fee for obtaining a Certificate of Loss of Nationality, which is scheduled to drop from $2,350 to $450 in April 2026. The author highlights that this policy change follows extensive public pressure and formal comments from Americans living abroad who are frustrated by onerous tax obligations and banking restrictions. Beyond the lower cost, the source emphasizes the State Department's rare acknowledgement of how policies like FATCA and citizenship-based taxation drive individuals to renounce their status. While the fee reduction is not retroactive, it is viewed as a major advocacy victory for expatriate groups seeking relief from complex financial reporting requirements. Ultimately, the article suggests this regulatory shift could pave the way for future legislative reforms regarding how the United States taxes its citizens globally."

A second and different AI generated podcast about the Bruyea/Christensen NIIT appeals ... based on a conversation between:

John Richardson - @Expatriationlaw

Tim Smyth - @TpSymth01

On March 3, 2026, the Federal Circuit heard back-to-back appeals (Bruyea — Canada and Christensen — France) over whether foreign taxes paid by Americans abroad can be credited against the 3.8% Net Investment Income Tax (NIIT). The core fight is over treaty language that allows credits “in accordance with the provisions and subject to the limitations of the law of the United States,” and whether that permits the U.S. to deny a treaty-based credit for the NIIT.

At trial the courts split: Bruyea treated the treaty phrase as governing computation (not authorization), while Christensen won on a different treaty provision. The appellate panel pressed on whether the NIIT is an “income tax,” the practical absurdity of allowing treaty language to produce double taxation, and the government’s suggestion that treaty renegotiation is the remedy.

The stakes are high for Americans investing abroad: a taxpayer win could block double taxation and restore treaty relief for the NIIT, while a government win could let domestic statutory structure limit treaty protections. We now wait for the Federal Circuit’s decision and the practical fallout for refund suits and treaty enforcement.

March 7, 2026 - AI generated based on:

"State of Play on Voting by Americans Abroad"

https://aaro.org/images/pdf/STATE_OF_PLAY_2026_FEB_16_FINAL.pdf

This 2026 white paper from the Association of Americans Resident Overseas (AARO) details escalating legal and legislative challenges to the voting rights of U.S. citizens living abroad. The report highlights federal bills like the SAVE and MEGA Acts, which threaten to mandate in-person citizenship verification and eliminate essential ballot grace periods. At the state level, numerous jurisdictions are considering measures to restrict absentee access or disenfranchise citizens born overseas who have never resided in the U.S. AARO argues that these requirements create severe security risks and administrative hurdles that could effectively block millions from participating in elections. To counter these trends, the organization is engaging in litigation and advocacy, urging members to contact representatives to protect their constitutional right to vote. The document serves as both a status report on current threats and a call to action for the global American community.

March 4, 2026 - AI Generated podcast based on my X Space with Tim Smyth.

"Deep dive into two appeals heard March 3, 2026, at the U.S. Court of Appeals for the Federal Circuit challenging whether the Net Investment Income Tax (NIIT) can be offset by foreign tax credits despite a domestic statute that separates the NIIT from Chapter 1 credits.

Using firsthand notes from courtroom observers, this episode explains the legal conflict between U.S. domestic tax placement and international tax treaties, contrasting lower-court rulings in Bruyea (Canada) and Christensen (France), and outlines the broader implications for U.S. citizens living abroad and for treaty enforcement."

March 3, 2026 - Oral argument in the United States Court of Appeal in Christensen v. United States

AI generated description ...

"This episode covers the oral argument in Christensen v. United States, examining whether Article 24 of the U.S.–France tax treaty permits a foreign tax credit against U.S. tax beyond the Chapter 1 limitation and whether the Chapter 2A net investment income tax is creditable.

Central issues include whether Article 24A’s general limitation carries into Article 24B’s resourcing provision, how that provision interacts with Internal Revenue Code section 904, and the weight to be given to the Treasury’s technical explanation when interpreting the treaty.

Counsel debate alleged errors by the lower court, potential anomalous results of differing interpretations, and whether deference to the executive branch’s treaty interpretation is appropriate; the appeal raises broader questions about treaty drafting, resourcing rules, and administrative deference."

March 3, 2026 - Oral argument in the United States Court Of Appeals In Bruyea ...

AI generated description of the hearing:

"This episode covers oral arguments in a case about whether the U.S.–Canada tax treaty allows a foreign tax credit to be applied against the U.S. net investment income tax (Section 1411), which Congress placed outside Chapter 1 of the Internal Revenue Code.

Advocates debate whether the treaty phrase "in accordance with the provisions and subject to the limitations of U.S. law" limits credits to Chapter 1 taxes or can be read more broadly to prevent double taxation; the discussion examines treaty text, the technical explanation, paragraphs 4–6, reciprocity concerns, and possible remedies."

March 2, 2026 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

______________________________________

Introduction and purpose ...

Entitlement to U.S. Social Security (including spousal and survivor benefits) after expatriation has always been difficult. During the months of January and February 2026 U.S. tax lawyer Virginia La Torre Jeker did a "deep dive" into how expatriation impacts entitlement to Social Security benefits and the way they are taxed.

In today's podcast we summarized and consolidated the information in her three articles.

Understanding SSA Country List 1

https://us-tax.org/2026/01/22/receiving-u-s-social-security-abroad-understand-ssa-country-list-1/

Understanding SSA Country List 2

https://us-tax.org/2026/02/12/some-foreigners-cant-receive-u-s-social-security-abroad-understanding-ssa-country-list-2/

Understanding SSA Country List 4

https://us-tax.org/2026/02/26/collecting-social-security-abroad-understanding-ssa-country-list-4/

AI generated description ...

"This episode explains how Social Security entitlement after renouncing U.S. citizenship or surrendering a green card depends on your citizenship and which Social Security country list your new country falls under, not where you live.

It covers the three country lists, the 40-credit rule, treaty and totalization differences, the risk of 30% withholding for nonresident aliens, and why you must check your credits and citizenship status before expatriating."

February 20, 2026 - AI Analysis of the Supreme Court decision striking down Trump's tariffs ...

The Supreme Court said President Trump's tariffs policies under IEEPA are unconstitutional, dealing a major blow to the president's signature economic policy. Chief Justice John Roberts wrote the 6-3 opinion. Justices Clarence Thomas, Samuel Alito and Brett Kavanaugh

You can read the actual Supreme Court decision here:

https://citizenshipsolutions.ca/2026/02/20/u-s-supreme-court-strikes-down-trump-tariffs-read-the-decision-here/

"The Supreme Court ruled that the International Emergency Economic Powers Act (IEPA) does not authorize the president to impose broad tariffs, rejecting the administration's attempt to use emergency powers to rewrite trade policy.

The decision restores ordinary trade law and returns tariff authority to Congress, raising immediate relief for import prices but leaving open political questions about whether lawmakers will act on long-term trade and emergency powers."

February 18, 2026 - Based on a presentation created for an IRS Medic podcast.

AI generated description of the podcast ....

"This episode unpacks John Richardson’s February 18, 2026 presentation on "Deemed Income in the Netherlands," explaining how governments are shifting from taxing realized gains to taxing unrealized, deemed income. Using the Dutch Box 3 example (36% tax on deemed returns), the episode explores the liquidity crisis this creates, especially for U.S. citizens living in the Netherlands who face mismatched tax timing and potential double taxation.

Richardson examines technical workarounds like PFIC/mark-to-market elections and warns they may not reliably protect taxpayers. He closes with a philosophical plea for simplicity: avoid excessive complexity, prioritize liquidity, and rethink whether accumulating wealth remains an asset when it can force owners into debt or costly compliance."

February 6, 2026 - Participants include:

Dr. Suzanne deTrevile - @SdeTreville

Tim Smyth - @TpSmyth01

Brent Vanderbrook - @Vanderbrook

John Richardson @ExpatriationLaw

https://citizenshipsolutions.ca/2026/01/09/bonjour-part-6-rosenbloom-and-shaheen-brief-in-support-of-bruyea/

AI Description:

"This episode examines the legal battle over the Net Investment Income Tax (NIIT) and whether the IRS can deny foreign tax credits by placing the tax in a different chapter of the Internal Revenue Code. It walks through the Christensen (France) and Bruyea (Canada) cases, the treaty-language arguments, and the upcoming March 3, 2026 appeal.

Experts explain why the dispute matters beyond a small revenue amount: it could determine whether U.S. domestic technicalities can override treaty obligations, affecting expats, major corporate taxes, and the credibility of U.S. treaty commitments."

February 6, 2026 - Participants include:

Professor Hank Adler - Chapman University

John Richardson - Toronto, Canada - @ExpatriationLaw

On January 29, 2026 Tax Notes published the following article by Professor Adler:

"When An Income Tax Is Not A Tax On Income"

The following podcast discusses Professor Adler's article ...

AI generated description:

"John Richardson interviews Professor Hank Adler about the Moore case and a rarely discussed constitutional issue: taxing undistributed foreign earnings using rates tied to a taxpayer's liquidity rather than its income. Adler argues this departs from the 16th Amendment’s promise of an income tax.

The conversation also covers retroactivity concerns, potential state-level experiments like California’s proposed wealth tax, and the broader implications for tax policy and constitutional limits."

January 29, 2026 - Participants include:

Dr. Laura Snyder - @TAPInternation

Dr. Suzanne deTrevile - @SdeTreville

Tim Smyth - @TpSymth01

John Richardson @ExpatriationLaw

Background:

This week the Taxpayer Advocate released its 2025 report.

Significantly the report included "Taxpayers Living Abroad" as one of the most serious problem areas encountered by taxpayers. The report is remarkable in its recognition of both the compliance problems and the substantive laws impacting Americans abroad. I highly recommend that you read the report.

The report includes:

"In short, the current system imposes unnecessary harm on U.S. taxpayers abroad, discouraging compliance and eroding trust in the fairness of the nation’s tax administration. Unless the IRS takes meaningful steps to improve its services, guidance, and systems for these taxpayers, the frustration and fear experienced by Americans abroad will continue to grow, harming not only them but also the integrity of the tax system as a whole."The report includes the following description of a hypothetical U.S. citizen abroad:

“Sue, a U.S. citizen, has lived and worked in Australia for many years after marrying her Australian husband, Sam. As a dual citizen, Sue pays Australian income taxes on her wages but also remains subject to U.S. tax laws. They have been advised their income is always less than the foreign earned income exclusion.

They have joint checking and savings accounts in an Australian bank, and on various paydays the combined balance of their joint accounts exceeds $10,000 USD. Sue participates in an Australian superannuation, a compulsory system for retirement savings. Three years ago, she inherited some stock shares from her Australian aunt, which she keeps in the same brokerage house that maintained her aunt’s account. Sue and Sam have not filed a U.S. income tax return or an FBAR. Sue eventually learns that because she is a U.S. citizen she must also file a U.S. tax return to report her Australian income, with Forms 3520, 3520-A, 8938, and 8621 (depending on the investment in the superannuation). They also must electronically file FinCEN Form 114 (FBAR) using FinCEN’s BSA E-Filing system. If they file tax returns, they may owe U.S. taxes and penalties thereon.

They would also be subject to foreign trust penalties for failing to disclose Sue’s Australian pension plan, FATCA and FBAR penalties, and possibly foreign gift penalties for failure to disclose her Australian inheritance that is not subject to tax.”

It then goes on to detail the unfairness and impossibility of the situation "Sue" finds herself in.

The AI description of this podcast is:

"The episode reviews the 2025 Taxpayer Advocate report highlighting severe compliance burdens on U.S. citizens living abroad: confusing rules, limited IRS support, harsh penalties, and the damaging effects on retirement, finances, and citizenship decisions.

Speakers explain the report’s key examples—FBAR/FATCA filings, exit tax and pension inequities—and discuss how these problems threaten voluntary compliance and call for systemic reform to separate citizenship from taxation."

November 13, 2025 - Participants include:

Parviz Malakouti - @ParvizMalakouti

John Richardson - @ExpatriationLaw

_________________________________________

Introduction and description:

The second Trump administration has caused and will continue to cause a reawakening of a discussion on the meaning of U.S. citizenship. What does it mean? How strong is it? What rights does it include? How can it be lost?

We are also living in a time where there is a heightened awareness of the value of multiple citizenships. What does have dual citizenship mean?

For Americans, the single most important "citizenship case" is Afroyim v. Rusk. While making dual citizenship possible, it also has played a role in creating the tax problems of Americans abroad today.

On November 13, 2025 I participated in a "X Space" discussion with Parviz about the Afroyim case. It was a great discussion. You can hear the complete discussion here. The following podcast is a condensed version of the discussion (covering the essential points in a 15 minute version).

Enjoy (if that is possible)!

What follows is an AI generated description, which really does not justice to this discussion.

________________________________________

AI generated description:

"This episode traces how "strict liability" once let the U.S. revoke citizenship for simple acts like voting, and how the Supreme Court’s Afroyim v. Rusk shifted the rule to require intent to relinquish citizenship.

It explains the two-tiered system—14th Amendment birthright citizenship versus statutory citizenship for children born abroad—and explores the modern strategic response: securing dual citizenship to preserve exit options from U.S. tax and bureaucratic obligations.

Experts discuss practical steps (documenting births and passports) and the geopolitical urgency to claim alternative citizenships while options remain open."

January 13, 2026 - "Global Mobility" - Participants include

Ryan Herche - Global Mobility Consultant

John Richardson - @ExpatriationLaw

This is my second podcast with Ryan Herche. On August 4, 2022 he was my guest on a podcast where we discussed the possibility of France adopting citizenship taxation. You can listen to that podcast here:

https://prep.podbean.com/e/yes-france-has-considered-adopting-citizenship-taxation-a-discussion-of-its-report/

Today Ryan returns to discuss that growing interest in global mobility generally.

More and more people are realizing the importance of global mobility and the option of having a second (or more) country of residence and/or citizenship.

Fascinating discussion with Ryan Herche and why he is pursuing a career in this growing area.

"John Richardson speaks with Ryan Herche about his COVID-era awakening, moving his family to Mexico, obtaining French citizenship by descent, and using birth tourism and remote work to build global mobility.

They cover the practical benefits of dual citizenship from birth, U.S. citizenship taxation and exit risks, residency and education strategies, and advice for Americans seeking options and personal sovereignty."

January 9, 2025 - Based on the Amicus Brief filed by Professors Rosenbloom and Shaheen in support of the argument that the Canada U.S. tax treaty DOES require the United States to allow a credit against the Net Investment Income Tax ("NIIT") for taxes paid to Canada.

"This episode examines Bruyea v. United States, focusing on whether a U.S. citizen living in Canada can use Canadian tax credits against the U.S. Net Investment Income Tax (NIIT), and how a single treaty phrase — “subject to the limitations” — has spawned a major legal dispute.

Featuring analysis from treaty negotiator H. David Rosenbloom and Professor Fadi Shaheen, the episode breaks down the government’s Chapter 2A argument, the treaty’s intent to prevent double taxation, and the broader diplomatic and legal stakes of interpreting the U.S.-Canada tax treaty."

January 5, 2026: AI Generated podcast based on Attorney General Benjamin Civiletti's 1979 argument in the International Court when the U.S. Embassy was seized in Iran.

Mr. Civiletti's statement to the court is here:

https://www.justice.gov/sites/default/files/ag/legacy/2011/08/23/12-10-1979.pdf

Here is the AI description of the statement ...

"On December 10, 1979, the United States asked the International Court of Justice for urgent provisional measures to end the illegal seizure and imprisonment of American diplomats in Tehran. Led by Attorney General Benjamin Civiletti, the U.S. framed the plea as an emergency injunction grounded in law, not politics.

The episode traces the four-pronged legal strategy—Vienna Conventions on Diplomatic and Consular Relations, the 1973 convention on Crimes Against Internationally Protected Persons, and the 1955 U.S.–Iran Treaty of Amity—and shows how the case sought to protect individual lives while defending the foundations of the international diplomatic system."

January 2, 2026 - AI generated podcast from upcoming post written by John Richardson at The Isaac Brock Society.

"In this episode of The Deep Dive we unpack the three-year delay in reducing the Certificate of Loss of Nationality (CLN) fee and what that delay reveals about the U.S. government's treatment of Americans living abroad.

Using public comments, legal precedent, and a breakdown of three exit taxes—the CLN fee, the 877A expatriation tax, and the 2801 covered gift tax—we show how citizenship taxation and reporting requirements can coerce people into renouncing and even punish their heirs.

We also examine the constitutional questions raised by Afroyim v. Rusk, the bureaucratic path of the fee reduction, and why lowering the administrative fee alone may not address the deeper systemic problems driving Americans to give up their citizenship."

December 29, 2025 - AI Generated

This is an AI generated podcast which describes the Rule Making Notice which appeared in the Federal Register on October 2, 2023. This notice describes the Rule Making undertaken by the State Department to reduce the fee to process a Certificate of Loss of Nationality from $2350 to $450 (where it was in 2014).

A link to the Federal Register is:

https://www.govinfo.gov/content/pkg/FR-2023-10-02/pdf/2023-21559.pdf

"This episode contrasts two federal actions from the October 2, 2023 Federal Register: an FAA airworthiness directive forcing U.S. operators of certain older Airbus A300 variants to implement new structural maintenance limits within 90 days to address fatigue and reduced structural integrity, and a State Department proposed rule cutting the Certificate of Loss of Nationality fee from $2,350 to $450 to reduce financial deterrence, costing the Treasury about $8.8 million annually.

It explores how safety imperatives can make cost irrelevant while policy choices can justify deliberate subsidies, and asks where the government should draw the line between technical necessity and political priorities."

December 8, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

"Hosts John Richardson and Virginia La Torre Jeker unpack Senator Moreno's proposed bill to eliminate dual citizenship and the practical effects it could have if enacted.

They explain the tax risks, including the exit tax and "covered expatriate" rules, how Social Security payments and benefits for expatriates could be affected, special concerns for Native American tribes, and possible diplomatic complications.

The conversation highlights legal uncertainties, real-life consequences for dual nationals and Americans abroad, and the likelihood of ongoing debate and pushback."

December 3, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

This podcast is based on Virginia's Forbes article - "Senator Bernie Moreno Introduces Bill To Eliminate Dual Citizenship" - which appeared on December 3, 2025.

AI generated description:

"Host Virginia La Torre Jeker discuss the "Exclusive Citizenship Act of 2025", a proposed law that would force dual citizens to renounce foreign citizenship or lose U.S. citizenship within a year, and bar future dual nationality.

The episode reviews Supreme Court precedent (Afroyim v. Rusk and Vance v. Terrazas), constitutional concerns about involuntary expatriation, who would be affected (naturalized citizens, children with dual nationality, spouses, long-term expatriates), and potentially severe tax consequences including the exit tax."

December 3, 2025 - Participants include:

Parviz Malakouti - @ParvizMalakouti

Brent Vanderbrook - @Vanderbrook

John Richardson - @ExpatriationLaw

This podcast of an X.com "Space" that took place on December 3, 2025. Here it is:

https://x.com/ParvizMalakouti/status/1995905374034297232

"Citizenship and Immigration Attorney Parviz Malakouti breaks down Ohio Senator Bernie Moreno's "Exclusive Citizenship Act of 2025", a bill proposing a blanket prohibition on U.S. dual citizenship. The episode explains key provisions — how foreign citizenship is defined, automatic relinquishment after acquiring another nationality, a one-year deadline for existing dual citizens to renounce one citizenship, and proposed enforcement and record-keeping measures.

Malakouki and guests discuss the bill's constitutional and legal weaknesses, possible tax consequences (including triggering the exit tax), who would be most affected (those who naturalized as citizens of another country, hidden dual citizens, and Americans abroad), and broader privacy and policy implications. They assess the bill's low immediate chance of passage but warn of its dangerous precedent and call for continued public attention and advocacy."

November 20, 2025 - An AI generated podcast from a John Richardson presentation with IRS Medic.

AI generated summary:

"This episode unpacks FBAR—from its 1970 origins under the Bank Secrecy Act to today’s wide reporting net that catches signing authority, beneficial ownership, and many routine foreign accounts.

We explain the filing threshold, how FBAR differs from IRS information forms, the discretionary power Treasury holds to exempt Americans abroad, and why civil and criminal penalties can be severe enough to ruin lives or push people to renounce citizenship."

November 13, 2025 - Participants include:

Parviz Malakouti - @ParvizMalakouti

Brent Vanderbook - @Vanderbrook

John Richardson - @ExpatriationLaw

Information, reason and the outline of the "Space" is here:

https://x.com/ParvizMalakouti/status/1986483363931431382

November 11, 2025

Citizenship Apartheid - Paper by Professor Dimitry Kochenov

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4680018

This podcast is based on Professor Kochenov's thought provoking paper.

AI description:

"In this episode we unpack a provocative argument: modern citizenship functions as a form of global apartheid, sorting people by birthright into zones of opportunity and exclusion. The sources argue that passports operate as a blood-based aristocracy, granting vast privileges to a minority while trapping the majority behind steep visa walls.

We trace the system’s colonial roots, explore compensatory citizenship and regional intercitizenships, and ask whether freedom of movement—not voting—is the fundamental right at stake. The episode challenges the rhetoric of universal rights by showing how nationality often determines life chances."

November 10, 2025 - Warren Buffet letter to Berkshire shareholders. A "treasure trove"of advice ...

https://www.berkshirehathaway.com/news/nov1025.pdf

Here is the AI description:

"In his November 10, 2025 Thanksgiving message, Warren Buffett, 95, disclosed converting 1,800 A shares into 2.7 million B shares and immediately earmarking them for four family foundations: 1.5M to the Susan Thompson Buffett Foundation and 400K each to the Sherwood, Howard G. Buffett and Novo foundations. He explained the practical reason for moving to B shares and the timing, citing his age and his children’s trusteeship window.

Buffett also confirmed Greg Abel as Berkshire Hathaway’s CEO effective year-end and said he will step back from public-facing duties while continuing his Thanksgiving letter tradition. The message mixes this major corporate and philanthropic news with memoir-style stories about Omaha, gratitude for those who supported him, and examples of how luck and place shaped his life.

He offered sober business warnings — especially about CEO impairment and the unintended effects of pay disclosure — and a philosophical closing: accept limits, acknowledge luck, improve steadily, and live so your obituary reflects kindness and integrity."

November 9, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Prologue:

Virginia recently published a post discussing the issues generated by a U.S. citizen married to a nonresident alien with the couple living in a non-US "community property jurisdiction".

You are invited to read the post here:

https://us-tax.org/2025/11/07/a-complicated-u-s-tax-life-foreign-spouses-and-community-property/

What follows is an AI generated description of our podcast.

"John Richardson and Virginia La Torre Jeker discuss the risks U.S. citizens face when married (or considering marriage) in jurisdictions with community property rules. The episode explains how foreign marital property laws can cause a U.S. spouse to be treated as owning half of assets, triggering reporting requirements (Form 8938 and FBAR), income inclusion, and harsh PFIC rules.

The hosts advise listeners to investigate local marital property regimes, consider prenuptial or postnuptial agreements, map asset histories, and obtain both U.S. tax and local legal advice to avoid unexpected tax and estate consequences.

November 8, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Prologue:

8 U.S. Code § 1401 - Nationals and citizens of United States at birth"The following shall be nationals and citizens of the United States at birth:

(g)

a person born outside the geographical limits of the United States and its outlying possessions of parents one of whom is an alien, and the other a citizen of the United States who, prior to the birth of such person, was physically present in the United States or its outlying possessions for a period or periods totaling not less than five years, at least two of which were after attaining the age of fourteen years: Provided, That any periods of honorable service in the Armed Forces of the United States, or periods of employment with the United States Government or with an international organization as that term is defined in section 288 of title 22 by such citizen parent, or any periods during which such citizen parent is physically present abroad as the dependent unmarried son or daughter and a member of the household of a person (A) honorably serving with the Armed Forces of the United States, or (B) employed by the United States Government or an international organization as defined in section 288 of title 22, may be included in order to satisfy the physical-presence requirement of this paragraph. This proviso shall be applicable to persons born on or after December 24, 1952, to the same extent as if it had become effective in its present form on that date; and"The Podcast/discussion ...

"To register or not to register, that is the question ... whether tis better to ..."

AI generated description:

John Richardson and tax lawyer Virginia La Torre - Jeker discuss the rights and risks when a child is born abroad to a U.S. parent — how citizenship is transmitted by law, the role of a Consular Report of Birth Abroad and U.S. passport, and practical issues like obtaining a Social Security number and traveling to the United States without having registered as a U.S. citizen.

The episode also covers tax and reporting consequences (FBAR, FATCA, information returns), financial institution screening, dual nationality concerns, and planning options including later renunciation and steps families can take to reduce unexpected U.S. tax and reporting burdens.

October 8, 2025 - Participants include:

Tim Symthe - @TpSmyth01

David Bindel - @DavidBindelTx

Dr. Suzanne DeTreville - @SDeTreville

John Richardson - @ExpatriationLaw

"This episode examines the U.S. tax treaty "saving clause," which lets the United States deny treaty residency tiebreaker benefits to U.S. citizens and effectively causes double taxation for Americans living abroad.

Speakers discuss history, practical harms (FBAR, pensions, capital gains), and a proposed executive-branch remedy: simply choosing not to invoke the saving clause so expats can rely on treaty tiebreakers, plus legal and durability considerations."

October 1, 2025 - AI Generated Podcast ...

John Richardson - @Expatriationaw Presentation

"This episode explains the tough decision facing Americans living overseas: keep U.S. citizenship and face lifetime worldwide taxation and compliance, or formally renounce and risk immediate tax, estate, and immigration consequences.

We break down the biggest hazards—the Section 877A exit tax, the "covered expatriate" tests (net worth, five‑year tax compliance, and income threshold), green‑card rules, retirement and Social Security issues, and planning strategies (including the dual‑citizen child exception). Seek expert legal and tax advice before acting."

September 24, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

The law of FBAR is found in Title 31 of the Bank Secrecy Act. Specifically 5314 is thought to define the FBAR obligation and 5321 prescribes civil penalties.

The actual requirements are found in Regulation 1010.350.

As a result of the recent IRS penchant for large penalty assessments, individuals have begun to explore the extent to which constitutional rights extend to FBAR penalties.

Two constitutional issues which have (and continue to be) been explored are:

The eighth amendment excessive fines clause; and
The seventh amendment right to a jury trial.

In September of 2025, a Texas court ruled in the Sagoo case that that the seventh amendment right to a jury trial extended to civil willful FBAR penalties. Whether the decision goes further is open to question.

On September 24, 2025, U.S. tax lawyer Virginia La Torre Jeker, published an insightful article in Forbes titled:

The Sagoo Case: FBAR's Reckoning In A Globalized World.

In today's podcast John Richardson and Virginia La Torre Jeker explore her article and what it could mean for future FBAR enforcement.

AI Generated description:

"Host John Richardson speaks with U.S. tax lawyer Virginia La Torre Jeker about United States v. Sagu (Sept. 19, 2025), a Texas district court fight over a $1 million FBAR penalty and whether taxpayers have a Seventh Amendment right to a jury trial for agency-imposed civil penalties.

The conversation explains willful versus non‑willful FBAR standards (including willful blindness), how the IRS assesses penalties, the implications of recent Supreme Court precedent, and what the decision could mean for taxpayers with international accounts."

AI version of pdf presentation:

John Richardson

____________________________________________

Warning!! This is a very complex area. I am not entirely happy with how AI generated this podcast. It's main. purpose is to highlight the importance of understanding your situation and getting proper advice!!

AI generated description:

This episode is a clear, practical deep dive into U.S. estate and gift taxes for people with international connections. We explain the three crucial taxpayer categories—U.S. citizens, U.S. domiciliaries who aren’t citizens, and non‑resident non‑citizens—how domicile is determined, and why U.S. situs assets (like U.S. real estate or U.S. stock) can trigger estate tax exposure.

We then explore how treaties can dramatically reshape outcomes—highlighting the U.S. treaties with Australia and Canada—plus common planning issues like transfers to non‑citizen spouses and QDOTs. The key takeaway: your citizenship, intent to reside, and where assets sit determine whether your legacy faces tiny or massive U.S. tax bills, so careful cross‑border planning is essential to avoid costly surprises.

September 6, 2025 - Participants include:

Latife Hayson - Youtube.com/@LatifeHayson

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @ExpatriationLaw

In July of 2025 Latife Hayson produced a lengthy video exploring the taxation of Americans abroad.

Latife Hayson and a SEAT members Karen Alpert, Laura Snyder and John Richardson discuss the real-life consequences of U.S. citizenship-based taxation for Americans living abroad, covering capital gains, exchange-rate effects, PFICs, reporting burdens and financial restrictions.

The conversation also explores practical advice for movers, the complexity of filing overseas, and prospects for policy change toward residency-based taxation.

September 5, 2025 - Participants include:

David Coutts - @RealCoachCoutts

John Richardson - @ExpatriationLaw

AI generated description:

"John Richardson talks with Coach Coutts about turning 40, why strength matters for longevity, and how anyone—no matter their starting point—can begin improving fitness and mobility. They cover practical tips like walking, breathing, glute bridges, bird dogs, and prioritizing hip, shoulder-blade and core function to protect the spine and stay independent.

The episode emphasizes habits, mindset, and simple, affordable ways to get started (YouTube workouts, short routines, buddies or basic books), and includes Coach Coutts's contact info at coachcoutts.com for listeners who want personalized help."

In February of 2015 I (John Richardson) did a presentation at a tax conference called:

"Sacred Trust: Counselling Clients Through The Trauma Of U.S. Citizenship Abroad in a "FATCAesque World"

I was curious to see what kind of podcast would be generated from the presentation. What follows is the result.

AI Generated:

"Imagine discovering that your U.S. citizenship — something you never actively chose — can create major financial, legal and emotional consequences while living abroad. This episode unpacks the shock of learning you are a U.S. person, the worldwide FATCA sweep that exposes you to banks and tax rules, and the life‑changing choices between remaining a citizen or expatriating.

We cover the mechanics of U.S. citizenship determination, the costly compliance and exit‑tax risks, and the deep personal trauma clients face. The episode emphasizes the role of advisors in guiding vulnerable clients through both legal strategy and the emotional decisions that shape their futures."

August 15, 2025 - AI Generated Podcast ...

This podcast is a discussion of a recent 2025 paper by Professors Ruth Mason of the University of Virginia and Tsilly Dagan of the University of Oxford title:

Reconsidering Citizenship Taxation

Both the paper and the AI generated podcast based on the paper are interesting. The paper discusses citizenship taxation as a theoretical concept. It in no way discusses the reality of citizenship taxation.

To put it simply:

A discussion of how citizenship taxation actually works and its effects on the lives of those inpacted by it is most notable in its absence.

AI description:

"This episode dives into how global mobility, remote work, and tax competition are disrupting traditional tax systems and the social contract. We unpack the rise of non-dom regimes, citizenship-for-sale, and digital nomads who challenge where income is sourced and taxed.

We explore the case for and against citizenship taxation—its promise to curb tax-motivated migration and its fairness claims—alongside alternatives like brain-drain taxes and exit taxes. Drawing on insights from Dagan and Mason, we probe what community membership really means and who owes what to whom.

Using the United States as a reality check, we examine the steep enforcement and compliance hurdles (think FATCA) that make citizenship taxation a "luxury policy" even for powerful states. We then consider whether cooperation could help—while noting the risks for global justice, individual liberty, and a deeper race to the bottom.

Finally, we spotlight a pragmatic path: combining citizenship and residence (and other indicators of belonging) to better align legal tax obligations with real community ties in a mobile world."

August 8, 2025 - Speakers Include:

Alex Ugorji - @AlexUgorji

David Bindel - @DavidBindelTx

Mat Farel - @MatFarel

Parviz Malakouti - @ParvizMalakouti

John Richardson - @ExpatriationLaw

AI Description:

"Join Citizenship and Immigration Attorney Parviz Malakouti in a deep dive into the complexities surrounding citizenship renunciation. In this insightful episode, recorded on August 8th, Malakouti, alongside experts Alex Ugorji and John Richardson, explore the intricate web of laws and obligations that trap individuals in unwanted citizenships, highlighting the often-overlooked complications of extraterritorial obligations.

The discussion spans various geopolitical contexts, from the U.S. to Argentina, and delves into the unforeseen difficulties of acquiring and relinquishing multiple citizenships in today's interconnected world. Listen as experts debate the potential threats and strategic considerations for individuals seeking mobility and freedom in an era where citizenship laws are under increasing scrutiny.

Discover why more citizenships might not always offer more freedom, the looming threat of legal obligations that transcend borders, and why relinquishing citizenship can be a daunting task. Whether you're an aspiring global citizen or just curious about international law, this episode offers valuable insights into a rapidly evolving landscape."

August 5, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Prologue:

On June 11, 2025, the Department of Justice issued a memo indicating that it planned to prioritize the denaturalization of certain U.S. citizens. In early August of 2025, media reports began circulating describing a naturalized citizen, who was subject to denaturalization proceeds, based on tax related conduct. Generally the media reports failed to distinguish between the innocent tax mistakes made by the many and the willful violation of tax laws engaged in by the few.

Podcast - AI generated description:

"In this enlightening episode, host John Richardson and special guest Virginia La Torre Jeker tackle the complex and often misunderstood topic of denaturalization due to tax-related issues. Broadcasting from Toronto, John discusses the legal intricacies with Virginia, who provides insights from her recent Forbes article - "Tax Fraud And Denaturalization Risks - A Balanced View For Taxpayers".

Through a detailed conversation, they differentiate between innocent tax mistakes and intentional tax fraud, highlighting the potential repercussions for naturalized U.S. citizens. Virginia emphasizes the importance of understanding these distinctions to prevent unnecessary panic amidst sensationalized media reports.

Tune in as the duo explores the statutory framework of the Immigration Nationality Act, specifically focusing on the provisions that can lead to the revocation of U.S. citizenship, and reflect on historical case law that informs current interpretations.

As tax professionals and legal advisors prepare to address public concerns, this episode aims to educate listeners, offering a calming and rational perspective on a challenging topic."

July 30, 2025 - Speakers Include:

Dr. Laura Snyder - @TAPInternation

Parviz Malakouti - @ParvizMalakouti

BitCoin Backpacker - @BackPacker_BTC

John Richardson - @ExpatriationLaw

On July 17, 2025 Representative Hurd of Colorado introduced Bill H.R. 4501. The purposes of the bill would include the exemption of U.S. citizen Pope Leo from taxation under the Internal Revenue Code.

Congressman Hurd’s bill is discussed here:

https://citizenshipsolutions.ca/2025/07/29/colorado-congressman-jeff-hurd-recognizes-problems-of-u-s-citizenship-taxation/

This was an interesting and lively discussion which considered how Americans abroad might make use of H.R. 4501 in their mission to end U.S. citizenship taxation.

July 24, 2025

This is a recording of a discussion an “ X.com Space” hosted by U.S. immigration Parviz Malakouti. I (John Richardson) contributed to the discussion.

When exactly does a U.S. citizen relinquish U.S. citizenship?

X.com Handles:

Parviz Malakouti - @ParvizMalakouti

John Richardson - @ExpatriationLaw

July 21, 2025

This is a recording of a discussion an “ X.com Space” hosted by U.S. immigration Parviz Malakouti. I (John Richardson) contributed to the discussion.

X.com Handles

Parviz Malakouti - @ParvizMalakouti

John Richardson - @ExpatriationLaw

This AI generated podcast is based on a paper written by Professor Leopoldo Parada. Although a “saving clause” has been a feature of U.S. tax treaties for years, the OECD Model Treaty did not have a “saving clause” before 2017. Interestingly, the OECD commentary suggests that the purpose of the “saving clause” was to allow for the taxation of controlled foreign corporations. The U.S. treaties exploit their version of he “saving clause” as a mechanism to employ U.S. citizenship taxation. The abstract of Dr. Parada’s paper includes:

“The 'OECD Saving Clause': An American-Tailored Provision Made to Measure the WorldRivista di Diritto Finanziario e Scienza delle Finanze, LXXVIII 1, I, 13-52 (2019)

41 Pages Posted: 18 Jul 2019

Leopoldo ParadaKing's College London

Date Written: July 1, 2019

AbstractThis article argues that the “saving clause” provision introduced in the 2017 OECD Model conflicts with the entitlement to double taxation relief under Article 23 OECD Model, especially in cases involving the use of hybrid entities. Although this issue is pragmatically solved in the new paragraph 11.1 of the commentaries on Articles 23A and 23B OECD Model, which provides no obligation for the Contracting States to relieve double taxation to the extent that taxation is based exclusively on the residence of the taxpayer, it leaves the taxpayer in the residence state with a potential permanent double taxation status. The foregoing may be however avoided with an optional “reverse saving clause”. Such an option seems to be not only more coherent with the traditional object and purpose of tax treaties (double taxation relief), but it also reflects the tax treaty practice already in force in some countries around the world.”

AI generated commentary:

"In this episode, we delve into the intricacies of global tax agreements, focusing on a fascinating provision known as the 'saving clause.' Introduced in the 2017 OECD Model Tax Convention, this provision allows countries to maintain their right to tax their own residents, even in the presence of a tax treaty with another country. We explore the surprising conflicts it creates with the goal of double tax relief, especially in the context of hybrid entities.

Our discussion highlights the United States' historical use of the saving clause and its motivations rooted in unique taxation policies. We also contrast this with the 2017 OECD Model's approach and the issues it presents, particularly concerning hybrid entities that can lead to double taxation.

The episode offers insights into potential solutions, like the 'reverse saving clause,' which aims to mitigate double taxation and promote fairness. Join us as we navigate through these complex dynamics and consider the implications for global business and personal financial planning."

This AI generated podcast is from a John Richardson presentation about “Green Card Abandonment”. The presentation - “Understanding The Green Card (if you can)” - took place on May 1, 2024 on the IRS Medic Podcast.

AI Description:

"Think you know everything about a green card? Think again. In this episode, we explore the less-discussed side of holding a U.S. permanent residency: the lifelong tax obligations it entails. We uncover surprising insights with expert John Richardson, highlighting how a green card can bind you to U.S. tax requirements wherever you live. From understanding the divergence between immigration and tax statuses to navigating complex pre- and post-immigration planning, this episode acts as your guide through potential financial landmines.

Discover the implications of worldwide taxation for green card holders, the criticality of pre-immigration planning, and the reality of holding foreign assets and income while living in the U.S. Understand what being a 'treaty non-resident' means and the tools available to those living abroad or looking to sever ties with the U.S.

Hear about the criteria that determine 'long-term resident' status and the intricate processes involved in expatriation, including the looming threat of exit taxes and compliance with U.S. tax obligations. This episode provides a comprehensive guide to the myriad challenges that accompany a green card—far beyond just being a right to live in America."

This AI generated podcast is based on an article written by John Richardson on March 12, 2019 at Citizenship Solutions. It was republished on March 13, 2019 post at Tax Connections. The Tax Connections version received a lot of comments. You can find the article on Tax Connections here. The comments are extremely interesting.

What follows is an AI generated description of the article.

"In this episode, we delve into the complexities of the U.S. taxation system imposed on its citizens living abroad. The discussion sheds light on how the U.S. tax code enforces a distinct, often more burdensome tax framework on American expatriates compared to their domestic counterparts. Through various examples and an insightful exploration, the episode reveals the challenges faced by these individuals, from punitive taxation on foreign income to the legal obstruction in utilizing foreign financial schemes meant for savings and retirement.

We explore the multifaceted issues arising from citizenship-based taxation, where Americans abroad not only pay their local taxes but also grapple with unique U.S. tax rules that arguably disadvantage them. The episode highlights the disparity in tax treatment based on residency and the implications it holds for fairness and equality within tax legislation. Additionally, we look at the complex compliance requirements that place excessive burdens on these citizens, often prompting controversial discussions around renouncing citizenship.

Join us as we examine the broader implications of these tax policies and their impact on global citizenship, raising questions about the intersection of identity, location, and global responsibilities in today's interconnected world."

In November of 2020, SEAT members John Richardson, Karen Alpert and Laura Snyder published “A Simple Regulatory Fix For Citizenship Taxation”. This was the first article (and possibly suggestion) that the problems of Americans abroad could be solved through regulation.

We participated in a video podcast with Robert Goulder at Tax Notes.

Here is the AI Description of the article.

A Simple Regulatory Fix For Citizenship Taxation1 source

This Tax Notes Federal article by John Richardson, Laura Snyder, and Karen Alpert examines the complex challenges faced by U.S. citizens living abroad due to America's citizenship-based taxation system. The authors argue that this system disproportionately burdens expatriates with duplicative and intricate tax compliance, often leading to double taxation and hindering their ability to engage in normal financial activities in their countries of residence. They propose that the U.S. Treasury has the regulatory authority and moral imperative to implement a "qualified nonresident" status, which would exempt these citizens from U.S. taxation on non-U.S. source income, thereby alleviating burdens on both expatriates and the IRS. Additionally, the article suggests several alternative regulatory changes to reduce specific compliance issues, such as those related to foreign bank accounts, retirement plans, mutual funds, and small business filings, highlighting that the IRS currently lacks the resources and expertise to effectively administer global tax enforcement.

What follows is the AI description of the podcast generated by Poedbean ...

"In this episode, we delve into the complex world of U.S. citizenship-based taxation and how it uniquely and often unfairly impacts Americans living abroad. Discover what it means to be caught between two tax systems and why the IRS is just as much a victim as the taxpayers themselves. We explore the persistent myths surrounding U.S. expats and the political challenges of enacting change. The episode highlights a potentially transformative regulatory solution that doesn't require congressional approval, aiming to ease the burden on both expatriates and the IRS. Tune in for a comprehensive discussion informed by a detailed study published in Tax Notes Federal, providing not only a sharp critique but also actionable solutions to a longstanding issue."

July 12, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

_________________________________________________

Introduction:

The Trump administration has served notice of its focus on stripping certain U.S. citizens of their citizenship. This comes on the heels of increased aggression toward Green Card holders. Both citizens and Green Card holders are subject to punitive taxation on the loss of their status.

Today (July 12/25), Virginia published a fascinating article in Forbes where discusses what could happen if a naturalized citizen is denaturalized. The immigration consequences are understood. What are the tax consequences of a U.S. citizen being denaturalized. What are the tax consequences of a a Green Card holder losing his/her immigration status?

This raises questions of great interest. This podcast is a supplement to Virginia's Forbes article describing how this could work.

https://www.forbes.com/sites/virginialatorrejeker/2025/07/12/bombshell-denaturalized-citizen-forced-to-exit-cant-escape-exit-tax/

AI Description:

"Welcome to our latest podcast episode where tax attorney Virginia LaTorre Jeker joins John Richardson to discuss a pressing issue: the U.S. government's efforts to revoke citizenship of naturalized Americans. While this may initially seem like an immigration issue, Virginia highlights the intertwining of tax and immigration laws, focusing on the possible tax implications for those who face denaturalization.

The conversation navigates through the complexities of what losing U.S. citizenship means under expatriation (877A Exit Tax and 2801 Covered Gift) rules, exploring how these individuals face potential exit taxes. Virginia sheds light on how the tax code distinctly imposes punitive taxes on the loss of U.S. citizenship, raising intriguing questions on the potential financial burdens, not just for those being denaturalized, but also for their families."

We delve into real-world scenarios, legal precedents, and hypothetical situations to provide a comprehensive look at this multifaceted topic, tailored for both tax professionals and the general audience. Tune in for insights that may redefine the way you see the intersection of immigration and tax laws."

July 11, 2025 - "Why non-resident U.S. citizens should be exempted from FBAR"

Introduction:

This is an AI generated podcast which is based on a submission I made in April of 2024 explaining “Why non-resident citizens should be exempted from the FBAR”

What follows is the AI description of the podcast ….

AI Description:

"In this episode of The Deep Dive, we examine the controversial world of the Foreign Bank and Financial Accounts Report (FBAR) and its impact on U.S. citizens living overseas. Discover why the seemingly outdated FBAR rules, which mandate U.S. citizens to disclose their local bank accounts to the U.S. Treasury, are under renewed scrutiny. We'll explore whether these regulations still serve their original purpose and delve into the arguments advocating for a reconsideration of whom these requirements should apply to in our globally connected era.

The discussion sheds light on surprising exemptions within the FBAR rules that often conflict with the heavy demands placed on expatriates. The episode raises pivotal questions about the role and meaning of American citizenship today, especially as it pertains to financial reporting. Join us for a thoughtful exploration of how FBAR is stirring debates and prompting some to contemplate renouncing their citizenship altogether."

This is an AI generated podcast of a 2014 paper written by Professor Bret Wells and Cym Lowell titled: “Income Tax Treaty Policy in the 21st Century: Residence vs. Source”

Why this is important:

The Trump administration recently proposed (as part of the “OBBB”) a provision that would impose tax penalties on residents of countries that had DSTs (“Digital Services Taxes”). The U.S. objection to DSTs is largely based on the provisions in tax treaties which give the “source country” (where the profits are generated) the right to tax those profits only if the corporation as a PE (“Permanent Establishment”) in that country. Of course, Google, Microsoft, et al do NOT have a “permanent establishment” in Canada, UK, India, etc. As a result many countries (because they cannot tax the income of U.S. multitionals) have enacted DSTs which are a tax NOT income but rather on revenue.

Yes, the standard tax treaties (which are 100 years old) deny the source country taxing rights (absent a PE). But, why is this? Does it make sense in 2025 to deny the source country taxing rights over income?

I came across a FANTASTIC article written by Professor Brett Wells and Cym Lowell which provides some historical perspective on this issue:

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2380241

I then ran it through AI and here is the summary. The AI description is:

Income Tax Treaty Policy: Residence vs. Source1 source

The provided text explores the historical evolution of international income tax treaty policy, focusing on the shift from source-based taxation to residence-based taxation following World War I. It highlights how the League of Nations' model, which favored residence countries (often capital-exporting nations) and introduced the concept of Permanent Establishment (PE), largely superseded an earlier International Chamber of Commerce (ICC) proposal for profit-split methodologies. The text argues that this historical policy choice, coupled with the later rise of "interim holding companies," inadvertently led to the creation of "homeless income"—profits that escape taxation in both source and residence countries. Ultimately, it suggests that a re-examination of these foundational principles is necessary to address current global tensions surrounding multinational corporations' tax planning strategies and to foster more balanced and equitable international tax policies for the 21st century.

_______________________________________

AI description of PODBEAN podcast:

"In this episode, we explore the intriguing world of international tax treaties and uncover why some of the world's largest multinational corporations seem to pay surprisingly low tax rates. Delve into the history and evolution of these tax agreements, tracing back to post-World War I Europe, and understand the critical decisions that continue to shape modern global tax systems. Learn about the concept of "homeless income"—profits not taxed effectively in any country—and the controversial mechanisms allowing companies to shift profits to low or no-tax jurisdictions.

We reveal the stark contradictions and outdated policies that have left governments and corporations dissatisfied with the status quo. Discover how historical economic theories and deliberate policy choices have led to today's contentious base erosion and profit shifting (BEPS), a practice under scrutiny by international bodies like the OECD.

Join us as we discuss the changing economic power dynamics between traditional "imperial" countries and emerging economic giants. Explore the future challenges in international tax reform and consider the complex interplay between national interests, corporate strategies, and global economic fairness. This deep dive provides valuable insights into the mechanics and potential reform of a tax system nearly a century in the making."

June 12, 2025 - Participant includes:

John Richardson - @ExpatriationLaw

On June 12, 2025 SEAT members Laura Snyder and John Richardson separately gave presentations at the Migration Conference held at the University of Greenwich in London, UK.

A complete description may be found on the SEAT site here.

A brief outline of John's presentation (and the slides used) may be found in the blog post here.

This podcast is a recording of John's presentation.

AI description:

"Join lawyer John Richardson from Toronto, Canada, as he delves into a vital yet overlooked issue impacting global mobility: taxation as destiny. This episode explores the rarely discussed concept of exit taxes, which pose significant barriers to emigration for people seeking to move from their country of citizenship. John sheds light on how these taxes affect individuals, especially middle-class citizens, preventing them from pursuing new opportunities abroad.

Through his experiences from attending various international conferences, John highlights the importance of establishing multilateral treaties to address this growing concern. He argues for the rights of middle-class individuals to move freely without the fear of punitive taxes on their hard-earned pensions and assets. With examples from history, John draws attention to the urgent need for international cooperation in mitigating these financial barriers, advocating for fair and just treatment of migrating populations worldwide."

June 12, 2025 - Participant includes:

Dr. Laura Snyder - @TAPInternation

On June 12, 2025 SEAT members Laura Snyder and John Richardson separately gave presentations at the Migration Conference held at the University of Greenwich in London, UK.

A complete description may be found on the SEAT site here.

This podcast is a recording of Laura’s presentation.

An AI description of her podcast is:

"In this episode, Laura Snyder delves into the intricacies of immigration, exploring two compelling stories of migration to and from the United States. The first tale takes us back to the 19th century, unraveling the challenges faced by immigrants arriving in America, particularly the risk of conscription by foreign powers like Britain during the Napoleonic Wars. Snyder highlights the enduring issue of dual nationality and the resulting impact on individuals with ties to their homeland.

The narrative progresses to the 20th century and beyond, addressing the modern-day struggle of U.S. citizens living abroad who face the burden of being taxed on their worldwide income. Despite living outside the U.S., Americans grapple with a complex tax system, leading many to contemplate renouncing their citizenship. Snyder reflects on the parallels between historical conscription and current taxation policies, emphasizing the need for evolving international perceptions of citizenship and allegiance.

Through historical insights and contemporary analysis, this episode challenges listeners to reconsider the implications of perpetual allegiance and the responsibilities of both host and origin countries in safeguarding the rights and freedoms of immigrants."

May 30, 2025 - Participants include:

Ronald Aries - @Ronald77171496

John Richardson - @ExpatriationLaw

Introduction:

Someday FATCA historians will seek to understand the impact of FATCA and U.S. citizenship taxation on individuals born in the USA, with no memory of having lived in the USA, who moved from the USA at a very early age and grew up as residents and citizens of other countries. They did NOT think of themselves as Americans. Their lives were fine until the day arrived where they had a rude awakening. They were accused of being a United Citizen. The accusation came from their financial institution in their country of residence. Under FATCA IGA mandated threats to cut off access to their financial accounts these individuals were faced with few options. The message was clear: they were U.S. tax evaders. It was time to "come clean" and provide the banks with U.S. Social Security Numbers they never had. Either that or produce a U.S. Certificate of Loss of Nationality ("CLN") which they never knew existed. But, absent compliance, they were threatened with the possibility of losing access to their bank accounts. Under these threats various people had various responses. Some officially renounced U.S. citizenship (a citizenship they didn't even know they had). Others acquired U.S. Social Security Numbers and provided them to the banks who graciously allowed them continue their banking access. Some simply hid under a rock and ignored the increasingly loud and angry threats from the banks and from their Americans overlords. But, a select few decided that they:

would not comply
would not renounce
would not run
would not hide!

Instead they decided to fight!!

Ronald Aries was a retired KLM Captain and a proud Dutch citizen. He decided to fight. His adventures with FATCA covered many of the issues raised by FATCA.

This is the fourth of my podcasts with Ronald Aries. In this podcast we review his background and discuss his latest challenge to the FATCA IGAs. This particular challenged, framed by his courageous lawyer Ellen Timmer was based on the novel theory that:

Even a U.S. citizen (if he really is one) has the general rights to privacy afforded by the general European GDPR ("General Data Privacy Regulation"). The General Data Protection Regulation (GDPR) is a comprehensive data privacy law enacted by the European Union (EU) that came into effect on May 25, 2018.

The hearing took place on May 19, 2025. The decision is expected within six weeks. Ronald and I will do a follow up podcast to discuss the actual decision when it comes down.

Here is how AI summarized our podcast:

"Join John Richardson as he engages in an enlightening conversation with Captain Ronald Aries, the renowned KLM pilot known for his fight against FATCA's impact on accidental Americans. In this episode, discover Ronald's unique journey as an accidental American born in the United States but raised in Holland, and how it led him to challenge the controversial tax regulations imposed by the U.S.

Explore the complexities and legal battles surrounding FATCA, as Ronald shares personal anecdotes and insights from his recent court case, shedding light on the profound implications of this legislation for individuals unaware of their American citizenship status. Learn about the ongoing tensions between privacy rights, data protection, and international laws, as countries in Europe grapple with the challenge of FATCA compliance.

Experience the human side of this legal saga, as Ronald passionately discusses the personal toll and emotional weight of being entangled in a global financial net, fighting for recognition and fairness. This episode offers a poignant look into the world of accidental Americans, their struggles, and the broader implications of U.S. citizenship-based taxation policies on global individuals."

May 18, 2025 - Participants include:

Dr. Laura Snyder - @TAPInternation

John Richardson - @ExpatriationLaw

Introduction:

Part of the "Big Beautiful Bill" introduced by the Trump administration includes a 5% tax on "remittance transfers". Contrary to the publicity, this provision is NOT restricted to "illegal aliens" and is NOT restricted to remittances sent outside the United States.

It is easy to imagine that this could have a "mission creep" that would eventually result in complete capital controls in the United States.

The following links will be helpful in understanding:

what the proposal means
who is affected by it
compliance concerns
evolution

https://waysandmeans.house.gov/wp-content/uploads/2025/05/The-One-Big-Beautiful-Bill-Section-by-Section.pdf

https://www.whitehouse.gov/articles/2025/05/one-big-beautiful-bill-is-a-once-in-a-generation-chance/

https://punchbowl.news/wp-content/uploads/SMITMO_017_xml.pdf

https://www.law.cornell.edu/uscode/text/15/1693o-1

https://www.law.cornell.edu/uscode/text/26/subtitle-D/chapter-36

AI Description:

"Join John Richardson from Toronto, Canada, as he delves deep into the implications of the recently introduced but contested "big, beautiful bill" alongside Dr. Laura Snyder, President of SEAT. This episode focuses on "SEC. 112105. EXCISE TAX ON REMITTANCE TRANSFERS" of the "Big Beautiful Bill" concerning the new excise tax on remittance transfers.

Throughout the conversation, John and Laura unpack the details and potential consequences of this legislation. They explore its broader impacts, notably on legal immigrants, green card holders, and even U.S. citizens residing abroad. The discussion highlights concerns about the tax's possible contradictions with equal protection rights under U.S. law and the logistical challenges individuals may face when trying to secure tax credits.

This episode provides insights into how the remittance tax, under the guise of targeting illegal immigrants, effectively broadens its reach, complicating financial transactions for many, and raising questions around citizenship taxation policies. Tune in to understand better these unfolding legislative changes and their far-reaching effects."

May 16, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

On May 4, 2025 Virginia and I did a podcast about the possibility of a U.S. citizen being appointed Pope. You can access that first podcast here:

https://prep.podbean.com/e/a-us-citizen-as-pope-exploring-tax-implications-and-controversies/

This podcast on May 16, 2025 continues our discussion. Of course, a U.S. citizen is now Pope.

Here is our discussion.

AI Generated:

"Join host John Richardson from Toronto and special guest Virginia La Torre Jeker, a U.S. tax lawyer based in Dubai, as they delve into the unique challenges faced by Pope Leo, the first American pope. In this engaging discussion, they explore the implications of U.S. tax laws on the Pope's situation, particularly focusing on the Foreign Bank Account Report (FBAR) obligations that accompany his American citizenship.

As they sift through the complexities of U.S. tax reporting, John and Virginia evaluate the broader impacts these regulations have on Americans living abroad, drawing attention to the broader scope and potential need for reform. They also spotlight the recent Wall Street Journal article by Laura Saunders, which adds depth to the debate on whether or not the Pope is required to file U.S. taxes given his vow of poverty.

This riveting episode not only addresses the pope's tax conundrum but also questions the ethics and practicality of the current citizenship-based tax regime, prompting listeners to rethink the rules of the game."

May 4, 2025 - An AI conversion of a written blog post into a podcast ...

Here is the original blog post from April of 2025:

https://citizenshipsolutions.ca/2025/04/20/toward-an-argument-that-us-citizenship-taxation-violates-international-law/

AI - Generated podcast:

This podcast episode delves into the complexities of FATCA litigation and U.S. citizenship taxation, exploring why legal challenges to FATCA often fail. The discussion emphasizes the distinction between addressing the symptoms of FATCA, such as privacy breaches and discrimination, and tackling its root cause: U.S. citizenship-based taxation.

The episode scrutinizes the implications of the U.S. imposing tax obligations on citizens residing abroad, questioning whether this practice aligns with international law principles. It argues that U.S. citizenship taxation expands the U.S. tax base globally, often conflicting with the tax sovereignty of other nations and potentially violating customary international law (CIL).

Listeners are encouraged to consider whether U.S. citizenship taxation, which bases tax residency on citizenship rather than physical or economic ties, is an outdated practice incompatible with modern international norms. The podcast aims to spark a broader discussion on the need for tax reform, particularly for Americans living overseas.

May 4, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Introduction:

The idea for this podcast came from a New York Times article discussing the possibility of a U.S. citizen becoming the next Pope. It is likely that the Pope would have the authority - as per the FBAR Regulation:

"to control the disposition of money, funds or other assets held in a financial account by direct communication (whether in writing or otherwise) to the person with whom the financial account is maintained."

Could the U.S. Treasury impose FBAR penalties on a U.S. citizen Pope for failing to include the Vatican's accounts on an FBAR? The answer to this question was the topic of our discussion today.

______________________________________________

AI Description:

In this intriguing episode, John Richardson from Toronto engages in a thought-provoking discussion with Virginia La Torre Jeker, a renowned U.S. tax lawyer based in Dubai, about the potential tax implications if a U.S. citizen were to become the Pope. The conversation delves into the complexity of U.S. tax laws, particularly FBAR (Foreign Bank Account Reporting), and how they could apply to a high-profile individual like the Pope, overseeing vast Vatican finances.

The dialogue also explores the broader implications for U.S. citizens in positions of international power, the intersection of religious institutions and U.S. tax obligations, and the potential hurdles a U.S. citizen might face in such globally influential roles. Topical questions about financial transparency, the Vatican's compliance under FATCA, and the hypothetical responsibilities of the Pope regarding U.S. taxation and reporting rules are also addressed, shedding light on the challenges of citizenship, taxation, and global politics.

April 14, 2025 - Participants include:

Dr. Suzanne de Treville - @SdeTreville

Tim Smyth - @TpSmyth01

Brad - @InvertedFragility

Brent Vanderbrook - @Vanderbrook

Jacob - @Giorniofr

John Richardson - @ExpatriationLaw

Note: This podcast is a recording of an "X Spaces" discussion. The actual audio does not start until approximately the two minute mark.

____________________________________________

A truly fascinating discussion primarily by Brent Vanderbrook about the "ideology" of U.S. citizenship taxation.

How does one engage in a discussion with people inside the USA (particularly US Treasury) about changing citizenship taxation?

April 12, 2025 - Participants include:

Dr. Suzanne de Treville - @SdeTreville

Tim Smyth - @TpSmyth01

Brad - @InvertedFragility

Brent Vanderbrook - @Vanderbrook

John Richardson - @ExpatriationLaw

Note: This podcast is a recording of an "X Spaces" discussion. The actual audio does not start until approximately the two minute mark.

_____________________________________

Introduction …

In 1980 President Jimmy Carter filed a report on the topic of "U.S. Law Affecting Americans Living and Working Abroad".

The Carter report was …

“A legislative effort by Senator George McGovern required the President to conduct a thorough study of laws governing U.S. citizens abroad. This report by President Jimmy Carter was the first under that law - a painstaking review of the many legal provisions affecting U.S. citizens residing abroad. Issues include loss of citizenship by children born abroad, income tax, social security, veterans benefits and many other matters - and very little has changed since this report was written, so this is still a valuable legal guide for any American taking up foreign employment or residence.”

The book is available here.

It is a fascinating report in terms of its content. In addition, to the content it reveals the impressive work done by "American Citizens Abroad" in its formative years. Significantly, many of the problems that exist today were identified in 1980. Very little has changed for the better.

Significantly the report is based on a world BEFORE:

FBAR enforcement AKA The Obama/Biden “FBAR Fundraiser”
the creation of the PFIC rules in 1986 (Reagan tax reform)
Obama/Biden FATCA in 2010
the Clinton Treasury Foreign Trust rules of 1996
the Clinton Entity classification regulations of 1996
the Obama OVDI/OVDP programs beginning in 2009
Trump administration Transition Tax/GILTI rules of 2017

Note that EVERY ONE of these things is the result of U.S. citizenship taxation.

The ONLY solution is a complete separation/severance of citizenship from tax residency. Hate to say it, but there is NO OTHER option.

_______________________________________

On April 12, 2025 Dr. Suzanne de Treville led a discussion about the Carter report. Her discussion specifically referenced a presentation and spreadsheet which are at the following two links:

https://docs.google.com/presentation/d/1_fN0iCzcBhftbiemFYEm9B7dQsCQp9O8bV7D0a70JV8/edit?usp=sharing

https://docs.google.com/spreadsheets/d/1tCwz7RM2Uc1RV8o0rY7BBprVv3_357TSAJ-D4-eZicM/edit?usp=sharing In addition, Dr. de Treville referenced the earlier work of AARO, which is documented in the following post. https://citizenshipsolutions.ca/2024/01/21/the-unknown-ambassadors-a-saga-of-citizenship-phyllis-michaux/

March 19, 2025 - Participants include:

Rebecca Lammers - @AbroadRebecca

John Richardson - @ExpatriationLaw

Context:

This podcast is suppleented by Rebecca's blog post here:

https://medium.com/@tapinternational/dear-fca-please-change-the-regulations-so-us-citizens-in-the-uk-can-invest-in-us-etfs-61df27e40c76

AI Version:

"Join John Richardson and Rebecca Lammers, the chair of the Democrats Abroad Taxation Task Force, as they discuss recent developments affecting U.S. citizens living in the U.K. In this special episode, Rebecca sheds light on the ongoing consultation by the U.K. Financial Conduct Authority and its implications for investment products like ETFs and mutual funds.

The discussion emphasizes the difficulties faced by U.S. citizens in the U.K. in purchasing these financial products due to differing regulatory requirements. Rebecca highlights her personal submission for the U.K. government, striving for reforms that could ease these barriers and foster investment opportunities for U.S. expats. Tune in to explore how these potential changes may pave the way for a more accessible investment landscape."

March 19, 2025 - Participants include:

Rebecca Lammers - @AbroadRebecca

John Richardson - @ExpatriationLaw

Context:

On March 1, 2025 the IRS released its response to public comments about PFIC Form 8621. The request for comments provided an opportunity for Americans abroad - a group disproportionately impacted by the PFIC problem - to report its disconent.

The IRS response was surprising direct and "in effect" invited Americans abroad to engage in a "rulemaking process" to achieve the needed change.

https://seatnow.org/2025/03/17/treasurys-response-to-form-8621-comments-the-good-the-bad-and-the-ugly/

Here is m discussion with Rebecca Lammers who heads the Democrats Abroad Taxation Task Force.

AI Version

"In this episode, John Richardson and Rebecca Lammers, head of the Democrats Abroad Taxation Task Force, discuss the recent IRS response to public comments on Form 8621, known for its complexity and impact on Americans investing in foreign mutual funds. Rebecca shares her insights on the advocacy efforts to reform these tax rules and the steps being taken to hold the IRS accountable for their treatment of Americans abroad. The conversation also explores potential tax reforms for U.S. citizens living overseas and the ongoing legislative efforts to address these issues.

The discussion highlights the challenges faced by Americans investing abroad, focusing on the PFIC form and the IRS's detailed acknowledgment of these challenges in their recent response. Rebecca also explains the importance of getting things on the record as part of advocacy to push for necessary reforms and the potential pathways to initiate a formal rulemaking process. Additionally, they touch upon the Residence-Based Taxation bill and the complexities surrounding its passage in Congress, offering insights into the legislative process and the need for continued support and awareness among the American expatriate community.

Finally, they discuss the financial and volunteer support needed for continued advocacy and reform efforts, inviting listeners to contribute and get involved through Democrats Abroad and other organizations working towards fair taxation for Americans abroad."

March 11, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

______________________________________

In this podcast we discuss Virginia's March 11, 2025 post:

https://us-tax.org/2025/03/11/leaked-memo-includes-major-tax-reform-and-impacts-u-s-persons-abroad/

AI Description:

"In this enlightening episode, host John Richardson discusses potential U.S. tax reforms with renowned tax lawyer Virginia La Torre Jeker. Together, they delve into a fresh memorandum suggesting significant changes that could impact Americans living abroad.

Part A of Virginia's insightful blog post outlines proposals directly aimed at alleviating the tax burden on expatriates, while Part B explores unexpected benefits from proposed reductions in corporate tax rates.

The conversation reveals contrasting approaches to tax reform, including debates around increasing the foreign earned income exclusion and the more radical idea of exempting all foreign income from U.S. taxes. The duo also examines inadvertent advantages these reforms could provide for expatriates, especially through lowering the U.S. corporate tax rate.

Amidst discussions on the complexities of tax obligations for Americans overseas, Virginia sheds light on the intricate Controlled Foreign Corporation and GILTI tax regimes. Listeners are encouraged to explore these reforms' broader implications, as John and Virginia consider an optimistic outlook for future changes in tax policies."

January 25, 2025 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Background:

Here is IRC S. 2810
Here are the 2801 Regulations effective January 1, 2025

AI Decription:

"In this insightful episode, John Richardson hosts U.S. tax lawyer Virginia La Torre Jeker to unravel the complexities of U.S. tax exit provisions, focusing on the significant implications of the 2801 Transfer Tax. As they delve into the intricate regulations established by Congress through the 877A exit tax provisions and the 2801 covered gift tax provisions, John and Virginia provide an essential guide for expatriates and their families.

The discussion highlights the burdensome regulations imposed by the U.S. tax code, especially for covered expatriates, and elaborates on what it means to be a covered expatriate. Virginia explains the various criteria and tests that determine one's status and discusses the significant penalties for non-compliance, including the harsh covered gift tax requirements. They also explore practical strategies for individuals facing these issues, detailing what it means to avoid or manage covered expatriate status.

Furthermore, the episode examines the broader implications for U.S. citizens abroad and their families, urging them to stay informed and seek professional guidance to navigate these complex tax obligations effectively. The conversation serves as a crucial reminder of the importance of meticulous preparation when it comes to U.S. tax obligations and estate planning for those living outside the United States."

December 22, 2024 - Participants include:

Laura Snyder - @TAPInternation

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

AI Description:

"Join hosts John Richardson, Keith Redman, and Laura Snyder as they delve into the intricacies of citizenship-based taxation and its impact on Americans living overseas. Broadcasting from Toronto, Washington D.C., and France, they discuss the year's significant events, from tax advocacy efforts to bills addressing double taxation and social security justice for Americans abroad.

Listen in as they reflect on the challenges and successes of 2024, highlighting the struggle to decouple U.S. citizenship from tax residency and envision a fairer taxation system. With heartwarming holiday wishes, this episode offers insights and a rallying call for unity and change in the expat community's ongoing tax advocacy efforts."

December 21, 2024 - Participants include:

Doris Speer - @AARO President

John Richardson - @ExpatriationLaw

On December 21, 2024 the U.S. Senate passed H.R. 82 - The Social Security Fairness Act. H.R. 82 eliminated the "Windfall Elimination Provision" and the the "Government Pension Offset".

Bottom Line: Many public employees in the United States and U.S. citizens living outside the United States will no longer have their Social Security pensions reduced.

AI Description:

"Hello from Toronto, Canada! On this momentous December 21st, 2024, John Richardson offers a deep dive into a significant shift impacting Americans living abroad. Forget about tax discussions; something monumental happened yesterday in the U.S. Senate.

The Senate's approval of H.R. 82 marks the repeal of the Windfall Elimination Provision (WEP), a long-standing Social Security obstacle that unfairly reduced benefits for many Americans overseas. Host John welcomes Dora Speer, president of AARO in Paris, to demystify this issue and explore the milestone achieved through powerful advocacy.

Tune in to understand why this repeal is essential for expatriates and how combined effort led to this landmark change. Plus, join the conversation on future tax reforms and how vital organizations like AARO are driving change for expats worldwide."

December 20, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

AI description:

"In this insightful episode, John Richardson and U.S. Tax lawyer, Virginia La Torre Jeker, delve into the newly proposed Residence-Based Taxation for Americans Abroad Act introduced by Representative Darin Lahood. The bill aims to transition from the current citizenship-based taxation model to a more flexible elective residency-based system, offering potential relief for Americans living overseas."

Virginia explains the elective nature of the new tax regime, highlighting who would benefit from opting in and the conditions required for eligibility. The discussion also examines its implications for high net worth individuals and the potential departure tax considerations.

While the bill presents a promising shift, significant challenges and procedural uncertainties remain, particularly concerning IRS regulations yet to be defined. The conversation concludes with the recognition of the hurdles ahead and the anticipation of further discussions on the evolving landscape of U.S. taxation for expats."

December 6, 2024 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

AI Description (with slight modifications):

"Join John Richardson and Virginia La Torre Jeker as they dive into the riveting legal case involving Roger Ver, a pioneering figure in the world of Bitcoin, famously known as "Bitcoin Jesus." In this episode, they discuss the allegations of tax evasion and the U.S. Government's attempts to extradite him from Spain over charges stemming from the "exit tax."

Virginia simplifies the complexities of the expatriation tax, illustrating why it may impact Bitcoin and other cryptocurrency investors. They further explore the significant legal ramifications of Ver's case, focusing on his efforts to comply with the expatriation regime and his legal team's challenge against the constitutionality of the exit tax itself.

This discussion further delves into broader implications for Americans abroad, considering the potential constitutional challenges being posed against the unfair taxation without realization. Tune in for a captivating analysis that extends far beyond taxation law, inspecting its profound influence on expatriation rights and global mobility!"

November 30, 2024 - Participants include:

Jim Bennett- Fair Tax

Steven Hayes Fair Tax

John Richardson - @ExpatriationLaw

I have previously hosted Jim Bennett and Steve Hayes of Fair Tax fame. Previous podcasts are available here. Much has happened since our last discussion.

The November 5, 2024 election of Donald Trump coupled with Republican control of the Senate and House Of Representatives has created the opportunity for tax reform in the United States. As discussed in this podcast choices in taxation and really about choosing which form of taxation results in the least erosion of productive capital.

There has never been a better time for substantive tax reforem in the United States. The prospects for the "Fair Tax" have never been better.

Notably the Fair Tax would accomplish two goals:

It would turn the United States into a territorial tax system (the U.S. would NOT income/events outside the United States; and
It would replace the compliance costs and weaponization of the income tax with a simpler (and likely more fair) sales tax.

Previous podcasts with JIm Bennett and Steve Hayes are available here:

https://citizenshipsolutions.ca/category/fair-tax/

AI Description:

"Join John Richardson from Toronto, Canada, as he discusses the exciting possibilities of tax reform in the wake of President Trump's election. With special guests Steve Hayes and Jim Bennett of Fair Tax fame, this podcast delves into the potential for implementing Fair Tax legislation in the United States. They explore how an open-minded administration could reshape taxation and return power to the American people. The conversation covers the implications of Fair Tax on investment, American expatriates, and the U.S. economy as a whole. Discover the impact of a consumption-based tax system and the opportunities it presents for both individuals and businesses. This is a must-listen for anyone interested in the future of American taxation and economic growth."

November 23, 2024 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

AI Description (with slight modifications):

Part 1 - The Insanity Of "Foreign Gift Reporting" Continues

"In this episode, join John Richardson and U.S. tax lawyer Virginia La Torre Jeker as they delve into the complexities of U.S. tax systems affecting "U.S. Persons" and the reporting of foreign gifts. They discuss an intriguing case where a woman from China was penalized for not reporting the receipt of foreign gifts, despite not being a "U.S. Person" when she received them, highlighting the extreme measures of the IRS."

Part 2 - More Questions On Form 8854 For 2024

"The conversation also explores new developments in expatriation, touching upon changes in Form DS-4079 and the draft 2024 Form 8854, signaling increased IRS interest in expatriation processes. Specifically Form 8854 now asks whether gifts have been made withing a five year period which resulted in reducing a new worth below the 2 million USD mark. They shed light on the implications these changes have for expatriates, particularly focusing on the importance of understanding both U.S. and local laws regarding asset transfers and expatriation claims.

Listen in to grasp the essential updates and avoid the risks involved in non-compliance with U.S. tax laws, especially when considering expatriation. This episode is vital for anyone dealing with expatriation or foreign assets concerning U.S. tax regulations."

November 12, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

The Schwarzbaum chronicles continue ...

AI description of podcast:

"Join John Richardson from Toronto and U.S. tax lawyer Virginia La Torre Jeker as they delve into the new fascinating developments in the case of Mr. Schwarzbaum, a man who's making the intricacies of FBAR penalties understandable to everyone.

This podcast episode explores the significance of the 11th Circuit's ruling that FBAR penalties are subject to the Eighth Amendment's Excessive Fines Clause, marking a monumental legal shift.

Despite the ruling not significantly benefiting Mr. Schwarzbaum, it highlights the excessive nature of certain fines, offering a small victory for him but a huge win for many others.

The U.S. Government has filed an appeal seeking to clarify the differences between "willfulness" in the civil FBAR penalty context and "willfulness" in the criminal penalty context.

The U.S. Government appeal, seeking clarification on the definition of willfulness in both civil and criminal contexts, opens a broader discussion about the potential impacts on future legal interpretations and penalty enforcement.

With engaging discussions on the complexities of FBAR penalties, the episode also touches upon the potential motivations of the U.S. Government in preserving its penalty base and the possible future developments in this high-stakes legal battleground. Whether you're an FBAR enthusiast or just a curious listener, this conversation is sure to shed light on the intricate world of taxes and penalties."

November 5, 2024 - Participants include:

Diane Gelon - DianeGelon.com

John Richardson - @ExpatriationLaw

Effective November 1, 2024 the State Department introduced a revised DS-4079 which appears to standardize the renunciation process around the world.

Initial information is here ...

https://citizenshipsolutions.ca/2024/11/05/department-of-states-introduces-new-renunciation-form-and-processes-effective-november-1-2024/

Today I explore these changes with Diane Gelon.

AI Description:

"In this episode, we welcome back Diane Gelon, a seasoned expatriation lawyer from London, UK, to discuss the newly introduced US DS-4079 expatriation form. With over 35 years of experience in the field, Diane shares her insights on the implications and changes brought by this new form, which aims to streamline the process of renouncing U.S. citizenship globally.

Diane and our host delve into the differences between the new form and its predecessor, highlighting its focus on intention and voluntariness in relinquishing citizenship. They explore the potential challenges and questions that may arise for individuals considering expatriation, including concerns about rights and privileges post-renunciation.

Tune in for an engaging conversation that touches on the evolving landscape of expatriation law and what the future holds for those looking to navigate this complex process."

November 5, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Effective November 1, 2024 the State Department introduced a revised DS-4079 which appears to standardize the renunciation process around the world.

Initial information is here ...

https://citizenshipsolutions.ca/2024/11/05/department-of-states-introduces-new-renunciation-form-and-processes-effective-november-1-2024/

Today I explore these changes with Virginia La Torre Jeker.

AI Description:

"Join John Richardson from Toronto and U.S. Lawyer Virginia LaTorre Jeker from Dubai as they delve into significant updates surrounding the expatriation process for U.S. citizens. On this pivotal day, November 5th, 2024, they discuss the newly revised DS-4079 form, now an 18-page document that consolidates various forms of relinquishment into a single, standardized procedure.

The episode explores how these changes aim to bring consistency across U.S. consulates and embassies worldwide, reducing their autonomy in handling expatriation cases. The conversation highlights the increased emphasis on the intention behind relinquishment, suggesting a potential shift towards stricter scrutiny and possible refusals of renunciation.

With expatriation numbers on the rise, this episode offers insights into the U.S. government's growing concern and its implications for citizens looking to renounce their citizenship. Tune in for an informative discussion on the future of expatriation and what it means for those seeking to navigate this complex process."

November 3, 2024 - Participants include:

Patience Is Alpha - @PatienceIsAlpha

John Richardson - @ExpatriationLaw

There has been occasional discussion about France (and other countries) beginning "citizenship taxation". Those who understand citizenship taxation will understand that it is used to keep people and capital locked in!

For reasons previously discussed (tax treaties, etc.), it may be difficult for France to adopt citizenship taxation in a meaningful way. That said, over the last quarter century we have seen a reversal of the 20th century order. The first world democracies have used their tax systems to become some of the most repressive countries in the world. On the other hand, the least free countries of the 20th century are becoming less repressive.

In today's podcast, I am joined by @PatienceIsAlpha (a prolific commentator on X.com). He has both a keen interest in tax residency, tax treaty and exit tax issues. He also has an interesting history.

In this podcast he discusses his journey from France to becoming a Permanent Resident of Canada to becoming a Green Card holder in the USA. He is now confronted with the decision of whether to naturalize as a U.S. citizen. Will U.S. citizenship benefit him under the France U.S. tax treaty?

November 1, 2024 - Participants include:

Rebecca Lammers - @AbroadRebecca

John Richardson - @Expatriationlaw

AI Description:

"Join John Richardson as he engages in a dynamic conversation with Rebecca Lammers, head of the Democrats Abroad Taxation Task Force, from her base in London. As an advocate for Americans abroad, Rebecca shares her journey from Ohio to becoming a pivotal voice in international tax reform discussions.

Rebecca elaborates on the significance of November for American expatriates, the complexities of U.S. tax laws, and her role in the Taxpayer Advocacy Panel. Delve into the intricacies of tax compliance challenges faced by Americans living overseas and the advocacy efforts aimed at achieving residency-based taxation.

Throughout the discussion, Rebecca highlights the strategic initiatives undertaken by Democrats Abroad, the hurdles of navigating a partisan Congress, and the importance of incremental reforms. With a focus on actionable steps and future goals, Rebecca emphasizes the need for continued advocacy and engagement to alleviate the tax burdens on Americans abroad.

Tune in for insights into the ongoing efforts to reform U.S. tax policies and the collective push towards a more equitable system for expatriates worldwide."

October 25, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

This was a podcast that came together quickly. On October 24, 2024 the IRS announced that it would no longer automatically assess penalties to file Form 3520 reporting the receipt of foreign gifts. (The requirement is found in Internal Revenue Code 6039F (see below).

Notably this does NOT end the penalty regime for the failure to report foreign gifts. It simply means that the penalties will no longer be assessed without considering reasonable cause.

In the words of the Taxpayer Advocate:

"Spoiler AlertThe IRS has ended its practice of automatically assessing penalties at the time of filing for late-filed Forms 3520, Part IV, which deal with reporting foreign gifts and bequests. And…

By the end of the year the IRS will begin reviewing any reasonable cause statements taxpayers attach to late-filed Forms 3520 and 3520-A for the trust portion of the form before assessing any Internal Revenue Code (IRC) § 6677 penalty. This favorable change will reduce unwarranted assessments and relieve burden on taxpayers by giving them the opportunity to explain their situation before the IRS assesses a penalty. TAS has recommended these changes for years and the IRS listened. IRS Commissioner Danny Werfel announced these changes during the UCLA Extension Tax Controversy Conference."

The complete blog post is here ...

https://www.taxpayeradvocate.irs.gov/news/nta-blog/irs-hears-concerns-from-tas-and-practitioners-makes-favorable-changes-to-foreign-gifts-and-inheritance-filing-penalties/2024/10/

________________________________________

AI Description:

"In this episode, John Richardson from Toronto, Canada, reconnects with Virginia Latorre Jeker to discuss a significant announcement by the IRS regarding foreign gift reporting. The IRS has revised its procedure and will no longer automatically impose penalties for late filing of Form 3520 when a U.S. person receives a foreign gift or bequest exceeding $100,000. This change comes after years of advocacy, including efforts by the National Taxpayer Advocate, highlighting the unfairness of the previous policy.

Virginia explains that while the penalty regime remains in place, the IRS will now assess reasonable cause statements before issuing penalties, providing a fairer process for taxpayers. However, John and Virginia stress the importance of seeking professional advice to ensure compliance with reporting obligations and to craft strong reasonable cause statements if needed.

They also clarify that this procedural change applies solely to foreign gift and bequest cases, not to other 3520-related issues. Virginia shares resources available on her tax blog for those interested in understanding more about foreign gift reporting requirements. The episode wraps up with a hint at future discussions on related topics."

__________________________________________________________

Here is the text of Internal Revenue Code 6039F:

26 U.S. Code § 6039F - Notice of large gifts received from foreign persons(a)In general If the value of the aggregate foreign gifts received by a United States person (other than an organization described in section 501(c) and exempt from tax under section 501(a)) during any taxable year exceeds $10,000, such United States person shall furnish (at such time and in such manner as the Secretary shall prescribe) such information as the Secretary may prescribe regarding each foreign gift received during such year.(b)Foreign giftFor purposes of this section, the term “foreign gift” means any amount received from a person other than a United States person which the recipient treats as a gift or bequest. Such term shall not include any qualified transfer (within the meaning of section 2503(e)(2)) or any distribution properly disclosed in a return under section 6048(c).

(c)Penalty for failure to file information(1)In generalIf a United States person fails to furnish the information required by subsection (a) with respect to any foreign gift within the time prescribed therefor (including extensions)—(A) the tax consequences of the receipt of such gift shall be determined by the Secretary, and(B) such United States person shall pay (upon notice and demand by the Secretary and in the same manner as tax) an amount equal to 5 percent of the amount of such foreign gift for each month for which the failure continues (not to exceed 25 percent of such amount in the aggregate).(2)Reasonable cause exceptionParagraph (1) shall not apply to any failure to report a foreign gift if the United States person shows that the failure is due to reasonable cause and not due to willful neglect.

(d)Cost-of-living adjustmentIn the case of any taxable year beginning after December 31, 1996, the $10,000 amount under subsection (a) shall be increased by an amount equal to the product of such amount and the cost-of-living adjustment for such taxable year under section 1(f)(3), except that subparagraph (A)(ii) thereof shall be applied by substituting “1995” for “2016”.

(e)RegulationsThe Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.

(Added Pub. L. 104–188, title I, § 1905(a), Aug. 20, 1996, 110 Stat. 1913; amended Pub. L. 115–97, title I, § 11002(d)(13), Dec. 22, 2017, 131 Stat. 2062.)

October 18, 2024 - Participants include:

Virginia La Torre Jeker- @VLJeker

John Richardson - @ExpatriationLaw

On October 16, 2004 Virginia published the following article in Forbes:

Surrender Green Card At The Border: Form I-407, U.S. Tax ExpatriationToday we discuss that article.

AI Description:

"Join host John Richardson from Toronto as he engages in an insightful conversation with Virginia La Torre Jeker, a renowned U.S. lawyer based in Dubai. This episode delves into the multifaceted world of U.S. green card holders, exploring the significant life decisions and potential tax implications associated with holding and relinquishing a green card.

Virginia, a Forbes contributor and experienced blogger, shares her expertise on the delicate balance of maintaining U.S. residency and the legal and tax considerations for green card holders. Discover why obtaining a green card is a monumental decision, comparable to acquiring a new status in life, and learn about the critical procedural steps necessary for those looking to sever their U.S. tax residency."

Gain valuable insights into the complexities of long-term residency, expatriation, and the potential pitfalls that green card holders may encounter at U.S. borders. Whether you're a current green card holder or considering applying for one, this episode provides essential knowledge to help you navigate the intricate landscape of U.S. immigration and tax laws."

October 14, 2024 - Participants include:

Jerz - @TheJerzWay

John Richardson - @ExpatriationLaw

President Trump's announcement to end double taxation for Americans abroad has received great attention. It's clear what it means for long term U.S. emigrants.

Another groups of Americans abroad includes digital nomads and remote workers. A long time commentator on digital nomads is Jerz (a U.S. citizen abroad). He recently supported support for President Trump's initiative suggesting that it was a reason why all Americans abroad should vote for Donald Trump.

https://x.com/TheJerzWay/status/1845155499890683978

I thank Jerz for joining me in this podcast which took place on October 14, 2024.

_________________________________________

AI Description:

"Join John Richardson in a compelling discussion with Jerz, a prominent figure in the Second Citizenship, Digital Nomad, and Global Mobility space, as they explore the intricacies of acquiring second citizenships and the challenges posed by U.S. citizenship-based taxation. Broadcasting from Toronto, Canada, on Thanksgiving Day, John welcomes Jerz, who is speaking from Brazil, to delve into this transformative journey.

In this episode, Jerz shares his insights on the three primary paths to obtaining a second citizenship: by descent, investment, and residency. He provides a detailed overview of each method, highlighting the benefits and potential pitfalls. The conversation shifts to the broader implications of U.S. citizenship-based taxation, discussing President Trump's proposal to end this practice and how it affects Americans living abroad.

Jerz emphasizes the importance of understanding the financial and personal impact of U.S. taxation laws, urging listeners to consider the value and purpose of acquiring another citizenship. Whether you're an American abroad or contemplating a move, this episode offers valuable perspectives on navigating global mobility and the potential benefits of policy change."

July 10, 2024 - Participants include:

Vance - @MyLatinLife

John Richardson - @ExpatriationLaw

In this episode we discuss the 2024 Republicans Overseas Tax proposal to end U.S. citizenship taxation.

AI Description:

"Welcome back to the My Latin Life podcast! Since 2014, we've been your trusted guide to traveling and living in Latin America. In this episode, we reconnect with John Richardson, an expert in expatriation law, to discuss the complexities of American taxation abroad. John is part of SEAT (Stop Extraterritorial American Taxation), an organization advocating for significant changes to the taxation laws affecting Americans living overseas.

Join us as John delves into the latest developments in the fight against citizenship-based taxation. He shares insights on the role of Republicans Overseas in advancing this cause and discusses the potential for legislative and regulatory changes. We explore the complexities of U.S. tax jurisdiction and the impact on Americans who live and work abroad, highlighting the need for reform to align with global standards.

Whether you're a digital nomad or an American expatriate, this episode provides valuable information on how you can get involved in advocating for change. Tune in to learn more about the efforts to sever the link between citizenship and tax residency and the potential implications for the future."

October 11, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

About SEAT:

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

This particular podcast is a response to a Tax Notes article discussing the recent Trump proposal to end the double taxation of Americans abroad. The article is found here:

https://www.taxnotes.com/tax-notes-today-federal/financial-reporting/trump-vows-end-double-taxation-overseas-citizens/2024/10/11/7m68f

Of particular interest, and the reason for this podcast, is the following excerpt quoting Professor Avi-Yonah:

"Reuven S. Avi-Yonah of the University of Michigan Law School believes concerns over double taxation are exaggerated, noting that in addition to the income exclusion limit and tax credit, many U.S. citizens live in countries that have a tax treaty with the United States, and those treaties often provide “tiebreakers” to ensure there isn’t double income taxation. “Thus, the double taxation argument is spurious,” Avi-Yonah said in an email. “There are many more cases where Americans living overseas enjoy double non-taxation because of sections 911 or 933 than cases of double taxation.”

We disagree both the general sentiment expressed and the claim that the treaty tie-break provision is available to U.S. citizens living outside the United States.

AI Description:

"In this episode, John Richardson from Toronto, Canada, discusses a major proposed development in U.S. taxation policy with Dr. Laura Snyder in Paris and Dr. Karen Alpert in Australia. President Trump's recent announcement to end the double taxation of American citizens abroad has stirred significant interest and controversy. The discussion centers around an article from Tax Notes and the differing perspectives described in the article about this policy shift.

Dr. Snyder and Dr. Alpert, both members of the organization "Seat Stop Extraterritorial American Taxation Now," delve into the complexities and implications of the U.S. tax system for Americans living overseas. They critique the views of Professor Ruven Avi-Yonah, who argues that concerns over double taxation are exaggerated and often mitigated by the "treaty tie break" provision tax treaties.

The conversation highlights the challenges faced by expatriates, including definitional and timing issues in tax codes, which can lead to double taxation despite the existence of tax treaties. The episode calls for more inclusive dialogue involving experts with firsthand experience of these tax challenges, advocating for a reevaluation of the U.S. citizenship-based taxation system."

October 4, 2024 - Participants Include:

Solomon Yue - @SolomonYue

John Richardson - @ExpatriationLaw

Introduction:

Republicans Overseas recently announced that President Trump has recognized the unfairness of the tax treatment of Americans abroad and has committed to the principle of eliminating double taxation on them. In this podcast I discuss this message and explore what it means for Americans abroad.

AI description:

"In this engaging episode, host John Richardson reconnects with Solomon Yu, a long-time advocate for ending the double taxation of Americans living overseas. From Toronto to Oregon, the conversation spans continents and decades of activism, as Solomon shares his personal journey from escaping communist China to becoming a key figure in Republican politics and a founder of Republicans Overseas.

Solomon discusses the challenges and triumphs in his decade-long fight against citizenship-based taxation, highlighting the latest breakthrough: a recognition from former President Donald Trump on the need to address this issue. The episode delves into the complexities of U.S. tax laws affecting Americans abroad, the historical context of this advocacy, and the potential impact of Trump's support in the upcoming elections.

Listeners are taken through a narrative of perseverance, legal battles, and political strategy, as Solomon outlines the path forward for Americans overseas. With insights into the political mechanisms at play and a call to action for voting, this episode is a must-listen for anyone interested in the intersection of tax policy, expatriate rights, and American politics."

September 4, 2024 - Participants include:

John Alan - @JohnAlanPod

Keith Redmond - @Keith__REDMOND

Anthony Parent - @IRS_Medic

John Richardson - @ExpatriationLaw

Note: This podcast was hosted by John Alan and originally was published by him on September 8, 2024 at his John Alan Pod site.

The podcast is reposted here with the kind permission of John Alan.

AI Description:

"Join host John Allen in this episode of "Coming Home with John Allen" as he discusses the complex world of U.S. taxation for Americans living overseas with tax experts John Richardson, Anthony Parent, and Keith Redman. These seasoned professionals dive deep into the intricacies of the U.S. tax code, particularly how it impacts American expats and emigrants.

Discover the distinctions between short-term expats and long-term emigrants, and how the U.S. tax system treats them. The conversation highlights the severe challenges faced by Americans abroad, including the citizenship-based taxation system, the threat of double taxation, and the lack of proper representation and protection.

Learn about the proposed solutions, such as severing U.S. citizenship from tax residency and reforming the current tax regulations. Gain insights from personal experiences and expert advice on how to navigate the tax landscape, mitigate fear, and make informed decisions. This episode is a must-listen for anyone grappling with the complexities of U.S. taxes while living overseas."

September 9, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

AI Description:

"Good morning. This is John Richardson speaking with you from Toronto, Canada. Today is Monday, September the 9th, 2024. And I'm starting my week off with a conversation with well-known U.S. Tax lawyer, Forbes columnist, and of course, her blog is even better, longtime repeat guest with me, Virginia LaTorre-Jeker. And today we are talking about a tremendously important both legal development and I think even more important sociological development in America.

Would you agree, Virginia?

Oh, I agree. It's quite important and has broad implications.

In this episode, we delve into the recent ruling by the 11th Circuit on the case of Mr. Schwarzbaum, a U.S. person penalized with significant FBAR penalties for failing to report foreign accounts. We discuss the implications of the court's decision, which could change the landscape for taxpayers facing similar penalties. The court ruled that FBAR penalties are subject to the Excessive Fines Clause of the Constitution, marking a significant win for taxpayers and potentially opening the door to challenging other penalties.

Join us as we explore the legal and sociological impact of this decision, the potential broader applications, and what it means for the future of penalty assessments in the U.S.

September 4, 2024 - Participants include:

John Alan Reese - @JohnAlanPod

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

On September 4, 2024 John Alan Reese interviewed Keith, Anthony and John (regular participants in the IRS Medic podcast).

I recommend the complete podcast which is available here:

https://www.youtube.com/watch?v=5AEpiebGj3k

In this clip Anthony Parent discusses (using the example of PFICs) the role that the tax preparation industry plays in interpreting the rules, creating the law and regulating the compliance of Americans abroad.

A shareable link to this clip is here:

https://www.listennotes.com/podcast-clips/proof-that-americans-who-live-abroad-are-Hx3XF-4fkPA/

AI description:

"In this episode, Anthony Parent, the face and voice of The IRS Medic, delves into the complexities of the U.S. tax system and its impact on expatriates. With a focus on the often misunderstood Passive Foreign Investment Companies (PFICs), Anthony sheds light on the misconceptions perpetuated by the tax industry and provides valuable insights into the history and purpose of PFIC regulations.

Listeners will gain an understanding of how the tax landscape has evolved, particularly since the 2009 Voluntary Disclosure Initiative, and the aggressive tax regimes that have emerged. Anthony shares his first-hand experiences and offers practical advice for those grappling with the intricacies of managing wealth both within and outside the U.S.

Tune in to discover how The IRS Medic can serve as a vital resource for anyone living in fear of the IRS and seeking clarity in the convoluted world of U.S. taxation."

September 4, 2024 - Participants include:

John Alan Reese - @JohnAlanPod

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

On September 4, 2024 John Alan Reese interviewed Keith, Anthony and John (regular participants in the IRS Medic podcast).

I recommend the complete podcast which is available here:

https://www.youtube.com/watch?v=5AEpiebGj3k

This podcast is an excerpt of Keith Redmond and John Alan Reese discussing the problem of finding support for Americans abroad. Both Keith and John note the difficult relationship that Democrats Abroad (and other organizations) have with Americans citizens abroad.

A direct (and shareable) link to this clip is here:

https://www.listennotes.com/podcast-clips/proof-that-americans-who-live-abroad-are-BmoQxHEu5I8/

I

September 4, 2024 - Participants include:

John Alan Reese - @JohnAlanPod

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

On September 4, 2024 John Alan Reese interviewed Keith, Anthony and John (regular participants in the IRS Medic podcast).

I recommend the complete podcast which is available here:

https://www.youtube.com/watch?v=5AEpiebGj3k

This podcast is an excerpt where I discuss the true nature of citizenship taxation. A possible supporter of citizenship taxation is somebody who is aware of citizenship taxation. An opponent of citizenship taxation is somebody who understand what it really is.

I also introduce the Republicans Overseas proposal to end citizenship taxation by severing citizenship from tax residency.

Here is a shareable link to this clip:

https://www.listennotes.com/podcast-clips/proof-that-americans-who-live-abroad-are-nmF0rLzkePb/

AI description:

"This episode delves into the fundamental problem of U.S. citizenship taxation, arguing that the issue is not merely the way Americans abroad are taxed, but the fact that they are subject to U.S. taxation at all. We explore the implications of the U.S. imposing its tax code on citizens who do not reside in the country and whose income is not sourced from the United States.

Our discussion highlights the emotional and financial toll this policy takes on expatriates, and how it effectively results in the U.S. "stealing" from other countries. We also examine the Republicans' overseas proposal, which aims to end the use of U.S. citizenship as a criterion for taxation, aligning U.S. policy with that of other nations."

September 4, 2024 - Participants include:

John Alan Reese - @JohnAlanPod

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

On September 4, 2024 John Alan Reese interviewed Keith, Anthony and John (regular participants in the IRS Medic podcast).

I recommend the complete podcast which is available here:

https://www.youtube.com/watch?v=5AEpiebGj3k

This podcast is an excerpt where I discuss the benefits that those born with dual citizenship - "citizenship non-taxation" - that are not available to others. The complete clip is available here:

https://www.listennotes.com/podcasts/the-comin-home/proof-that-americans-who-k8OC0dbmVa1/

AI - description:

"In this episode, John and the host - John Alan Reese - delve into the complexities faced by accidental Americans—individuals who hold U.S. citizenship unintentionally or are considering renouncing it. They explore how these unique circumstances affect their taxation and financial planning, both in the U.S. and abroad.

The conversation highlights the dual tax residency status of U.S. citizens, the challenges faced by those living outside the U.S., and the relief procedures available for former citizens. The episode provides valuable insights into the distinction between those born with dual citizenship and those who acquired it later in life, emphasizing the importance of understanding the U.S. tax system for financial survival."

Treasury Hearing On Foreign Trust and Foreign Gift Proposed Regulations - [REG-124850-08] - August 21, 2024

(My presentation starts at the 51 minute mark.)

The persons below have requested to present oral testimony on proposed regulations regarding “Transactions With Foreign Trusts and Information Reporting on Transactions With Foreign Trusts and Large Foreign Gifts” (REG-124850-08). A notice of proposed rulemaking and a notice of hearing were published in the Federal
Register on Wednesday, May 8, 2024.

Each speaker or group of speakers is allocated 10 minutes to speak.

In-Person Speakers

NAME REPRESENTING
1. Gary Carter Self - Start at approximate 61 minute mark
2. Henry P. Alden II - Start at approximate 10 minute mark
Karen Brodsky American Institute of CPAs (AICPA) - 14:10

Kevin Matz American College of Trust and Estate - Start at approximate 23:20 minute mark

Counsel (ACTEC)

Telephonic Speakers
4. Dennis Haszho Self - start at approximate 32:30 minute mark
5. Rebecca Lammers Democrats Abroad - Start at approximate 40:50 minute mark
6. John Richardson Stop Extraterritorial American Taxation - start at approximate 51 minute mark

Note that Gary Carter appeared by phone and started at the approximate 60 minute mark.

AI Description:

"In this episode, we dive into a pivotal IRS hearing concerning proposed regulations on foreign trusts and large foreign gifts, touching upon key sections of the Internal Revenue Code. Held at the IRS Auditorium in Washington, D.C., the hearing features a panel of experts and multiple speakers, including representatives from the American Institute of CPAs (AICPA), the American College of Trust and Estate Council (ACTEC), and various advocacy groups for Americans living abroad.

Our speakers share insights on the complexities and challenges faced by taxpayers, particularly those living outside the U.S., in navigating the intricate web of tax regulations. From the nuances of reporting non-U.S. pensions to the hefty penalties for non-compliance, the discussion underscores the urgent need for clarity and reform. Hear firsthand accounts from individuals and professionals alike, as they call for more lenient and clear-cut guidelines to better serve the global American community.

Join us as we explore the implications of these proposed regulations and the heartfelt testimonies advocating for a fairer and more straightforward tax system."

August 14, 2024 - Participants include:

Tim Smyth - @TPSmyth01

John Richardson- @ExpatriationLaw

Information about Canada's departure tax ...

AI description:

"Good morning, this is John Richardson speaking with you from Toronto, Canada. Today is Wednesday, August the 14th, and I am continuing my discussion with Tim Smyth in the Boston area about various aspects of tax residency and global mobility. In this episode, we delve into the intricacies of Canada's departure tax, especially when severing tax residency with Canada.

We explore the implications for Canadian residents with assets, including the rules around deemed sales of property and the exceptions to these rules. Tim shares his personal experience of leaving Canada before acquiring any assets and discusses the tax scenarios that would unfold if one were to move to Boston, severing tax residency with Canada.

We also touch upon the complexities of double taxation, the role of international treaties, and the specific assets that are excluded from Canada's departure tax. This episode offers valuable insights for anyone considering leaving Canada, highlighting the importance of understanding how different types of assets are taxed both in Canada and the destination country.

Tune in for a comprehensive discussion on tax residency, global mobility, and the financial considerations of moving across borders."

August 8, 2024 - Participants include:

Coach Coutts - @RealCoachCoutts

John Richardson -@ExpatriationLaw

AI Description:

Good afternoon, listeners! This is John Richardson speaking with you from Toronto, Canada. Today is Thursday, August 8th, 2024, and I have a special guest joining me for a birthday celebration podcast. It's Coach Coach's 39th birthday, and as tradition holds, we catch up on his extraordinary life in progress.

In this episode, Coach Coutts shares insights on maintaining a healthy lifestyle, the evolution of his training business, and the benefits of virtual training. We delve into his personal milestones, including his first year of marriage, navigating the Toronto housing market, and his commitment to continuous learning inspired by his mother.

Join us as we explore how Coach Coutts's enthusiasm for fitness and well-being remains unwavering, his proactive approach to marriage, and his future aspirations both personally and professionally. Plus, hear about his birthday traditions and plans, including a nostalgic trip to see the original "Terminator" movie in theaters.

Tune in for an engaging and inspirational discussion celebrating Coach Coutt's journey and the positive impact he's had on those around him."

August 7, 2024 - Participants include:

Tim Symth - @TPSymth01

John Richardson - @ExpatriationLaw

AI Description:

"Join John Richardson from Toronto, Canada, as he continues his insightful discussion with Tim Symth from Boston. In this episode, they delve into the complexities faced by U.S. retirees living abroad and the potential impacts for "retirees abroad" of transitioning from a citizenship-based tax system to a residency-based taxation system.

John and Tim clarify the definition of a "retiree abroad" and explore the tax obligations these individuals face under the current U.S. citizenship-based taxation system. They discuss the fears and concerns associated with a shift to residency-based taxation, particularly drawing comparisons with the Canadian tax model.

The conversation highlights how U.S. retirees abroad, who primarily have U.S. source income, navigate their tax responsibilities and why they may not be motivated to support a change to residency-based taxation. Tune in for an in-depth analysis of the tax implications for U.S. citizens retiring overseas and the broader debate on taxation systems."

July 31, 2024 - Participants include:

Tim Symth - @TPSymth01

John Richardson - @ExpatriationLaw

Laura Snyder: - @TAPInternation (providing the reason for the podcast)

Prologue:

A message rom Laura Snyder:

https://x.com/TAPInternation/status/1818299155275563265

AI description:

"In this episode, John Richardson from Toronto, Canada, reconnects with Tim Smyth from Boston to discuss the intriguing topic of citizenship-based taxation. As a long-time advocate for residency-based taxation for Americans abroad, Tim brings his insights on the recent political buzz in France about adopting citizenship-based taxation similar to the United States.

John and Tim delve into the historical context of tax treaties, the implications of France's extensive network of treaties, and why these treaties pose significant obstacles to France's proposed tax policy. They also explore the potential consequences for global tax sovereignty and the United States' unique position in the world of international taxation.

Tune in to understand the complexities behind France's ambitious tax proposal, the legal and constitutional challenges it faces, and the broader implications for global mobility and taxation."

July 27, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

AI Description:

"Good morning. This is John Richardson speaking with you from Toronto, Canada. It's Saturday morning, July 27, 2024, and I am continuing my discussion today with U.S. tax lawyer Virginia LaTorre Jeker.

Virginia recently wrote a fascinating article that appeared in Forbes, titled "The Scary Truth About Navigating IRS Tax Guidance." In this episode, we dive into the implications of her findings for Americans abroad and their U.S. tax compliance.

Virginia shares insights on the pitfalls of relying on IRS online instructions and publications, explaining why these might not be as authoritative as taxpayers believe. We discuss the importance of the Internal Revenue Bulletin and how it differs from other IRS publications.

We also explore practical advice for taxpayers facing penalties and the potential use of the Taxpayer Bill of Rights as a defense. This episode is essential listening for anyone grappling with U.S. tax issues, especially those living overseas.

For more of Virginia's wisdom and experience, visit her blog at us-tax.org."

July 12, 2024 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

AI Description:

"Join John Richardson from Toronto, Canada, as he engages in an insightful discussion with Virginia LaTorre-Jeker, a renowned lawyer, author, and blogger. Recorded on Friday, July 12, 2024, this episode delves into the complexities faced by taxpayers, particularly those living abroad, when dealing with tax return preparers.

In this episode, Virginia highlights key points from her recent Forbes article, "Tax Return Preparers' Mistakes or Fraud? Innocent Taxpayer Takes the Hit." The conversation covers the vulnerabilities of taxpayers to fraudulent or incompetent tax preparers, especially for Americans abroad dealing with different currencies and complex tax systems.

They discuss the importance of due diligence in selecting a tax preparer, the concept of reasonable cause for penalty mitigation, and the extended statute of limitations for international taxpayers. Virginia provides practical advice for those who find themselves in a situation where their tax returns have been mishandled, emphasizing the need to act promptly and seek professional guidance.

This episode is a must-listen for anyone looking to understand the intricacies of tax preparation and safeguard against potential pitfalls."

June 30, 2024 - participants include:

Diana - @DianasPlace

John Richardson - @ExpatriationLaw

AI generated description:

"In this final June podcast, John Richardson from Toronto, Canada, sits down with Diana, an Ontario resident who shares her harrowing experience with the U.S. tax system via her green card. On the eve of Canada Day, Diana recounts her journey through the bureaucratic maze, the unexpected financial burdens, and the emotional toll of striving for compliance. From the infamous "name and shame" list to the complexities of tax obligations, Diana's story sheds light on the lesser-known challenges faced by those entangled in the U.S. tax system.

Tune in to hear about her ultimate escape to a "form-free" life and her advice for anyone considering marrying an American."

June 29, 2024 - Participants include:

Jim Bennett- Fair Tax

Steven Hayes Fair Tax

John Richardson - @ExpatriationLaw

I have previously hosted Jim Bennett and Steve Hayes of Fair Tax fame. Previous podcasts are available here. Much has happened since our last discussion.

The June 20, 2024 Supreme Court ruling in Moore v. U.S. demonstrates that it's time for taxation to return to its original purpose of raising revenue.

Notably the Fair Tax would accomplish two goals:

It would turn the United States into a territorial tax system (the U.S. would NOT income/events outside the United States; and
It would replace the compliance costs and weaponisation of the income tax with a simpler (and likely more fair) sales tax.

AI Description

"Join John Richardson from Toronto, Canada, as he welcomes back Jim Bennett and Steve Hayes from Fairtax.org. In this engaging episode, they dive into the implications of the recent Moore decision and its potential impact on the future of the fair tax. Discover how the fair tax could change the landscape of U.S. taxation, promoting personal responsibility and reducing government overreach. This conversation is essential for anyone interested in the intersection of tax policy and personal freedom.

Learn about the fundamental differences between the current income tax system and the proposed fair tax, and why it might be crucial for a healthy, functioning democracy. Don’t miss this insightful discussion that touches on historical perspectives, legal intricacies, and the practical benefits of a consumption-based tax system."

June 25, 2025 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

A recent post by Paul Caron: https://taxprof.typepad.com/taxprof_blog/2024/06/harvard-law-review-moore-section-877a.html The Note published in the Harvard Law Review disparaging Americans abroad: https://harvardlawreview.org/print/vol-137/moore-than-meets-the-i-r-c-the-apportionment-rules-originalist-backstop-for-i-r-c-%c2%a7-877a/ SEAT's response to the Note : http://seatnow.org/2024/06/22/harvard-law-reviews-drive-by-attack-on-overseas-americans/ Harvard Law Review would not going to publish SEAT's response. This podcast discusses the Harvard article ...AI Description:

"Join John Richardson and a panel of experts as they dissect the recent Harvard Law Review note that attempts to defend the constitutionality of the U.S. Exit Tax. The episode features Anthony Parent from the IRS Medic podcast, along with SEAT members and co-founders Keith Redmond, Karen Alpert, and Laura Snyder.

The discussion kicks off with an overview of the Exit Tax, a levy imposed on Americans renouncing their citizenship to escape U.S. taxation. The panel critiques the Harvard note for its factual inaccuracies and defamatory statements about Americans living abroad. They argue that the article misrepresents the reasons behind renunciations and fails to consider the complex compliance issues faced by expatriates.

Further, the conversation explores the broader implications of the Harvard Law Review's stance, the need for severing citizenship from tax residency, and the potential unconstitutionality of the Exit Tax post-Moore decision. The panel also highlights the importance of advocating for the complete severance of citizenship from tax residency to solve the problems faced by Americans abroad.

Tune in for an insightful debate on the flaws in the Harvard Law Review note and the broader issues of U.S. taxation on expatriates."

June 20, 2024 - Participants include:

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

____________________________________________

Today on June 20, 2024 the Supreme Court of the United States released its decision in the Moore Transition Tax case. The court ruled 7 to 2 against with Moores with Justices Thomas and Gorsuch dissenting.

In this podcast Laura Snyder and I discuss our impressions (it's only been out for a few hours) of the Court's decision.

Individuals were the owners of far more CFCs than multinationals. A large percentage of CFCs owned by individuals are owned by Americans abroad. Individuals were not mentioned in the decision.

Therefore, it is clear that those Americans abroad who are considering renunciation should renounce as soon as reasonably possible!! It is simply too risky to retain your U.S. citizenship and live outside the United States.

In spite of the seven to two ruling against the Moores, I regard the decision as:

A short run loss for the Moores and a possible long run win for taxpayers. My reasoning is detailed in the following tweets ...

https://x.com/ExpatriationLaw/status/1803808588797780417

https://x.com/ExpatriationLaw/status/1803794413639926061

Generally four of the nine justices suggested that taxation may be subject to certain constitutional - due process - limitations. The remaining five justices did NOT discuss any limitations on taxation.

The full decision is may be read here:

https://www.supremecourt.gov/opinions/23pdf/22-800_jg6o.pdf

Previous SEAT podcasts about Moore include:

https://prep.podbean.com/e/december-5-2023-debriefing-the-moore-case-what-happened-at-the-hearing/

https://prep.podbean.com/e/moore-v-united-states-december-5-2023-the-argument-before-the-court/

June 13, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

Laura's newest paper is titled:

"The Invisibility Of The American Emigrant"

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4832126

______________________

AI Description:

"Join John Richardson from Toronto, Canada, as he delves into the struggles of U.S. citizens living abroad with Dr. Laura Snyder from Paris and Dr. Karen Alpert from Australia. This episode focuses on Laura Snyder's compelling paper, "The Invisibility of the American Emigrant," which highlights the systemic issues that overseas Americans face, particularly concerning taxation and banking policies.

The discussion explores how American expatriates are ignored or belittled by U.S. policymakers and academics, despite their continuous efforts to communicate their challenges. The episode also examines the complexities of filing U.S. tax returns from abroad, the role of the tax preparation industry, and the lack of IRS resources dedicated to serving Americans overseas.

Listen in as the guests provide insightful commentary on the broader implications of these issues, including how they affect not only those who identify as Americans but also those who may not even realize their U.S. citizenship status. The episode concludes with a discussion on potential solutions and the need for systemic change."

June 11, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

______________________________________

AI conversion:

"Good morning from Toronto, Canada! Join John Richardson, Laura Snyder in Paris, and Karen Alpert in Australia as they discuss the launch of a new and vital survey targeting overseas Americans. Laura shares insights on past surveys from 2019 and 2021, and why it’s crucial to update this data to reflect current experiences.

They highlight the importance of participation, emphasizing that the survey is open to both current and former U.S. citizens living abroad. By contributing, individuals help in addressing issues like citizenship taxation and more, providing invaluable data that informs future research and policy.

Discover how this survey aims to capture a comprehensive view of the overseas American experience and the steps being taken to ensure wide dissemination and participation. The team underscores the survey's anonymity and how participants can expect their data to be handled securely.

Tune in to learn how you can contribute to this important initiative and make a difference for Americans living abroad. For more details, visit the SEAT website at seatnow.org."

June 1, 2024

John Richardson - @Expatriationlaw

This podcast introduces a the oral argument in the U.S. Supreme Course in the seminal case of Afroyim v. Rusk. Afroyim has been referenced and discussed from time to time in the 16 part podcast discussing Laura Snyder's "Working Paper Series" (found on the SEAT website here).

Please see the following description and listen to the argument as it took place in 1967 in the Supreme Court of the United States here:

https://www.oyez.org/cases/1966/456

AI Description:

"Good evening, this is John Richardson speaking with you from Toronto, Canada. Today is June 1st, 2024. All Americans abroad will understand or should understand the significance of the 1967 U.S. Supreme Court decision in Aforium v. Rusk. That's Aforium v. Rusk.

Essentially, the case held that the U.S. Government could not involuntarily strip U.S. Citizens of their U.S. citizenship, a practice that continued right up until the 1986 amendments to the Immigration and Nationality Act. Afroyim was the seminal case, and it was decided in 1967. The facts revolved around Mr. Afroyim's voting in an Israeli election in 1951, despite not being a citizen of Israel.

Interestingly, today I discovered a website - Oyez.org - that replicates the exact arguments made before the Supreme Court of the United States in various decisions, including Afroyim v. Rusk. I just finished listening to it, and it is absolutely fascinating. I thought you might be interested in listening to this as well. Please click on the link in the description and enjoy yourself. It's about an hour and ten minutes and highly, highly informative.

Thanks for listening."

Once again, the link is here:

https://www.oyez.org/cases/1966/456

May 25, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

On May 8, 2024 Treasury issued proposed regulations designed to clarify and provide certain exceptions for Form 3520 and Form 3520A reporting for foreign trusts.

The announcement and proposed regulation can be found here:

https://www.federalregister.gov/documents/2024/05/08/2024-09434/transactions-with-foreign-trusts-and-information-reporting-on-transactions-with-foreign-trusts-and

Comments from taxpayers can be found here:

https://www.regulations.gov/document/IRS-2024-0022-0001/comment

This podcast features a discussion between Dr. Karen Alpert and John Richardson where they explore how the IRS proposed rules might impact U.S. taxpayers in Australia and their Australian Superannuations.

AI generated description:

"Good afternoon, this is John Richardson speaking with you from Toronto, Canada. Today is May 25th, 2024, and my guest is Dr. Karen Alpert, who joins us from Australia. In this episode, we delve into a proposed Treasury regulation concerning foreign trusts, including pension plans and tax-favored accounts outside the United States.

We explore the intricacies of what constitutes a foreign trust under U.S. law and whether common Australian pension plans fall into this category. The discussion highlights the stringent reporting requirements, specifically IRS Forms 3520 and 3520A, and the severe penalties associated with non-compliance.

Dr. Alpert provides a detailed analysis of the proposed regulations, discussing the criteria for determining if an account is a tax-favored foreign retirement trust. We also consider the complexities and potential pitfalls for U.S. citizens living abroad, especially those with no direct connection to the United States.

The conversation touches on the broader implications of citizenship-based taxation and proposes a more straightforward approach to identifying exempt accounts using FATCA IGAs. Join us for an insightful discussion on the challenges and possible solutions to foreign trust reporting."

May 21, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

Extraterritorial Taxation #16: Cook Is Ripe for RevisitingThis paper contains three concurrent timelines detailing the step-by-step expansion of U.S. extraterritorial taxation as well as of citizenship and equal protection, since the 1924 U.S. Supreme Court decision Cook v. Tait. These timelines underscore how Cook is ripe for review.

Available at: https://ssrn.com/abstract=4466275

____________________________________________

AI Description:

"Understanding Cook vs. Tate: Unraveling the Transformation of US Citizenship and Taxation

In this absorbing episode, join our host John Richardson alongside guests Laura Snyder and Karen Albert as they discuss the intriguing changes in US citizenship and taxation. Delve into Laura Snyder's working paper series, focusing particularly on the 16th paper which explores extraterritorial taxation and revisits the pioneering Cook vs. Tate case. Discover how this landmark 1924 US Supreme Court decision underpinned the US extraterritorial tax system and understand its continued relevance in the evolving landscape of citizenship and taxation.

Be enlightened as Laura Snyder delivers a concise summary of Cook vs. Tate, emphasizing that it was a defining case more about citizenship rather than taxation. Listen to Karen Albert as she navigates through the expansion and complexity of the US tax system post-1924, shedding light on the changing perceptions of foreign income and assets. This insightful episode is essential for anyone interested in understanding the impact of legal decisions on present-day citizenship and taxation issues and the evolution of legal interpretations against different historical contexts.

Dive deeper into the intricacies of American tax laws, especially concerning U.S. citizens residing abroad. Explore historical discrimination precedents like the Plessy v. Ferguson decision in 1896 and understand its lasting impact on lawmaking. Transition into the United States v. Caroline Products Company case in 1938 that introduced the era of ‘levels of scrutiny'. Acknowledge the evolution of equal protection through landmark court cases like Hirabashi v. United States and Bowling v. Sharp.

Focusing on tax laws, the hosts raise valid questions on their susceptibility to constitutional challenge and express concern over the limited societal understanding of constitutional, human, and tax rights in America. The episode wraps up with a spirited discussion on the application of equal protection principles in the arena of tax laws.

Join the conversation as the hosts delve into taxation, equal protection, and their influence on modern-day US citizenship. Hear about historic cases like gay marriage intersecting tax benefits and equal protection. This discussion will challenge listeners to contemplate the potential dangers of tax laws breaching equal protection rights.

Understand the significant transformation of citizenship's constitutional standing, from being a nexus of obligations to a nexus of rights. Reflect on the relevance of Cook v. Tate and the need for re-examining the current citizenship taxation system. This conversation is a gateway to a fresh perspective towards the taxation of overseas Americans, sparking hope for a future where the voices of Americans living abroad are valued in policy-making."

April 18, 2024 - Participants include:

Darren Coleman - Coleman Wealth

John Richardson - @Expatriationlaw

This podcast is crossposted from Darren Coleman's Two Way Traffic podcast. The original podcast and description is here:

"Canadians who return to the country after working south of the border may face “punitive” exit taxes from the U.S. and it doesn’t matter if their leaving is due to a divorce, illness or something else.

Darren’s guest is John Richardson of Citizenship Solutions, a Toronto-based lawyer who was born in the U.S. and has lived most of his life in Canada. His practice is largely devoted to assisting Americans who live outside the U.S. John says Americans living in Canada are often treated “unjustly” by the IRS.

“As far as the U.S. is concerned, there are two principles at play,” he says. “First, one never leaves the land of the free for free. Second, everything in the U.S. is taxable.” Darren and John discuss a wide range of issues – everything from potential troubles for Green Card holders to compliance matters when dealing with two countries that have very different tax regimes to immigration problems." https://twowaytraffic.transistor.fm/episodes/leaving-las-vegas-or-anywhere-else-in-the-us-exit-taxes-and-the-price-of-leaving-america

AI generated description:

"In this insightful episode of "Two-Way Traffic", Darren Coleman engages with renowned cross-border attorney John Richardson of CitizenshipSolutions.ca, in a comprehensive and enlightening discussion around the legal, taxation, and financial complexities associated with living and holding wealth across the U.S and Canadian borders.

The conversation brings into sharp focus the hefty regulations and penalties American citizens and green-card holders are subjected to, regardless of their physical presence in the U.S territory. Richardson talks extensively about the seemingly maze-like tax landscapes which often lead to inadvertent non-compliance with the U.S tax laws.

Adding more depth to this complex scenario, Richardson emphasizes the importance of professional guidance for understanding individual situations and mitigating the emotional distress associated with unfamiliar tax landscapes. The dialogue concludes with a look at the alternatives available for those looking to untangle their U.S. affiliations and reduce the risk of potential penalties.

Featuring an in-depth exploration of treaty residency provisions, potential tax liabilities and punitive exit taxes, this conversation serves as a valuable guide for understanding and navigating the intricacies of U.S taxation laws and their potential repercussions, especially for Green Card holders moving back to Canada. Our expert panel's reflections on the 'closer connection rule' and ‘tax treaty tiebreak provisions’ offer practical insights for individuals trying to navigate their tax obligations.

Rich with real-life experiences, tips and essential cautionary insights, this podcast's ending note underlines the importance of specialized tax advisory in managing cross-border financial matters. This episode of 'Two-Way Traffic' serves as an engaging and informative guide into the intricate world of cross-border finance, giving listeners a deeper appreciation of tax laws and estate management, and insight into next steps towards strategic financial planning."

April 29, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

SEAT Working Paper Series #2023/15Extraterritorial Taxation #15: Taxing in Respect of RightsThis paper: (1) cautions against any new U.S. tax system that would perpetuate the constitutional and human rights violations of the current system, (2) explains how other countries are able to further the legitimate purpose of preventing tax abuse while also respecting fundamental rights, and (3) describes the salient features of the right system for the United States.

Available at: https://ssrn.com/abstract=4466241.

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AI Description:

"In this engaging podcast, we delve into the pressing topic of extraterritorial taxation in a comprehensive overview of 'Taxing in Respect of Rights', the fifteenth installment of the Seat Working Paper Series. Joined by internationally based experts, we dissect the potential switch from citizenship taxation to the controversial concept of "Residence-Based Taxation." This episode explores the fear and reluctance towards this replacement, shedding light on alleged misconceptions and bringing to fore the unique set of issues faced by Americans overseas due to systemic disconnects and loopholes in the tax system.

We take up the dialogue around citizenship-residency correlation errors and their inherent systemic misrepresentations. We emphasize the need for Americans to normalise the idea of their fellow citizens living abroad. The discussion expands to trace the roots of extraterritorial taxation issues and probes into potential legislature proposal flaws, along with possibilities of misconduct within the IRS.

While dissecting the taxation bias towards Americans abroad, we value the need for a complete disconnection between citizenship and taxation. In our diverse conversation, we traverse through tax complications around U.S. citizenship, contrasting it with global practices, and analyze how U.S. tax laws might impose needless constraints on global citizens.

As the discourse intensifies, we illuminate the significant differences in dual and single U.S. citizenship rules, exploring the subtly embedded system of privilege and disparity in U.S. tax policies. We also unravel the historic role of U.S. citizenship, highlighting the arduous challenges faced by dual citizens in the contemporary era owing to outdated legislative constructs.

Our conversation reaches a climactic conclusion as we call for a long-overdue end to the American system of extraterritorial taxation, advocating for a fair and balanced system where citizenship and tax residency are dissociated. With a wealth of information available on seatnow.org, join us in exploring the complexities of 21st-century taxation issues in a globalized world."

April 23, 2024 - Participants include:

Darren Coleman - Coleman Wealth

John Richardson - @Expatriationlaw

Introduction:

On April 16, 2024 Canada's Finance Minister released introduced a budget which included major tax increases for Canadian residents.

The question is:

What are the implications for financial planning in Canada?

Joining me today is Darren Coleman of Coleman Wealth Management.

What follows is the AI generated version of our discussion ...

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"Join us in this riveting dialogue between John Richardson and guest Darren Coleman, an experienced wealth manager and financial planner, as we dive deep into the nuanced world of capital gains taxation. We dissect the recent changes reflected in the Canadian budget, and consider their retroactive impact on individuals and businesses. Our discussion digs into the potential risk to entrepreneurship and brain drain that may stem from these changes. More than just an intellectual exercise, this episode equips you to navigate your wealth management strategies with greater clarity and insight.

We cover aspects such as the tax implications for Canadians selling family properties, and the complexities of including capital gains income inside corporations. Notably, we address the plight of professionals using Canadian-controlled private corporations for their pensions and the precarious situation they find themselves in between the provincial and federal governments.

Our analysis further shines a light on possible effects on retirement planning and other strategic financial decisions. As we scrutinize the current tax scenario, we also delve into the housing market, examining potential implications of taxing gains on the sale of primary residences. Wrapping up, we offer expert insights into estate planning, suggesting techniques to optimize your finances amidst evolving tax regulations. Be privy to this comprehensive discourse and master the hedge maze of capital gains taxation."

April 22, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

SEAT Working Paper Series #2023/14Extraterritorial Taxation #14: Revenue Neutrality Makes No SenseConditioning the end of the U.S. extraterritorial tax system on revenue neutrality is nonsensical and a barrier to genuine reform.

Available at: https://ssrn.com/abstract=4466208.

March 15, 2024 - Participants Include:

Ryan Smyth - Official Agent

John Richardson - @Independents

____________________________

On March 13, 2023 I received the following message:

"To our esteemed members, supporters, and the wider community of Nova Scotia,

Today, we reach out with a bittersweet announcement: the journey of the Atlantica Party Association of Nova Scotia is drawing to a close. This decision, reached after much deliberation and heartfelt consideration, marks the end of an era for us and, we know, for many of you as well.

Why Now?Our journey was fueled by passion, commitment, and the shared belief in the principles and visions that defined the Atlantica Party. It is important to clarify that our decision to conclude this chapter is not a reflection of financial challenges or a lack of support for our party's ideals. On the contrary, thanks to the generosity of our donors and the faith of our supporters, we remained financially resilient and ideologically vibrant until the end.

The crux of our decision lies in the challenges of sustaining the volunteer-driven momentum necessary for our operations. The dedication of time and effort, though abundant in spirit, has become increasingly scarce in practice. This shortage of volunteer support has led us to this juncture, a decision we know may disappoint some. To those who feel let down, we extend our sincere apologies and hope you understand the difficult position we’ve found ourselves in.

AcknowledgmentsAs we prepare to file for voluntary deregistration with Elections Nova Scotia effective April 30th, 2024, we want to take a moment to reflect on the contributions of everyone who has been part of this remarkable journey. To the candidates who championed the Atlantica cause in provincial elections, your bravery and dedication have been the backbone of our efforts. To our volunteers, whose tireless work behind the scenes made every campaign, event, and initiative possible, we owe a debt of gratitude that words cannot fully express. To our supporters, who have stood by us, advocated for us on social media, and provided financial backing, your belief in our mission has been our driving force.

Looking AheadWhile the Atlantica Party Association of Nova Scotia will no longer be active, the principles we stood for and the conversations we sparked will endure. We encourage our community to continue advocating for the values we hold dear and to remain engaged in the political landscape of Nova Scotia. The end of this organization is not the end of our collective journey towards a brighter future for our province.

In closing, we extend our deepest thanks to each and every one of you who have been a part of the Atlantica Party Association of Nova Scotia. Though our paths may diverge, the memories of what we accomplished together will forever unite us.

With heartfelt appreciation,

Kyle Woodbury, Leader of the Atlantica Party Association of Nova Scotia

and

Ryan Smyth, Official Agent and Treasurer for the Atlantica Party Association of Nova Scotia"

_______________________________________________

It's hard to create and maintain a political party in a world dominated by mainstream parties. But, amazingly the Atlantica Party lasted for the better part of 20 years. I had been on their mailing list for most of that time - sometimes reading their message and sometimes ignoring them.

But, the Atlantica Party was a success. Only those who have attempted to create political parties will understand that a party that lasted for as long as it did was a success.

In this podcast I talk with Ryan Smyth (Official Agent and Treasurer for the Atlantica Party Association of Nova Scotia) about the "Life and Times" of the Atlantica Party.

April 4, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

__________________________________________-Extraterritorial Taxation #13: Other Countries Have a Duty to ActThis paper explains what the officials of other countries must understand about the U.S. extraterritorial tax system, what they must do about it, and why they have a duty to act. This paper concludes with first-hand testimony from residents (many dual citizens) of 33 countries.

Available at: https://ssrn.com/abstract=4466153.

April 1, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @ExpatriationLaw

____________________________________________

Understanding what citizenship taxation really is ...

Like the optical illusion where some people see an old woman and others see a young woman, citizenship taxation is viewed by different people in different ways.

Some people (tax academics, politicians and many tax professionals) view citizenship taxation as simply the US taxing its nonresident citizens with no consciousness of the reality that those citizens live in and are taxed by other countries.

Others (individuals who are actually subjected to citizenship taxation) view it as the U.S. imposing taxes, forms and penalties on the residents of other countries.

Because of these two different perceptions, it is difficult to have a helpful discussion about citizenship taxation.

U.S. Citizenship Taxation

The U.S. is currently the only major country that treats all its citizens as tax residents. There has often been speculation as to what would happen if other major countries employed citizenship taxation. Because countries already tax based on residence and source, citizenship taxation would have practical meaning ONLY for a country’s nonresident citizens. This is because “citizenship taxation” would create dual “tax residency” for the nonresident citizens of a country.

Generally, treaties allow dual tax residents to use a treaty to become a tax resident of ONLY one country. The exception is when a treaty includes a “saving clause”. A “saving clause” is when a treaty allows a country to tax its citizens (whether resident or nonresident) without regard to the treaty. In this way the “saving clause” prevents an individual with “dual tax residency” from using the treaty to become a treaty tax resident of ONLY one country. Practically speaking, the “saving clause,” by denying individuals the opportunity for “dual tax residents” to become tax residents of only one country, allows the country with the “saving clause” to impose worldwide taxation on the tax residents of another country!

The effect of Country A (the United States) including a “saving clause” in its tax treaty with other country B means that U.S. citizens are always “dual tax residents” because the "saving clause" prevents them from becoming treaty nonresidents..

Therefore, because dual tax residency cannot be prevented by treaty, the treaty allows for:

Country A (the United States) to impose “worldwide taxation” on the tax residents of country B on non-US source income.

March 26, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

Extraterritorial Taxation #12: It’s Not About Paying TaxesObjections to the U.S. extraterritorial tax system are not about paying taxes – most owe no U.S. tax – but about a highly complex and penalizing system that prevents overseas Americans from living normal lives and subjects them to high levels of risk and stress.

Available at: https://ssrn.com/abstract=4466128.

March 12, 2024 - Participants Include:

Doug Judson - Judson Howie

Norman Douglass - Retired Ontario Judge

Dan Lang - Compassionate Justice Toronto

Jim Black - Compassionate Justice Toronto

Ben Levin - Compassionaste Justice Toronto

John Richardson - Compassionate Justice Toronto

On February 23, 2024 the Toronto Star reported that Ontario Premier Doug Ford announced his intention to appoint "like minded judges" to Ontario's Provincial Courts. His statement (widely reported by the media) was controversial. At a minimum it suggested an intention to politicize the judicial process - eroding the independence of the judicial system.

Jeff Gray writing for the Globe and Mail in February 23, 2024:

"Ontario Premier Doug Ford says he has the right to choose “like-minded” conservative judges and defended his installation of two former senior political aides on the government’s judicial appointments committee – the latest in a series of moves critics say is politicizing the province’s courts.

Lawyers groups and opposition politicians raised alarms about the Premier’s comments on Friday, saying they amount to a rejection of judicial independence, undermine public confidence in the courts and set a course toward a U.S.-style partisan justice system.

Mr. Ford was unrepentant when asked about a Toronto Star story that his government had put two of his former senior political aides on the province’s Judicial Appointments Advisory Committee, which vets and shortlists candidates for Attorney-General Doug Downey to name to the Ontario Court of Justice."

________________________________________________

AI Description ...

"In this compelling podcast episode, a seasoned panel of legal experts, including retired judges and practicing lawyers, delves into crucial topics like judicial appointments, the independence of the judiciary in Ontario, and potential political influences on legal decisions. The conversation sheds light on the controversial prospect of appointing "like-minded judges", a statement attributed to Ontario's Premier Doug Ford.

An interesting narrative emerges as Doug Judson, Chair of the Federation of Ontario Law Associations, retired Judge Norman Douglass and other panelists such as Dan Lang, Jim Black, and Ben Levin intricately break down the recent changes to the judicial selection process and its potential implications on the justice system. The dialogue goes further to decipher the media's impact on public perception of crime, justice, and law enforcement, probing the dangerous possibilities of a distorted perspective.

Highlighting the utmost importance of an independent judiciary in a healthy democracy, this podcast delves into the room for political interference, the broad-brushing of the judiciary, and the necessity for balance across various sectors within the legal framework. The conversation wraps up exploring aspects of resource allocation, the viability of drug treatment courts over creating more jails, the call for more diversity in the bench, and an overall comprehensive outlook of a just criminal justice system.

Join this enlightening conversation, presenting an in-depth analysis of the justice system, the indispensable role of public discourse, and the future of the judiciary in Ontario."

March 15, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

Extraterritorial Taxation #11: Deference or Constitutionalization?Instead of practicing deference, federal courts must subject tax legislation to the same constitutional review to which they subject other legislation.

Available at: https://ssrn.com/abstract=4465622.

AI Version:

______________________________________

"In this informative episode, host John Richardson delves into the complex narrative surrounding taxation and constitution rights, intricately dissecting the question - Should U.S. tax law be constitutionally reviewed? This leads him and his guest experts into the nuanced layers of "Extraterritorial Taxation: Deference or Constitutionalization?", the provocative topic of Seat Working Paper 11.

The experts, Laura Snyder hailing from Paris and Karen Alpert from Australia, dissect the underlying purpose of the working paper. They engage in a deep discussion about the roles of the Supreme Court and Congress in shaping tax laws, providing unprecedented insights into the topic. They pose acute queries regarding the possible power dynamics and repercussions that could result if tax law creation remains unchecked and outside constitutional review.

Taking the discussion a step further, they link the discussion with the plight of American expats. They explore the profound implications regulations have on fundamental rights and use the U.S tax code as an example. The debate highlights the fallback of unlimited tax powers and reiterates the importance of forming equitable tax policies.

Join Richardson and his esteemed guests as they unravel complicated discussion on the potential influence taxation has on societal behavior, ethical dilemmas concerning human rights and tax laws, and the critical role of constitutional review in striking a balance between the state's fiscal needs and citizens' fundamental rights.

Listeners can expect an enlightening dialogue that simplifies the labyrinth of tax laws and provides valuable insights for both legal experts and everyday citizens. Tune in for the captivating dialogue on complexities of taxation and the potential constitutionalization of U.S. tax laws."

March 11, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

Extraterritorial Taxation #10: Violating Human RightsThe U.S. extraterritorial tax system violates multiple international human rights instruments that the United States has signed, or signed and ratified.

Available at: https://ssrn.com/abstract=4465610.

AI Version:

___________________________________

"In this thought-provoking podcast episode, host John Richardson, along with experts Karen Alpert from Australia and Laura Snyder in Paris, delve deep into the complex subject of extraterritorial taxation in the United States and its potential interference with fundamental human rights. Providing comprehensive insights and discussions, we explore the divergences between the American Constitution and international human rights, especially impacting US citizens living overseas.

Our discussion highlights the vital interplays of the American Constitution, the role of the legislature, the judiciary, and the controversial effects it imposes upon its citizens' rights and obligations, both domestically and abroad. We focus on the extensive impacts of the U.S. extraterritorial tax system on Americans living overseas, notably the discriminatory effects and constraints on entrepreneurial and employment opportunities.

Framing a perspective on the contentious claim that U.S. citizenship can be seen as a 'fiscal prison' in the 21st century, this episode stirs up thought and debates about the free right to live and work as a U.S. citizen living abroad.

In the latter part of the podcast, this audacious discussion extends towards the implications of the U.S.'s taxation system on self-determination and economies of other nations. We ponder over the proposition of U.S. citizenship taxation as a form of economic warfare and the subsequent potential human rights violations.

Join us in this enlightening discussion to understand more about the root causes and potential solutions to these complex tax situations and play your part in ceasing extraterritorial American taxation. Explore more only at SEATNow.org."

March 6, 2024 - Participants Include:

David (Coach) Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

Coach Coutts - Leave The Cold Recovery to US!

___________________________________________

AI Description ...

"In this invigorating episode of our health-focused podcast, host John Richardson sits down with return guest and renowned health coach, David Coutts, for a deep dive into managing and recovering from common colds naturally. Releasing intriguing information, David reveals his secrets for staying free of sickness for nearly a decade and presents practical methods for recognizing and counteracting the early signs of a cold.

Exploring a variety of natural remedies, David shares an uncomplicated recipe for a homemade tea rich in immune-boosting ingredients such as lemon, ginger, and honey. He also highlights the benefits of integrating other immunity-boosting foods into your diet, such as garlic, coconut oil, pumpkin seeds, and berries, asserting their crucial role in elevating one's well-being.

An insightful segment of the conversation is dedicated to the importance of Vitamin D supplementation for immune support, with David discussing its powerful effects and strategies for effective integration into your daily routine. The episode also addresses the influence of lifestyle choices on our ability to fight off infections, with special emphasis on the critical role of sleep in maintaining good health.

Join us in this enlightening exploration of natural and proactive ways to beat the common cold, as David imparts his wisdom and encourages listeners to take active care of their bodies. For more in-depth insights, tune in to this episode and arm yourself with the knowledge to boost your immunity and improve your quality of life."

March 4, 2024 - Participants include:

David McKeegan - Greenback Tax and Cleer Tax

John Richardson - Expatriationlaw

I had the opportunity to chat with David McKeegan, the founder of Greenback Tax Services. Greenback continues to be a major player in the "expat tax world" offering US tax prep services to Americans abroad throughout the world. The story of Greenback is interesting and demonstrates that U.S. taxation is what unites all Americans abroad.

What follows is the AI generated description of the interview.

____________________________________________

"Join us in this insightful interview with David McKeegan, founder of Greenback Tax Services, as he dives deep into the complexities of U.S. taxation for Americans living abroad. Having started his tax preparation service while living overseas himself, David explores the painful lessons and triumphs that led to the growth of this thriving business. From recognizing a widespread tax-related problem among expats in 2008, to coping with the rigours of the 2017 Tax and Jobs Act, this conversation serves as a masterclass in understanding the difficulties in navigating cross-border tax issues for Americans abroad.

Delve into the gravity of U.S. tax laws and their repercussions on American citizens striving to earn their livelihood beyond the country's shores. Discover the concept of the "Accidental American" and the ambiguity in U.S. taxation laws for residents paying taxes in countries with higher tax rates than the U.S. The interview critically examines the U.S. Government's perception of a "tax cheat", questioning if undue attention is given to expats over local taxpayers.

Engage in an intriguing discussion around the actual worth of the U.S. citizenship, especially under the weight of hefty taxes, and ponder over the idea of selling citizenship as a future solution. Get a clear picture of how the U.S. sits in the same taxation boat as countries like Eritrea and North Korea, both notorious for taxing their citizens regardless of their residency. The conversation concludes with the challenges faced by expats in planning retirement due to U.S. taxation laws and posits a need for an overhaul in the system.

The episode further evokes a strong dialogue around the potent role of the expat population in politics and taxation. Gain an understanding of the political ramifications of the U.S. citizenship taxation law and the obstacles facing expats in remote voting. In his candid conversation, David underscores the necessity of seeking advice from a tax preparer well-versed in expat taxes, and shows skepticism towards the chances of a reform in the U.S. citizenship taxation law. Immerse yourself in this enlightening discussion for real-world insights on critical expat taxation issues."

March 4, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

SEAT Working Paper Series #2023/9Extraterritorial Taxation #9: Forcible Destruction of CitizenshipThe U.S. extraterritorial tax system “abridges and affects” U.S. citizenship, leading to the forcible destruction of U.S. citizenship in violation of the 1967 U.S. Supreme Court decision Afroyim v. Rusk.

Available at: https://ssrn.com/abstract=4465596.

____________________________________________________

AI Description:

"Join us for an insightful discussion with John Richardson, Karen Alpert, and Laura Snyder as they tackle complex and controversial issues related to citizenship taxation and the 14th Amendment. Using Laura Snyder's seat working papers as a reference, our panel converses openly about the intriguing and often misunderstood subject of forcible citizenship destruction—a topic that has been stirring debate within the community of overseas Americans.

The podcast takes off with an in-depth analysis of the 14th Amendment’s historical interpretation and its influence on citizenship and taxation. The dialogue then plows into examining its specific clauses, additionally shedding light on its impact on the fabric of modern citizenship laws. The conversation enthralls listeners with revealing discussions about the U.S. nationality-based tax system and how it inadvertently creates a hierarchy among citizens.

An essential aspect of this podcast revolves around the complex and ever-evolving terrain of U.S. Supreme Court decisions, shedding light on the significant impact they have had on the rights and lives of U.S. citizens, especially those living overseas. The conversation further probes into current laws and regulations that exert relentless pressure on U.S. citizens abroad, forcing them into a predicament of considering renunciation of their own citizenship.

The offered prognosis dives into the deep waters of the unintended consequences of extraterritorial U.S. taxation. It unravels the historical background of the issue and explores how U.S. laws, including elements within the Internal Revenue Code, have accelerated the trend of citizenship renunciations. The conversation critically reviews the issue of indirect legal mechanisms—"weaponization of citizenship" that covertly sabotage citizens' rights to keep their nationality.

The episode wraps up with a thought-provoking question—Does the current form of citizenship taxation infringe upon the 14th Amendment’s guiding principles? The dialogue succeeds in painting a broad picture of the struggles faced by U.S. citizens due to these contentious laws resulting in a unique predicament compared to citizens of other countries.

Ultimately, this episode serves as a compelling voice for the SEAT (Stop Extraterritorial American Taxation) initiative, advocating reform towards tax laws that are forcing people out of their U.S. citizenship."

February 16, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

SEAT Working Paper Series #2023/8Extraterritorial Taxation #8: More Violations of Equal ProtectionThe U.S. extraterritorial tax system violates 14th Amendment equal protection not only because it is inherently suspect (as examined in Extraterritorial Taxation #7), but also because it creates a second class of citizens and is founded and perpetuated in animus.

Available at: https://ssrn.com/abstract=4465589.

__________________________________________________-

AI Description:

In this riveting podcast, John Richardson hosts a conversation with Laura Snyder and Karen Albert on citizenship taxation and its impact. The podcast sheds light on the discriminatory aspects of extraterritorial taxation, how it often results in the violation of the 14th Amendment, creating a second-class citizenship for Americans residing abroad. Discussed from historical and legal viewpoints, the episode analyzes prominent US Supreme Court decisions and their effects on citizenship taxation, providing listeners with a comprehensive understanding of this complex issue.

The conversation probes deeper through the history of constitutional law, beginning from the aftermath of the Civil War up to modern times. The hosts discuss how laws have been misused to weaponize citizenship and infringe upon the rights of American citizens despite the Supreme Court's ruling against such practices. The inherent biases of American taxation against overseas Americans and their repercussions are also critically assessed.

Legislative impacts of acts like the Foreign Account Tax Compliance Act (FATCA) and Global Intangible Low Tax Income (GILTI) on American expatriates are evaluated in great depth. They explore the controversial perspective of treating citizenship as an insurance policy and questioning the authenticity of citizens' rights. The discussed topics paint a vivid picture of the intricate nexus between citizenship and taxpayer status, potential biases in the tax system, making it a must-listen for anyone keen to understand the complexities of American citizenship and taxation.

The conversation concludes with a thought-provoking discussion on the impending need for reform in the domain of extraterritorial American taxation, urging listeners to reevaluate their understanding of this significant constitutional matter.

February 14, 2024 - Participants Include:

David (Coach) Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

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AI Description ...

In this riveting podcast episode, host John Richardson and Coach David Coutts frame an insightful dialogue for listeners, dissecting various lifestyle and societal topics all the way from Toronto, Canada. The focal points of their discussion encompass aspects of health, fitness, longevity, aging and a peek into David's perspectives on the political landscape in Canada.

Diving into the significance of fitness and longevity, David shares his vision of a thriving, active lifestyle even at a hundred, emphasizing the crucial role of setting meaningful, health-centered goals. One noteworthy topic broached is the concept of retirement and its misconceptions around the loss of purpose in life, touching upon the dangers of indulgence due to lack of significant activities.

Another intriguing segment of this episode delves into the perception of age within political leadership, especially in the context of ongoing debates around the age of U.S Presidential nominees. Highlighting age discrimination, David brings light to the importance of cognitive health over numerical age and the richness of accumulated experience over time.

This engaging conversation also addresses the dynamics of political tenureship, patience, legislative decision-making, and brings the democratic process under the lens. Various influential political phenomena including the dichotomy of political parties, voting disillusionment, party dominance over public representation, and critical developments in American politics are discussed.

Moreover, a sharper focus is directed towards the prevalent misunderstanding and confusion surrounding political party affiliations showcased through the recent Canadian general election. The conversation unveils the current state of Trudeau Liberals and speculates on their future prospects.

The wider disconnect between retail politicians and voters spotlights serious concerns for democracies in terms of their relevance and functionality. Despite the expressions of disenchantment, emerges a longing for a bipartisan political figure who can truly represent the people's interests.

The episode concludes by signifying the essential role of citizens in shaping the democracies, highlighting the importance of a healthier lifestyle promoting overall wellbeing. Engage with us for more captivating discussions and fresh perspectives on critical issues.

February 8, 2024 - Participants include:

Dan Lang

Jim Black

Ben Levin

John Richardson

Compassionate Justice is an educational and community initiative which focuses on the importance of transitioning from a justice system that focuses on punishment to a system that focuses on rehabilitation.

A list of upcoming events is available here:

https://esgunited.org/compassionate-justice/

An archive of past speakers in the Compassionate Justice Speakers series is here:

https://esgunited.org/compassionate-justice-past-speakers/

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The AI generated description of this podcast is:

This enlightening episode hosted by John Richardson delves into the concept of 'Compassionate Justice', its crucial importance in Canadian society, the prison systems, and introduces the founders of the 'Compassionate Justice' organization. Recorded on February 8th, 2024 in Toronto, Canada, the discussion veers away from our regular talks on immigration and tax and offers an discussion of the importance of 'Compassionate Justice' and its monumental significance.

Compassionate Justice founders - Dan Lang, Jim Black, and Ben Levin, share their experiences, motivations, and the compelling journey of the organization from its inception. Marketed by engaging narratives and research, the conversation explores the societal outlook towards crime and its legal and moral implications. It underscores the urgent necessity of an educated citizenry for understanding and responding to criminal justice.

Probing into the staggering costs of incarceration and the lack of initiatives towards rehabilitation, the episode pitches a strong case for the reformative justice system. Highlighting the injustice towards the Indigenous inmates and the unfortunate reality of post-incarceration life, the conversation unravels the need for legislative change and prison education for integration into society post-release. This insightful episode spotlights Ashley Smith's case, dissecting the tragic domino effect of legal infringements committed by parolees.

Shedding light on the dire need for funding for crucial services like Circles of Support and Accountability, the episode highlights the potential savings within the criminal justice system. It appreciates the contributions of individuals who promote Compassionate Justice initiatives, calling for continued dialogue and action towards a more compassionate and cost-effective justice system in Canada.

Tune into this episode as it climaxes with information on how you can be part of the reform. Learn about upcoming events hosted by Compassionate Justice Toronto and get involved in heralding justice system reforms.

January 31, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

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SEAT Working Paper Series #2023/7Extraterritorial Taxation #7: Inherently SuspectThe U.S. extraterritorial tax system is subject to strict scrutiny – the highest level of equal protection scrutiny. As such, it is “inherently suspect,” in violation of 14th Amendment equal protection.

Available at: https://ssrn.com/abstract=4465558.

The following description has been generated by AI ...

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Welcome to Episode 7, a pivotal part of our comprehensive dialogue on citizenship taxation, hosted by John Richardson. In this enlightening episode, we delve deep into the law of equal protection and examine how citizenship taxation interplays with this fundamental principle.

Our conversation focuses on the role of nationality, race, and alienage in deciphering whether laws exhibit prejudice and antipathy. Laura brings forth critically acclaimed cases that throw light on why discrimination based on nationality and the country of origin is deemed unlawful without a strong justification. The episode further scrutinizes the U.S. Extraterritorial Tax System's potential bias effects depending on an individual's nationality.

Sit back and join us as we explore the law's specific terms, the pressing government interests, and the dissimilarities between a general assumption of equality and concrete reasons justifying the present situation. Listen in for a better comprehension of inherently suspect laws, including nationality-based discrimination.

This academic discussion dissects historical rulings and current opinions about citizenship-based taxation from various courts of justice, including the Supreme Court of Canada and the Federal Court of Canada. We also probe into how citizenship-based taxation transformed from a mere prerequisite for employment eligibility into a governmental tool for behavior control.

Moreover, we examine how taxation, a topic primarily associated with revenue generation, intertwines with justice, fairness, and societal organization. Finally, we touch on the controversy surrounding nationality-based taxes in the US and the financial implications of the American extraterritorial taxation policy on overseas American citizens, stimulating thoughts on a need for policy reform.

January 28, 2024 - Participants include:

Amy Purcell - @Amy_From_Sydney

John Richardson - @ExpatriationLaw

Note the following description was generated by AI - this will be interesting. AI describes this podcast as follows ...

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In this captivating episode, John Richardson engages in a revealing conversation with Amy from Sydney, a dual US-Australian citizen, about the knotty issues of taxation, citizenship, and financial concerns faced by US citizens living overseas. The dialogue dives deep into the intriguing debate about the definition of a 'US Person' and the trials implicated by dual citizenship.

The episode proceeds to demystify citizenship taxation, challenging common conceptions and shedding light on hidden terms and misconceptions. As the conversation unravels the complex realities of the US worldwide taxation system, it emphasizes the need for much-needed reforms to alleviate the challenges faced by dual citizens.

Further into the discussion, we delve into the compelling concept of a potential 'Great Australian U.S. Citizen Buyback Program,' exploring the advantages and drawbacks that come with it. Also, the revolutionary idea of shifting from citizenship-based taxation to residency-based taxation is examined as a potential ground-breaking solution. This episode encapsulates the grave dilemmas dual citizens encounter and discusses potential practical solutions.

We also touch upon political elements, like positions of different candidates on relevant topics such as residency-based taxation, and delve into controversial issues like overseas voting, and potential foreign interference in US elections. The episode explores the paradoxes and complexities faced by overseas voters who are misinformed about the US voting system whilst being subjected to its electoral laws.

The episode concludes with gripping real-life narratives and a controversial shared take on the divided perspectives on US expatriates' voting rights. Join us as we navigate the labyrinthine landscape of global citizenship, taxation, and offshore voting through engaging discussions and stimulating dialogues! Tune into this episode especially if you are a US expat wrestling with taxation and citizenship issues, or simply eager to comprehend the complexities of global citizenship and voting.

SEAT Working Paper Series #2023/6January 15, 2024 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

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Extraterritorial Taxation #6: No Compelling Governmental InterestThis paper confronts the rationales for U.S. extraterritorial taxation with the reality of the system in place today and explains why the United States does not have a compelling interest in taxing overseas Americans in the manner it does.

Available at: https://ssrn.com/abstract=4465450.

December 18, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

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SEAT Working Paper Series #2023/5Extraterritorial Taxation #5: Refuting the RationalesThis paper summarizes and refutes the most commonly offered rationales for the taxation by the United States of the worldwide income of overseas Americans.

Available at: https://ssrn.com/abstract=4465327.

December 13, 2023 - Participants include:

Vance - @MyLatinLife

John Richardson - @ExpatriationLaw

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This is the "tail end" of a podcast that I did today with Vance @MyLatinLife AKA MyLatinLife.com

It was a very interesting discussion about dual citizenship and the tremendous benefits of dual citizenship from birth (the potential avoidance of "covered expatriate" status) if one is considering renunciation of U.S. citizenship. The complete podcast will be released in January 2024 on the My Latin Life Youtube Channel.

There are many people who are tortured by the decision to renounce. Here are some of my thoughts on:

"How To Make The Renunciation Decision".

Additionally, we discussed whether other countries (including Canada) might adopt "citizenship taxation".

Although the future can never be predicted, I suspect that:

Canada will NOT follow the United States and adopt "citizenship taxation".

Moore v. United States - December 5, 2023

Audio of the actual hearing:

This podcast is an audio of the actual argument that took place before the court. The relevant link to the Supreme Court site is:

https://www.supremecourt.gov/oral_arguments/audio/2023/22-800

Significantly a transcript of the argument is available at:

https://www.supremecourt.gov/oral_arguments/argument_transcripts/2023/22-800_9ol1.pdf

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SEAT President Dr. Laura Snyder attended the hearing. A fascinating podcast discussing her observations (right after the hearing ended) is available here.

https://prep.podbean.com/e/december-5-2023-debriefing-the-moore-case-what-happened-at-the-hearing/

SEAT along with AARO authored an amicus brief which explained the how the 965 transition tax impacted Americans abroad.

IRS Medic hosted a podcast both before, during and after the Supreme Court hearing. A link to that podcast is here:

https://twitter.com/ExpatriationLaw/status/1732254619860893932

December 5, 2023 - Participants include:

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

On December 5, 2023 the Supreme Court of The United States heard the Moore transition tax appeal. SEAT President Dr. Laura Snyder was present in court to hear the oral arguments and observe the Justices.

The oral argument can be heard here.

More than 50 blog posts discussing the US transition tax may be found here.

December 3, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

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Extraterritorial Taxation #4: Why Nothing ChangesThis paper describes the obstacles to change of the U.S. extraterritorial tax system.

Available at: https://ssrn.com/abstract=4465208.

December 3, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

On November 30, 2023 (on the eve of the US Supreme Court hearing in Moore), Senator Ron Wyden (along with other prominent Democrats) introduced the "Billionaires Tax Act".

Further information is available here:*

https://www.finance.senate.gov/chairmans-news/wyden-leads-democratic-colleagues-in-introducing-billionaires-income-tax

Join John Richardson and Virgina La Torre Jeker in this podcast which includes a discussion of:

why the Billionaires Tax Act is an attempt to enact the Biden Green book proposals
why the proposed legislation includes people who are NOT billionaires
why an "applicable taxpayer" under the Billionaires Tax Act is similar to a "covered expatriate" under the 877A Exit Tax Regime
how the Billionaires Tax Act treats all the assets of "applicable taxpayers" as PFICs
how the Billionaires Tax Act makes the expatriation rules at least twice as punitive as they already are
why for those who want the possibility of living outside the United States, expatriation is the best financial investment one can over make
why it's better to pay 23.8% now rather than 49% later
and more ...

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*NOVEMBER 30,2023

Wyden Leads Democratic Colleagues in Introducing Billionaires Income TaxLegislation cosponsored by 15 Democratic Senators would close loopholes in the tax code that let billionaires avoid paying their fair shareWashington, D.C. – Senate Finance Committee Chairman Ron Wyden, D-Ore., today led colleagues in introducing the Billionaires Income Tax Act, legislation to ensure billionaires start paying their fair share in taxes.

Wyden is joined by U.S. Senators Debbie Stabenow, D-Mich., Bob Casey, D-Pa., Sheldon Whitehouse, D-R.I., Elizabeth Warren, D-Mass., Brian Schatz, D-Hawaii, Mazie Hirono, D-Hawaii, Tammy Baldwin, D-Wis., Sherrod Brown, D-Ohio, Bernie Sanders, I-Vt., Jeff Merkley, D-Ore., John Fetterman, D-Pa., Tina Smith, D-Minn., Peter Welch, D-Vt., Jack Reed, D-R.I., and Ed Markey, D-Mass., in introducing the bill.

“America’s tax code is riddled with loopholes that allow the ultra-wealthy to get away without paying their fair share, while working families have to play by a different set of rules and pay taxes out of each paycheck,” Wyden said. “You can only have a successful economy if you have a tax code that treats everyone fairly. My Billionaires Income Tax will make that a reality by ensuring those at the very top start paying their fair share, just like the rest of us.”

The Billionaires Income Tax Act would, for the first time, end one of the most prominent, legal ways that billionaires avoid paying taxes known as “buy, borrow, die.” Buy, borrow, die works as follows:

Buy: A billionaire uses their wealth to buy assets that appreciate in value (real estate, stocks, artwork, collectibles).

Borrow: The individual then borrows against that asset’s growing, untaxed value to fund their extravagant lifestyle, purchasing yachts, luxurious vacations, expensive art deals, and more. All the while, the assets continue to go up in value without paying a dime in tax.

Die: When the individual dies, their assets are passed to their children or other beneficiaries, often entirely tax-free, and the cycle continues.

The proposal would only apply to taxpayers with more than $1 billion in assets, or more than $100 million in income for three consecutive years.

“Teachers and firefighters shouldn’t be paying higher tax rates than the ultra-wealthy. It’s that simple,” said Senator Whitehouse. “Our legislation will level the playing field by closing tax loopholes to ensure the highest earners pay their fair share in taxes.”

“It’s common sense that billionaires should not pay lower tax rates than teachers, mechanics, and firefighters,” said Senator Stabenow. “The wealthy need to pay their fair share – plain and simple. And this legislation will help make it happen.”

“The wealthy hide their money in everything from stocks and real estate to yachts and expensive art – saddling the rest of us with the cost. This is a commonsense step to close one of the most exploited loopholes that the wealthy use to get out of paying their fair share,” said Senator Brown.

“For too long, billionaires have rigged the rules to cut their taxes to the bone, all while working families struggle to make ends meet. We should be investing in American families, not letting billionaires off the hook – and the Billionaires Income Tax takes an important step to make our tax system fairer,” said Senator Warren.

"Plain and simple, the system is rigged to benefit the ultra-rich and it’s time we level the playing field. I am proud to join my colleagues in introducing legislation to finally make sure that billionaires at the top pay their fair share and bring some fairness to our tax system,” said Senator Baldwin.

“For too long, our country’s tax code has rewarded wealthy individuals, enabling them to get away with paying lower tax rates than working families,” said Senator Hirono. “The Billionaires Income Tax Act would close loopholes in the tax code to ensure billionaires pay their fair share in taxes, while raising hundreds of billions of dollars to fund critical programs like Social Security and Medicare.”

“It is unacceptable that the wealthiest people in this country have all sorts of loopholes and cutouts in our tax code, while working Americans play by a different set of rules,” said Senator Smith. “We need to level the playing field so that folks at the very top are treated the same as everyone else. This legislation will help close loopholes and create a more fair and equitable tax code so that those at the top finally start paying their fair share.”

“Billionaires have rigged our tax system so that many contribute virtually nothing,” said Senator Merkley. “This is fundamentally unfair, undermining the legitimacy of the entire tax system. This has to end. And this bill is the way to end it.”

“While millions of Americans pay taxes directly from their paycheck each month, billionaires are able to shield their wealth from taxation and pay a lower tax rate on their earnings and wealth than the typical, hardworking family. Our bill ends this disparity and ensures that billionaires pay their share of taxes just like everyone else. This is about restoring fairness to our tax code,” said Senator Reed.

“Billionaires have gotten away for far too long with paying next to nothing in taxes – all while their bottom lines have continued to go up. This bill would make sure they finally pay their fair share, just like working Americans have been doing all along,” said Senator Schatz.

The Billionaires Income Tax is also endorsed by over 100 supporting organizations. A letter of endorsement with the full list of supporting organizations can be found here.

Today’s introduction closely follows a series of investigations by Wyden and his staff on the Senate Finance Committee to shed light on the various ways that ultra-wealthy Americans legally avoid paying their fair share in taxes. Earlier this month, Wyden also chaired a hearing during which members heard a firsthand account of how billionaires exploit loopholes in the tax code to avoid paying tax.

A one-page summary of the Billionaires Income Tax can be found here.

A section-by-section summary of the Billionaires Income Tax can be found here.

Legislative text can be found here.

December 2, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

SEAT members Dr. Karen Alpert, Dr. Laura Snyder and John Richardson discuss their predictions on how the Supreme Court will grapple with the difficult decisions in Moore. The SEAT/AARO amicus brief is here.

Prologue:

Twas the Night before Moore Poem

Twas the night before Moore, when all through the court
Not a justice was stirring, not even a clerk.
The issues were hung in the briefs with care,
In hopes that the justices soon would be there.

The tax profs were nestled all snug in their beds,
While visions of fake-income danced in their heads.
And Kathleen in ‘kerchief, and Charles in cap,
Had just settled their brains for a retroactive tax.

November 24, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

___________________________________________Extraterritorial Taxation #3: Education and AdvocacyThis paper describes the efforts of many different organizations and individuals to change to the U.S. extraterritorial tax system, to lessen its burden on overseas Americans.

Available at: https://ssrn.com/abstract=4465124.

November 24, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

___________________________________________Extraterritorial Taxation #2: How It Is ExperiencedThis paper summarizes the findings of three recent surveys conducted to better understand how overseas Americans experience U.S. extraterritorial taxation.

Available at: https://ssrn.com/abstract=4465003

November 3, 2023 - Participants Include:

David (Coach) Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

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One of the most extraordinary books I have ever read is Viktor Frankl's "Man's Search For Meaning". A summary of the message in the book included:

"Some see life as a never-ending quest for pleasure. Others believe life is about the accumulation of power and money. Frankl sees life as primarily a quest for meaning.

As humans we often look to the margins, those extreme situations that test the fiber of human character. Viktor Frankl survived at the ultimate margin. He concludes that the ultimate test for all of us is to find meaning in our lives. And it is within the power of everyone to find meaning, regardless of your health, wealth or circumstances – no matter how miserable or dire."

In a world where fewer and fewer people read, it's important to distill important messages and books into smaller digestible chunks. In this episode, Coach Coutts describes who the general message can be made more focussed, practical and helpful in the lives of everyday people.

November 22, 2023 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

_______________________________________________

This is the first in a series of podcasts to that are paired with various working papers and articles created by members of SEATNow.org

SEAT Working Paper Series #2023/1Extraterritorial Taxation #1: How It Has EvolvedSince Cook v. Tait was decided in 1924 much has changed, with respect to both federal taxation and U.S. citizenship. This paper explains their parallel evolutions and why they call for Cook to be revisited.

Available at: https://ssrn.com/abstract=4464210

September 21, 2023 - Participants Include:

John Alan - @JohnAlanPod

Keith Redmond - @Keith__Redmond

Anthony Parent - @IRS_Medic

John Richardson - @Expatriationlaw

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Note this podcast is based on an interview with John Alan. The podcast was initially posted on his site at:

https://johnalanpod.podbean.com/e/taxes-are-no-easy-thing-for-american-expats-and-accidental-americans-episode-214/

It is reposted here with John Alan's permission.

August 15, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Out with the "mitigation provisions" and a reminder that penalties for the failure to keep records can result in a separate penalty!

On August 10, 2023 Virgina La Torre Jeker published a post about the great FBAR penalty reset - the IRS response to the Bittner decision.

It's all about the new IRS FBAR Guidance Memorandum which took effect on July 6, 2023.

You can read it here:

https://www.irs.gov/pub/foia/ig/sbse/sbse-04-0723-0034-redacted.pdf

Clearly this is NOT "good news" for taxpayers (or should it say individuals with bank and financial accounts outside the United States).

August 7, 2023 - Participants include:

Katrina Haynes - Haynes Help

John Richardson - @Expatriationlaw

Thanking Katrina Haynes of HaynesHelp.com for a great discussion reviewing:

entitlement to U.S. Social Security generally
the two things that "totalization agreements" achieve U.S. citizens who move out of the United States
Renunciation of citizenship, Green Card abandonment and entitlement to U.S. Social Security
taxation of Social Security benefits as a U.S. citizen or as a nonresident alien

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For a complimentary webinar with Katrina on FBAR and Form 8938 for Americans abroad click here.

August 4, 2023 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

On July 27, 2023 Virginia La Torre Jeker published a blog post about the 3.8% NIIT ("Net Investment Income Tax"). The post is an excellent discussion of the "Net Investment Income Tax" generally and how it impacts Americans abroad specifically.

As a general principle the NIIT unfairly discriminates agains Americans abroad in (at least) the following ways:

The NIIT applies to those who use "married filing separately" category at a lower threshold ($125,000) than to those who use "married filing jointly" ($250,000). Because a higher percentage of Americans living outside the USA use the "married filing separately" category, the NIIT applies to a higher percentage of Americans abroad.
Because the US foreign tax credit rules do not allow foreign tax paid on investment income to be used as a foreign tax credit, the NIIT is virtually guaranteed to cause double taxation for Americans abroad. It is in effect a 3.8% US surcharge on non-U.S. investment income.
The NIIT applies to both PFIC (non-US mutual fund income) and CFC (Subpart F income) causing additional hardship for Americans abroad.
While exempting income from U.S. 401K (and similar U.S. income) from the NIIT, but applying the NIIT to non-U.S. tax deferred accounts (example Canadian RRSP) it further penalizes Americans abroad.

Incidentally, the purpose of the NIIT was to fund healthcare for U.S. residents. This healthcare is NOT available to Americans abroad.

Therefore, the NIIT is another particularly egregious example of U.S. citizenship-based taxation.

July 25, 2023 - Participants include:

John Richardson - @Expatriationlaw

Anthony Parent - @IRS_Medic

Anthony Parent of IRS Medic has created hundreds of video podcasts and has interviewed a wide range of guests.

Interestingly few people know Anthony:

"The Man Behind The Medic"

Here is your chance to meet Anthony ...

May 27, 2023 - Participants include:

Vance - @MyLatinLife

John Richardson - @Expatriationlaw

A supplementary discussion with Vance of MyLatinLife.com. This is a wide ranging discussion of the practicalities of living outside the United States.

This podcast also appears on Youtube at:

https://www.youtube.com/watch?v=K3Q1BIc2FzI

Borrowing from the Youtube description:

In this BONUS episode John and Vance discuss personal finances, banking, real estate, taxes, and reporting requirements for US citizens abroad. 🌴 Timestamps: 0:00 Intro 4:30 Reporting Requirements vs Taxation 7:30 Personal Finance for US Citizens 10:30 Issues for Canadian American Dual Citizens 16:40 Dual Tax Residency & Territorial Tax Countries 23:00 Renouncing US citizenship 28:30 Corporations and Trusts 33:30 Tax Advice for Expats 40:30 Retirement Planning for Americans Abroad 48:00 Social Security Taxes and Pension Benefits 55:00 Advice to 20 year olds 1:00:30 Banking in the USA while Outside the USA 1:10:00 Foreign Earned Income Exclusion (FEIE) 🌴 Follow John Richardson: Twitter: https://twitter.com/ExpatriationLaw Website: http://citizenshipsolutions.ca 🌴 Follow My Latin Life: City Guides: https://mylatinlife.com/city-guides/ FREE Telegram Group: https://t.me/+u18h0doDhxRiY2Fh Twitter: https://twitter.com/MyLatinLife Set up a Base in LatAm: https://calendly.com/MyLatinLife

June 27, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

As more and more people renounce U.S. citizenship or surrender their Green Cards the will take steps to avoid being a "Covered Expatriate".

A "Covered Expatriate" is an individual (subject to few exceptions) who meets any one of the following three tests:

net worth in excess of 2 million USD
U.S. tax liability exceeding an average of $190,000 USD in the five years prior to renunciation
failure to certify U.S. tax compliance for the five years prior to renunciation.

The consequences of being a "Covered Expatriate" are two-fold:

Being subject to the 877A Expatriation Tax
Gifts/bequests made to "U.S. Persons" being subjected to a 40% tax (payable by the recipient of the gift) as per S. 2801 of the Internal Revenue Code.

It's important that the recipient of the gift be able to prove that the gift/bequest was NOT received by a "Covered Expatriate".

In this podcast we discuss common sense steps that can (and should be taken) to be able to meet the burden of proof of showing that the gift/bequest was NOT received from a "Covered Expatriate".

May 22, 2023 - Participants Include:

Mi’Azhikwan - @MiAzhikwan

John Richardson - @Expatriationlaw

May 27, 2023 - Participants include:

Vance - @MyLatinLife

John Richardson - @Expatriationlaw

There are many people who see the value in acquiring second citizenships or second residencies. There is a range of opportunities available that include: citizenship, permanent residence status, various visas and most recently the "digitial nomad visa". Each of these options has different costs and opportunities.

These opportunities exist all around the world. In this podcast you will be introduced to Vance of "My Latin Life" fame who has a special affection for the opportunities available in Latin America.

Vance describes a process for people who see the value in:

A second citizenship or residency; in
A location with a territorial tax system.

In this episode you will learn why. For more about "My Latin Life", visit:

https://www.MyLatinLife.com

June 7, 2023 - Participants include:

David AKA "Coach" Coutts - @RealCoachCoutts

John Richardson - @ExpatriationLaw

May 27, 2023 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

The decision may be accessed is here.

Last week a Belgian tribunal charged with investigating and determining violations of the GDPR "General Data Protection Regulation" ruled on a complaint brought two an "Accidental American" in Belgium and the Association of Belgium Accidental Americans.

The tribunal ruled that to send information to the IRS under the FATCA IGA did indeed violate the GDPR. The decision can (and certainly will) be appealed. The decision is long (77 pages), complicated and identified a number of different reasons why the FATCA IGAs conflicted with the GDPR. This is hardly surprising given the the whole purpose of the FATCA (expressed in the FATCA IGAs) is is to deprive US citizens of any and all rights with respect to their banking information.

The Belgium decision has now created a situation where as long as there are U.S. "reportable accounts" in Belgium the transference of FATCA data to the IRS will result in either:

a violation of the FATCA IGAs (and therefore U.S. law); or
a violation of the GDPR (and therefore Belgium law).

It would seem that the only way to avoid violating the law would be if there were NO FATCA data to report. This can be achieved by and only by either

terminating the banking accounts of all U.S. citizens in Belgium; or
relying on the provision in the IGA that does not require the reporting of "Depository" (not custodial) accounts with a balance of less than $50,000. (See page 8 of the U.S. Belgium FATCA IGA.)

"A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the Reporting Belgian Financial Institution elects otherwise, either with respect to all New Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Belgium provide for such an election, the following New Individual Accounts are not required to be reviewed, identified, or reported as U.S. Reportable Accounts: 1. A Depository Account unless the account balance exceeds $50,000 at the end of any calendar year or other appropriate reporting period."

https://home.treasury.gov/system/files/131/FATCA-Agreement-Belgium-4-23-2014.pdf

In any case, the real issue is whether Belgium is to be run by the United States (as a territory or vassal state) or whether Belgium is a "sovereign country".

It will be interesting to see how this develops.

Appeal - May 3, 2023 - District Court Of Appeals

As many of you know the Association of Accidental Americans sued the U.S. State Department over the issue of limiting renunciation appointments during the Covid19 pandemic.

This is a recording of the appeal heard on May 3, 2023.

https://www.cadc.uscourts.gov/recordings/recordings2022.nsf/2C2C9045951D8417852589A4005DB0D0/$file/22-5262.mp3

April 28, 2023 - Participants Include:

Personal Trainer David Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

Note: Check back for the link to the Video version!

April 17, 2023 - Participants include:

Janine Seymour - @MiAzhikwan

John Richardson - @Expatriationlaw

It’s almost a half century since a Charter of Rights became part of Canada’s constitution. Has the Charter fulfilled its promise?

Many opinions are reflected as replies to Justin Trudeau’s “Happy Birthday Charter Tweet”.

https://twitter.com/JustinTrudeau/status/1648033598023299074

April 17, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Prologue - Some Penalties are "assessable" and some are not

An excerpt from the 2023 Taxpayer Advocate Report included a discussion of "assessable" penalties which included:

"These “assessable” penalties are generally those that are due and payable upon notice and demand. Unlike penalties subject to deficiency procedures, assessable penalties carry no rights to a 30-day letter, agreement form, or notice requirements prior to assessment. Internal Revenue Manual 20.1. 9.1."

https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2023/01/ARC22_PurpleBook_03_ImproveAssmtCollect_11.pdf

Not all penalties are the same! Notably this excerpt makes a distinction between "assessable" penalties and penalties "subject to deficiency" procedures.

Generally, "assessable" penalties are payable because they are assessed and cannot be challenged without first paying the penalty and then using the judicial process to seek a refund.

Penalties "subject to deficiency procedures" can be challenged in tax court before they are paid. Although no taxpayer likes ANY penalty clearly penalties that are NOT "assessable" afford the taxpayer with more options for response.

Chapter 61 - Form 5471, Form 5472, Form 8938, Form 926 Form Penalties

These are significant penalties for taxpayers generally and especially for U.S. citizens living outside the United States. On April 3, 2023 in the Fahry case, the Tax Court ruled that Form 5471 penalties were NOT "assessable" penalties and that therefore the IRS had no jurisdiction to treat them as "assessable". (Practically speaking, this means that the U.S. would be required to embark on a separate legal proceeding to collect those penalties. This would also give the taxpayer the opportunity to defend against the penalty.)

The Taxpayer Advocate Blog of April 17, 2023

On April 17, 2023 the Taxpayer Advocate in a blog post discussing the Farhy case noted that ...

Since 2020, I have repeatedly recommended a legislative change under which Congress would make foreign information return penalties and assessable penalties subject to deficiency procedures for the benefit of both the IRS and taxpayers. This change would provide taxpayers with a more efficient, less costly, and more equitable regime governing the initial imposition of these penalties, as well as the mechanisms by which they can be challenged by taxpayers.

Continuing the Taxpayer Advocate notes that ...

This blog specifically addresses information reporting penalties in Chapter 61, Subchapter A, Part III, Subpart A (hereafter referred to as Chapter 61 for brevity’s sake).

Taxpayers who receive foreign gifts or control certain foreign corporations and partnerships and fail to file required information returns are subject to penalties under IRC §§ 6038 and 6039 (which are in Chapter 61 of the IRC). IRC § 6038 is one of several code sections that require similar filings and provide for similar penalties for taxpayers with various types of foreign corporations, partnerships, assets, and accounts. These Chapter 61 penalties are peculiar in that each section specifically imposes the penalties but provides no authority to assess and collect the penalties. I raised this concern in my 2020 Annual Report to Congress and recommended that the IRS take steps to protect the government fisc and also taxpayer rights by maximizing taxpayers’ access to administrative and judicial review.

______________________________________________

The Great Question Post Fahry is how to determine whether an penalty is an "assessable" penalty or a penalty "subject to deficiency procedures"

In this podcast, Virginia La Torre Jeker and John Richardson discuss:

1. How to determine whether a penalty is "assessable" or "subject to deficiency procedures"

2. That 5471 and 8938 penalties (affecting Americans abroad) are NOT "assessable" penalties

3. Why many 3520 penalties are "assessable" penalties

4. How taxpayers can take advantage of the Tax Court decision in Fahry which ruled that Form 5471 penalties are NOT assessable (there is a window of opportunity)

5. The absolute importance of reading and considering the language in the Internal Revenue Code!

Although this podcast is a bit technical, it is of great practical utility.

April 14, 2023 - Participants include:

David (Coach Coutts) - @RealCoachCoutts

John Richardson - @Expatriationlaw

_____________________________________________

"Drama" (defined in this podcast) as an "interference in our emotional equilibrium is a part of life. People have different relationships to "drama". Sometimes as the "victim", sometimes as the "persecutor" and sometimes as the "rescuer". All people play different roles in different aspects of their lives.

In this podcast, Coach Coutts discusses how to (1) recognize drama (2) recognize which of the three personality types you are exhibiting in this drama scenario and (3) the importance of "responding" to drama rather than "reacting" to drams.

April 7, 2023 - participants include:

David Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

____________________________________________

Continuing the discussion with David Coutts ...

Personal training from the perspective of the trainer:

You can't have both "gratitude" and "anxiety" together. Let the "gratitude" push the anxiety away!

The Bottom Line is:

"Leave The Fitness To US!"

April 6, 2023 - Participants include:

Julie Lepore - Total FIRPTA

John Richardson - @Expatriationlaw

Julie is available at Total FIRPTA .

If you are an owner of U.S. real estate and you are selling your real estate located in the USA you need to understand the 15% withholding tax imposed by FIRPTA!

A basic description from the IRS includes:

Withholding of Tax on Dispositions of United States Real Property Interests"The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.

A disposition means “disposition” for any purpose of the Internal Revenue Code. This includes but is not limited to a sale or exchange, liquidation, redemption, gift, transfers, etc. Persons purchasing U.S. real property interests (transferees) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 15% (10% for dispositions before February 17, 2016) of the amount realized on the disposition (special rules for foreign corporations).

In most cases, the buyer (transferee) is the withholding agent. The transferee must find out if the transferor is a foreign person. If the transferor is a foreign person and the transferee fails to withhold, the transferee may be held liable for the tax. For cases in which a U.S. business entity such as a corporation or partnership disposes of a U.S. real property interest, the business entity itself is the withholding agent."

https://www.irs.gov/individuals/international-taxpayers/firpta-withholding

See also IRS Publication 515.

Podcast Outline - The Top 10 Topics:

IRC Source rules - Sales of Real Property Sourced to USA

https://www.law.cornell.edu/uscode/text/26/861

"(5) Disposition of United States real property interest
Gains, profits, and income from the disposition of a United States real property interest (as defined in section 897(c))."

How Real Property Is Defined Under The US Internal Revenue Code

https://www.law.cornell.edu/uscode/text/26/897#c

(1) United States real property interest
(A)In general
Except as provided in subparagraph (B) or subsection (k), the term “United States real property interest” means—
(i)an interest in real property (including an interest in a mine, well, or other natural deposit) located in the United States or the Virgin Islands, and

How A Nonresident alien is taxed by the USA - 871

https://www.law.cornell.edu/uscode/text/26/871

b)Income connected with United States business—graduated rate of tax
(1)Imposition of tax
A nonresident alien individual engaged in trade or business within the United States during the taxable year shall be taxable as provided in section 1 or 55 on his taxable income which is effectively connected with the conduct of a trade or business within the United States.

(2)Determination of taxable income
In determining taxable income for purposes of paragraph (1), gross income includes only gross income which is effectively connected with the conduct of a trade or business within the United States.

Q. How does the USA enforce the payment of the tax in 871(b)?

A. FIRPTA - IRC 1445
https://www.law.cornell.edu/uscode/text/26/1445

"(a)General rule
Except as otherwise provided in this section, in the case of any disposition of a United States real property interest (as defined in section 897(c)) by a foreign person, the transferee shall be required to deduct and withhold a tax equal to 15 percent of the amount realized on the disposition."

What FIRPTA is - IRC 1445

https://www.law.cornell.edu/uscode/text/26/1445

"(a)General rule

Except as otherwise provided in this section, in the case of any disposition of a United States real property interest (as defined in section 897(c)) by a foreign person, the transferee shall be required to deduct and withhold a tax equal to 15 percent of the amount realized on the disposition."

To whom does it apply? - Definition of "foreign person"

"(3)Foreign personThe term “foreign person” means any person other than—

(A)a United States person, and(B)except as otherwise provided by the Secretary, an entity with respect to which section 897 does not apply by reason of subsection (l) thereof." The definition of "United States Person" in IRC 7701(a)(30) is "(30)United States personThe term “United States person” means—A)a citizen or resident of the United States,"

How practically does FIRPTA apply to Canadians (and others who are neither citizens nor residents of the United States) who own real estate in the USA generally and Florida specifically?
Assuming FIRPTA withholding what steps must be taken to get any applicable refund - 1040NR, etc. How do they get a tax id number, etc?
Canadians are also taxed on the U.S. capital gain? How do they get credit for the capital gains tax paid in the USA?
Are nonresident aliens subject to the 3.8% Obamacare tax?

July 2020 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Good discussion with Jimmy Sexton - interesting and unique expatriation issues ...

March 24, 2023 - Participants include:

Virginia La Torre Jeker - @VlJeker

John Richardson - @Expatriationlaw

________________________________________________

Taxes are a huge source of anxiety for Americans abroad. One concern is always:

How long does the IRS have to audit me after I have filed?

On March 23, 2023 Virginia La Torre Jeker published a post discussing this very issue.

https://us-tax.org/2023/03/23/tax-statutes-of-limitation-run-fast-irs-is-right-behind-you/

This podcast is a nice summary of the post.

The bottom line is that:

The failure to file various "foreign information returns" will extend the "statute of limitations" - the time that the IRS as to instigate an audit.

Interesting the 2024 Biden Green Book contains provisions to tighten the noose even further!

Friday March 24, 2023 - Participants include:

Jeff Steiner - @JeffSteiner

John Richardson - @Expatriationlaw

___________________________________________

Democrats abroad has members who are entitled to vote within the party and have the potential to impact party policy.

Democrats Abroad France has an election - voting is April 1, 2023 - which will determine who some of those voting members are. Jeff Steiner is a candidate. You can vote for him on April 1, 2023.

In this podcast I meet Jeff and discuss some of the reasons why he believes that Residence-based taxation and FATCA repeal are a priority for Americans abroad.

You can learn more about Jeff at:

http://www.JeffSteiner.com

March 21, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

__________________________________________________________

The United States is determined to get its tax revenue. The U.S. Internal Revenue Code has provisions that:

Prohibit People From Leaving The Country For Tax Related Reasons

Examples include:

Passport confiscation laws for citizens
A requirement of a tax certificate for non-citizens ("Sailing Permit")

Take Control Over People's Money If They Are Neither Citizens Nor Residents

Examples include:

withholding taxes generally
FIRPTA
Estate taxes on US Situs assets ($60,000 USD threshold).

Make it difficult for U.S. citizens to access their money in the United States if they are living outside the United States

Example includes:

various filing requirements that apply to Americans abroad that do NOT apply to resident Americans

_____________________________________________________

In today's podcast Virginia La Torre Jeker and John Richardson discuss the "sailing permit" AKA the mechanism designed to prohibit non-citizens from leaving the United States. Read more here:

http://citizenshipsolutions.ca/2023/03/18/biden-2024-green-book-message-to-non-us-citizens-time-to-retire-that-sailing-permit-law/

March 17, 2023 - Participants include:

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

___________________________________________

For those renouncing U.S. citizenship a perceived "loss of identity" is a factor.

But, those renouncing U.S. citizenship need NOT lose their identity as Americans.

They simply become:

"Retired American Citizens" - They remain Americans but they lose all the obligations!!

Those who cannot imagine themselves as retired should listen to the Dodge Stratus podcast:

"You aren't losing a sports car! You are gaining two doors!!"

For those who renounce:

"You are not losing your identity as an American. You are simply gaining your freedom from the regulatory regime!!"

For those who missed the Dodge Stratus podcast:

https://prep.podbean.com/e/about-loss-of-identity-what-the-dodge-stratus-teaches-us-about-renouncing-us-citizenship/

March 16, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

On March 16, 2023 Virginia La Torre Jeker published a post titled:

The Perfect Storm - U.S. Tax, Community Property and The Mobile International Couple

"Once upon a time:

Two UK nationals who were married were exiled from Uganda, moved to Belgium (a community property jurisdiction). The husband had substantial U.S. stock registered in his name. He died and an estate tax was owed to the IRS."

This case combines elements of:

how the U.S. estate tax applies to U.S. situs assets owned by individuals who are neither U.S. citizens nor domiciled in the U.S.
the difference between ownership of assets in a community property jurisdiction (Belgium) and a separate property jurisdiction (U.K.)
how "conflict of law rules" will determine which jurisdiction's law applies to determine property ownership.

The couple did NOT "Live Happily Ever After!

Congressman Higgins Asks United States Trade Representative to Request Consultations Related to Canada’s Underused Housing TaxMar 7, 2023Press ReleaseCongressman Says Tax 1% Property Tax Violates Standing Trade AgreementsCongressman Brian Higgins (NY-26) is asking United States Trade Representative Katherine Tai to open formal consultations with the Government of Canada to explore if the Underused Housing Tax is inconsistent with the United States-Mexico-Canada Agreement (USMCA).

In a letter to Ambassador Tai, Rep. Higgins writes, “The United States and Canada have a longstanding, cooperative, and mutually beneficial relationship. Western New York and Southern Ontario exemplify this unique bond. The UHT’s impact on Americans who own property in Canada, however, threatens our binational community and appears to be inconsistent with the USMCA.”

One of the principles of the USMCA is the requirement that all parties not discriminate against each other or provide preferential treatment solely to domestic companies or citizens, including with respect to internal taxation. Canada’s Underused Housing Tax does not apply equally to Canadian and U.S. citizens and therefore may violate these principles. The USMCA stipulates parties can request consultations with another party when trade agreement disputes arise.

Canada recently imposed a 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians. The intent was to target foreign investment speculation negatively impacting affordable housing in Canada, but it is impacting good-faith, longtime cottage owners who have maintained and enjoyed living among their Canadian neighbors for years.

Higgins began sounding the alarm about the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021. Most recently, Higgins asked the U.S. Secretary of State to object to the Underused Housing Tax in conversations with the Government of Canada.

Outreach from frustrated U.S. residents has increased in recent weeks as the April 30th tax form deadline approaches in Canada. Congressman Brian Higgins has heard from hundreds of U.S. residents negatively impacted by the Underused Housing Tax, including over 320 property owners who completed an online survey.

Congressman Higgins is a member of the House of Representatives Ways and Means Subcommittee on Trade and serves as Co-Chair of the Northern Border Caucus and the Canada – U.S. Interparliamentary Group. His Western New York district, which includes the Cities of Niagara Falls and Buffalo, borders southern Ontario.

https://higgins.house.gov/media-center/press-releases/congressman-higgins-asks-united-states-trade-representative-to-request

March 4, 2023 - Participants Include:

Amy Purcell - @Amy_From_Sydney

John Richardson - @Expatriationlaw

This fourth podcast with @Amy_From_Sydney continues with our three discussions from 2022. If you missed either of the first two discussions with her, you can find them here:

First - February 6, 2022:

An Accidental American Describes Her ”OMG” Moment: The Twin Horrors Of FATCA And Taxation Based Citizenship

A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".

In March of 2021 she received a FATCA inquiry from her Australian bank. In this podcast she describes her "OMG Moment". She generously describes her emotions, her response (getting a Social Security Number) and filing taxes through the streamlined process.

Second - February 22, 2022:

Amy From Sydney Take 2: To Vote Or Not To Vote - That Is The Question, Whether Tis Better To

A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".

In her first podcast Amy told her story of becoming acquainted with the "Twin Horrors Of FATCA and Taxation Based Citizenship". In this, her second podcast, we continue the discussion with an emphasis on the importance of Americans abroad:

- becoming vocal about the injustices of FATCA and US extraterritorial taxation

- using the right to vote strategically and as an opportunity

- contributing to the struggle by doing what they can!

After all, the United States is actually imposing direct taxation on income earned in Australia by an Australian resident. It's no wonder that Amy describes this as hard to believe and "spacey".

Third - May 24, 2022 - The American Expat Finance News Journal

https://americanexpatfinance.com/podcasts/34-basic-financial-fundamentals-that-makes-all-the-difference-for-americans-who-live-abroad-2

___________________________________________________________

Fourth - March 4, 2023

In this 2023 update, Amy provides updates which include:

the continuing difficulty of advocacy for Americans abroad
the responsibility of all Americans abroad to participate in the opposition to U.S. extra-territorial overreach
the continuing conflict between the "Get Out The Vote" initiatives and the interests of @USVotersAbroad
the importance of fund raising
why it's important for every country to have at least one "Amy From Sydney"!
How to become the next "Amy From Sydney!"

March 11, 2023 - Participants include:

Gregory Smith - @BlogNDog

John Richardson - @Expatriationlaw

_________________________________________________

Greg Smith has lived outside the United States for most of his life. He has lived in six U.S. states and 19 different countries. He is presently in Prague where (along with other things) he runs a Hostel for visitors to Prague.

He was previously on the ACA Board.

In this podcast, Greg a wide range of thoughts and perceptions about his 25+ years of living under the tyranny of Mr. FBAR and the U.S. extra-territorial tax, reporting and penalty regime.

This podcast was arranged because of the following Twitter exchange on March 11/23 about the Bittner case:

@Expatriationlaw

The real story is that this #FBAR issue even had to be resolved by the Supreme Court. Think of it: The IRS is levying life altering penalties based on violations of a statute that is so unclear that even the Supreme Court couldn’t agree on what was intended! “The American Way” @BlogNDog replies with: This has long been my take on this issue - what is it that makes the IRS feel compelled to fight all the way to the Supreme Court in pursuit of the most extreme possible interpretation of the law? There may be some ambiguity about what the laws says, but there is no question>> >>that the IRS has the discretionary authority to not impose the highest penalty available. Let the question about whether they could impose a higher penalty if they chose to remain unanswered The full discussion is on Twitter at: https://twitter.com/ExpatriationLaw/status/1634539926036332547

March 10, 2023 - Participants include:

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

________________________________________________

The issue is NOT who should get your vote, but rather how to make the best use of your right to vote. At present ONLY the Democrats have a presence outside the United States and are asking for your vote.

Your right to vote can be used in a variety of different ways which include:

Voting for either the Republicans or Democrats
Vote for a small party or third party candidate
Not vote and ignore the process
Not vote and explain to the established Parties that you refuse to "Vote For The Party", because (as an American Abroad) the Party won't vote for you!

March 10, 2023 - Participants include:

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

__________________________________________-

For Americans abroad having their "Oh My God Moment" the question is NOT the execution of the plan. The question is what should the plan be!

It's important to RESPOND and NOT to REACT!

Of perhaps view it this way:

‘LET US NOT LOOK BACK IN ANGER, NOR FORWARD IN FEAR, BUT AROUND IN AWARENESS.’ (JAMES THURBER)

March 3, 2023 - Participants include:

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

In this podcast we discuss:

The United States defines "tax residence" in terms of the "circumstances of birth" rather than the "circumstances of life: and

Why it's important to get the support of other countries in ending the U.S. extra-territorial tax regime!

This discussion is based largely on the following three posts:

https://citizenshipsolutions.ca/2023/01/08/toward-a-definition-of-us-citizenship-taxation/

https://citizenshipsolutions.ca/2023/01/26/should-tax-residency-be-based-on-the-circumstances-of-your-birth-or-the-circumstances-of-your-life/

https://citizenshipsolutions.ca/2023/03/01/the-issue-is-not-citizenshiptax-the-issue-is-whether-the-us-can-claim-the-tax-residents-of-other-countries-as-us-tax-residents/

March 1, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

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It's a clear win for Mr. Bittner and a warm congratulations to him!!

What the Supreme Court decision means on a longer term basis is less clear. Virginia and discuss the possibilities in this "Morning After" podcast.

February 23, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

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The Significance Of The Aroeste FBAR case:

This decision from the District Court provides support for the principle that individuals who are nonresidents under the terms of a U.S. tax treaty may NOT (in certain circumstances) be required to file an FBAR.

Factual background:

Mr. Aroeste was a Green Card holder who was assessed with approximately three million dollars in tax and information return penalties. The bulk of the three million was for the failure to file information returns (including Mr. FBAR).

One Of The Legal Issues:

On February 13, 2023 in the case of "Aroeste v. U.S., No. 22-cv-682-AJB-KSC", in the United States District Court for the Southern District Of California, the Hon. Karen Crawford addressed the following question:

1. How is Alberto Aroeste’s status under the United States – Mexico tax treaty germane to the issue of whether Mr. Aroeste was required to file the FBAR reports at issue in this case?

She concluded that:

"(5) Therefore, any person allowed to permanently reside in the United States by virtue of US immigration laws must file an FBAR unless that person is entitled to be treated as a resident of a foreign country under a tax treaty."

The complete chain of reasoning is as follows:

The upshot of this statutory and regulatory framework applicable to this action, in which tax treaties provide a potential escape hatch that excuses certain “United States persons” from filing FBARs, can be expressed as a 5-step process:

(1) Under 26 U.S.C. § 7701(b)(6), anyone allowed to permanently reside within the United States by virtue of US immigration laws is a “lawful permanent resident” for tax purposes unless an applicable tax treaty allows that person to be treated as a resident of a foreign country for tax purposes only;

(2) Under 26 U.S.C. § 7701(b)(1)(A)(i), any “lawful permanent resident” is a “resident alien”;

(3) Under 31 C.F.R. § 1010.350(b)(2), any “resident alien” is a “resident of the United States”;

(4) Under 31 C.F.R. § 1010.350(b), Any “resident of the United States” is a “United States person” required to file an FBAR;

(5) Therefore, any person allowed to permanently reside in the United States by virtue of US immigration laws must file an FBAR unless that person is entitled to be treated as a resident of a foreign country under a tax treaty

I will write a more extensive blog post about this in the next few days.

February 18, 2023 - Participants Include:

Tim Smyth - @Tpsmyth01

John Richardson - @Expatriationlaw

Suggesting A Joint Rally Of U.S. And Canadian Residents Who Oppose All Forms Of Citizenship Taxation

When - The Date of President Biden's visit to Canada

Where - Outside the Parliament Building

For More information stay tuned!

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What is Canada's Underused Citizenship-based Property Tax?

Canadian Government Summary Of Canada’s Underused Housing Tax Law:https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html

The Text Of Canada’s Underused Housing Tax Law:https://laws-lois.justice.gc.ca/eng/acts/U-0.5/FullText.html

The Actual Tax Return – Form UHT-2900 – Due April 30 uht-2900-22e

Thoughts On Canada's Citizenship-based Underused Property Tax

Interestingly Canada’s Underused Property Tax, by its express terms applies based on “citizenship” and/or “immigration status”. Specifically, it applies to people who are neither citizens nor permanent residents of Canada. In the same way that the United States imposes taxes on people based on and only on the status of being a U.S. citizen or permanent resident of the United States (Green Card holder), Canada’s Underused Vacant Property Tax is based on NOT being a citizen or permanent resident of Canada. Significantly, certain provincial human rights codes (presumptively) prohibit discrimination based on citizenship. The first case decided by the Supreme Court of Canada (Andrews) interpreting S.15 of Canada’s Charter of Rights struck down a British Columbia statute requiring Canadian citizenship to practise law in British Columbia. In 1974 – In Re Griffiths – the U.S. Supreme Court struck down a similar Connecticut provision requiring U.S. citizenship to be admitted to the bar in Connecticut. In the United States, classifications based on citizenship/alienage are “suspect classifications” and presumptively unconstitutional. Canada’s laws and judicial decisions are generally hostile to classifications based on citizenship.

Enter Congressman Brian Higgins - Objecting To Canada's Citizenship-based Property Tax

Congressman Higgins represents voters in Upstate New York. Apparently a number of his constituents own property in Canada. Interestingly, the Congressman has NOT voiced any objections to Toronto’s vacant home tax. His objections are aimed at Canada’s Underused Property Tax. He frames his objection in various ways. His objection appears to be based principally on the fact that the Canadian tax targets individuals who are neither Canadian citizens nor permanent residents of Canada. As reported by American Expat Finance, he began registering his objection to the Canadian tax at least as early as 2021. U.S. citizens subject to the tax are required to file the return and pay the tax (1% of the value of the property) by April 30, 2023. As a result, the Congressman’s objections have in recent days become more public and more urgent. On February 15, 2023 he issued a press release which included:

Congressman Says New Tax is Both Offensive & a Violation of Binational Agreements

Congressman Brian Higgins (NY-26) is calling on the Biden Administration to address Canada’s Underused Housing Tax in upcoming discussions with the Government of Canada. The new 1% tax on “vacant or underused housing” owned by non-resident, non-Canadians is hitting Americans, many of whom have contributed to Canada’s economy and owned cottages in Canada and for generations, especially hard.

In a letter to U.S. Secretary of State Antony Blinken, Rep. Higgins writes, “At a time when encouraging cross-border travel and economic activity should be prioritized as both countries recover from the COVID-19 pandemic, this is an unnecessary burden and bad faith action by the Government of Canada, which violates the United States-Mexico-Canada Agreement (USMCA) as well as longstanding tax treaties. In your upcoming conversations with the Government of Canada, I request that objecting to this tax is a high priority.”

Rep. Higgins has heard from over 200 U.S. residents upset about the new tax, including over 165 who completed an online survey and dozens more who called and wrote to his office. Of the survey respondents, over 80% live in Western New York, about 10% live in Florida and others live across the U.S. including the states of South Carolina, Ohio, Virginia, Georgia, Pennsylvania, California, and Colorado. The majority own property in Fort Erie, Crystal Beach, Port Colborne, and Ridgeway in the province of Ontario. Many have been property owners in Canada for decades, with 42% of respondents having property in Canada for between 20 and 49 years, and 28% having their Canadian property for over 50 years.

In addition to the cost associated with the tax, many have expressed to Congressman Higgins frustration with the lack of information, clarity, and notification of the tax by the Government of Canada. The tax forms are due in Canada April 30th, but owners must first file to receive a tax identifier number. Failure to pay the tax comes with a minimum penalty of $5,000.

Higgins has objected to the Underused Housing Tax since it was first proposed in the Government of Canada’s Budget 2021, voicing opposition with the United States Trade Representative, the U.S. Department of the Treasury, and Canada’s Ambassador to the United States.

President Biden has announced plans to visit Canada for meetings with Prime Minister Trudeau and their Administrations in March.

Congressman Higgins serves on the House of Representatives Ways and Means Committee, which oversees U.S. Tax policy, and the Ways and Means Subcommittee on Trade, which has oversight of trade agreements like the USMCA. Higgins’ Western New York district, which includes the cities of Buffalo and Niagara Falls, borders southern Ontario. Higgins is co-chair of the Canada-U.S. Interparliamentary Group and the Northern Border Caucus.

February 7, 2023 - Participants include:

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

Americans Abroad exhibit a shocking apathy toward U.S. Citizenship Tax!

Although the primary focus of this discussion is the "apathy" that Americans Abroad exhibit when it comes to ending citizenship taxation, beginning at the 10:50 mark and ending at the 13:50 mark, I explain how:

The United States is clearly incentivizing Americans abroad to renounce U.S. citizenship!!

February 1, 2023 - Participants include:

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

___________________________________________

A continuing discussion of how different groups of Americans abroad work against each other to "Divide And Conquer" themselves.

Those groups include ...

Generally, those subject the US extra-territorial tax regime fall into one of the following four groups. Each group is characterized by a dominant goal (although there is some overlap):

Ending Citizenship Taxation - This group which is symbolized by SEAT is focussed on ending US citizenship taxation. This means that citizenship is never relevant for the purposes of taxation.

Ignoring Citizenship Taxation - It is clear that there are any individuals who approach the problem of citizenship taxation by simply ignoring it. It is clear that many people who are subject to the citizenship tax regime are simply not "in the US tax system". Typically these are people who have no economic centre of gravity in the United States and have no plans of living in the United States.

Escaping Citizenship Taxation - Members of this group are concerned with solving their specific problem. For example, they would want the Taxation of capital gains on principal residence, PFIC, CFC or Foreign Trust rules changed. Once that issue is solved they believe their problems are solved.

Improving Citizenship Taxation - These individuals are NOT concerned with ending citizenship taxation as a general principle. They are concerned with reforming citizenship taxation in a way that reduces the kinds of non-US source income that is taxable by the United States. But, US citizens abroad would remain US tax residents. An example fo this would be the "Beyer Bill".

February 3, 2022 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Introduction - Describing The Issue

The 2017 TCJA contained a provision found in IRC 965 which required the certain US shareholders of foreign corporations to include their share of the corporation's profits as income on the shareholder's tax returns.

Significantly:

The income subject to taxation was never actually received by the individual shareholders; and
The income required to be included, represented the income of the corporation from 1986 to 2017 (31 years worth of income at once).

Commentators have appeared to assume that this retroactive tax affected only multi-nationals. The truth is that it impacted many individual shareholders (including individual Americans abroad). For many Americans abroad their corporations were their pension/retirement plans. The 965 Transition Tax effectively confiscated their retirement plans and in some cases forced the liquidation of their corporations in order to be able to pay the tax. Of all the indignities and unfairness inflicted on Americans abroad, this was probably the worst.

Lawsuit From Abroad - Silver

U.S. tax lawyer Monte Silver deserves credit for launching a lawsuit against the Treasury Department which based largely on the procedural aspects of how the Transition Tax was inflicted on Americans abroad. The Silver lawsuit(s) did not challenge the constitutionality of the Transition Tax per se. The Silver lawsuits challenge was from the perspective of US citizens, living outside the United States, carrying on a business through a corporation that was local to them, but foreign to the United States. I have written about the Silver lawsuit here.

Lawsuit From Inside The USA - Moore

A lawsuit challenging the constitutionality of the Transition Tax was launched from inside the United States (from the perspective of a U.S. resident being a shareholder of a Controlled Foreign Corporation). I have previously written about the lawsuit here.

Issues raised in the Moore Case:

The issues raised in the Moore case include (but are not limited to):

whether the 965 Transition Tax was "retroactive" and therefore violates the due process clause (The District Court ruled that it was a retroactive tax but that it didn't violate the due process clause.)
whether the 965 Transition Tax was a disguised "wealth tax" (Neither the District Court nor the 9th Circuit viewed that Transition Tax as a wealth tax.)
whether to be taxable as "income" the income must have been actually received - remember that the individual shareholder is being taxed on more than 30 years of income never received. (Significantly both the District Court and the 9th Circuit ruled that there is no constitutional requirement that one actually receive income in order to be taxed as having received income!)

The Moore's then requested that the 9th Circuit rehear the case. That request was denied. However, four Justices of the 9th Circuit issued a powerful dissent arguing that in order to be taxed on income, one must actually receive income!

Subsequently commentary in the Wall Street Journal here and here has argued that it is appropriate for this issue to be considered by the Supreme Court of the United States. Interestingly, this commentary makes no reference to the fact that this is a problem that has been experienced by Americans abroad for decades!

The three actual court decisions are here:

District Court - November 19, 2020 - Motion For Summary Judgment For Government Granted

9th Circuit - June 7, 2022 - District Court Decision Affirmed

9th Circuit - November 2022 - Denial Of Rehearing With Strong Dissent

Virginia La Torre Jeker - Coming To The Aid Of Americans Abroad

"The 9th Circuit case of Moore v US may get some traction for examining all of Subpart F, GILTI as unconstitutional "wealth taxes". Personally, I do not think it will get far, but what I found most interesting is that the authors of the WSJ op ed have ignored this issue for decades and only look at it now in light of the TCJA "transition tax" . They are concerned with Americans stateside being hit with similar taxes on domestic corporations. Yet, Americans owning foreign corporations abroad have been paying such tax for decades... "without selling their stock or receiving a dividend" they are "deemed to have received 'income'". Per the authors this "upends a bedrock principle of taxation, which is that to create taxable income, there must be a transaction, or 'realization'.” That’s what distinguishes an income tax from a tax on property or wealth. ... The op ed states:

"Much hangs on the future of this case. If Moore is allowed to stand, Congress would have a green light to tax every U.S. investor in a domestic corporation in the same way." https://taxprof.typepad.com/taxprof_blog/2023/01/wsj-op-ed-the-ninth-circuit-upholds-a-wealth-tax.html #taxes #tax #international"

https://www.linkedin.com/feed/update/urn:li:activity:7027219762225065984/

February 1, 2023 - Participants include:

Anthony Parent - @IRS_Medic

Keith Redmond - @Keith__Redomond

John Richardson - @Expatriationlaw

This short podcast is based on the following two recent posts:

Toward A Definition Of Citizenship Taxation

Bottom line: The only contextual meaning that citizenship tax can have is the US imposing tax on people who do NOT live in the United States on income earned outside the United States.

Should tax residency Be Based On The “Circumstances Of Your Birth” Or The “Circumstances Of Your Life”?

Bottom line: The reality is that "citizenship taxation" is really taxation based on "circumstances of birth" rather than "circumstances of life".

Combining the lessons of these two posts, we can reasonably conclude that US "citizenship taxation" means that:

Because of the circumstances of birth, the United States claims the right to impose taxation on income earned by people who don't live in the U.S., on income not earned in the U.S.

January 30, 2023 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

In December of 2022 the Department Of Justice sued Ms. Molynuex to recover FBAR penalties.

Significantly:

it appears the penalties were assessed in relation to an account that she had "signing authority" over but no beneficial interest (it wasn't her account)
the penalties assessed were more than 400% of the maximum value of the accounts

This may be a good case to accept Justice Gorsuch's invitation from the Toth case to argue that that "civil FBAR penalties" are indeed limited by the "Excessive Fines Clause" of the eighth amendment of the constitution.

January 23, 2023 - Participants include:

Janine Seymour - @MiAzhikwan

John Richardson - @Expatriationlaw

The Role Of "Truth" In Enabling Forgiveness and Love. - The Third Lesson

MiAzhikwan is a lawyer, LL.M., independent candidate and a member of the Bear Clan near Kenora, Ontario in Treaty Three Territory.

This is my fourth podcast with MiAzhikwan.

The first was during her run as an independent candidate in the May 2022 Ontario election:

https://independentcandidates.substack.com/p/meet-janine-seymour-aka-miazhikwan#details

The second was on September 5, 2022 and explored the teaching of forgiveness:

https://independentcandidates.substack.com/p/miazhikwan-choosing-forgiveness-the#details

The third was on September 27, 2022 and explored the teaching and meaning of love:

https://independentcandidates.substack.com/p/miazhikwan-the-importance-of-love#details

This fourth podcast was recorded on January 23, 2023 and explores the importance of role of truth:

https://independentcandidates.substack.com/p/miazhikwan-the-importance-of-truth#details

January 24, 2023 - Participants Include:

Jim Bennet - Fair Tax - @FairTaxOfficial

John Richardson - @Expatriationlaw

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On January 10, 2023 the "Fair Tax" - H.R. 25 was introduced into the House. The has provided a long overdue opportunity to rethink what taxation is for, how it should work and how it should be enforced. It's important that individuals do NOT rely on their Republican or Democrat representatives to explain the "Fair Tax". Taxation is too important to be left to the political parties.

Tax reform is about serving the interests of the American people and NOT the American political parties.

Taxation is NOT and should never be a partisan issue!

Some background ...

On March 27, 2022 I hosted Jim Bennet of "Fair Tax" and learned about the "Fair Tax Proposal". On April 13, 2022, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard. The April 13, 2022 podcast can be heard here. On June 4, 2022 I hosted Steve Hayes

Mr. Hayes and Mr. Bennet are the primary movers and creators of H.R. 25 "The Fair Tax Act of 2021" which can be viewed here.

So, what is the "Fair Tax" movement?

At the risk of oversimplification, H.R. 25 proposes to replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of Title 26 (The Internal Revenue Code) with one comprehensive consumption tax.

If enacted the "Fair Tax" would create a U.S. tax system that:

was a territorial (tax imposed on activity in the US only) based on a consumption tax (tax imposed on consumption and not income)
allowed certain low income people to apply for tax abatements
made the U.S. a more attractive location for foreign investment and business activities
ended the tax filing requirement for individual taxpayers (and therefore ended the "Regulatory Oppression" experienced by individuals in general and Americans abroad in particular)
ending the relevance of "tax residency" because taxation would be based on spending only
solved the problems of citizenship tax as experienced by US emigrants and accidental Americans

The adoption of the "Fair Tax" would result in a major change in US society. As the great tax historian Charles W. Adams taught:

As goes taxation, so goes civilization!

I strongly suggest that Americans abroad support the "Fair Tax" movement!

January 24, 2023 - Participants Include:

Virginia La Torre Jecker - @VLJeker

John Richardson - @Expatriationlaw

On January 23, 2023 the Supreme Court of the United States denied Ms. Toth's petition to hear her case. The court was invited to hear arguments on whether the assessment of a two million FBAR penalty on a four million dollar bank account balance violated the "Excessive Fines Clause" found in the Eighth Amendment.

______________________________________________________

Eighth Amendment Cruel and Unusual Punishment* Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

_____________________________________________

Justice Gorsuch wrote a dissent in which he described the facts and issues. The dissent which is found here, included:

"In the 1930s, Monica Toth’s father fled his home in Germany to escape the swell of violent antisemitism. Eventually, he found his way to South America, where he made a new life with his young family and went on to enjoy a successful business career in Buenos Aires. But perhaps owing to his early formative experiences, Ms. Toth’s father always kept a reserve of funds in a Swiss bank account. Shortly before his death, he gave Ms. Toth several million dollars, also in a Swiss bank account. He encouraged his daughter to keep the money there—just in case.

Ms. Toth, now in her eighties and an American citizen, followed her father’s advice. For several years, however, she failed to report her foreign bank account to the federal government as the law requires. 31 U. S. C. §5314. Ms. Toth insists this was an innocent mistake. She says she did not know of the reporting obligation. And when she learned of it, she says, she completed the necessary disclosures. The Internal Revenue Service saw things differently.

Pursuant to §5321, the agency charged Ms. Toth with willfully violating §5314’s reporting requirement and assessed a civil penalty of $2.1 million—half of the balance of Ms. Toth’s account—plus another $1 million in late fees and interest.

Initially, Ms. Toth sought to represent herself in proceedings challenging the IRS’s assessment, but that did not go well. Later, Ms. Toth engaged counsel who argued that the IRS’s assessment violated the Excessive Fines Clause of the Eighth Amendment. But the First Circuit rejected this line of defense. It held that the Constitution’s protection against excessive fines did not apply to Ms. Toth’s case because the IRS’s assessment against her was “not tied to any criminal sanction” and served a “remedial” purpose. 33 F. 4th 1, 16, 17–19 (2022).

This decision is difficult to reconcile with our precedents. We have recognized that the Excessive Fines Clause “traces its venerable lineage” to Magna Carta and the English Bill of Rights. Timbs v. Indiana, 586 U. S. ___, ___–___ (2019) (slip op., at 4–5). We have held that “[p]rotection against excessive punitive economic sanctions” is “‘fundamental’” and “‘deeply rooted in this Nation’s history and tradition.’” Id., at ___ (slip op., at 7). And all that would mean little ifthe government could evade constitutional scrutiny under the Clause’s terms by the simple expedient of fixing a “civil” label on the fines it imposes and declining to pursue any related “criminal” case. Far from permitting that kind of maneuver, this Court has warned the Constitution guards against it. See Austin v. United States, 509 U. S. 602, 610 (1993) (“[T]he question is not, as the United States would have it, whether [a monetary penalty] is civil or criminal, but rather whether it is punishment.”); see also Giaccio v. Pennsylvania, 382 U. S. 399, 402 (1966); Sessions v. Dimaya, 584 U. S. ___, ___ (2018) (GORSUCH, J., concurring in part and concurring in judgment) (slip op., at 10).

Nor is a statutory penalty beneath constitutional notice because it serves a “remedial” purpose. Really, the notion of “nonpunitive penalties” is “a contradiction in terms.” United States v. Bajakajian, 524 U. S. 321, 346 (1998) (Kennedy, J., dissenting). Just take this case. The government did not calculate Ms. Toth’s penalty with reference to any losses or expenses it had incurred. The government imposed its penalty to punish her and, in that way, deter others. Even supposing, however, that Ms. Toth’s penalty bore both punitive and compensatory purposes, it would still merit constitutional review. Under our cases a fine that serves even “in part to punish” is subject to analysis under the Excessive Fines Clause. Austin, 509 U. S., at 610 (emphasis added). Ms. Toth and her amici identify still more reasons to worry about the First Circuit’s decision. They say it clashes with the approach many other courts have taken in similar cases. Pet. for Cert. 18–25 (collecting cases). They observe that it incentivizes governments to impose exorbitant civil penalties as a means of raising revenue. Id., at 25–30. And they contend that it is difficult to square with the original understanding of the Eighth Amendment. Brief for Professor Beth A. Colgan as Amicus Curiae on Pet. for Cert. 4–13. For all these reasons, taking up this case would have been well worth our time. As things stand, one can only hope that other lower courts will not repeat its mistakes."

__________________________________________

January 20, 2023 - Participants Include:

Keith Redmond - @Keith__Remond

John Richardson - @ExpatriationLaw

____________________________________________

This informal discussion was the result of two separate (but contextually related) discussions on social media discussing US citizenship taxation.

First - Keith Redmond's American Expatriates Facebook group. The discussion thread is here:

https://www.facebook.com/groups/AmericanExpatriates/posts/2370830776416314/

Note this thread is discussed until approximately the 30:35 mark.

Second - Discussion on Twitter

https://twitter.com/RonSteenblik/status/1614669507590496259

Note this thread is discussed from approximately the 30:35 mark until the end.

__________________________________________________

Interestingly both discussions illuminated the fact that those subject to the US extra-territorial tax regime are clearly impacted in different ways. These differences make it very difficult to unite Americans abroad in a common goal of ending US citizenship taxation.

Generally, those subject the US extra-territorial tax regime fall into one of the following four groups. Each group is characterized by a dominant goal (although there is some overlap):

Ending Citizenship Taxation - This group which is symbolized by SEAT is focussed on ending US citizenship taxation. This means that citizenship is never relevant for the purposes of taxation.

Ignoring Citizenship Taxation - It is clear that there are any individuals who approach the problem of citizenship taxation by simply ignoring it. It is clear that many people who are subject to the citizenship tax regime are simply not "in the US tax system". Typically these are people who have no economic centre of gravity in the United States and have no plans of living in the United States.

Escaping Citizenship Taxation - Members of this group are concerned with solving their specific problem. For example, they would want the Taxation of capital gains on principal residence, PFIC, CFC or Foreign Trust rules changed. Once that issue is solved they believe their problems are solved.

Improving Citizenship Taxation - These individuals are NOT concerned with ending citizenship taxation as a general principle. They are concerned with reforming citizenship taxation in a way that reduces the kinds of non-US source income that is taxable by the United States. But, US citizens abroad would remain US tax residents. An example fo this would be the "Beyer Bill".

____________________________________

Why should the US entertain a transition from citizenship taxation to residence taxation when Americans abroad are NOT united in the goal of ending citizenship tax?

To put it simply:

Americans abroad have divided and conquered each other!

January 18, 2023 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

___________________________________________

In the move "Groundhog Day" Bill Murray awakens every day to a day that was the same as the previous day.

The 2022 Taxpayer Advocate Report to Congress was released in early 2023. It contains a section about the problems facing Americans abroad.

As noted by Virginia La Torre Jeker, the same problems are identified as continuing from year to year with no change!

Everybody agrees that there is a problem. Yet there has been little (or no) progress to relieve the problems (other than encouraging people to renounce US citizenship).

January 7, 2023 - Participants include:

Dr. Donald Young - Toronto Psychologist

John Richardson - @Expatriationlaw

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In 2022 the Ontario College of Psychologists brought a complaint against Dr. Jordan Peterson. The College is recommending that Dr. Peterson engage in remedial education.

The basis of the complaint and Dr. Peterson's response is detailed in the following two newspaper articles.

https://nationalpost.com/news/canada/read-jordan-petersons-tweets-that-prompted-complaints-to-psychologists-college https://calgaryherald.com/news/provincial/read-the-court-filing-by-jordan-peterson-against-the-college-of-psychologists-of-ontario/wcm/beef4b34-0906-4361-a14a-574ba11ddbd0 Today I was joined by Dr. Don Young to discuss how professionals are regulated in Ontario and Dr. Peterson's legal response to the College.

January 6, 2023 - Participants Include:

Keith Redmond @Keith__Redmond

John Richardson - @Expatriationlaw

_________________________________________________

On December 30, 2022 US Treasury issued Notice 2023-11. The purpose of the Notice included a provision that allowed foreign banks to avoid a designation of "significant non-compliance" with the FATCA IGAs. This "temporary stay of execution" is available ONLY in return for heightened FATCA enforcement on both US citizens and the banks.

I have written the following two posts on this topic:

https://citizenshipsolutions.ca/2023/01/04/part-1-notice-2023-11-the-carrot-the-stick-and-heightened-fatca-enforcement-on-overseas-americans/

https://citizenshipsolutions.ca/2023/01/04/part-2-notice-2023-11-non-us-banks-may-be-forced-to-sever-ties-with-us-citizen-clients-because-of-fatca/

Joining me today is Keith Redmond where we discuss:

what Notice 2023-11 really means
What Americans abroad need to understand
What options may be available for Americans abroad

"All Roads Lead To Renunciation!"

December 30, 2022 - Participants Include:

Hon. Philippe A. May - @EC_Holdings

John Richardson - @Expatriationlaw

In my final podcast of 2022 I had the opportunity to explore the issues of second citizenships and residents with Mr. Philippe A. May of EC Holdings which is a second citizenship advisory in Singapore.

We discussed the "Who", "What", "Where" and "When" of both second citizenship and residency programs. Mr. May shared his expertise and thoughts and the opportunities in general with a special emphasis on the South American countries of Uruguay and Paraguay. The opportunities in South America will come as a surprise to some.

December 28, 2022 - Participants include:

Aaron Katsman - Lighthouse Capital - @AaronKatsman

John Richardson - @Expatriationlaw

Thanks to Aaron for a great review of the basics of financial planning.

You will be amazed at the effects of buying three cups of coffee a week rather than saving the money!

December 21, 2022 - Participants include:

Anthony Parent - @IRSMedic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

Another interesting FBAR case (lawsuit filed on December 16, 2022) ... The FBAR penalties assessed exceed the value of the accounts (by a lot). What is going on here?

The "Complaint" (below) suggests that Ms. Molyneux was assessed FBAR penalties for a period of time when she was living in the US. The "Complaint" further suggests that Ms. Molyneux is currently living outside the US.

To learn the facts, read the government's "complaint" below.

_______________________________________________

United States v. Molyneux, No. 22-cv-10654DAMIAN WILLIAMSUnited States Attorney for theSouthern District of New YorkBy: TOMOKO ONOZAWAAssistant United States AttorneyUNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK-----------------------------------------------------------------xUNITED STATES OF AMERICA, ::Plaintiff, : 22 Civ. 10654:v. : COMPLAINT:PILAR MOLYNEUX, ::Defendant. :-----------------------------------------------------------------xPlaintiff the United States of America (the “United States”), by its attorney, Damian Williams, United States Attorney for the Southern District of New York, brings this action to collect the outstanding unpaid civil penalties assessed against defendant Pilar Molyneux (“Molyneux”) for her willful failure to report her financial interest in foreign bank accounts in calendar years 2014 and 2015, as required by 31 U.S.C. § 5314 and its implementing regulations,and alleges upon information and belief as follows:JURISDICTION AND VENUE1. The United States brings this suit under 31 U.S.C. §§ 3711(g)(4)(C) and5321(b)(2), at the direction of the Attorney General of the United States and at the request of, and with the authorization of, the Commissioner of the Internal Revenue Service (“IRS”), a delegate of the Secretary of the Treasury of the United States.2. This Court has jurisdiction over the subject matter of this action pursuant to 28 U.S.C. §§ 1331, 1345, and 1355 because it arises under a federal statute and the United States is the plaintiff.3. Venue is proper in this district under 28 U.S.C. § 1391(c)(3) because Molyneux, a United States citizen, currently resides in France and may be sued in any judicial district. Venue may also be proper in this district under 28 U.S.C. § 1395(a) because the acts or omissions giving rise to Molyneux’s liabilities occurred in this district.THE PARTIES4. Plaintiff is the United States of America.5. Defendant Pilar Molyneux is a citizen of the United States and Chile, and oninformation and belief, currently resides in Paris, France, and conducts business at J.P. Molyneux Studio, with an office located at 4 Rue Chapon, 75003 Paris, France.REGULATORY BACKGROUND6. The Secretary of the Treasury is authorized by statute to require United States persons to report certain transactions with foreign financial agencies. See 31 U.S.C. § 5314. Under the statute’s implementing regulations, “[e]ach United States person having a financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country shall report such relationship” to the Department of the Treasury for each year in which such relationship exists. 31 C.F.R. § 1010.350(a).7. To fulfill this requirement, a United States person is required file a “Report of Foreign Bank and Financial Accounts . . . or any successor form,” commonly known as an “FBAR,” by June 30 “of each calendar year with respect to foreign financial accounts exceeding $10,000 maintained during the previous calendar year.” 31 C.F.R. §§ 1010.350(a), 1010.306(c).8. Civil penalties may be assessed on taxpayers for willful failure to comply with the reporting requirements of § 5314. 31 U.S.C. § 5321(a)(5). For calendar year 2014, the maximum penalty for willful violations involving the failure to report the existence of a foreign financial account, was the greater of $100,000 or 50% of the balance in the account at the time of the violation. Id. § 5321(a)(5)(C)(i). For calendar year 2015, the maximum penalty for willfulviolations was the greater of $134,806 or 50% of the balance in the account at the time of the violation. Id.; 31 C.F.R. § 1010.821(b).9. Penalties under 31 U.S.C. § 5321(a)(5)(C) are subject to interest and furtherpenalties pursuant to 31 U.S.C. § 3717.FACTUAL BACKGROUND10. Molyneux was a U.S. person during calendar years 2014 and 2015 and resided within the United States or was otherwise subject to the jurisdiction of the United States.11. On information and belief, Molyneux maintained a residence in Manhattan at all times relevant to the complaint.12. During at least calendar years 2014 and 2015, Molyneux was familiar with the FBAR filing requirements because she had previously timely filed an FBAR for calendar year 2013. In addition, in 2014, Molyneux filed delinquent FBARs for calendar years 2005 through 2012. Also in 2014, JP Molyneux Studio, an entity in which Molyneux held an ownership interest, timely filed an FBAR for calendar year 2013.A. Banque Neuflize Personal Bank Accounts13. From at least January 2014 through at least December 2015, Molyneux had signature authority over two accounts at Banque Neuflize in France, bearing account numbersXXXXXXX0001 and XXXXXXX0002 (hereinafter, the “Banque Neuflize Personal Accounts”).14. The mailing address of the financial institution in which the Banque Neuflize Personal Accounts were held was 3 Avenue Hoche, Paris, Ile-de-France, 75008, France.15. The Banque Neuflize Personal Accounts were bank, securities, or other financial accounts in a foreign country.B. Molyneux’s FBAR Reporting Obligations for Calendar Year 201416. During calendar year 2014, the Banque Neuflize Personal Accounts had a maximum aggregate balance of $29,310.17. The aggregate balance of the Banque Neuflize Personal Accounts exceeded $10,000 during the 2014 calendar year.18. Molyneux failed to file an FBAR with regard to the 2014 calendar year on or before June 30, 2015.19. By failing to file an FBAR for calendar year 2014, Molyneux willfully violated the reporting requirements of Section 5314.C. Molyneux’s FBAR Reporting Obligations for Calendar Year 201520. During calendar year 2015, the Banque Neuflize Personal Accounts had amaximum aggregate balance of $64,736.21. The aggregate balance of the Banque Neuflize Personal Accounts exceeded $10,000 during the 2014 calendar year.22. Molyneux failed to file an FBAR with regard to the 2015 calendar year on or before June 30, 2016.Pursuant to Federal Rule of Civil Procedure 5.2(a)(4), all but the last four digits of the financial account numbers herein are redacted.23. By failing to file an FBAR for calendar year 2015, Molyneux willfully violated the reporting requirements of Section 5314.D. Assessment of Civil Penalties24. On March 4, 2020, a delegate of the Secretary of the Treasury sent Molyneux a notice to her business address in the United States, 750 Lexington Avenue, 5th Floor, New York, New York 10022. The notice proposed civil penalties totaling $400,000 (the “FBAR Penalties”) against Molyneux for her willful failures to comply with the FBAR filing requirements for calendar years 2014 and 2015.25. Specifically, the notice proposed penalties in the amount of $200,000 ($100,000 per account) for Molyneux’s willful failure to file an FBAR for calendar year 2014, and $200,000 for Molyneux’s willful failure to file an FBAR for calendar year 2015.26. On March 4, 2020, the IRS also sent Molyneux an IRS Form 13449, entitled “Agreement to Assessment and Collection of Penalties Under 31 USC 5321(a)(5) and 5321(a)(6)” to 750 Lexington Avenue, 5th Floor, New York, New York 10022. Above the signature line, the Form 13449 stated: “I consent to the immediate assessment and collection of the penalty amount specified above,” and listed $400,000 as the total proposed penalty.27. On April 15, 2020, Molyneux acknowledged her liability for the assessedpenalties by signing the Form 13449 and returning it to the IRS via facsimile on April 17, 2020. The form listed her address as 750 Lexington Avenue, 5th Floor, New York, New York 10022.28. On December 21, 2020, in accordance with 31 U.S.C. § 5321(a)(5)(C)(i) and consistent with the Form 13449 executed by Molyneux, a delegate of the Secretary of the Treasury assessed FBAR Penalties totaling $400,000 against Molyneux for her willful failures to comply with the FBAR filing requirements for calendar years 2014 and 2015.29. On December 21, 2020, a delegate of the Secretary of the Treasury sentMolyneux a notice of the assessment of the FBAR Penalties and a demand for payment to 750 Lexington Avenue, 5th Floor, New York, New York 10022.30. On January 13, 2021, the notice of assessment was returned to the IRS by the United States Postal Service as undeliverable.31. On February 17, 2021, the IRS mailed a copy of the notice of assessment toMolyneux at JP Molyneux Studio’s address in Paris. To date, no portion of the FBAR assessments against Molyneux for calendar years 2014 or 2015 have been paid.32. Since the date on which the IRS assessed the FBAR Penalties, interest andadditional penalties have accrued, and continue to accrue, including interest and a late penalty charge. 31 U.S.C. § 3717(a)-(c), (e)-(f); 31 C.F.R. § 901.9(b)(3), (d).CLAIM FOR RELIEFJudgment for Civil Penalties, 31 U.S.C. § 5321(a)(5)33. The allegations in paragraphs 1 through 32 are repeated and realleged as though set forth fully therein.34. By this action, the United States seeks to collect the FBAR Penalties assessed against Molyneux by the IRS on December 21, 2020, plus interest and additional penalties which continue to accrue as provided by law.35. Molyneux owes the United States $400,000, consisting of the $200,000 FBAR Penalty assessed for calendar year 2014 and the $200,000 FBAR Penalty assessed for calendar year 2015, plus associated penalties and interest pursuant to 31 U.S.C. § 3717, which continue to accrue.36. The United States may bring suit to recover the FBAR Penalties assessed under 31 U.S.C. § 5321(a) at any time before the end of the two-year period beginning on the date the penalty was assessed. 31 U.S.C. § 5321(b)(2)(A).37. This civil action to collect the FBAR Penalties, and the associated penalties and interest, is timely under 31 U.S.C. § 5321(b)(2), because it is filed within two years of December 21, 2020, the date when the FBAR Penalties were assessed.RELIEF REQUESTEDWHEREFORE, Plaintiff the United States of America respectfully requests that the Court enter judgment:(a) awarding the United States the amount of Molyneux’s assessed FBAR Penalties totaling $400,000.00, plus any interest and/or additional penalties as allowed by law from December 21, 2020, to the date of payment; and(b) granting the United States its costs incurred in connection with this action, along with such further relief as the Court may deem just and proper.Dated: New York, New YorkDecember 16, 2022DAMIAN WILLIAMSUnited States Attorney for theSouthern District of New YorkAttorney for Plaintiff United States ofAmericaBy: /s/ Tomoko OnozawaTOMOKO ONOZAWAAssistant United States Attorney

December 19, 2022 - Participants include:

Nancy Grouni - ObjectiveFinancialPartners.com

John Richardson - @ExpatriationLaw

The days of a defined benefit pension are long gone. All people must take responsibility for their financial futures. Yet, aren't aware that they are required to take personal responsibility for their futures. Of those who are aware, "many people don't even know where to start". Ms. Grouni provides "oversight" and acts as a quarterback to oversee all "the moving parts."

As always, US citizenship is a complicating factor.

As a person who gives advice on a fee-based basis, Ms. Grouni is not "one in a million" but is one of approximately 150 people serving the population of Canada.

You will enjoy this podcast!

December 18, 2022 - Participants include:

Tim Smyth - @Tpsmyth01

John Richardson - @Expatriationlaw

This spells trouble!!

_______________________________________________

The text of the treaty document can be found at: https://home.treasury.gov/system/files/131/Treaty-Croatia-12-7-2022.pdf

Treaty-Croatia-12-7-2022

Of particular note in Treasury’s announcement is:

“The Treasury Department is pleased to conclude this new tax treaty with Croatia. It is the first comprehensive tax treaty that the United States has signed in over ten years and reflects our current tax treaty policies and is a milestone in the Treasury’s efforts to expand the U.S. tax treaty network. We appreciate the collaboration Croatia showed throughout the negotiations,” said Lily Batchelder, Assistant Secretary (Tax Policy).

The new tax treaty closely follows the U.S. Model income tax treaty.

Treasury’s announcement focuses on the mutually beneficial aspects of the US Croatia tax treaty. Notably Treasury’s announcement fails to comment on the inclusion of the enhanced “saving clause” which is identical to the following provisions in the US Croatia tax treaty.

4. Except to the extent provided in paragraph 5 of this Article, this Convention shall not affect the taxation by a Contracting State of its residents (as determined under Article 4 (Resident)) and its citizens. Notwithstanding the other provisions of this Convention, a former citizen or former long-term resident of a Contracting State may be taxed in accordance with the laws of that Contracting State.

5. The provisions of paragraph 4 of this Article shall not affect:a) the benefits conferred by a Contracting State under paragraph 3 of Article 7 (Business Profits), paragraph 2 of Article 9 (Associated Enterprises), paragraph 7 of Article 13 (Gains), subparagraph (b) of paragraph 1, paragraphs 2, 3 and 6 of Article 17 (Pensions, Social Security, Annuities, Alimony and Child Support), paragraph 3 of Article 18 (Contributions to Pension Funds), and Articles 23 (Relief From Double Taxation), 24 (Non-Discrimination) and 25 (Mutual Agreement Procedure); andb) the benefits conferred by a Contracting State under paragraph 1 of Article 18 (Contributions to Pension Funds), and Articles 19 (Government Service), 20 (Students and Trainees) and 27 (Members of Diplomatic Missions and Consular Posts), upon individuals who are neither citizens of, nor have been admitted for permanent residence in, that Contracting State.

This represents a significant expansion of the “saving clause” to allow the US to impose US taxation NOT only on its” residents (as determined under Article 4 (Resident)) and its citizens” but also on “a former citizen or former long-term resident” which may are permitted to be subjected to any relevant future provisions of the Internal Revenue Code.

From the perspective of Croatia, the “saving clause” found in Paragraph 4 of Article 1 means:

4. Except to the extent provided in paragraph 5 of this Article, this Treaty shall not affect the taxation by the United States of its residents (as determined under Article 4 (Resident)) and residents of Croatia who happen to be US citizens. Notwithstanding the other provisions of this Convention, a former US citizen or former long-term US Green Card holder who is a resident of Croatia may be taxed by the United States according to the Internal Revenue Code.

December 8, 2022 - Participants Include:

Anthony Parent - @IRSMedic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

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In 1996 Dodge began selling the "Dodge Stratus" which replaced the "Dodge Spirit" in the Dodge product line. In 1996 I saw a brilliant piece of marketing for the "first generation" Stratus. It read:

"You're not losing a sports car. You're gaining two doors."

I have been frequently reminded of this ad when I discuss renunciation with people who feel they must renounce US citizenship to escape the burdens (financial, psychological and emotional) of the US regulatory tax, form and penalty regime.

The tweet that was the impetus for this podcast is here.

https://twitter.com/ExpatriationLaw/status/1600814678485368834

Listen to this podcast. Do you agree?

December 9, 2022 - Participants include:

David Coutts - @RealCoachCoutts

John Richardson - @Expatriationlaw

The basic message:

"Boys react and men respond ..."

Earlier podcasts with Coach Coutts include:

Treating Plantar Fasciitis And Treating FATCA Both Require Focusing On The Original Source Of The Pain

Coutts At 37, So You Want To Be A Personal Trainer

Podcast 1- November 12, 2022:

https://prep.podbean.com/e/taxing-americans-who-live-overseas-unfair-ep194-with-my-guests-keith-redmond-and-john-richardson/

Podcast 2 - December 4, 2022:

Americans who live abroad are renouncing their United States citizenship in large numbers. What part does the current fairness or unfairness of the United States Tax code play in this? What do U. S. citizens need to consider regarding the renunciation of their citizenship? What are "accidental Americans" and how are they treated under the rules of taxation by the U.S. I talked with Keith Redmond and John Richardson to gain clarity on these issues, and I'm happy to share them with you!

Get part 1 of my THE AMERICAN WAY? series here: https://www.podbean.com/ew/pb-epb7d-1309179

or on any podcast platform or on my YouTube channel here: https://www.youtube.com/@cominhomewithjohnalan9103/videos

John Richardson and Keith Redmond are co-founders of https://seatnow.org/

John RICHARDSON can be contacted at www.citizenshipsolutions.ca and citizenshipsolutions@proton.me

Keith Redmond can be reached at https://www.facebook.com/groups/AmericanExpatriates and US_Overseas_Advocate@outlook.com

MY AUDIOBOOK SUBSCRIPTION IS NOW AVAILABLE! Get into it HERE

If you'd like to support The Comin' Home Podcast With John Alan, you can do that at one of the links here: https://patron.podbean.com/JohnAlan

https://www.buymeacoffee.com/johnalanpod

https://paypal.me/johnalanpod

Go check out my new comic strip "Loyal Oak" at https://johnalanpod.com/loyal-oak-the-comicstrip/

You can find my music here: https://open.spotify.com/artist/5F4Jgrwy2fMa54webx5yzk?si=TTCDdVjdQCSf4GsRM7UyZg

More info and my blog are here at https://johnalanpod.com/

CominHomeWithJohnAlan

Taxation

AmericansAbroad

November 20. 2022 - Participants Include

Andrew Grossman - @AndyGr

John Richardson - @Expatriationlaw

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I am always grateful for the opportunity to catch up with Andrew Grossman who is a UK based former US Foreign Service Officer. Mr. Grossman has compiled the best research in the area of FATCA and FBAR which is available here:

https://www.nyulawglobal.org/globalex/Fatca_Citizenship_Based_Taxation1.html

Previous interviews with Mr. Grossman 2014 and 2016 may be found on Youtube:

https://www.youtube.com/watch?v=X1Avi8QJygQ&t=1s

https://www.youtube.com/watch?v=MhMBmz8gt0Y&t=4s

_________________________________________________

Our discussion today included:

phantom capital gains
the consequences of Brexit

_____________________________________________

Here is the phantom capital gains provision of the Internal Revenue Code:

https://www.law.cornell.edu/uscode/text/26/988

26 U.S. Code § 988 - Treatment of certain foreign currency transactions

(a)General ruleNotwithstanding any other provision of this chapter— (1)Treatment as ordinary income or loss (A)In general

Except as otherwise provided in this section, any foreign currency gain or loss attributable to a section 988 transaction shall be computed separately and treated as ordinary income or loss (as the case may be).

November 14, 2022 - Participants include:

Craig Swartz - @ForSwartz

John Richardson - @Independents

I first interviewed Craig Swartz on October 25, 2022 when he was the Democratic candidate for Ohio 5.

https://prep.podbean.com/e/former-us-expat-and-ohio-congressional-candidate-explains-why-he-supports-residence-based-taxation/

He has a varied and interested background. He is also a supporter of ending citizenship taxation and transitioning to residence-based taxation.

In this update we discuss the "deficit" in the democratic process and how candidates are out of touch with the voters.

Thanks to Craig for another great discussion!

November 14, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

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To retain or renounce ...

There are many reasons to renounce US citizenship. There are also many reasons to retain US citizenship.

This podcast was motivated by a tweet that asked the question:

https://twitter.com/AccidentallyUSC/status/1591880260861448192

"What reasons are there against renunciation, other than you think you’ll one day move to the US? #fatca #taxtwitter"

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Jimmy and John suggest a number of different considerations when thinking about this question ...

Issues: Foreign Trusts - Failure To File Form 3520 and 3520A

The facts from the ruling:

"Opinion 21-51064

08-11-2022

Daphne Jeanette Rost, Executor of the Estate of John H. Rebold, Plaintiff-Appellant, v. United States of America, the Internal Revenue Service, Defendant-Appellee.

STUART KYLE DUNCAN, CIRCUIT JUDGE

Appeal from the United States District Court for the Western District of Texas USDC No. 1:19-CV-607

Before SMITH, DUNCAN, and OLDHAM, Circuit Judges.

STUART KYLE DUNCAN, CIRCUIT JUDGE

In 2005, John Rebold formed the Enelre Foundation as a Stiftung under the laws of Liechtenstein. Stiftung is a German word meaning, roughly, "foundation" or "endowment." Enelre's purpose is to provide education and general support for Rebold and his children. Rebold transferred $3 million to Enelre's bank accounts. He later learned the IRS would consider Enelre a "foreign trust," triggering certain reporting requirements. Rebold belatedly filed the reports, and the IRS assessed penalties. Rebold paid the penalties and then filed this refund action. The district court granted summary judgment for the government. We affirm."

____________________________________________________________

The decision was released on August 11, 2022. An application for a rehearing was filed on September 26, 2022 and denied on October 11, 2022.

(The oral arguments from July 6, 2022 can also be heard on youtube.)

The full text of the judgement ruling against Ms. Host is available at:

https://casetext.com/case/rost-v-united-states-2

Crossposted with Johnalanpod.Podbean.com

_______________________________________

This is part 1 of a conversation with Keith Redmond and John Richardson about the fairness or unfairness of the United States government's tax law which taxes Americans who live overseas. Many of these Americans have no assets in the United States, no residence in the United States, and live permanently overseas. Is it fair that these Americans must live under the U.S. tax code?

John and Keith are co-founders of https://seatnow.org/

John RICHARDSON can be contacted at www.citizenshipsolutions.ca and citizenshipsolutions@proton.me

Keith Redmond can be contacted at https://www.facebook.com/groups/AmericanExpatriates and US_Overseas_Advocate@outlook.com

MY AUDIOBOOK SUBSCRIPTION IS NOW AVAILABLE! Get into it HERE

If you'd like to support The Comin' Home Podcast With John Alan, you can do that at one of the links here: https://patron.podbean.com/JohnAlan

https://www.buymeacoffee.com/johnalanpod

https://paypal.me/johnalanpod

Go check out my new comic strip "Loyal Oak" at https://johnalanpod.com/loyal-oak-the-comicstrip/

You can find my music here: https://open.spotify.com/artist/5F4Jgrwy2fMa54webx5yzk?si=TTCDdVjdQCSf4GsRM7UyZg

More info and my blog are here at https://johnalanpod.com/

CominHomeWithJohnAlan

On November 2, 2022 the Supreme Court Of The United States heard the Bittner case. The issue was whether in the context of a non-willful FBAR penalty:

1) The government is restricted to imposing one penalty based on the failure to file one FBAR; or

2) The government may impose one non-willful penalty for each of the accounts that should have been reported on the single FBAR form.

This podcast contains the audio file of the live arguments.

A transcript of the arguments is here:

http://citizenshipsolutions.ca/wp-content/uploads/2022/11/21-1195_5i36.pdf

__________________________________________________

The FBAR penalties imposed on Mr. Bittner were based on years when he was a US citizen living outside the United States in Romania. Therefore, this decision is hugely important for the community of Americans abroad.

I have previously discussed the Bittner case in podcasts with:

Virginia La Torre Jeker - October 31, 2022

Jimmy Sexton - November 1, 2022

Anthony Parent - November 1, 2022

The following twitter thread reflects my impressions while listening to the arguments ...

https://threadreaderapp.com/thread/1587807427327655937.html

October 31, 2022 - Participants include: John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Should non- willful FBAR penalties be imposed for the failure to file the form (one penalty) or the failure to report each account on the form (multiple penalties)?

What is the purpose of the FBAR when it duplicates information that is included in Form 8938?

The court documents including the amicus briefs are here ...

https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/21-1195.html

October 30, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Should non- willful FBAR penalties be imposed for the failure to file the form (one penalty) or the failure to report each account on the form (multiple penalties)?

The court documents including the amicus briefs are here ...

https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/21-1195.html

October 25, 2022 - Participants Include:

Craig Swartz - Candidate For Congress In Ohio - @ForSwartz

John Richardson - @Expatriationlaw

____________________________________________________-

Visit the Craig Swartz Campaign Site at:

https://www.SwartzForOhio.com

October 25, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

We discuss Charles Adams Lesson 27:

"War means heavy expenditures. Heavy expenditures mean heavy taxation. Heavy taxation strangles commerce and fosters economic stagnation and decline."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022

For Good And Evil Podcast 23 - July 25, 2022

For Good And Evil Podcast 24 - August 5, 2022

For Good And Evil Podcast 25 - August 22, 2022

For Good And Evil Podcast 26 - October 3, 2022

In this episode we continue the teaching of Charles Adams - Lesson 27:

_____________________________________________

"War means heavy expenditures. Heavy expenditures mean heavy taxation. Heavy taxation strangles commerce and fosters economic stagnation and decline."

October 7, 2022 - Participants include:

Greg Swanson - @IntlOwl

John Richardson - @Expatriationlaw

My discussion continues with Greg Swanson who is a U.S. citizen living in Switzerland. In our July 14, 2022 where Greg explained why:

The U.S. Tax System Has Turned US Citizenship Into A Global Disability

In that first podcast, Greg asked an important question for the 21st Century:

Why should a U.S. citizen living outside the United States, not have the same opportunities in life as his neighbour - a German citizen - living outside of Germany?

In this podcast Greg explains how and why the US extra-territorial tax regime hurts ALL Americans regardless of where they live. Therefore, citizenship and FATCA hurt America!

Greg has written some great articles which are available on Medium.

October 3, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

We discuss Charles Adams Lesson 26:

"'Liberty tends to carry the seeds of its own destruction, for freemen will often grant extensive taxing powers to their governments, not realizing that these taxing powers will, if carried to excess, destroy the very liberty they sought to preserve."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022

For Good And Evil Podcast 23 - July 25, 2022

For Good And Evil Podcast 24 - August 5, 2022

For Good And Evil Podcast 25 - August 22, 2022

In this episode we continue the teaching of Charles Adams - Lesson 26:

_____________________________________________

"'Liberty tends to carry the seeds of its own destruction, for freemen will often grant extensive taxing powers to their governments, not realizing that these taxing powers will, if carried to excess, destroy the very liberty they sought to preserve."

September 30, 2022 - Participants Include:

Anthony Parent - @IRSMedic

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

______________________________________________

Abstract - FATCA LEGISLATION AND ITS APPLICATION AT INTERNATIONAL AND EU LEVEL: - AN UPDATE:

"Abstract This in depth analysis updates a previous report commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs and describes the most relevant developments in the period 2018-2022 in chronological order and then draws conclusions which include a systemic view of the current institutional dynamics, a provisional legal analysis on the basis of existing rules and policy suggestions."

Conclusion - Policy Suggestions:

7.3. Policy suggestions This paper concludes confirming the policy suggestions of the Report 2018 and advised by the European Parliament in the resolution of 5 July 2018 that attain to (i) bilateral EU-U.S. policies, (ii) unilateral EU policies, and (iii) multilateral policies in a broader sense. These policy suggestions are obviously impacted by the institutional constraints that have been highlighted in this in depth analysis. Bilateral EU-U.S. policies essentially imply the modifications of IGAs to align with GDPR and providing full reciprocity in the transfer of tax data between the EU and the U.S.

Unilateral EU policies are a second-best choice, should bilateral policies fail. There are three main actions in this area. • The U.S.’s failure to honour reciprocal guiding information exchange could lead to an investigation into the possibility for the EU of enacting “blocking legislation about reciprocity” that would apply until such time as the reciprocity is re-established in relation to FATCA. • “Blocking legislation about selected items” would apply until such time as certain FATCA criticalities in respect to Accidental Americans are mitigated by the U.S. If the EU were to block the application of FATCA (pending resolution of the outstanding issues surrounding FATCA) and, as a result, the U.S. were to impose a 30% withholding on U.S. source payments to EU financial institutions requested by FATCA, 26 then the EU could apply a mirroring 30% withholding on EU source payments to U.S. financial institutions and their operations in the EU. • To allow only transfers from the EU of FATCA Data associated with U.S. Persons who are not EU residents until a predefined set of bilateral measures are adopted, for example: (a) renegotiation of IGA to afford reciprocal treatment with respect to exchange of tax information; and (b) establishment of safeguards to data protection under GDPR. This would imply that FATCA would continue to operate in respect to transfers of FATCA Data associated with U.S. persons who are not EU residents or citizens, but there would be standstill clause for transfers of FATCA Data associated with U.S. persons who are EU residents or citizens. There are also options on the direction of multilateral policies in a broad sense. Automatic exchange of tax data and FATCA were established as multilateral measures in the fullest sense of the elimination of any kind of free rider to a global system of full sharing of tax information among countries. Multilateralism in the exchange of tax information should therefore be revived at EU-U.S.and multilateral level going back to the original spirit of FATCA as an initiator of such multilateralism, meant as a common method to share tax information to counteract tax evasion on a global scale."

You can access the report here:

https://www.europarl.europa.eu/RegData/etudes/IDAN/2022/734765/IPOL_IDA(2022)734765_EN.pdf

John Richardson summary on Twitter:

https://threadreaderapp.com/thread/1575087700767428608.html

September 29, 2022 ...

When it comes to an FBAR filing requirement a recent decision in the Katholos case confirms:

“Although an ownership interest in an entity would certainly be considered a financial interest in that entity, ownership is not necessary to have a financial interest."

_______________________________________

Virginia La Torre Jeker - @VLJeker

and

John Richardson - @Expatriationlaw

discuss this issue in the context of the life of Americans abroad.

On August 10, 2022 a US District Court issued a ruling on the ongoing Katholos FBAR saga.

https://casetext.com/case/united-states-v-katholos

Of particular interest is the following paragraph:

"Here, it is undisputed that Katholos was a beneficial owner of the Storchen Finance Account. In general, a “beneficial owner” is “[o]ne recognized in equity as the owner of something because use and title belong to that person, even though legal title may belong to someone else; esp., one for whom property is held in trust.-Also terms equitable owners Owner, Black's Law Dictionary (11th ed. 2019). Though Katholos denies that her status as a beneficial owner is “tantamount to having a ‘financial interest' in the account that may give rise to the FBAR reporting requirements,” Dkt. 98-1, ¶ 25, the Court concludes that, as a beneficial owner, Katholos had an equitable claim or right to the Storchen Finance Account- even if she did not have legal title. And because “interest” includes equitable rights to property, Katholos's arguments regarding legal title, who funded the account, and direct interest are not dispositive. See Continental Cas. Co. v. Bowen, No. 2:09-cv-00810-TC, 2011 WL 222340, *4 (D. Utah Jan. 21, 2011) (“Although an ownership interest in an entity would certainly be considered a financial interest in that entity, ownership is not necessary to have a financial interest.”). Thus, based on her status as a beneficial owner, the Court concludes that Katholos had a financial interest in the Storchen Finance Account."

Bottom Line: The Katholos decision reinforces the principle that one can't avoid the FBAR filing requirement by keeping your name off the account.

September 27, 2022 - Participants include:

Janine Seymour - @MiAzhikwan

John Richardson - @Expatriationlaw

Love As An Antidote To Fear - The First Lesson

MiAzhikwan is a lawyer, LL.M., independent candidate and a member of the Bear Clan near Kenora, Ontario in Treaty Three Territory.

This is my third podcast with MiAzhikwan. The first was during her run as an independent candidate in the May 2022 Ontario election:

https://independentcandidates.substack.com/p/meet-janine-seymour-aka-miazhikwan#details

The second was on September 5, 2022 and explored the teaching of forgiveness:

https://independentcandidates.substack.com/p/miazhikwan-choosing-forgiveness-the#details

September 5, 2022 - Participants include:

Janine Seymour - @MiAzhikwan

John Richardson - @Expatriationlaw

Forgiveness - The Eighth Lesson And Letting Go Of Rage

MiAzhikwan is a lawyer, LL.M., independent candidate and a member of the Bear Clan near Kenora, Ontario in Treaty Three Territory.

This is my second podcast with MiAzhikwan. The first was during her run as an independent candidate in the May 2022 Ontario election:

https://independentcandidates.substack.com/p/meet-janine-seymour-aka-miazhikwan#details

September 16, 2022 - Participants Include:

John Richardson - @ExpatriationLaw

Keith Redmond - @Keith__Remond

Anthony Parent - @IRSMedic

_______________________________________________

My (John Richardson) interpretation of the current situation:

The problems experienced by US citizens living outside the United States can be solved ONLY by severing US citizenship from US tax residency. In other words: citizenship cannot be the criterion for being subject to the Internal Revenue Code. No other country in the world (except Eritrea) imposes worldwide taxation based on and only citizenship. All other countries in the world have residence based taxation which means that residence and not citizenship is the criterion for tax residency. The only way to solve the problems for all Americans abroad, in all circumstances and for all time is to sever citizenship from the definition of US tax residency.
There is a difference between a "wish" and a "goal":

"The dictionary defines a wish as: to want; desire; to long for. Goals on the other hand are defined as: the result or achievement toward which effort is directed. The difference is profound not only in semantics, but also in how each can shape your thought process, your actions (or lack of), and ultimately, your life."

Individual Americans abroad have a "wish" for residence based taxation. That said, "residence based taxation" is NOT their goal. Their goal (if any) is to solve "their" problem (how they experience citizenship taxation) and not "the" problem "citizenship taxation itself. For example, solving the FATCA problem will NOT solve the problem of citizenship taxation.
No organizations except SEAT and Republicans Overseas have the specific goal of severing citizenship from tax residency.
Without pressure from large numbers of individual Americans abroad (which simply doesn't exist) there is no political impetus for any legislative change to residence taxation.

In summary, there is little support for the "goal" of severing citizenship from tax residency.

In addition ...

The situation for Americans abroad is NOT getting better and has in fact gotten worse over the last ten years. I will continue to work with "like minded" people and "organizations" to achieve the goal of severing citizenship from tax residency. That said, this will take more time than this generation of Americans abroad has!

What all of this means is that ...

"All Roads Lead To Renunciation" (as soon as that goal is possible).

March 20, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

We discuss Charles Adams Lesson 17:

"'Tax evasion is not always an evil; it has often been a safety valve against violence and corruption."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

In this episode we continue the teaching of Charles Adams - Lesson 17:

_____________________________________________

"'Tax evasion is not always an evil; it has often been a safety valve against violence and corruption."

March 20, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

We discuss Charles Adams Lesson 16:

"'Once tax evasion becomes deeply-rooted, it is almost impossible to root it out."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

In this episode we continue the teaching of Charles Adams - Lesson 16:

_____________________________________________

"'Once tax evasion becomes deeply-rooted, it is almost impossible to root it out."

September 2, 2022 - Participants Include:

Jim Bennett - @FairTaxOfficial

John Richardson - @ExpatriationLaw

Adopting the Fair Tax would create fairness in taxation for both US residents and Americans abroad. Generally the Fair Tax would:

simply the tax code (The Fair Tax is only 131 pages)
remove the need for the IRS
move the United States to a system of territorial taxation
end the practical application of US citizenship taxation
ensure that every US resident actually paid federal tax
and more ...

How will the increase in IRS funding impact the culture of taxation in the United States?

Previous podcasts with Jim Bennett and Steve Hayes include:

How The Fair Tax Would End Tax Residency, Worldwide Taxation And Taxation Of Americans Abroad - March 17, 2022

Rethinking Taxation: Continuing The "Fair Tax" Discussion With Jim Bennett And Steve Hayes - April 13, 2022

Steve Hayes Of FairTax.org: When It Comes To Taxation "Simplicity Is Virtue" (And Moral) - June 4, 2022

August 26, 2022 - Participants Include:

SEAT President Dr. Laura Snyder - @TapInternation

John Richardson - @ExpatriationLaw

Send us your letters to: letters at seatnow dot org

_________________________________

The “Readers Digest” Version – SEAT Seeks Copies Of Your Letters To Your Congressman And Their (Non) Response In Order To Create A “Book Of Letters”

Background – People Have Been Writing Their Congressmen and Congresswomen: Americans abroad are constantly encouraged to send letters to their Congressmen and Congresswomen requesting changes to the US tax rules impacting Americans abroad. Thousands of individuals have sent letters. In almost all cases the responses are notable only in that they reflect little awareness, understanding or concern about the impact of citizenship taxation on the lives of Americans abroad. In short, the responses indicate that Congress doesn’t care.

Objective – To Create A Book Documenting The Letters Of Individuals And The Lack Of Response To Their Letters

In 2014 Patricia Moon, as part of a submission to the Senate Finance Committee, created a fantastic 192 page book which compiled certain comments of Americans abroad in Social Media channels. That book was an amazing “Message In A Bottle” which documented the horrors inflicted on Americans abroad. That book was intended to provide a “snapshot” of the lives of Americans abroad. It was not specifically for the purpose of documenting the “Cries For Help” that individuals have written to Congress. The purpose of this book is to document those letters expressing those “Cries For Help” and lack of response. Dworkin would say that citizens are entitled to the “equal concern and respect” of the legislatures. The responses to the letters from Americans abroad suggests that citizens abroad receive no concern or respect from Congress.

What We Are Asking You To Do:

Find your letters to your representatives and/or letters you have written to the Senate Finance Committee. Please prepare them in a word file (deleting your hame and address if you wish).
Find the response from from your representative. Please delete any information that identifies you.
Please email both attachments to: letters at seatnow dot org

Our goal is to create a book which documents the difficulty of motivating your Congressional Representatives to acknowledge, understand and respond to the issues facing US citizens who live permanently outside the United States.

http://seatnow.org/2022/08/16/proposed-publication-letters-from-americans-abroad-to-their-congressmen-and-women/

August 25, 2022 - Participants Include:

Personal Trainer Coach Coutts - @CoachCoutts1

John Richardson - @ExpatriationLaw

_________________________________________________

The problem of plantar fasciitis does not originate in the feet. Its treatment depends on determining the cause and treating that cause (possibly a focus on the lower back or neck).

The problems of FATCA and other ailments affecting Americans abroad originate with the "original sin" of US citizenship taxation. The treatment of those problems is to join the movement to end citizenship taxation.

Ending citizenship taxation with end the tax problems of ALL Americans abroad, in ALL circumstances for ALL times!

the

February 14, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

In this episode we continue the teaching of Charles Adams - Lesson 13.

_____________________________________________

"A wise ruler does not change an effective tax system. Destroy the social order if you must, like Cortes in Mexico, but never destroy a tax system that works well."

_____________________________________________

August 5, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

We discuss Charles Adams Lesson 25:

"'Taxes are what we pay for a civilized society,'but how we tax and spend determines the extent to which our society is good or evil."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022

For Good And Evil Podcast 23 - July 25, 2022

For Good And Evil Podcast 24 - August 5, 2022

In this episode we continue the teaching of Charles Adams - Lesson 25:

_____________________________________________

"'Taxes are what we pay for a civilized society,'but how we tax and spend determines the extent to which our society is good or evil."

August 12, 2022 - Participants Include:

Marc Zell - @GOPIsrael

Anthony Parent - @IRSMedic

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

__________________________________________________

You can say the video of this podcast at:

https://www.youtube.com/watch?v=RHcuZlHZ-yM

If would like to consider becoming a plaintiff please email me:

cbtlawsuit@fastmail.fr

August 8, 2022 - Participants Include:

The Name's "Coutts! Coach Coutts!"

David Coutts, personal trainer extraordinare and John Richardson discuss David's twenty years as a fitness and life style trainer.

August 5, 2022 - Participants include: John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

As we continue to discuss the lessons in the Adams book, I am beginning to see that:

"The tax code is being used by political parties to wage war against each other. Everyday taxpayers are the collateral damage of the ongoing political wars. The very legitimacy of the democratic process is dependent on tax reform!"

In this context we discuss Charles Adams Lesson 24:

"Taxes that are not apportioned among all taxpayers with impartiality and fairness lose all force of moral obligation."

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022

For Good And Evil Podcast 23 - July 25, 2022

In this episode we continue the teaching of Charles Adams - Lesson 24:

_____________________________________________

"Taxes that are not apportioned among all taxpayers with impartiality and fairness lose all force of moral obligation."

August 4, 2022 - Participants Include:

Ryan Herche - US/France dual citizen in living in Texas (rherche22@gmail.com)

John Richardson - @Expatriationlaw

Background:

On September 17, 2019 the French Legislature issued a report about its "fact finding mission" relating to the "Universal Tax" AKA citizenship taxation. I recommend the report to all.

https://www.assemblee-nationale.fr/dyn/opendata/RINFANR5L15B2246.html#_Toc256000003

I thank Ryan Herche for forwarding the report to me and agreeing to participate in this podcast. The report is a good discussion of:

A. The concern that French tax residents may be moving from France to lower their tax bills

B. Various ways to combat this "freedom of movement"

C. A consideration of whether U.S. citizenship based taxation is an appropriate way to keep people from severing tax residency with France.

Again, I urge you to read the report. If anyone wants to connect directly with Mr. Herche you are free to email him here: rherche22@gmail.com

July 25, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

For Good And Evil Podcast 22 - July 4, 2022

In this episode we continue the teaching of Charles Adams - Lesson 23:

_____________________________________________

"Historically, the conscience of the tax makers has often been like Swiss cheese - full of holes: when that happens the conscience of the taxpayers is also like Swiss cheese."

July 17, 2022 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

John Richardson - @ExpatriationLaw

Background:

Those "Born In The USA"are (without a "Certificate Of Loss Of Nationality") presumed to be U.S. citizens. Once identified as "U.S. Citizens", the FATCA IGAs require U.S. citizens to provide a U.S. Social Security Number and sign a W9. The banks generally interpret their FATCA compliance obligations to mean they are required to secure this information - including the Social Security Number - from the U.S. citizen. There are many U.S. citizens who do NOT have U.S. Social Security Numbers. This combination of factors has resulted in many individuals (largely Accidental Americans with a U.S. birthplace) having problems maintaining access to financial accounts. From the perspective of the bank they are caught between:

Complying with their FATCA obligations which (pursuant to the FATCA IGAs) are now imposed under local law and NOT U.S. law; and
Whatever obligations they may have to their customers.

The legal framework between the bank and the customer has been defined by the FATCA IGAs.

When interpreting the legal framework it's important to understand that:

The IGAs require the banks to "hunt" for "suspected U.S. citizens". But who is defined as a "U.S. citizen"?
Section 1 ee) (page 7) of the FATCA IGAs specifies that whether someone is a U.S. citizen is determined by and only by U.S. law - specifically the Internal Revenue Code.

https://home.treasury.gov/system/files/131/FATCA-Agreement-Canada-2-5-2014.pdf

What it means to terminate U.S. citizenship under the Internal Revenue Code: Sec. 877(g)(4) of the Internal Revenue Code states that (at least for expatriating acts committed after June 16, 2008) that a Certificate Of Loss Of Nationality is required to cease to be a U.S. citizen for tax purposes. For those who were "Born In The USA" a "Certificate Of Loss Of Nationality" is required as proof of loss of U.S. citizenship.

https://www.law.cornell.edu/uscode/text/26/877A

Sec. 7701(a)(50) of the Internal Revenue Code states two things:

(A) Generally Sec. 877A(g)(4) applies for the purposes of determining when and whether U.S. citizenship is terminated for tax purposes; and

(B) Treasury can by regulation create different rules for individuals who were dual citizens at birth. (In other words dual citizens from birth may NOT be required to have a "Certificate Of Loss Of Nationality" to lose U.S. citizenship for tax purposes.)

https://www.law.cornell.edu/uscode/text/26/7701

In other words: For people born with dual citizenship, Treasury can make rules governing the termination of U.S. citizenship (for Internal Revenue Code purposes) that do NOT require a Certificate Of Loss Of Nationality and/or may or may not be tied to a specific expatriation date.

This appears to be very flexible. Treasury could do this in a number of ways. Possible example(s):

"Any individual who is a U.S. citizen with dual citizenship from birth who has ___________________ will cease to be a U.S. tax resident _______."

Fill in the blanks.

_________________________________________

Full text of the statute:

(50)Termination of United States citizenship

(A) In general

An individual shall not cease to be treated as a United States citizen before the date on which the individual’s citizenship is treated as relinquished under section 877A(g)(4).

(B)Dual citizens

Under regulations prescribed by the Secretary, subparagraph (A) shall not apply to an individual who became at birth a citizen of the United States and a citizen of another country.

https://www.law.cornell.edu/uscode/text/26/7701

___________________________________________________

In this podcast we discuss the possible meaning of the "Dual Citizens" carveout from the general rule. Further analysis is available at:

http://citizenshipsolutions.ca/2021/06/29/a-simple-regulatory-fix-for-the-fatca-problems-of-dual-citizens-from-birth/

and here

https://threadreaderapp.com/thread/1548658858859560960.html

February 7, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

In this episode we continue the teaching of Charles Adams - Lesson 12:

_____________________________________________

"Taxes have been, more often than not, the cause of revolution. People seldom rise up and revolt, if their tax burdens are reasonable."

_____________________________________________

July 14, 2022 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

John Richardson - @Expatriationlaw

__________________________________________________

Once upon a time, back in the last century, the US passed a law which stated:

Some Context: America and Americans Abroad in the late 1970s:

In 1978 Congress enacted a law calling for the Equitable Treatment By United States Of Its Citizens Living Abroad

EQUITABLE TREATMENT BY UNITED STATES OF ITS CITIZENS LIVING ABROAD

Pub. L. 95-426, title VI, Sec. 611, Oct. 7, 1978, 92 Stat. 989, as amended by Pub. L. 96-60, title IV, Sec. 407, Aug. 15, 1979, 93Stat. 405; Pub. L. 97-241, title V, Sec. 505(a)(2), (b)(1), Aug.24, 1982, 96 Stat. 299, provided that:

“The Congress finds that –

“(1) United States citizens living abroad should be provided fair and equitable treatment by the United States Government with regard to taxation, citizenship of progeny, veterans’ benefits, voting rights, Social Security benefits, and other obligations, rights, and benefits; and

“(2) United States statutes and regulations should be designed so as not to create competitive disadvantage for individual American citizens living abroad or working in international markets.”

To read and understand this history see:

https://threadreaderapp.com/thread/1546790694013976576.html

In 1982 Congress repealed that law on the grounds that it was an "obsolete provision".

The report to Congress may be read here:

https://babel.hathitrust.org/cgi/pt?id=pur1.32754074746458&view=1up&seq=112&skin=2021

July 14, 2022 - Participants include:

Greg Swanson - @IntlOwl

John Richardson - @Expatriationlaw

Great discussion with Greg Swanson who is a U.S. citizen living in Switzerland.

Greg asks an important question for the 21st Century:

Why should a U.S. citizen living outside the United States, not have the same opportunities in life as his neighbour - a German citizen - living outside of Germany?

The U.S. extraterritorial tax regime has turned U.S. citizenship into a disability.

Greg has written some great articles which are available on Medium.

March 22, 2022 - Participants Include:

Stephane Tajick - GlobalRCG.com

John Richardson - @Expatriationlaw

This is the second of two podcasts with Stephane Tajick which took place on March 22, 2022. The first podcast discussed the state of the Investment Migration industry in general.

This second podcast focuses on the U.S. market.

___________________________________________________

In General ...

More and more people are understanding the importance of "global mobility options". For some people this is a second residence. For some it is a second citizenship. The last decade has witnessed the growth of "Citizenship By Investment".

"Citizenship By Investment" programs allow people to acquire a second citizenship in return for some sort of cash payment. The growth of the industry has generated opposition to these programs. Citizenship by investment should not be confused with "tax residency". Nevertheless, various governments have taken the position that "citizenship by investment" programs should end.

The recent Russia/Ukraine conflict has generated sanctions against both Russia and many Russian citizens. Some of the sanctions against Russian citizens have been in the form of denying Russian citizens access to "citizenship by investment".

My guest, Stephane Tajick, recently wrote an article in the IMI Daily questioning the continued existence of "citizenship by investment" programs. He asks:

"Are We Witnessing The Extinction Of Citizenship By Investment?"

Stephane joins me to discuss this question ...

June 27, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

In this episode we continue the teaching of Charles Adams - Lesson 21:

_____________________________________________

"Progressive tax rates have no principles or standards and have quickly evolved into odious arbitrariness when directed at minorities rich in money but poor in votes."

July 4, 2022 - Independence Day Edition - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

The great American author Mark Twain was famous for many of his quotes. But, one of his most famous is:

"Patriotism is supporting your country all the time, and your government when it deserves it."

A perfect thought for a 4th of July podcast ...

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

For Good And Evil Podcast 20 - May 2, 2022

For Good And Evil Podcast 21 - June 27, 2022

In this episode we continue the teaching of Charles Adams - Lesson 22:

_____________________________________________

"Patriotism is soluble in oppressive taxation, oppression in the rates of tax or in the manner in which taxes are assessed or collected."

June 4, 2022 - Participants Include:

Steven Hayes Fair Tax

Joe Howard - @EndCBTNow

John Richardson - @ExpatriationLaw

"In a sad voice, Jefferson says: When we wrote the Constitution, all of us knew history. We knew that great civilizations begin to decline when they introduced direct taxation. In the Constitution, we restricted direct taxation because we knew it would yield the same result experienced by other nations using direct taxation-erosion of individual rights and the oppression of the minority by the majority because it could use its political power to use the government to steal from the minority."

From - "WOULD THOMAS JEFFERSON THINK WE ARE FREE?" - By Steven L. Hayes and Charles Adams

Notice that suggested connection between individual rights and tax rights!

___________________________________________________

Continuing the discussion with Steve Hayes ...

On March 27, 2022 I hosted Jim Bennet of "Fair Tax" and learned about the "Fair Tax Proposal". On April 13, 2022, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard. The April 13, 2022 podcast can be heard here.

Mr. Hayes and Mr. Bennet are the primary movers and creators of H.R. 25 "The Fair Tax Act of 2021" which can be viewed here.

So, what is the "Fair Tax" movement?

At the risk of oversimplification, H.R. 25 proposes to replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of Title 26 (The Internal Revenue Code) with one comprehensive consumption tax.

If enacted the "Fair Tax" would create a U.S. tax system that:

was a territorial (tax imposed on activity in the US only) based on a consumption tax (tax imposed on consumption and not income)
allowed certain low income people to apply for tax abatements
made the U.S. a more attractive location for foreign investment and business activities
ended the tax filing requirement for individual taxpayers (and therefore ended the "Regulatory Oppression" experienced by individuals in general and Americans abroad in particular)
ending the relevance of "tax residency" because taxation would be based on spending only
solved the problems of citizenship tax as experienced by US emigrants and accidental Americans

The adoption of the "Fair Tax" would result in a major change in US society. As the great tax historian Charles W. Adams taught:

As goes taxation, so goes civilization!

I strongly suggest that Americans abroad support the "Fair Tax" movement!

May 22, 2022 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

On May 19, 2022 Virginia La Torre Jeker published a post about Paul Manafort and his adventures with Mr. FBAR. Mr. Manafort was on the receiving end of three million in FBAR penalties. Because he had not paid, the US government began a lawsuit to convert the FBAR penalty to a legally enforceable judgment. To understand the complete context of Mr. Manafort's meeting with Mr. FBAR, I refer you to Virginia's post.

In relevant part her post included:

"Regardless, of the fact that others technically owned and operated some of the accounts, Manafort still exercised control over, and had access to, each of the accounts. This means he had a “financial interest” in the accounts for purposes of the Bank Secrecy Act, and relevant regulations which includes in the definition of “financial interest” the case when “[t]he owner of record or holder of legal title is a person acting as an agent, nominee, attorney, or a person acting on behalf of the United States person with respect to the account.”

Interestingly paragraph 17 of the government's compliant included:

"17. Regardless, Manafort still exercised control over, and had access to, each of the accounts."

In this podcast we go back to the basics and discuss who exactly is required to file an FBAR and why. Our discussion analyzes the FinCEN FBAR instructions.

It all starts here. The instructions state that:

"Who Must File an FBAR. A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. See General Definitions, to determine who is a United States person."

Our concern - starting at the 32 minute mark of the discussion - is with "FBAR application creep". How long will it take before the test of "exercised control over" and/or "had access to" will be applied to the most pedestrian of situations?

In other words: First, Mr. Manafort. Now, the average person living abroad!

May 14, 2022 - Participants include:

Janine Rachel Seymour -@MiAzhikwan

John Richardson - @Independents

On June 2, 2022, Ontario residents will vote for a new government. In addition to the mainstream parties the election includes a number of independent candidates.

This podcast is an interview with Janine Rachel Seymour who is running as an independent candidate. She is a member of a minority group that has experienced unprecedented discrimination in Canada.

Ms. Seymour is the kind of candidate who makes a difference simply by running!

(For more interviews with independent candidates go here.)

May 11, 2022 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

In this podcast four of SEAT's founding members discuss how the US tax system (if properly understood) should impact the decision of whether to get a US "immigrant visa" AKA Green Card.

Emigrating from one country to another is a major life decision. But, for those with significant non-US assets the decision is more difficult.

One you become a US resident you are subject to the US system of US worldwide taxation, reporting and penalties.

These considerations impact:

Life before getting a Green Card
Life in the USA with a Green Card
Exiting the USA and moving back to your country of birth.

In this podcast we discuss many issues including how to seek the kind of assistance you will need!

May 2, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

For Good And Evil Podcast 19 - April 25, 2022

In this episode we continue the teaching of Charles Adams - Lesson 20:

_____________________________________________

"People tend to resist heavy taxation in the following ways: First, lawful avoidance; second, if avoidance fails, then either evasion or a flight to avoid tax; third, rebellion; and finally, when there is no other alternative, they have accepted the serfdom when it offered the only relief from outrageous taxation."

April 25, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

For Good And Evil Podcast 18 - April 18, 2022

In this episode we continue the teaching of Charles Adams - Lesson 19:

_____________________________________________

"The income tax is a bastardized form of wealth taxation, because the more a taxpayer possesses, the easier it is to avoid taxable income. A person's wealth and ability to pay do not necessarily bear any relation to taxable income."

April 18, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

For Good And Evil Podcast 15 - March 14, 2022

For Good And Evil Podcast 16 - March 20, 2022

For Good And Evil Podcast 17 - March 20, 2022

In this episode we continue the teaching of Charles Adams - Lesson 18:

_____________________________________________

"Great wealth, as if by magic, disappears when governments adopt taxation to "soak the rich". The rich have always had the means to escape heavy taxation."

April 13, 2022 - Participants Include:

Jim Bennet - Fair Tax

Steven Hayes Fair Tax

Joe Howard - @EndCBTNow

John Richardson - @ExpatriationLaw

On March 27, 2022 I hosted Jim Bennet of "Fair Tax" and learned about the "Fair Tax Proposal". Today, Jim Bennet returned as a guest and was joined by Steve Hayes and Joe Howard.

Mr. Hayes and Mr. Bennet are the primary movers and creators of H.R. 25 "The Fair Tax Act of 2021" which can be viewed here.

At the risk of oversimplification, H.R. 25 proposes to replace Subtitle A (Income Tax), Subtitle B (Estate and Gift Tax) and Subtitle C (Employment Tax) of Title 26 (The Internal Revenue Code) with one comprehensive consumption tax.

If enacted the "Fair Tax" would create a U.S. tax system that:

was a territorial (tax imposed on activity in the US only) based on a consumption tax (tax imposed on consumption and not income)
allowed certain low income people to apply for tax abatements
made the U.S. a more attractive location for foreign investment and business activities
ended the tax filing requirement for individual taxpayers (and therefore ended the "Regulatory Oppression" experienced by individuals in general and Americans abroad in particular)
ending the relevance of "tax residency" because taxation would be based on spending only
solved the problems of citizenship tax as experienced by US emigrants and accidental Americans

The adoption of the "Fair Tax" would result in a major change in US society. As the great tax historian Charles W. Adams taught:

As goes taxation, so goes civilization!

I strongly suggest that Americans abroad support the "Fair Tax" movement!

April 12, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Note: This podcast is based on a blog post published today here.

The Biden Administration recently released its Green Book of tax proposals. Although not likely to become law soon, the Green Book often provides advance notice of major changes in the US tax system. On page 31, the administration proposes to completely change how gifts are taxed. This change is introduced with the title:

"Treat transfers of appreciated property by gift or on death as realization events"

The basic idea is to follow Canada and Australia and treat gifts/bequests as "deemed sales" made at the time of the gift. The gift would take place at fair market value. In other words, an ordinary gift might generate a taxable capital gain.

In this podcast Virginia and I discuss:

how this creates a new and additional tax on gifts and bequests
how the new tax would work
how this might interact with the existing Estate and Gift tax regime
why this might be a particular problem for Americans abroad
why Americans abroad considering making gifts might consider making those gifts sooner rather than later.

April 11, 2022 - Participants Include:

Jimmy Sexton, Esquire Group - @JimmySextonLLM

John Richardson - @ExpatriationLaw

The recent public disclosure that Rushi Sunack's wife Akshata Murthy has elected UK "non-dom" status has drawn attention to UK "non-dom" status as a tax planning opportunity.

This is the second podcast where I have explored the entitlement to and workings of non-dom status. Interestingly the claim of entitlement to "non-dom" status appears to be based on the fact that she is NOT a British citizen but a citizen of India. The public outrage seems to be rooted in the observation that "citizenship" is neither relevant not determinative of either citizenship or domicile. If citizenship is not relevant for the purposes of taxation, then one wonders why the United States continues it's citizenship tax regime.

In this discussion, Jimmy and I explore the "inner workings" of the "non-dom" system. We discuss this from both a tax and immigration perspective.

In addition we explore their status as Green Card holders and how this may or may not interact with the claim of UK "non-dom" status.

April 9, 2022 - Participants Include:

Diane Gelon - Diane@DianeGelon.com

John Richardson - @ExpatriationLaw

An earlier podcast with Diane Gelon is here.

In the 21st Century The Most Interesting Thing About A Person Is His Tax Residency!

The recent story of the Uk Chancellor Of The Exchequer Rishi Sunak and his wife Akshata Murty are evidence of this. The last week has featured story after story describing how Ms. Murty was legally able to elect UK "non-dom status" to avoid paying UK tax on certain income sourced outside the UK. Apparently her claim of entitlement to her non-dom status has been based on the fact that she is a citizen of India and not a British citizen (and that she eventually plans to return to India). Predictably this has led to outrage - described here - from the general public.

The difficulties were compounded by the revelation that both Rishi Sunak and Askshata Murty are reported to have been US tax residents because they had Green Cards. Although it is not clear when the Green Cards were abandoned, it appears that Rishi Sunak held a Green Card when and after his UK political career began.

I have attempted to identify and describe a number of the issues in the following twitter thread:

https://threadreaderapp.com/thread/1512035483919998981.html

In this podcast I am again joined by UK based US lawyer Diane Gelon. In this episode we discuss:

how the non-dom regime works and how it can benefit people (include US citizens) who wish to immigrate to the UK
how and where Ms. Murty's non UK income might be taxed under the rules of international tax
the effect of having the US Green Card and why that means that Mr. Sunak and Ms. Murty were also US tax residents (although apparently they used a tax treaty tie breaker to be treated as nonresidents from a US tax perspective)
why the debate over Ms. Murty's non-dom status is really a public referendum on US citizenship taxation.

In the 21st Century the most interesting thing about a person is his/her tax residency, actual residence, citizenship and domicile!

March 29, 2022 - Participants include:

Andrew Grossman - @AndyGr

John Richardson - @Expatriationlaw

For me, the opportunity to speak with Andrew Grossman is a great privilege. Mr. Grossman had a long career in the U.S. Foreign Service having served all around the world. In 1979, he left Tehran approximately 24 hours before the US Embassy was occupied.. In 1985 he dealt with the American citizens who were "caught" up in the TWA hijacking.

Professionally, Mr. Grossman is a superb lawyer with a speciality in citizenship law and how US citizenship law intersects with taxation internationally.

In this podcast we revisit some of my previous discussions with Andrew (see below). He is a prolific researcher in the areas (and intersection) of US citizenship taxation, FATCA and FBAR. Much of his research is consolidated in: "Update: FATCA: Citizenship-Based Taxation, Foreign Asset Reporting Requirements and American Citizens Abroad."

I have previously interviewed Mr. Grossman twice in Montreal:

Interview with Andrew Grossman - March 16, 2014 - Montreal, Canada

Catching Up With Andrew Grossman - December 8, 2016 - Montreal, Canada

I had the privilege of participating with him in a panel discussion in London here ...

With Solomon Yue, David Treitel and Andrew Grossman - October 8, 2018

___________________________________

Look for "Part 2" to this podcast in the next few weeks ...

March 22, 2022 - Participants Include:

Stephane Tajick - GlobalRCG.com

John Richardson - @Expatriationlaw

More and more people are understanding the importance of "global mobility options". For some people this is a second residence. For some it is a second citizenship. The last decade has witnessed the growth of "Citizenship By Investment".

"Citizenship By Investment" programs allow people to acquire a second citizenship in return for some sort of cash payment. The growth of the industry has generated opposition to these programs. Citizenship by investment should not be confused with "tax residency". Nevertheless, various governments have taken the position that "citizenship by investment" programs should end.

The recent Russia/Ukraine conflict has generated sanctions against both Russia and many Russian citizens. Some of the sanctions against Russian citizens have been in the form of denying Russian citizens access to "citizenship by investment".

My guest, Stephane Tajick, recently wrote an article in the IMI Daily questioning the continued existence of "citizenship by investment" programs. He asks:

"Are We Witnessing The Extinction Of Citizenship By Investment?"

Stephane joins me to discuss this question ...

March 20, 2022 - Participants Include:

Karen Alpert - @FixTheTaxTreaty

Keith Redmond - @Keith__Redmond

John Richardson - @Expatriationlaw

__________________________________________________

For many people renunciation is a very difficult decision. Citizenship is a part of one's identity. Therefore, the renunciation decision includes many different factors. Some factors (tax, finance and immigration considerations) are objective. Other factors (identity, future plans and impact on family are more subjective.

In this podcast we discuss how these issues may interact and how to be satisfied that you have made an appropriate and defensible decision.

Those interested in a more technical and tax focused discussion of renunciation may find this recent interview/discussion - Renouncing US Citizenship - between John Richardson and Peter Palsen to be of interest.

March 17, 2022 - Participants Include:

Jim Bennett - Fair Tax

John Richardson - @Expatriationlaw

Albert Einstein famously remarked that:

"The hardest thing to understand in the world is the income tax."

The income tax may also be the most unfair tax.

Fair Tax is a leader in educating and advocating for a "Fair Tax" which imposes taxation on only consumption.

This podcast features a discussion with Jim Bennet who is one of the most focussed and prominent advocates for the "Fair Tax" in the world.

Interestingly, the enactment of the "Fair Tax" would have the unintended consequence of ending the taxation of Americans abroad.

______________________________________________________

The concept of the income tax coupled with worldwide taxation means that "tax residents" of a country are subject to taxation on their worldwide income. This leads to enormous complexity, compliance costs, uncertainty, anxiety and unfairness.

Many countries (Canada and the United States) have both an income tax and a consumption based tax. Some countries have only a consumption tax (example Bahamas).

Because of the unfairness, discriminatory nature, complexity and cost of administering an income tax system, there is a movement toward moving toward ONLY a consumption tax system.

Nobody explains this better than Jim Bennett. I thank him for being my guest today.

Learn more about the "Fair Tax" here.

March 14, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

For Good And Evil Podcast 14 - March 7, 2022

In this episode we continue the teaching of Charles Adams - Lesson 15:

_____________________________________________

"As taxes increase, evasion increases. "

March 7, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

For Good And Evil Podcast 11 - January 31, 2022

For Good And Evil Podcast 12 - February 7, 2022

For Good And Evil Podcast 13 - February 14, 2022

In this episode we continue the teaching of Charles Adams - Lesson 14:

_____________________________________________

" Wars produce new taxes and high tax rates, but when the emergency ends, governments will try to retain their newly enlarged taxing powers."

March 4, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

_________________________________________________

On February 23, 2002 I had the privilege of speaking with noted FBARologist Virginia La Torre Jeker. In that podcast we discussed the FBAR obligations that attach to a trust itself. This podcast explores when the individuals who are part of the trust (settlor, trustee and beneficiaries) have FBAR obligations because of their relationship to the trust. This podcast is based largely on Virginia's post published on March 3, 2022 which discussed this important issue.

A surprising realization is that there are circumstances when a beneficiary of a trust will not know and cannot know whether they have an FBAR obligation.

February 25, 2022 - Participants Include:

Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

On February 25, 2022 Karen Alpert and John Richardson of SEAT hosted a meeting for individuals who were interested in how to advocate for tax changes for Americans abroad.

In general terms the podcast focussed on the necessity of individual advocacy and aligning with the common message of severing citizenship from tax residency.

This podcast is a recording of part of the discussion. After the podcast the recording ceased and the group engaged in general discussion.

These meetings will continue periodically.

You can find the outline for the meeting here.

February 23, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Prologue - Report Early! Report Often! Report Everything! Keep A Record Of What You Report!

In October of 2018, Virginia and I went "Looking For Mr. FBAR." During the last three years we have uncovered many clues, we have learned many things, but it's clear that we have not yet located Mr. FBAR. Virginia has written about many of her "sightings" in a series of "FBAR posts". I have also written a number of posts documenting the various adventures of Mr. FBAR.

Mr. FBAR is elusive. He is is simultaneously not anywhere, but everywhere. There is no weapon in the US arsenal of forms that has created such fear and uncertainty. He has even threatened certain visitors to the United States for the failure to file an FBAR.

Legal Authorization

The statutory authorization which gave birth to Mr. FBAR is found in 5314 of the Bank Secrecy Act. Most of the substantive law is found in Treasury Regulations and the IRS instructions. It's important to note that Mr. FBAR lives in Title 31 (Bank Secrecy Act) which is different from Title 26 (Internal Revenue Code).

Mr. FBAR And The Filing Obligations Of Trusts

This podcast is a discussion of how Mr. FBAR impacts "trusts". When is a trust a United States person? When must a trust file an FBAR to report the "financial accounts" of a related purpose of entity?

January 31, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

For Good And Evil Podcast 10 - January 24, 2002

In this episode we continue the teaching of Charles Adams - Lesson 11:

_____________________________________________

"If liberty is to be defended with success against the dominance of the state, then financial privacy must be preserved. Banking privacy is one of the cornerstones of liberty, having its roots in the early principle of English law that a man's castle (primarily his treasury) is beyond the surveillance of the King."

_____________________________________________

February 11, 2022 - Participants Include:

Amy Purcell - @Amy_From_Sydney

John Richardson - @Expatriationlaw

______________________________________________________

A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".

In her first podcast Amy told her story of becoming acquainted with the "Twin Horrors Of FATCA and Taxation Based Citizenship". In this, her second podcast, we continue the discussion with an emphasis on the importance of Americans abroad:

becoming vocal about the injustices of FATCA and US extraterritorial taxation
using the right to vote strategically and as an opportunity
contributing to the struggle by doing what they can!

After all, the United States is actually imposing direct taxation on income earned in Australia by an Australian resident. It's no wonder that Amy describes this as hard to believe and "spacey".

______________________________________________

Amy Purcell is a an example of where perseverance and motivation can lead!

February 6, 2022 - Participants Include:

Amy Purcell - @Amy_From_Sydney

John Richardson - @Expatriationlaw

______________________________________________________

A fascinating discussion with Amy - born to a US citizen mother in Australia - who has lived in Sydney Australia her whole life. She has visited the United States but has never had any economic connection to the United States. In other words, she is an "Accidental American".

In March of 2021 she received a FATCA inquiry from her Australian bank. In this podcast she describes her "OMG Moment". She generously describes her emotions, her response (getting a Social Security Number) and filing taxes through the streamlined process.

Amy then describes her advocacy which included contact with a US based politician. Her description which was posted on Facebook included:

______________________________________________

"I have some fantastic news!!!

I finally got to meet a USA politician!!!

Just got off a call with David Anderson from Texas. He was shocked and surprised at the tax situation and FATCA issues faced by citizens abroad.

It is encouraging to have the support."

_________________________________________________________________

Amy Purcell is a an example of where perseverance and motivation can lead!

February 4, 2022 - Participants Include:

LJ Eiben - Raymond James - @L_Eiben

John Richardson - @Expatriationlaw

Mr. LJ Eiben first participated as a guest in November of 2021 when we discussed US Social Security for Americans abroad. On January 26, 2002 he returned for a discussion about Canada Pension Plan and Old Age Security.

Today he returns to tell the story of Raymond James and it arose in response to the very real problems experienced by real individuals with ties to both the United States and Canada. LJ describes how Raymond James established itself as a cross broker/investment advisor/financial planner for individuals which include: US citizens living in Canada, Canadians moving to the United States and Green Card holders moving back to Canada. Canadian residents with US IRAs can hold their IRA with Raymond James. Canadians moving to the United States can continue to hold their RRSPs with Raymond James.

The bottom line is that Raymond James allows to those who move between Canada and the United States to keep their investments in one place.

The network of Raymond James advisors is large and growing and advisors are found throughout Canada.

For a description of Raymond James services and some case studies click here.

___________________________________________________

Mr. LJ Eiben is a Financial Advisor at Raymond James.

The information in this podcast was obtained from sources RJA and believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are not necessarily those of Raymond James (USA) Ltd. Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Raymond James (USA) Ltd. is a member of FINRA / SIPC

_________________________________________________________________

February 2, 2022 - Participants Include SEAT Members:

Karen Alpert - @FixTheTaxTreaty

Suzanne Herman - @SuzanneHerman1

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

_______________________________________________________

This discussion was held to discuss and questions of:

A. What is residence-based taxation; and

B. What is not residence-based taxation

The conversation is divided into the following three modules:

What is the difference between definitions of "tax residency" (who is subject to tax) and "worldwide taxation" (what is the scope of income that is taxed?
What does SEAT mean by "PureRBT"?
There are millions of Americans abroad: Thoughts on how to transition from citizenship-based taxation to PureRBT ...

Thanks to all attendees who participated in the later discussion.

January 29, 2022 - Participants Include:

Athena Mason - OurVoices.party

Marc Mixon - OurVoices.party

John Richardson - @Independents

Joe Howard - @JustJoe12345678

___________________________________________________

This Joe Is No Ordinary Joe!

Democracy Is NOT A Spectator Sport!!

On December 23, 2021 I was joined by Joe Howard to discuss how Americans abroad can become part of "democratic renewal in America". This is a continuation of our discussion. We are joined by Athena Mason and Marc Nixon. Both Athena and Marc are leaders in the movement to create a democracy in America where the interests of all Americans are considered. You are invited to connect with Athena and Marc at OurVoices.party.

The description to the December 23, 2021 podcast included:

There are two groups of Americans whose interests are not considered in the political process.

Group 1 - Americans Abroad: US citizens living outside the USA who are very much aware that their interests are not represented.

Group 2 - Resident Americans: US citizens living inside the USA who (although able to vote) do not have the opportunity to vote for candidates who represent their interests. They are increasingly becoming aware that their interests are not represented.

Unfortunately the US political process is run for and only for the mainstream political parties. Neither party has either awareness or concern for the interests of Americans abroad. To put it simply:

"It's not they don't care. It's that they don't care that they don't care!"

There is no short term solution to the "PartyOcracy" of US politics. In the long run "Democracy In America" will survive only with the creation of new political parties and through the rise of independent candidates. This is the only way to nourish candidates who represent the interests of the voters rather than the interests of the parties.

In today's podcast I had the opportunity to speak with Joe Howard. Joe is an American (with an interesting background) living in Thailand where he teaches English and Physical Education. He is also working on a Masters in Education through the University Of The People.

Joe is doing what no expat or group has done before. He is working with new political parties to ensure that the interests of Americans abroad are represented and that pure residence-based taxation is part of the agenda/platform.

He is currently working with the "United People's Assembly" which is creating an Americans Abroad caucus. With or without changes in US tax policy it is essential that the interests of Americans abroad find a home in the US political process.

Americans abroad are good at complaining and bad about taking specific steps to help their situation. You are invited to ride on Joe's work. All that is required is that you support democratic renewal for Americans abroad!

United People's Assembly (Guilded) is getting organized. The Guilded link is an invite link. https://www.guilded.gg/r/zzARmrndBl?i=AnbwnlXA

You can (and should) contact Joe at: american.expat.rbt@gmail.com

Remember, This Joe Is No Ordinary Joe! _________________________________________________________ To learn more about the "University of the People" (an amazing initiative) https://www.uopeople.edu/

January 28, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Hamza Assyad - A Green Card Holder Living In The USA - @AssyadHamza

_________________________________________________________

Renouncing US Citizenship:

On January 14, 2022 my podcast guest was Max. Max was born a dual citizen who moved from the USA - as a young adult to Germany - and renounced his US citizenship. It was a particularly interesting discussion because of the reason Max offered as leading to the renunciation decision. After a great amount of research, reflection, deliberation Max determined that his US citizenship made it impossible to engage in normal financial and retirement planning. You can listen to the "Max Podcast" here.

Abandoning The Green Card:

Shortly after the "Max Podcast" I was contacted by Hamza who offered to describe why:

As a Green Card holder living in the USA he had chosen to NOT naturalize as a US citizen; and
Why he was planning to move from the United States before he would be subject to the US 877A Expatriation Tax (becoming a "long term resident" who was a "covered expatriate").

Hamza's decision was informed by the fact that he did NOT plan to live in the United States permanently and therefore could not risk staying too long.

Today's podcast with Hamza was particularly interesting because it also includes a comparison between the US 877A Exit Tax and Canada's Departure tax. (Hamza was a "permanent resident" of Canada before moving to the United States and receiving a Green Card.)

Throughout history the United States has benefitted greatly from immigration to the United States. Hamza is part of a young, dynamic and skilled generation of Green Card holders who believe it is too risky to live permanently in the United States or to live as a US citizen.

January 26, 2022 - Participants Include:

LJ Eiben - Raymond James - @L_Eiben

John Richardson - @Expatriationlaw

Mr. LJ Eiben first participated as a guest in November of 2021 when we discussed US Social Security for Americans abroad. Today he returns for a discussion about Canada Pension Plan and Old Age Security.

___________________________________________________

Mr. LJ Eiben is a Financial Advisor at Raymond James.

The information in this podcast was obtained from sources RJA and believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are not necessarily those of Raymond James (USA) Ltd. Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Raymond James (USA) Ltd. is a member of FINRA / SIPC

_________________________________________________________________

Financial planning has become a necessity for all individuals and families. US citizens living outside the United States face particularly difficult hurdles. Much of this is the result of the requirement of filing taxes in both Canada and the United States. What one tax system gives, the other taxes. As a result, it is essential that US citizens receive specialized financial, investment, tax (and even life) advice. In general the receipt of US Social Security is NOT dependent on being a US citizen. Hence it is available to all individuals who "paid into the system" without regard to citizenship. It is available to Green Card holders returning home, US citizens living abroad and those who renounced US citizenship.

Raymond James as a "cross border platform" which means that (in general) it can hold US investments in Canada for Canadians.

__________________________________________________________________

Canada Pension Plan And Financial Planning:

When it comes to Canada Pension Plan it's important to NOT leave money on the table. In this podcast Mr. Eiben gives his reasons for why it may make sense to delay receiving Canada Pension Plan to age 70 which will result in significantly higher payments. In addition, those higher payments will result in higher spousal/retirement benefits!

January 24, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

For Good And Evil Podcast 9 - January 17, 2022

In this episode we continue the teaching of Charles Adams - Lesson 10:

_____________________________________________

"Tax exemptions are inherently unjust unless they actually apply to everyone. If the constitutional principle of equality before the law is ever applied to taxation, then those in control of tax making must bear the same taxes as those on the outside. This means that in an aristocracy or oligarchy, the few would have to bear the same taxes as the many, and in a democracy, the many should bear the same taxes as the few."

_____________________________________________

January 17, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

For Good And Evil Podcast 8 - January 10, 2022

In this episode we continue the teaching of Charles Adams - Lesson 9:

_____________________________________________

"Consent is required for all lawful taxation, either by long-standing custom or by the common consent of the taxpayer. When a state taxes without bona fide consent, regardless of the equities or the reasonableness of the tax, rebellion and civil disobedience are justified."

_____________________________________________

January 10, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

For Good And Evil Podcast 7 - December 7, 2021

In this episode we continue the teaching of Charles Adams - Lesson 8:

_____________________________________________

"Taxpayer discontent threatens the peace and prosperity of the social order, more so than misbehaving taxpayers do; consequently the criminal arm of the tax system should be directed against oppressive tax agents rather than angry taxpayers."

_____________________________________________

January 21, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jim Gosart - Vice-President Republicans Overseas

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Attention! We are entering "International Waters"! US Citizens be advised that you may now be subject to double taxation!

__________________________________________________

To Whom Much Has Been Given, Much Is Expected!!

Yes, it's true! A US citizen, because and only because of the combination of US citizenship-based taxation coupled with living outside the United States, is likely to be subject to double taxation. The following discussion explains why.

Part A: Introduction – About Citizenship-based Taxation Part B: How the Internal Revenue Code is designed to mitigate the effects of double taxation in certain circumstances Part C: Determining what is “foreign source” income Part D: The problem of international waters … Part E: The effect of sourcing to the US income earned in international waters by dual tax residents Part F: Deducting “foreign taxes” paid – although income from international waters may not be foreign, it is still subject to the payment of “foreign taxes” Part G: Can a US citizen living abroad be saved by a tax treaty? Maybe if he/she lives in Canada**** Part H: Conclusion and the need for “Pure Residence-Based Taxation”

You can read the horrible details here ...

https://www.taxconnections.com/taxblog/airline-and-cruise-ship-employees-how-income-earned-in-international-waters-may-lead-to-double-taxation-for-only-americans-abroad/

January 14, 2022 - Participants Include:

John Richardson - @Expatriationlaw

Max - A former US citizen residing in Germany

The value of US citizenship depends largely on your age. As a general principle, I believe that the value of US citizenship is inversely correlated with age. US citizenship is more valuable to younger people who are in the process of building their careers. After all, there are many job and career opportunities in the United States. The younger you are, the more valuable US citizenship is.

As of late, I am seeing more and more people in their twenties considering renouncing US citizenship. After "tweeting" this trend, Max (a resident of Germany) contacted me and expressed his willingness to explain his reasons for renouncing.

This podcast is a very lucid description of why middle class people living outside the United States are renouncing US citizenship. I suggest that it be spread far and wide!

A special thanks to Max for sharing!

January 10, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

__________________________________________________

The Issue:

Is the expatriate required to certify that he is in compliance at the moment of expatriation? Can compliance problems be fixed after expatriation?

____________________________________________________

Who Is A Covered Expatriate? - The Statute

The Covered Expatriate - IRC 877(a)(2)

(2)Individuals subject to this section This section shall apply to any individual if—

(A) the average annual net income tax (as defined in section 38(c)(1)) of such individual for the period of 5 taxable years ending before the date of the loss of United States citizenship is greater than $124,000,

(B) the net worth of the individual as of such date is $2,000,000 or more, or

(C) such individual fails to certify under penalty of perjury that he has met the requirements of this title for the 5 preceding taxable years or fails to submit such evidence of such compliance as the Secretary may require.

_____________________________________________________________

Our Conclusion:

In this podcast Virginia La Torre Jeker and John Richardson discuss why they believe that compliance at the point of expatriation is a sufficient but not a necessary condition to avoid covered expatriate status.

January 7, 2022 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

The Background - An Exclusion From Capital Gains

Internal Revenue Code Section 121 provides (in certain circumstances) a $250,000 exclusion from taxation on the capital gain on the sale of a principal residence.

Covered Expatriates, The Exit Tax and "Deemed Capital Gains"

When a covered expatriate renounces US citizenship he/she is subject to a capital gains tax based on the deemed sale of all property. Specifically 877A includes:

26 U.S. Code § 877A - Tax responsibilities of expatriation

(a)General rules For purposes of this subtitle—

(1)Mark to market

All property of a covered expatriate shall be treated as sold on the day before the expatriation date for its fair market value.

(2)Recognition of gain or lossIn the case of any sale under paragraph (1)— A) notwithstanding any other provision of this title, any gain arising from such sale shall be taken into account for the taxable year of the sale, and

The Issue:

Do the words "notwithstanding any other provision of this title" mean that the S. 121 exclusion is not available to "covered expatriates" renouncing US citizenship?

On January 6, 2022 Dubai based US tax lawyer wrote a post discussing this issue:

https://us-tax.org/2022/01/06/covered-expatriates-exit-tax-and-the-principal-residence/

On January 7, 2022 Virginia joined me to explore this issue in this podcast.

January 3, 2022 - Participants include:

John Richardson - @Expatriationlaw

Jim Gosart - Vice-President Republicans Overseas

________________________________________________________

The United States is the only major country in the world that continues to impose worldwide taxation on its citizens when they move from the country and establish tax residency in another country. But, it gets worse. When US citizens move from the USA and establish tax residency in another country they are subjected to a separate and more punitive form of taxation that that imposed on US residents.

Nothing illustrates this principle better than the story of US citizens who attempt to carry on small businesses outside the United States. As well as the expensive forms and regulation, those US citizens who are "entrepreneurs abroad" risk being subject to tax on income they never received! Yes, it's true. Read on ...

US citizens abroad are generally subjected to various forms of taxation on "fake income" (meaning income they have never received). Some very common forms of "fake income" are found in Subpart F of the Internal Revenue Code. The Transition Tax and GILTI were created by the 2017 TCJA.

In this episode Jim Gosart and John Richardson discuss "fake income" as a general principle (it doesn't apply to US residents on their US based assets). The 2017 Transition Tax and GILTI are the result.

Our point is simple:

The only solution is for the United States to stop citizenship-based taxation and adopt pure residence-based taxation!

December 29, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Diane Gelon - London, UK based New York lawyer - DianeGelon.com

On November 29, 2020 London based US lawyer Diane Gelon joined me for a discussion about the current state of renunciation. That podcast may be accessed here. One year ago, we discussed the fact that the relevant statute - S. 349(a) of the Immigration and Nationality Act - does not require that the renunciation meeting take place inside a US Consulate of Embassy.

_________________________________________________________

The text of the statute is:

§1481. Loss of nationality by native-born or naturalized citizen; voluntary action; burden of proof; presumptions

(a) A person who is a national of the United States whether by birth or naturalization, shall lose his nationality by voluntarily performing any of the following acts with the intention of relinquishing United States nationality-

(1) obtaining naturalization in a foreign state upon his own application or upon an application filed by a duly authorized agent, after having attained the age of eighteen years; or

(2) taking an oath or making an affirmation or other formal declaration of allegiance to a foreign state or a political subdivision thereof, after having attained the age of eighteen years; or

(3) entering, or serving in, the armed forces of a foreign state if (A) such armed forces are engaged in hostilities against the United States, or (B) such persons serve as a commissioned or non-commissioned officer; or

(4)(A) accepting, serving in, or performing the duties of any office, post, or employment under the government of a foreign state or a political subdivision thereof, after attaining the age of eighteen years if he has or acquires the nationality of such foreign state; or (B) accepting, serving in, or performing the duties of any office, post, or employment under the government of a foreign state or a political subdivision thereof, after attaining the age of eighteen years for which office, post, or employment an oath, affirmation, or declaration of allegiance is required; or

(5) making a formal renunciation of nationality before a diplomatic or consular officer of the United States in a foreign state, in such form as may be prescribed by the Secretary of State; or

(6) making in the United States a formal written renunciation of nationality in such form as may be prescribed by, and before such officer as may be designated by, the Attorney General, whenever the United States shall be in a state of war and the Attorney General shall approve such renunciation as not contrary to the interests of national defense; or

(7) committing any act of treason against, or attempting by force to overthrow, or bearing arms against, the United States, violating or conspiring to violate any of the provisions of section 2383 of title 18, or willfully performing any act in violation of section 2385 of title 18, or violating section 2384 of title 18 by engaging in a conspiracy to overthrow, put down, or to destroy by force the Government of the United States, or to levy war against them, if and when he is convicted thereof by a court martial or by a court of competent jurisdiction.

(b) Whenever the loss of United States nationality is put in issue in any action or proceeding commenced on or after September 26, 1961 under, or by virtue of, the provisions of this chapter or any other Act, the burden shall be upon the person or party claiming that such loss occurred, to establish such claim by a preponderance of the evidence. Any person who commits or performs, or who has committed or performed, any act of expatriation under the provisions of this chapter or any other Act shall be presumed to have done so voluntarily, but such presumption may be rebutted upon a showing, by a preponderance of the evidence, that the act or acts committed or performed were not done voluntarily.

_________________________________________________________

The London Embassy continues to deny US citizens wishing to renounce the opportunity to make renunciation appointments.

In this episode Diane and I discuss possible renunciation options that may meet the requirements of the law while not requiring a specific appointment for the purposes or renouncing.

Thanks to Diane Gelon for her creative thinking!

______________________________________________________

Appendix:

The description of the November 29, 2020 Diane Gelon podcast was ...

"One the hand one, many Americans abroad are desperate to pay the $2350 USD fee to renounce US citizenship. On the other hand, the US State Department has stopped providing appoints to renounce.

Do US citizens have the right to renounce?

The 1868 Expatriation Act suggests that they have a statutory right to renounce.

Right of Expatriation

R.S. § 1999 provided that: “Whereas the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness; and whereas in the recognition of this principle this Government has freely received emigrants from all nations, and invested them with the rights of citizenship; and whereas it is claimed that such American citizens, with their descendants, are subjects of foreign states, owing allegiance to the governments thereof; and whereas it is necessary to the maintenance of public peace that this claim of foreign allegiance should be promptly and finally disavowed: Therefore any declaration, instruction, opinion, order, or decision of any officer of the United States which denies, restricts, impairs, or questions the right of expatriation, is declared inconsistent with the fundamental principles of the Republic.”

The 1967 U.S. Supreme Court decision in Afroyim suggests they have a constitutional right to renounce.

The fact is that there is no bar to conducting renunication appointments through video conferencing. It's too bad that the US government won't allow this."

https://prep.podbean.com/e/locked-into-us-citizenship-do-americans-have-the-right-to-renounce/

December 27, 2021 - Participants include:

John Richardson - @Expatriationlaw

Jimi Gosart - Vice-President Republicans Overseas

_________________________________________________

As President John F. Kennedy said:

"The great enemy of the truth is very often not the lie, deliberate, contrived and dishonest, but the myth, persistent, persuasive and unrealistic."

The Myth: Various media outlets continue to preach the "myth" that its wealthy Americans who are renouncing US citizenship (to avoid US taxation).

The Truth: It's middle class Americans abroad who are renouncing US citizenship. They are not renouncing because they want to. They are renouncing because they are forced to (if they wish to engage in normal financial and retirement planning in their country of residence).

In this episode Republicans Overseas Vice President Jim Gosart and John Richardson discuss these issues.

The fact that Americans abroad cannot survive under the US tax system is one more reason why the only solution for Americans abroad is:

Pure residence-based taxation - No Carveouts and No Left outs!

Pure residence-based taxation will solve the all problems for all people all the time!

December 23, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Joe Howard - @JustJoe12345678

_____________________________________________________________-

There are two groups of Americans whose interests are not considered in the political process.

Group 1 - Americans Abroad: US citizens living outside the USA who are very much aware that their interests are not represented.

Group 2 - Resident Americans: US citizens living inside the USA who (although able to vote) do not have the opportunity to vote for candidates who represent their interests. They are increasingly becoming aware that their interests are not represented.

Unfortunately the US political process is run for and only for the mainstream political parties. Neither party has either awareness or concern for the interests of Americans abroad. To put it simply:

"It's not they don't care. It's that they don't care that they don't care!"

There is no short term solution to the "PartyOcracy" of US politics. In the long run "Democracy In America" will survive only with the creation of new political parties and through the rise of independent candidates. This is the only way to nourish candidates who represent the interests of the voters rather than the interests of the parties.

In today's podcast I had the opportunity to speak with Joe Howard. Joe is an American (with an interesting background) living in Thailand where he teaches English and Physical Education. He is also working on a Masters in Education through the University Of The People.

Joe is doing what no expat or group has done before. He is working with new political parties to ensure that the interests of Americans abroad are represented and that pure residence-based taxation is part of the agenda/platform.

He is currently working with the "United People's Assembly" which is creating an Americans Abroad caucus. With or without changes in US tax policy it is essential that the interests of Americans abroad find a home in the US political process.

Americans abroad are good at complaining and bad about taking specific steps to help their situation. You are invited to ride on Joe's work. All that is required is that you support democratic renewal for Americans abroad!

United People's Assembly (Guilded) is getting organized. The Guilded link is an invite link. https://www.guilded.gg/r/zzARmrndBl?i=AnbwnlXA

You can (and should) contact Joe at: american.expat.rbt@gmail.com

_________________________________________________________ To learn more about the "University of the People" (an amazing initiative)

https://www.uopeople.edu/

December 20, 2021 - Participants include:

John Richardson - @Expatriationlaw

Jimi Gosart - Vice-President Republicans Overseas

In this episode we discuss a a proposed amendment to the Build Back Better bill which would disproportionately impact Americans abroad. The specific provision was a proposal to end the one carry year carry back of foreign tax credits allowed under Internal Revenue Code 904.

If passed this force Americans abroad to be more conscious of their US tax situation. When it comes to Americans abroad and US citizenship-based taxation Americans abroad should:

Think about CBT early! Think about CBT often! Think about CBT in relation to every aspect of their lives! And keep records of what they think about!

Thanks to Financial Times Reporter Emma Agyemang for this article!

____________________________ US bill threatens ‘double taxation for American expats in UK’ Carry back provision would be scrapped under measures considered by the Senate

Emma Agyemang

DECEMBER 17 2021

"UK-based Americans face cash flow headaches and possible double taxation due to a expatriate tax change proposed by the Biden administration Tax experts warned that the plan could eliminate the ability to offset tax paid in the UK against US liabilities on the same income. Measures being considered by the US Senate plan to abolish a carry back provision used when American expats have paid more tax abroad than they owe in the US. If UK tax is paid in the calendar year immediately following when the income is reported in the US, current rules allow for a backwards adjustment."

You can read the complete article here ...

https://www.ft.com/content/4c6d002d-5486-478d-88cf-83ff3847531d

December 14, 2021 - Participants Include:

Olivier Wagner CPA - @1040Abroad

John Richardson - @Expatriationlaw

The Expatriation Games - A Discussion with Oliver Wagner

This podcast features a practical and focussed discussion about some of the key issues in relinquishing US citizenship. Olivier has posted this podcast on his youtube channel.

These issues include:

There are two kinds of US citizenship:

US Citizenship for immigration/nationality purposes:
relinquished on the date of the relinquishing act
US Citizenship for tax purposes:
after June 3, 2004 relinquished on the date that notice is given to the US government
prior to June 3, 2004 relinquished on the date of the expatriating act

___________________________________________

Covered expatriate status - tax compliance is necessary:

one (but the not the only one) of the necessary conditions to avoid "covered expatriate" status is a certification of five years of tax compliance (in the five years prior to the year of the appointment at the Consulate)
obviously this means that a defensible level of tax compliance is required

____________________________________________

Significance of Form 8854:

After listening to this podcast I think this issue deserves further clarification as follows:

Since June 16, 2008 it is NOT necessary to file Form 8854 in order to sever tax residency from the USA. One ceases to be a US tax resident from the date of renunciation. This means that from that point on one is treated as a nonresident alien. But, note that renunciation does not cure/end past tax obligations.
But the tax certification of five years compliance is required to be done on Form 8854. This is is why filing Form 8854 is necessary for avoiding covered expatriate status
"covered expatriates" are subject to the 877A Exit rules and the 2801 tax impediments to making gifts or bequests to US persons

_________________________________________________

Reducing net worth to avoid covered expatriate status through gifting ... and more!

For most people a net worth in excess of 2 million USD on the date of expatriation will make one a covered expatriate
to make gifts is to reduce net worth (but there are requirements to make a valid gift).

December 13, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Our discussion this week does not focus specifically on the teaching of Charles Adams. That said, our discussion is motivated by our understanding of how taxation leads to the rise and fall of civilizations. We begin by discussing how the 2017 Section 965 Transition Tax was a huge benefit to a small number of US multinationals but a devastating blow to millions of individuals (particularly Americans abroad). Note that the benefits to resident Americans (and US corporations) makes it harder for the United States to see how destructive its tax policies can be to the lives of Americans abroad.

This week we discuss the general concepts of freedom and democracy and how:

freedom and democracy are not the same; and
how democracy and freedom are fundamentally at odds.

What happens when a majority through the democratic process diminishes the freedom of individuals? What human values should be protected from the democratic majorities through human/constitutional rights documents?

We discuss President Kennedy's 1961 Berlin speech where he clearly distinguishes freedom from democracy - noting also that the US (at that time) had never had to "put up a wall "to keep our people in". (I wonder what President Kennedy would have thought of the 877A Exit Tax?) Interestingly the speech focuses more on freedom than on democracy.

__________________________________________

Here is the text of the speech:

John Fitzgerald Kennedy Ich bin ein Berliner Speech, June 26, 1963 I am proud to come to this city as the guest of your distinguished Mayor, who has symbolized throughout the world the fighting spirit of West Berlin. And I am proud to visit the Federal Republic with your distinguished Chancellor who for so many years has committed Germany to democracy and freedom and progress, and to come here in the company of my fellow American, General Clay, who has been in this city during its great moments of crisis and will come again if ever needed.

Two thousand years ago the proudest boast was "civis Romanus sum". Today, in the world of freedom, the proudest boast is "Ich bin ein Berliner".

I appreciate my interpreter translating my German!

There are many people in the world who really don't understand, or say they don't, what is the great issue between the free world and the Communist world. Let them come to Berlin. There are some who say that communism is the wave of the future. Let them come to Berlin. And there are some who say in Europe and elsewhere we can work with the Communists. Let them come to Berlin. And there are even a few who say that it is true that communism is an evil system, but it permits us to make economic progress. Lass' sie nach Berlin kommen. Let them come to Berlin.

Freedom has many difficulties and democracy is not perfect, but we have never had to put a wall up to keep our people in, to prevent them from leaving us. I want to say, on behalf of my countrymen, who live many miles away on the other side of the Atlantic, who are far distant from you, that they take the greatest pride that they have been able to share with you, even from a distance, the story of the last 18 years. I know of no town, no city, that has been besieged for 18 years that still lives with the vitality and the force, and the hope and the determination of the city of West Berlin. While the wall is the most obvious and vivid demonstration of the failures of the Communist system, for all the world to see, we take no satisfaction in it, for it is, as your Mayor has said, an offense not only against history but an offense against humanity, separating families, dividing husbands and wives and brothers and sisters, and dividing a people who wish to be joined together.

What is true of this city is true of Germany - real, lasting peace in Europe can never be assured as long as one German out of four is denied the elementary right of free men, and that is to make a free choice. In 18 years of peace and good faith, this generation of Germans has earned the right to be free, including the right to unite their families and their nation in lasting peace, with good will to all people. You live in a defended island of freedom, but your life is part of the main. So let me ask you as I close, to lift your eyes beyond the dangers of today, to the hopes of tomorrow, beyond the freedom merely of this city of Berlin, or your country of Germany, to the advance of freedom everywhere, beyond the wall to the day of peace with justice, beyond yourselves and ourselves to all mankind.

Freedom is indivisible, and when one man is enslaved, all are not free. When all are free, then we can look forward to that day when this city will be joined as one and this country and this great Continent of Europe in a peaceful and hopeful globe. When that day finally comes, as it will, the people of West Berlin can take sober satisfaction in the fact that they were in the front lines for almost two decades.

All free men, wherever they may live, are citizens of Berlin, and, therefore, as a free man, I take pride in the words "Ich bin ein Berliner".

(President Kennedy's first debate with (to be) President Nixon also focusses on freedom.)

December 13, 2021 - Participants Include:

Dr. Laura Snyder - @TAPInternation

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

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Tax Sovereignty: All countries (including the US) has the right to create its own domestic tax policy. The question is how to solve the problem of US citizenship-based taxation from an international perspective.

The problem: US citizenship-based taxation means that US citizens are tax residents of the United States even when they are tax residents of other countries. Interestingly US tax treaties contain a provision called the "saving clause" which denies US citizens the benefits of a tax treaties. See for example Article XXIX of the Canada US Tax Treaty. Tax treaties generally include a residence tie breaker (usually Article IV) which allocates the tax residency of dual tax residents to one country or another. See for example Article IV of the Canada/US Tax Treaty. The "saving clause" denies residency tie break provisions to US citizens.

A solution: The saving clause always contains provisions that specify circumstances where the saving clause would not apply (double taxation, pensions, etc.) If the Article 4 residency tie breaker were added to the list of exceptions to the saving clause, then under the treaty:

US citizens would be eligible to benefit from residency tie break provisions; and
The treaty would allocate tax residency to the country where the individual actually lived and would specifically mean that US citizens would NOT be tax residents of the United States.

Notice that this solves the problems for individuals in all countries without discussing the specific problems that citizenship-based taxation causes in any one country.

A new multilateral agreement?

In addition (or as an alternative) to amending existing tax treaties, it would make sense for there to be a new multilateral agreement which would establish the principle that individuals can be a tax resident of only one country at at time.

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Further reading ...

Should Overseas Americans Be Required to Buy Their Freedom? Tax Notes, July 12, 2021

Mission Impossible: Extraterritorial Taxation and the IRS, Tax Notes, March 22, 2021.

Taxing the American Emigrant, The Tax Lawyer, Feb., 2021.

A Simple Regulatory Fix for Citizenship Taxation, Tax Notes, Oct. 12, 2020.

The Criminalization of the American Emigrant, Tax Notes June 29, 2020.

The Implications of Tax Residence for Human Rights (Paper prepared for the Accounting & Finance Association of Australia and New Zealand (AFAANZ) 2020 Annual Conference 1-11, July 5-7, 2020).

Callous Neglect: The Impact of United States Tax Reform on Nonresident Citizens, draft Jan. 8, 2019.

Investing with One Hand Tied Behind Your Back – An Australian Perspective on United States Tax Rules for Non-Resident Citizens, Jan. 8, 2018

SEAT's survey, May 4, 2021: http://seatnow.org/survey_report_intro_page/

December 9, 2021 - Participants Include:

Daniel Mazzola, CFA, CPA - American Portfolios

John Richardson - @Expatriationlaw

Charlie Munger Quotes and Wisdoms

On living within your means “Live within your income and save so that you can invest. Learn what you need to learn.” Charlie Munger

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On December 2, 2021 I joined Dan Mazzola in a discussion about the importance of Social Security. Social Security is one part of a financial planning plan. But, it is only one component!

As fewer and fewer people benefit from company pension plans it is becoming more and more important that people take personal responsibility for investing. To put it simply: investing and financial planning is not optional. It is an aspect of personal responsibility to yourself, your family and your country.

In this discussion we develop the theory that successful investing is much more about the habits and mindset of the individual. The actual investments are (in the long run) less important. As Benjamin Graham would have said:

"The investor’s chief problem - and even his own worst enemy – is likely to be himself."

It's important to ensure that investing is a long run decision and life style.

Investing is a marathon and not a sprint. But, the marathon of investing requires certain habits and a certain mindset.

There are many people who know what to do, but can't do what they know!

You will enjoy this conversation with Dan Mazzola.

December 6, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

For Good And Evil Podcast 6 - November 29, 2021

In this episode we continue the teaching of Charles Adams - Lesson 7:

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"All citizens, from recruits in the military to the chief leaders of society, should serve the state unselfishly, and if possible, without pay, motivated by a love for their country and an obligation to serve. Their primary reward should be the praise they receive from their fellow countrymen for a job well done."

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February 28, 2019 - Participants include:

John Richardson - @Expatriationlaw

Tim Smyth - @Tpsmyth01

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In 2014 the Alliance For The Defence Of Canadian Sovereignty filed its FATCA lawsuit against the Government of Canada. The trial was held in January of 2019 in the Federal Court of Canada. In July of 2019, the court ruled in favour of the constitutionality of the FATCA IGA and against the ADCS plaintiffs. The appeal of the ADCS-ADSC trial is being heard on December 13, 2021. In other words, it's almost three years since the trial. (Incidentally it took a full five years for the trial to be heard.)

Win lose or draw, we fully expect that the case will eventually be heard by the Supreme Court of Canada.

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This podcast was created in February of 2019 after the FATCA trial. The podcast was organized by Tim Smyth. I thought it would be interesting to repost this podcast in order to understand the perspectives at that time.

December 2, 2021 - Participants Include:

Daniel Mazzola, CFA, CPA - American Portfolios

John Richardson - @Expatriationlaw

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The retirement planning opportunities offered by entitlement to US Social Security are enormous. US Social Security payments are comparatively larger than equivalent plans in many other countries (including Canada Pension Plan).

Furthermore, U.S. Social Security offers benefits to:

The spouse of the individual entitled to Social Security
The survivors of the individual entitled to Social Security
The former spouse(s) (if married ten or more years) of the individual entitled to Social Security

Furthermore, for the most part citizenship is irrelevant to Social Security entitlement.

This is my third podcast discussing US Social Security.

The first podcast with Virginia La Torre Jeker focussed on the continuing entitlement to Social Security after renunciation.

The second podcast with L.J. Eiben of Raymond James focussed on Social Security for Americans abroad generally (in Canada particularly).

This third podcast with Financial Consultant and planner Dan Mazzola focuses on how US Social Security benefits work on a more granular level and what I would call "derivative benefits" (entitlement to benefits based on your relationship to somebody else entitled to benefits. In addition, Dan explains why (regardless of what an actuary says) it is to your benefit to wait as long as possible (not later than age 70) before collecting Social Security. A very high percentage of people rely on Social Security for a significant portion of their retirement income.

As Dan says on his site, it's important to consider the:

Integration of Social Security with retirement assets to generate predictable income stream that will span your lifetime.

November 27, 2021 - Participants Include:

Dr. Laura Snyder - @TAPInternation

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

Question:

Are Americans abroad part of the US community/society?

"When The US Taxes Americans Abroad But Excludes Americans Abroad From The Benefits Offered to US Residents ..."

The list is endless. It's worse than Americans abroad being subject to US taxation (even when they don't live in the USA). In fact, Americans abroad are actually subjected to a separate and more punitive system of taxation than resident Americans!

Think of it! In every other country of the world (the US is far worse than Eritrea) when an individual moves from the country and establishes a bona fide residence in the new country, the taxation stops. Not so for Americans. If an American moves from the USA and establishes residence in a new country he/she is taxed worse!

The punishment of those who more from the USA is truly the American way. See Laura Snyder's article where she discusses the criminalization of Americans abroad.

But, it gets worse! Americans abroad are specifically excluded from many of the tax benefits available to resident Americans. Some of these denials are discussed in this podcast. (And don't forget that Americans abroad are good enough to tax, but not good enough to vax.)

But, the most interesting part of this podcast is actually when Dr. Laura Snyder explains why:

The Fate Of Americans Abroad Is NOT The Same As The Fate of Some Of The Passengers on the Titanic.

But, this does depend on Americans abroad uniting behind the common purpose of ending citizenship-based taxation. Unfortunately, to date it appears that most Americans abroad are NOT willing to unite to achieve the goal of pure residence-based taxation.

November 29, 2021 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

Two Solitudes = U.S. State Department and U.S. Treasury

Virginia and I continue our podcasts in which we clarify myths and misconceptions about renouncing US citizenship. This podcast emphasizes the difference between the immigration/nationality aspects of renunciation vs. the tax aspects of renunciation.

Although tax compliance is NOT required to renounce US citizenship, renunciation without tax compliance does have tax consequences.

This podcast focuses on more areas of misunderstanding and confusion ...

Renouncing US citizenship triggers issues under each of:

The Immigration and Nationality Act under 349(a); and
The Internal Revenue Code under sections under 7701(a)(50), 877A and 877, 2801

To put it simply: There are a lot of moving parts.

In this podcast Virginia La Torre Jeker and John Richardson continue our discussion including:

Immigration/Nationality Issues:

is tax compliance required to be allowed to renounce US citizenship?
what are the legal requirements to renounce US citizenship?
is a second citizenship required in order to renounce?

Tax Issues:

what is a covered expatriate?
what does it mean to be subject to the US 877A expatriation tax?
how are different kinds of assets treated for the purposes of expatriation?
pensions vs. property ...
ways of avoiding covered expatriate status (gifts, pre-renunciation sales, etc.)
what about post-renunciation gifts from covered expatriates to US citizens?
Relief Procedures For Former Citizens

Previous podcasts with Virginia include:

How Does Renunciation Of US Citizenship Affect Entitlement To US Social Security Payments?

Is It True That Renouncing US Citizenship Will Result In Being Barred From The United States?

November 29, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

David Lesperance - Lesperance Associates

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

For Good And Evil Podcast 5 - November 22, 2021

In this episode we continue with The Teaching of Charles Adams Lesson 6:

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"Nature will not bestow wealth equitably. A few citizens will inevitably acquire great wealth, which by natural justice they should share with the community. But this sharing should be enforced by moral persuasion and a strong public opinion, not force and confiscation."

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This lesson invites the discussion of how (or whether) the wealth acquired by the wealthy should be made available to society for the greater good.

Government: On the one side we have:

Governments who will simply confiscate wealth through confiscatory confiscation.

On the other side we have:

Private Philanthropy: Private individuals who through gifting choose the causes that the wish to support.

Can wealth be better deployed for the public good through individual giving/sharing or through government confiscations? In the 1960s Sir John Templeton (when the Subpart F rules were enacted) renounced his US citizenship. Free of US taxation he was able to deploy his wealth (and he most certainly did) for the benefit of mankind.

The current trend is to more confiscation. There is evidence that the trend toward confiscation is continuing to encourage more and more expatriations.

Listen to our discussion ...

November 24, 2021 - Participants Include:

Dr. Laura Snyder - @TAPInternation

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

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On November 19, 2021 Congressman Beyer introduced HR 6057, the "Tax Simplification For Americans Abroad Act". This bill was the subject of two blog posts at:

SEATNow.org
CitizenshipSolutions.ca

You can read the text of the bill here.

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In this podcast we discuss the groups affected (or not) by this bill as follows:

The Good: Those with income of below $108.000 who are NOT the owners of CFCs.

The Bad: Those with incomes in excess of $108,000 who are NOT the owners of CFCs.

The Ugly: Entrepreneurs abroad who own CFCs.

We are of the view that should it become law that the primary effect would be to divide Americans abroad even more.

We firmly believe that:

Pure residence-based taxation is the ONLY solution that solves the problem for ALL people ALL the time!

No left outs! No carveouts! We advocate PURE RESIDENCE-BASED TAXATION FOR ALL!

November 11, 2021 - Participants Include:

L.J. Eiben - Raymond James - @L_Eiben

John Richardson - @Expatriationlaw

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Mr. L.J. Eiben is a Financial Advisor at Raymond James.

The information in this podcast and contained in these slides was obtained from sources RJA and believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are not necessarily those of Raymond James (USA) Ltd. Raymond James (USA) Ltd. (RJLU) advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered.

Raymond James (USA) Ltd. is a member of FINRA / SIPC

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Financial planning has become a necessity for all individuals and families. US citizens living outside the United States face particularly difficult hurdles. Much of this is the result of the requirement of filing taxes in both Canada and the United States. What one tax system gives, the other taxes. As a result, it is essential that US citizens receive specialized financial, investment, tax (and even life) advice. In general the receipt of US Social Security is NOT dependent on being a US citizen. Hence it is available to all individuals who "paid into the system" without regard to citizenship. It is available to Green Card holders returning home, US citizens living abroad and those who renounced US citizenship.

Raymond James as a "cross border platform" which means that (in general) it can hold US investments in Canada for Canadians.

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Social Security And Financial Planning:

Retirement pensions and Social Security are an important part of Financial planning. US Social Security and Canada Pension Plan are significant income sources for a high percentage of North Americans.

Therefore, it is essential that US citizens living in Canada (or anywhere outside the United States) be aware of US Social Security. What are the requirements to be eligible for US Social Security? How does the Social Security totalization agreement between Canada and the United States work? What about spousal benefits? (Did you know that the non-citizen spouse is eligible for Social Security based on marriage to a US citizen?) Survivor benefits? This is an extremely specialized area. Individuals need to be aware of Social Security benefits early!

For a primer on U.S. Social Security benefits click here.

Objective: Understand how Americans abroad can maximum their US Social Benefits for themselves and for their families.

November 22, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

For Good And Evil Podcast 4 - November 15, 2021

In this episode we continue with The Teaching of Charles Adams Lesson 5:

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"When wars or other great emergencies demand great revenues, then all citizens should be taxed according to what they are worth by equitable principles, not odious arbitrariness."

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Interestingly Mr. Adams uses the word "citizens". I doubt that this is an endorsement of citizenship-based taxation. Yet it does reflect a common assumption (especially when the book was published 30 years ago) that citizens are residents and that residents are citizens.

In this episode we extend our discussion into the world of the covid-19 epidemic. Surely this would qualify as an example of "other great emergencies". What is meant by "equitable principles"? What is "odious arbitrariness"?

is a "citizenship taxation" the equivalent of a "poll tax"?
is the taxation of Americans abroad while refusing to provide covid-19 vaccines to Americans abroad an example of arbitrariness which follows or violates the principle of "equitable principles"?
the United States has different tax systems for different kinds of people and these systems are examples of the "separate but equal" principle. Is the establishment of different tax systems for different groups a violation of the principle of equality or an enhancement of the principle of equality?

November 15, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

For Good And Evil Podcast 3 - November 8, 2021

In this episode we continue with The Teaching of Charles Adams Lesson 4:

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"The ancient Greeks produced the first civilization without despotism; they achieved this by discovering that tyranny is the product of the wrong kind of taxation, especially direct taxation."

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In the last few years we have witnessed the proposals and actual introductions of a number of taxes where there has been no actual income realization event. These include:

the proposed Warren wealth tax
the proposed Wynden billionaires tax
the 965 Transition Tax and GILTI
the 877A expatriation tax

Are any of these taxes "direct taxes"? If not "direct taxes" do they qualify as "income taxes" (even without an income realization event?

November 8, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

For Good And Evil Podcast 2 - November 1, 2021

In this episode we continue with The Teaching of Charles Adams Lesson 3:

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"All encompassing taxation, vests enormous power in the tax bureau, which, in time, tends to overpower not only the taxpayer but also other branches of government. Even kings and emperors had had to yield to the enormous power of their tax bureaus."

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In the United States the Internal Revenue Code has become the constitution of the United States. Not only does the IRS enforce the existing laws, but US Treasury (AKA the IRS) has been delegated the authority to make regulation, after regulation after regulation.

Through "citizenship-based taxation" the US imposes its tax code on individuals who live in other countries. Therefore, the IRS impacts the lives of people outside the United States all day every day!

The FATCA IGAs have caused the kings/emperors of other countries to yield to the enormous power of the US tax bureau.

October 28, 2021 - Participants include:

Ronald Aries - @Ronald77171496

John Richardson - @Expatriationlaw

In April of 2021 I did my first podcast with the Ronald Aries "The Dutch Pilot". Mr. Aries's story was the subject of a series of Articles at American Expat Finance. My first podcast with Mr. Aries may be heard here.

In this second podcast Mr. Aries shares his further thoughts on FATCA and how Dutch citizens are discriminated against when it comes to banking and financial services.

In the first round a Dutch court ruled that Mr. Aries (an Accidental American) was required to comply with the FATCA rules.

Mr. Aries continues on. On November 11, 2021 a Dutch Tribunal will hear his appeal from that decision.

I look forward to doing a subsequent podcast with Ronald Aries after the November 11, 2021 hearing.

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Afterthought and note: The podcast with Ronald included a discussion of the US Netherlands tax treaty. After the chat with Ronald, I checked the treaty in the Netherlands and confirmed that it is like the Canada/US tax treaty which stipulates that the Dutch Tax Authorities will not assist the IRS in collecting a tax debt on a Dutch citizen. See this:

https://isaacbrocksociety.ca/2016/11/01/dual-citizens-of-sweden-france-netherlands-denmark-canada-take-note-your-country-will-not-collect-for-the-u-s/#comments

The argument should be that the same group of people (citizens of the Netherlands) who have special status under the collection provisions of the treaty should also get a carve out from the FATCA issues. I have offered this argument in Canada ...

January 4, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Gary Carter - GWCarter.com

Prologue 2019:

In 2019 thousands of Americans abroad were issued $10,000 penalties for the alleged late of filing of IRS Form 3520A. The Form 3520A penalty story was well documented and discussed at Tax Connections by CPA Gary Carter. Ultimately the efforts of Gary and others played a role in Revenue Proc 2020-17 which provided a filing exemption for certain "Foreign Trusts". For those interested I highly recommend the following two posts at Tax Connections.

Form 3520 and Substitute Form 3520A For Foreign Trusts And Gifts From Nonresidents

Treasury Exempts Applicable Tax Favored Foreign Trusts - From The 3520 And Therefore The Form 3520A Requirement

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This podcast features a discussion with Gary Carter that includes:

What exactly is required for something to qualify as a trust under the Internal Revenue Code?
Assuming you have a trust, what does the Internal Revenue Code 6048 say about the reporting requirements (ultimately found in Form 3520 and Form 3520A)?
What exactly is a "substitute" Form 3520A and when is it due?
How and why did the IRS issue thousands of Form 3520A penalties in 2019?
How did the work of Gary and others lead to the IRS issuing Rev Proc 2017 (exempting certain foreign trusts from the 3520 and 3520A requirements)?
What about reasonable cause as a defense to the IRS penalties?
How can you get the penalties abated with a single phone call? (Answer: Call 267 941 - 1000 and select option 3. Tell them that you timely filed a Form 3520 and you filed a substitute Form 3520A with/attached to the Form 3520. Good luck!)

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A special thanks to Gary Carter for sharing his expertise!

November 1, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

Continuing our podcast series:

For Good And Evil Podcast 1 - October 25, 2021

Today we discuss the second lesson from Charles Adams "For Good And For Evil" was:

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"Whatever is taxed must be surveyed, if a tax system is all encompassing, liberty must give way."

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In this episode we break down the three component parts of this lesson:

Whatever is taxed must be surveyed
If a tax system is ALL encompassing
Liberty Must give way.

In analyzing these concepts we explore the recently proposed "billionaires tax", FATCA, CRS, PFIC, Transition tax, Foreign trust and more ...

For Good and Evil: The Impact of Taxes on the Course of Civilization

October 27, 2021 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

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Many US citizens are entitled to US Social Security Benefits. They have spent a life of paying into the system.

Those considering renunciation of US citizenship sometimes have concerns about how NOT being a US citizen might impact their entitlement to US Security Benefits (to which they would otherwise be entitled).

In this episode Dubai based international tax lawyer Virginia La Torre Jeker and John Richardson discuss how renunciation of US citizenship impacts these issues.

The short answer is that:

For the vast majority of people, renunciation of US citizenship will have no impact on their continued entitlement to US Social Security. It will however have an impact on the way those payments are taxed. (Note that renunciation of US citizenship affects BOTH how Social Security is taxed under the US Internal Revenue Code AND under applicable tax treaties.)

Further Resources:

US Gov - Your Payments While Outside The United States
US Social Security Information Site
More advanced questions and how long term residence abroad can impact US Social Security.

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Concerned about being barred from the United States after renouncing US citizenship?

Here is an earlier podcast with Virginia where we discuss the Reed Amendment and whether those renouncing US citizenship are really at risk of being barred from entering the United States. There is little evidence that renunciation of US citizenship (even if motivated by tax avoidance) will lead to being barred from entering the United States under the Reed Amendment.

October 25, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

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For Good And For Evil - Podcast 1 - Introducing The Series

I am really excited to annouce a new podcast series called "For Good And For Evil". The series is based on the book by Charles W. Adams titled:

For Good And Evil: The Impact Of Taxes On The Course Of Civilization

This is a truly incredible book. Although (perhaps) not popular when it was published, Mr. Adam's observations were remarkably prescient. To put it simply much of the current focus on taxation can be understood through the discussion of history in this remarkable book.

The book describes history in terms of taxation. (Was the US Civil War really about slavery or was it about taxation?) After 36 chapters of explaining history in terms of taxation, we reach Chapter 37. In Chapter 37 - "Learning From The Past" - Mr. Adams list 27 lessons to be learned about taxation from the past (the first 36 chapters). These 27 lessons will be the basis for our series of podcasts. (We will of course link this to previous chapters.)

I (John Richardson) am pleased to be joined in this "trip through history" (as explained by taxation) by Jimmy Sexton, LL.M. (CEO of the Esquire Group). Jimmy and I have spent many hours discussing these principles. This podcast series will bring you into the discussion. We will of course invite other guests.

At present we are planning to do a podcast every Monday morning EST - Toronto, Canada time.

I am excited about this project and am sure that many of you will find it interesting. So, go out and buy the book. Follow this series. Send us your thoughts and questions on Twitter.

In order to prime yourself, here is a link to a great video of an interview with the man himself - Charles W. Adams.

Enjoy!

For Good and Evil: The Impact of Taxes on the Course of Civilization

October 25, 2021 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richarsdon - @Expatriationlaw

As reported at American Expat Finance, the Government of Australia has solicited public comments about its tax treaties and tax treaty network. Dr. Karen Alpert, founder of the Fix The Tax Treaty site has prepared a submission to the Australian Government. You will find her submission here.

It is important that individuals impacted by this issue (US citizens living in Australia or Australian citizens living in the United States) take the time to comment on this issue!

The problems are summarized in Dr. Alpert's submission. As you know, the problems include but are not limited to: the Australian Superannuation, sale of the principal residence, PFICs, the "saving clause", etc. Please take the time to make a submission which details how the current system has harmed you!

Note from Karen:

I would encourage all affected Australian citizens and residents to make their own submission. You can download our submission from our post at http://fixthetaxtreaty.org/2021/10/23/treasury-submission/ and attach it as an appendix to your own submission describing how the inadequate treaty affects you. Send a copy to your Member of Parliament. Submissions are due 31 October 2021 (AEDT). Unless the Australian Treasury hears from those who are affected, they will continue to ignore the inadequacies of the tax treaty.

October 18, 2021 - Participants Include:

Jimmy Sexton of the Esquire Group - @JimmySextonLLM

John Richardson - @Expatriationlaw

Significantly the Pandora Papers revealed little tax evasion. The leak did reveal that many individuals (including the wealthy) have a desire to keep their personal affairs private. In many cases, the desire for privacy is NOT to hide assets from governments but rather to hide assets from the general public. (Some have argued that the focus is not on tax evasion but is preserving the integrity of the democratic process.)

In this podcast I am joined by Jimmy Sexton to discuss the the world of asset privacy. We make the distinction between hiding assets from governments and hiding assets from the your neighbours. Interestingly the United States (South Dakota and other states) have become world leaders in providing "privacy havens" for wealthy individuals.

We also discuss the possible implementation of wealth taxes and what they may mean and other aspects of living in a world where "the wealthy" (whatever that means) are increasingly under scrutiny.

There are two groups of people who will find this discussion interesting:

Those individuals who value privacy
Those individuals who do NOT value privacy.

Previous podcasts with Jimmy Sexton include:

https://prep.podbean.com/e/tax-haven-usa-why-the-usa-is-a-great-place-to-invest-for-nonresident-aliens-and-how-these-investments-might-be-structured/

https://prep.podbean.com/e/us-citizenship-renunciation-an-appointment-to-renounce-is-rare-opportunity-and-hard-to-find/

October 21, 2021 - Participants Include:

Professor Steven Dean - @BrooklynTaxProf

John Richardson - @Expatriationlaw

On October 21, 2021 I participated in a discussion with Professor Steven Dean of Brooklyn Law School. The discussion has been divided into two podcasts. This is Podcast 1.

As a professor Steven Dean understands the technical aspects of tax. That said, he is one of the very few tax academics who is a thought leader in understanding the sociological forces that have and continue to shape our current system of international taxation. Shockingly the international tax system is based on treaties that were entered into 100 years ago. As such those treaties reflect the values, assumptions and priorities of a world that no longer exists.

Steven Dean's writings draw attention to ways that the international tax system (reflecting the views and priorities of the privileged) impose and perpetuate hardship on the disadvantaged. Who could have imagined that poverty in some of the poorest countries of the world are exacerbated by the rules of international tax?

Our discussion on how taxation impacts countries and individuals includes the newsworthy Pillar 1, Pillar 2 and Professor Dorothy Brown's "The Whiteness Of Wealth".

His insights into the events that led to FATCA will be of particular interest to those Americans abroad who are fighting the injustices of FATCA and US citizenship-based taxation.

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What follows are links to some of his best and most interesting work. Each of these articles is referenced in the podcasts. I particularly recommend the "Ten Truths About Tax Havens" article below ...

Mainstream media for a mainstream audience

A Plea to President Biden to Stop Perpetuating Racist Tax Policy https://www.thenation.com/article/economy/biden-tax-policy/

Can The Powerful Global Tax Organization Shed Its Racist Ways?

https://www.thenation.com/article/economy/digital-tax-racism/

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Academic Papers

Steven Dean: A Constitutional Moment In Cross Border Taxation https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3900564

Steven Dean and Attiya Waris: The Ten Truths About Tax Havens https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3822421

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Bonus:

How Racial Diversity Shaped US International Tax Policy* https://www.forbes.com/sites/taxnotes/2020/07/27/how-racial-diversity-shaped-us-international-tax-policy/?sh=6100dcd4231c

*This is an interview with Robert Goulder of Tax Notes. The discussion sheds some light on the events leading to FATCA.

The Whiteness of Wealth: How the Tax System Impoverishes Black Americans--and How We Can Fix It

September 4, 2021 - Participants include:

John Richardson - @Expatriationlaw

Elliot Bramham - See bio below.

On September 3, 2021 Bloomberg published a fascinating article called "Updating Citizenship-Based Taxation". In describing the US extraterritorial tax regime, the author states:

"As of now, the current system effectively creates a new taxation regime for every jurisdiction in which the overseas citizen resides. Beyond mastering the tax code, agents are required to navigate the laws and financial products of multiple jurisdictions in addition to being versed in any bilateral taxation treaties and social security agreements in place."

This podcast is an interview with the author - Elliot Bramham. The podcast includes a discussion of the US extraterritorial tax regime and why it has driven the need for specialized financial planners who recognize and understand why US citizenship creates hurdles in financial and retirement planning. In addition, the article recognizes that the problem of citizenship-based taxation can be solved through either regulation or legislation ...

To whom much has been given (US citizenship), much is expected (US citizens)!

Bio:

Elliot Bramham is an international graduate in financial management and laws. Wanting to enable others to reach their full potential, he moved to the United Kingdom to begin a career in financial planning.

Linkedin:

https://www.linkedin.com/in/elliot-bramham/

August 12, 2021 - Participants include:

John Richardson - @Expatriationlaw

Robert Nielsen - @Nielsen_Robert

https://twitter.com/nielsen_robert/status/1424157530788401162

July 19, 2021 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @Expatriationlaw

March 17, 2021 - Participants Include:

John Richardson - @Expatriationlaw

More and more people are taking the steps to renounce their US citizenship or to abandon their Green Cards. US citizens who renounce US citizenship and Green Card holders who are "long term" residents are potentially subject to the Exit Tax rules found in Internal Revenue Code 877A.

Those who expatriate with a net worth of 2 million USD or more will (unless they have the benefit of the dual citizen from birth exemption) be subject to the 877A Exit Tax.

Many people who expatriate own property jointly with a spouse. There are different forms of joint ownership. The most common form of joint ownership in Canada and many other countries is "joint tenancy".

Therefore, the question of how "interests held in joint tenancy" should be valued is vitally important. It can make a difference between whether an individual is a "covered expatriate" or not.

Assuming one is a "covered expatriate", it is also important to understand how the Exit Tax rules apply (in the context of joint tenancy) assuming one is a covered expatriate.

This podcast is an excerpt from a presentation given by John Richardson on March 17, 2021

Obviously it is not intended to be and should not be relied upon as legal advice for any specific individual.

The general message is that (in most cases) the percentage of the ownership should follow the percentage of the contribution.

Part 2 will continue with a discussion about Part 1.

April 28, 2021 - Participants Include:

John Richardson - @ExpatriationLaw

Oliver Wagner - @1040Abroad

For dual Canada/US citizens living in Canada it's tax time. Specifically it's time to file both Canadian and US tax returns for the 2020 tax year.

2020 was a very difficult year. Dual citizens living in Canada may have received both the Canadian CERB payment and the the US CARES Act payment.

The basic principle, as discussed in this blog post, is that the Canadian CERB payment is taxable in both the US and Canada and that the US CARES Act payment is taxable in neither the US nor Canada.

US citizens residing in Canada may be eligible to receive up to $3200 US dollars of relief payments from the US government. This is your money to do with what you please!

________________________________________________________

Thanks to Olivier Wagner of 1040Abroad.com for participating in this podcast.

March 2021:

John Richardson and Trowbridge partner Wayne Bewick discuss global mobility and pensions. Should people be prisoners of the country where they earned their pension? Is it time for there to be a global tax treatment on the mobility of pensions?

April 8, 2021 - Participants Include:

John Richardson and Trowbridge partner Wayne Bewick discussion the Canadian tax landscape. Will the principal residence exemption from Canadian capital gains tax, survive the Covid-19 inspired tax storm?

March 10, 2021 - Participants include:

David Lesperance and John Richardson

The whole concept of taxation is including a move toward taxation that is NOT based on income realization events, but rather on the ownership of assets.

What does this mean for your residence and citizenship portfolios?

April 2, 2021 - Dr. Laura Snyder - @TAPInternation

About “citizenship-based taxation”- The US extraterritorial tax regime

The United States has the following three distinct tax regimes:

Source – like all countries: All income sourced to the United States is subject to U.S. taxation on U.S. source income (regardless of the “tax residence” or citizenship of the taxpayer);
Residence – like all countries: All individuals who are resident in the United States are subject to U.S. tax on their worldwide income; and
Extra-territorial tax regime – unique to the United States: The United States imposes worldwide taxation on the non-U.S. source income of certain individuals, who are tax residents of other countries and do NOT reside in the United States. This includes U.S. citizens living outside the United States.

Americans abroad are generally in the third category and are subject to the extraterritorial tax regime. They are subject to worldwide taxation by both the United States and their country of residence. Americans abroad do NOT as a general principle benefit significantly from tax treaties. This is because, all U.S. tax treaties contain a “saving clause” designed to ensure that Americans abroad are in effect subject to double taxation.

Who Are Americans Abroad?

The short answer is that Americans abroad are U.S. citizens living outside the United States in other countries. They run the whole circumstantial and economic spectrum of humanity. They include the poorest of the poor. They include some wealthy people. They include a large number of middle-class people. They include the employed, the self-employed and they include the unemployed. They include individuals who run small businesses in their country of residence. Some of these small businesses are run through corporate structures in the country where they reside and are tax residents.

Although Americans abroad are Americans who live in other countries, they are NOT and do NOT view themselves as “living offshore”!

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In order to let the US Senate Finance Committee know how the US Extraterritorial Tax Regime affects you, go here and select your template!

March 31, 2021 - The Return Of Coach Coutts

John Richardson and David ("Coach") Coutts discuss the essentials of staying healthy.

"Somebody's Gotta Care!"

March 29, 2021 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TapInternation

John Richardson - @Expatriationlaw

"Activism Is NOT A Spectator Sport!" - To learn how to make your personal submission to the Senate Finance Committee read the SEAT blog post here.

_____________________________________________________________________

On March 25, 2021 the Senate Finance Committee held one (of what I assume will be) of a number of hearings on International Taxation. Interestingly the title of the hearing was:

"How US International Tax Policy Impacts Americans Workers Jobs And Investment"

Interestingly and significantly the hearing did NOT discuss individual American workers, jobs or investment. The hearing was primarily focussed on the GILTI provisions found in S. 951A of the Internal Revenue Code. The hearing also discussed whether the US corporate tax rate should be increased. It's important to understand that:

Any change in the GILTI rules and/or an increase in the US corporate tax rate will have an impact on Americans abroad generally and those Americans abroad running small businesses particularly.

I have previously written about how an increase in the GILTI tax would impact Americans abroad here. I have written about how a general increase in the US corporate tax rate might impact Americans abroad here.

You can read about the hearing and watch the video of the hearing here:

https://www.finance.senate.gov/hearings/how-us-international-tax-policy-impacts-american-workers-jobs-and-investment

Helen Burggraf of American Expat Finance wrote an excellent article about the hearing which appeared here.

_________________________________________________________________

These International Tax Hearings are a very big deal. They will impact you as individuals. SEAT has prepared a submission. It's important that the Senate Finance Committee receive a large of number of submissions from individual Americans abroad.

We ask that you make a submission. We encourage you to watch the hearing and send your own submission. But, given the time it takes and the technical content, we have prepared some "submission templates" for you.

SEAT is working very hard to help you! Please take the time to send your submission. It's important that Senate Finance hears from individuals - individuals just like you!

"Activism Is NOT A Spectator Sport!" - To learn how to make your personal submission to the Senate Finance Committee read the SEAT blog post here.

March 10, 2021 - Participants Include:

Wayne Bewick - Partner at Trowbridge International Tax

John Richardson - Tax Residency Solutions

In the 21st Century your most important asset may be your tax residency!

Volatile times mean instability. Instability causes individuals and families to reconsider their life circumstances. Covid-19 has caused many people to reconsider those circumstances. The threat of Wealth taxes in the United States (including California and New York) is making people nervous. The US extraterritorial tax regime is wreaking havoc in the lives of American citizens living in Canada and other countries outside the United States.

Life comes with responsibilities. Those responsibilities include the necessity of seeking opportunities for security and growth. Often the search for opportunities and growth results in a decision to sever tax residency with one country and to acquire tax residency in another.

But, severing tax residency comes at a cost. More and more countries are requiring individuals severing tax residency to pay a "departure tax". Canada has a departure tax. The United States has it's 877A Expatriation tax. Australia has a departure tax.

Although Canada's Departure Tax applies to a wider range of people than the US 877A exit tax, Canada's tax is payable on fewer things. Departure taxes are the cost of severing tax residency. As such they should be viewed as in investment. More and more people view the payment of Departure taxes as a sound investment (possibly prepaying taxes at lower rates) in their financial futures.

In this episode John Richardson and Wayne Bewick discuss the reasons for severing tax residency, the price of severing tax residency and why departure/exit taxes should be viewed as the price of investing in a different future.

Canada continues to be a very attractive country for immigration.

But, there is a growing group of people who see severing Canadian tax residency and paying the departure tax as an investment in their futures.

March 7, 2012 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

In the 21st Century the single most interesting thing about a person is her/her tax residency. The United States makes US citizenship sufficient for tax residency. The effect of US "citizenship-based taxation" is that the United States, imposes worldwide extraterritorial taxation, on the non-US income of individuals who are tax residents of other countries and do not live in the United States. (The rules of the US extraterritorial tax regime are far more punitive than the tax regime imposed on Homeland Americans.) That's on the income tax side.

In early March of 2021, Senator Elizabeth Warren proposed a US Wealth tax that would apply to the non-US assets (among other things) of US citizens living in other countries. Furthermore, it is drafted in a way that brings the assets of the non-US citizen spouse into the wealth tax net.

In this episode John Richardson and Virginia La Torre Jeker discuss how this is intended to work. Americans abroad considering expatriation should take note of the provision that (in addition to the 877A Exit Tax) the Warren wealth tax, would impose an ADDITIONAL 40% (that's not a typo) on "covered expatriates" who renounce US citizenship.

Virginia has supplied the following example in her blog post here, to illustrate the severity of this:

"Here’s a very realistic example: Let’s say Joseph was born in the US because his parents, who were Italian citizens, were employed in the US at the time. Assume Joseph lived in the US until the age of 5 and then returned to Italy with his parents. Assume he attended 4 years of college in the US as well. Assume Joseph moved to England and Joseph gives up his US citizenship. Assume Joseph is a “covered expatriate” with a net worth of US$53 million on the expatriation date. This significant wealth leaves him in the cross-hairs of the wealth tax.

For the sake of simplicity, let us say his exit tax amounts to $1 million and that he cannot use the exit tax to reduce net worth for purposes of the wealth tax. In addition to the exit tax of $1 million, Joseph will owe $21.2 million in wealth tax in order to escape Uncle Sam’s clutches ($53 million x 40%). Total US tax bill so far is $22.2 million. But Uncle Sam is not done yet! At Joseph’s death, let’s assume he leaves $25 million to his children and they are US persons. Uncle Sam will take another $10 million from them simply because they must be punished since their father was a covered expatriate. So, while Joseph and his heirs started off with $53 million, once Uncle Sam got through with them, Uncle Sam got $32.2 million and Joseph and his family got only $20.8 million. That’s right. Uncle Sam took 60% of their wealth, all because Joseph simply gave up his citizenship (or green card held for at least 8 tax years)."

Those considering renouncing US citizenship should expatriate at the earliest possible moment!

The proposed legislation (in two places) requires the use of FATCA to assist in the identification of assets outside the United States. John and Virginia discuss the evolution of FATCA and how it is being used to incrementally expand the US tax base outside of the United States.

Further details may be found at John Richardson's post here.

You can read the actual text of Senator Warren's proposal here. You will be shocked!

January 17, 2021 - Participants include:

John Richardson

David Lesperance

In a world where "second citizenships" have become an insurance policy, there is lots of attention paid to "Migration Investment" AKA "Citizenship By Investment". But, sometimes there is an easier, less expensive and less politically charged way of acquiring a second citizenship.

Look in the mirror! You might have a claim to citizenship through lineage or through marriage.

For some people, as the Scotia Bank Tagline says:

"You are richer then you think.!"

February 9, 2021 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

Tim Smyth - @Tpsmyth01

John Richardson - @Expatriationlaw

Internal Revenue Code 6039G requires US Treasury to publish the names of US citizens who relinquish US citizenship. Some refer to the list as the "Name and Shame" list, while others call it the "Liberty List".

6039G in relevant part includes:

"Notwithstanding any other provision of law, not later than 30 days after the close of each calendar quarter, the Secretary shall publish in the Federal Register the name of each individual losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to whom the Secretary receives information under the preceding sentence during such quarter."

Surprisingly there is wide disagreement about:

exactly which individuals are required to be named on the list (all relinquishers, "covered expatriates" only, Green Card holders?)
the accuracy of the list (how well does it correlate with the actual numbers of relinquishers)
the reasons individuals relinquish US citizenship (political or to escape the US tax an/or regulatory net)

In this podcast we discuss: What does the list purport to represent and how accurate is the list?

February 9, 2021 - Participants Include:

Dr. Karen Alpert - @FixTheTaxTreaty

Tim Smyth - @Tpsmyth01

John Richardson - @Expatriationlaw

All US tax treaties include a "saving clause". With respect to individual US citizens, the effect of the "saving clause" is to:

First, guarantee that US citizens abroad who are dual tax residents will be subject to double taxation; and
Second, relax that double taxation in certain specific areas.

For example, Article XXIX of the Canada US Tax Treaty includes:

"2. Except as provided in paragraph 3, nothing in the Convention shall be construed as preventing a Contracting State from taxing its residents (as determined under Article IV (Residence)) and, in the case of the United States, its citizens (including a former citizen whose loss of citizenship had as one of its principal purposes the avoidance of tax, but only for a period of ten years following such loss) and companies electing to be treated as domestic corporations, as if there were no convention between the United States and Canada with respect to taxes on income and on capital.

The provisions of paragraph 2 shall not affect the obligations undertaken by a Contracting State:
(a) under paragraphs 3 and 4 of Article IX (Related Persons), paragraphs 6 and 7 of Article XIII (Gains), paragraphs 1, 3, 4, 5, 6(b) and 7 of Article XVIII (Pensions and Annuities), paragraph 5 of Article XXIX (Miscellaneous Rules), paragraphs 1, 5 and 6 of Article XXIX B (Taxes Imposed by Reason of Death), paragraphs 2, 3, 4 and 7 of Article XXIX B (Taxes Imposed by Reason of Death) as applied to the estates of persons other than former citizens referred to in paragraph 2 of this Article, paragraphs 3 and 5 of Article XXX (Entry into Force), and Articles XIX (Government Service), XXI (Exempt Organizations), XXIV (Elimination of Double Taxation), XXV (Non-Discrimination) and XXVI (Mutual Agreement Procedure);
(b) under Article XX (Students), toward individuals who are neither citizens of, nor have immigrant status in, that State."

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As citizenship and taxation have changed the "mission creep" of the "saving clause" has expanded. We suspect that treaty partner countries are only beginning to realize that the United States is using the "saving clause" to impose US worldwide taxation on the citizens and residents of other countries.

After all, US citizenship-based taxation is a system where the US imposes worldwide taxation, on non-US source income, according to US tax rules, on the tax residents of other countries.

Those wishing to understand more about the "saving clause" are invited to read the following three part series of posts written by Dr. Karen Alpert.

http://fixthetaxtreaty.org/2017/01/12/explaining-the-saving-clause-i/

http://fixthetaxtreaty.org/2017/01/19/explaining-the-saving-clause-ii/

http://fixthetaxtreaty.org/2017/01/29/explaining-the-saving-clause-iii/

January 20, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

Suzanne Herman - @SuzanneHerman1

Keith Redmond - @Keith__Redmond

The core mission of SEAT is to "Stop Extraterritorial American Taxation".

Extraterritorial American taxation is system that imposes worldwide taxation, on the non-US income of people who live in other countries. That said, there are different groups impacted.

These groups include:

American expatriates - short term Americans abroad who are returning to the USA and engage in financial planning in the US system.

American emigrants - people who moved permanently from the United States and engage in financial planning in tax system of the country of residence (example Canada).

Accidental Americans - people who moved from the United States as small children and not think of themselves as US citizens. Their financial planning revolves ONLY around their country of residence.

American Retirees abroad - people who have moved abroad to retire and live off U.S. source income (example Social Security). They are likely to file ONLY U.S. tax returns.

Additional victims of Extraterritorial Taxation include:

The sovereign countries where U.S. citizens reside; and

Homeland Americans who are effectively prevented from leaving the United States and living a normal life outside the United States.

Why it's important to distinguish the various groups impacted

US citizenship-based taxation AKA (the US imposition of US worldwide taxation on the tax residents of other countries) is a problem bigger than any one individual or one specific group. Different provisions of the Internal Revenue Code affect different groups differently.

Those varying and disparate effects have made it hard to unify the various groups of Americans abroad in the fight to end US citizenship-based taxation.

This podcast discusses the reason for this and provides examples.

January 13, 2019 - Participants Include:

John Richardson - @Expatriationlaw

Tim Smyth - @Tpsmyth01

My last podcast featured a discussion with David Lesperance where we discussed how tax treaties impact the global mobility decision. That podcast included some discussion about the "saving clause".

This is an excerpt from a 2019 podcast which features an interesting discussion of the standard tax treaty "saving clause". This podcast was extracted from a longer discussion about Representative Holding's 2018 Tax Fairness For Americans Abroad act.

The "saving clause" is a standard feature of U.S. tax treaties which denies US citizen individuals the benefit of U.S. tax treaties except in very limited and specific circumstances. Notably, the "saving clause" prevents US citizens from using tax treaties to sever tax residency with the United States. Green Card holders ARE (although it may trigger the S. 877A Expatriation Tax) use the tax treaty tie break provisions to sever tax residency with the United States.

Interestingly: US citizenship-based taxation could be ended by simply either:

Eliminating the saving clause from the Standard US tax treaty; and/or
Including some kind of "citizenship-based tie breaker" that could be used by dual citizens.

__________________________________________________________

To better understand the saving clause see the following three blog posts ...

Why U.S. citizens cannot use a tax treaty tie break to sever tax residency:

http://citizenshipsolutions.ca/2016/05/26/savings-clause-in-us-tax-treaties-guarantees-us-right-of-taxation-on-residents-and-citizens-of-other-nations/

A bit of commentary on this issue - particularly the saving clause - in relation to the 2016 Model Tax Treaty:

http://citizenshipsolutions.ca/2016/07/13/analyze-the-new-2016-us-treasury-model-tax-treaty-what-does-it-mean-for-your-country/

Why Green Card holders can use a tax treaty tie break to sever tax residency (see the very last part) - but note that NOT all treaties are the same with respect to Green Card Holders (compare for example the treaties that the US has with Canada and the UK).

http://citizenshipsolutions.ca/2018/07/30/non-citizenship-has-its-privileges-an-overlooked-reason-why-a-green-card-holder-may-not-want-to-become-a-u-s-citizen/

January 17, 2021 - Participants include:

John Richardson

David Lesperance

In the world of global mobility, there is great emphasis immigration and emmigration. There are many reasons why people seek second citizenships or residences. That said, every change in mobility may (or may not) create a change in tax residence. Changes in tax residency often have profound changes on wealth and opportunities. All countries have domestic tax rules. But, often these tax rules are modified by bilateral tax treaties between counties. Tax treaties impact tax residency, the amount of tax paid, information exchange and gradually more and more enforcement. In this episode, David Lesperance and John Richardson various ways these tax treaties can impact lives (including the future of the "Revenue Rule").

(See also my next podcast which focuses specifically on the saving clause of the standard US tax treaty.)

January 20, 2021 - Participants Include:

John Richardson - @Expatriationlaw

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

Suzanne Herman - @SuzanneHerman1

Keith Redmond - @Keith__Redmond

The core mission of SEAT is to "Stop Extraterritorial American Taxation".

Extraterritorial American taxation is system that imposes worldwide taxation, on the non-US income of people who live outside the United States in other countries. US taxation of nonresidents is the reason for FATCA.

But:

Ending FATCA will NOT "Stop Extraterritorial American Taxation"; but
Ending "Extraterritorial American Taxation" will end the rationale for FATCA.

This podcast includes a discussion of (1) what Extraterritorial Americans taxation is and how it impacts people who live in other countries.

The message: individuals impacted by "Extraterritorial American Taxation" must understand that the "original sin" is "Extraterritorial American Taxation". Those impacted by these unjust and immoral U.S. tax policies must understand that this is a problem that is bigger than one individual. Things that do not affect you today could affect you tomorrow. Extraterritorial American Taxation must end.

"If we don't hang together, we will hang separately!"

January 3, 2021 - Participants include:

John Richardson

David Lesperance

Canada is a Westminster democracy. The Canadian constitution includes a "Peace, Order and Good Government Clause". It is a stable place to live, a stable place to invest and (probably) a stable place to retain your wealth.

It's no surprise that Canada continues to be a top choice for immigration.

My second podcast with David Lesperance discusses some of the additional reasons why many would be well advised to consider residence or a second residence in Canada.

January 3, 2021 - Participants Include:

John Richardson

David Lesperance

2020 was a difficult year for many and an unsettling year for all. It reinforced the dependencies people have on stability and predictability. It also reinforced the need for flexibility and "back up" plans.

In my first podcast of 2021 I discussed these issues with mobility consultant David Lesperance of "Lesperance Associates".

David is the author of "Flight Of The Golden Geese" which explains the dependency that governments have on the tax revenues extracted from the few and why those few are incentivized to to seek alternative residences and citizenships.

January 3, 2021 - Participants Include:

John Richardson - @ExpatriationLaw

Peter - A Retired London, UK Based Lawyer

This podcast features the experiences and perceptions of a person who is NOT and never was a U.S. citizen. But, approximately 40 years ago he married a U.S. citizen and had U.S. citizen children.

The discovery of U.S. citizenship tax rules led the family down a path of discovery where they gradually understood the principles of: U.S. citizenship, U.S. citizenship-based taxation and how the U.S. exports citizenship-based taxation to other countries.

The podcast includes a discussion of how the toxic mix of citizenship and U.S. taxation impacts individuals AND how it undermines the fiscal policies of other nations (in this case the UK).

Of particular interest is a discussion of how the evolution of the law of U.S. citizenship (harder to lose) and U.S. taxation (infinitely more complex) has exacerbated the problem.

Ultimately, the problem is not FATCA. The problem is not citizenship. The problem is not even the rules of U.S. taxation.

The problem is that:

The United States is imposing worldwide taxation, on people who are tax residents of other countries and do NOT live in the United States.

This discussion is valuable for individuals with U.S. citizenship who are attempting to live productive and normal lives outside the United States.

The discussion is also valuable for those government policy makers who value the sovereignty of their countries and wish to end the U.S. creeping encroachment on the sovereignty of their countries. The discussion reminds me of a post that I write in 2015 describing how FATCA and U.S. tax rules burden Canada's sovereignty.

Ultimately all U.S. citizen members of the family renounced their U.S. citizenship.

Listening to this podcast explains why, for Americans abroad, ...

"All Roads Lead To Renunciation!"

December 29, 2020 - Participants Include:

Hank Adler - Chapman University

John Richardson - @ExpatriationLaw

On December 18, 2020 Mr. Adler's article appeared on the Wall Street Journal began with:

"California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year. Even those who move out of state would continue to be subject to the tax for a decade—a provision that calls to mind the Eagles’ famous “Hotel California” lyric: “You can check out any time you like, but you can never leave.”

You can read the complete article here ...

https://www.wsj.com/articles/a-california-plan-to-chase-away-the-rich-then-keep-stalking-them-11608331448?reflink=desktopwebshare_twitter

I am pleased to have interviewed Mr. Adler - a man with a wealth of experience in taxation and tax policy. If we sever the title of the Wall Street Journal article into two parts we see that:

On the one hand, California has a - Plan To Chase Away The Rich - California tax policies are driving people away; and
On the the other hand California wants to - Keep On Stalking Them - California's proposed wealth tax purports to tax them on for ten years on their worldwide assets, which includes assets that have no connection to California and were acquired AFTER the individual moved from California.

This has many similarities to Exit taxes in general and the IRS Section 877A Expatriation Tax in particular.

By the way, those Canadians who winter in California and have sufficient assets would be subject to this proposed wealth tax!

November 12, 2020 - Participants include:

John Richardson - @Expatriationlaw

Jimmy Sexton - @JimmySextonLLM

"The United States has learned how to keep capital in and how to attract foreign capital!"

In this episode, Jimmy Sexton and John Richardson discuss why the United States is such an attractive place to invest for nonresident aliens. In other words, the opportunities are NOT available to U.S. citizens or U.S. residents.

Topics discussed include:

how U.S. tax laws are desgined to attract foreign capital to from a U.S. tax perspective
how U.S. tax laws which promote secrecy operate to enhance the role of the United States as a tax haven
how the combination of FATCA (the U.S. demands your information but will not reciprocate) and the refusal to sign CRS (the U.S. will not share information) have enhanced the attractiveness of the United States as a tax haven
how the use of LLCs and foreign Grantor Trusts can be used by nonresident aliens
how the U.S. tax rules that are used to attract foreign capital planted the seeds that grew into the current S. 877A expatriation tax

Warning! Do NOT die with U.S. situs assets in your name. How to structure your assets to avoid the U.S. estate tax

There are Havens, Tax Havens and Tax Haven USA - there is no substitute!

December 10, 2020 - Participants Include:

John Richardson - @Expatriationlaw

Marc Zell - Jerusalem based International Lawyer

On December 9, 2020 the Association Of Accidental Americans launched a lawsuit against the US Department Of State on the basis that the $2350 USD renunciation is unconsitutional.

I am pleased to have been joined by their lawyer Marc Zell to discuss the lawsuit.

I have written a post discussing the claim here:

http://citizenshipsolutions.ca/2020/12/10/association-of-accidental-americans-v-us-department-of-state-is-the-2350-usd-renunciation-fee-constitutional/

A direct link to the claim is here:

http://citizenshipsolutions.ca/wp-content/uploads/2020/12/AAA-vs-DOS.pdf

November 12, 2020 - Participants Include:

John Richardson - @ExpatriationLaw

Jimmy Sexton - @JimmySextonLLM

It is becoming clear that the United States is gradually moving toward a tax system that includes taxation based on non-realization events. In other words, taxes may be owing even when there is no income.

Examples include (but are not limited to): the Subpart F regime (particularly the transition tax and GILTI) and the S. 877A Exit Tax Regime. The PFIC regime creates artificial income based on a fictional charge on tax deferral.

The recent Democratic Party nomination process introduced wealth taxes into the vocabulary of taxation. In particular, Elizabeth Warren campaigned on a platform of wealth taxation. In the case of a wealth tax there is no realization whatsoever. The tax is based ONLY on your owning an asset.

Although it is unlikely that a wealth tax will become a reality soon. But, it is coming. In fact, I think it would be appropriate to call the first version of the Wealth Tax: "The Senator Elizabeth Warren Wealth Tax".

On November 12, 2020 Jimmy Sexton and I discussed the nature of wealth taxes.

November 29, 2020 - Participants Include:

John Richardson - @Expatriationlaw

Diane Gelon - London, UK based New York lawyer

One the hand one, many Americans abroad are desparate to pay the $2350 USD fee to renounce US citizenship. On the other hand, the US State Department has stopped providing appoints to renounce.

Do US citizens have the right to renounce?

The 1868 Expatriation Act suggests that they have a statutory right to renounce.

Right of Expatriation

R.S. § 1999 provided that: “Whereas the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness; and whereas in the recognition of this principle this Government has freely received emigrants from all nations, and invested them with the rights of citizenship; and whereas it is claimed that such American citizens, with their descendants, are subjects of foreign states, owing allegiance to the governments thereof; and whereas it is necessary to the maintenance of public peace that this claim of foreign allegiance should be promptly and finally disavowed: Therefore any declaration, instruction, opinion, order, or decision of any officer of the United States which denies, restricts, impairs, or questions the right of expatriation, is declared inconsistent with the fundamental principles of the Republic.”

The 1967 U.S. Supreme Court decision in Afroyim suggests they have a constitutional right to renounce.

The fact is that there is no bar to conducting renunication appointments through video conferencing. It's too bad that the US government won't allow this.

November 21, 2020 - Participants include:

Dr. Valerie McCray - @DrVMcCray2020

John Richardson - @Independents

Mary Lett - Indianapolis based accountant and tax preparer

This is the fourth podcast with Dr. Valerie McCray. In this podcast we are joined by Mary Lett who is in charge of the finances for the Valerie McCray campaign. Our dicussion today focuses on the role that the US tax system has in keeping those who are in need poor and maintaing the status of the upper middle class and wealthy.

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Interview 4: A fascinating discussion with Dr. Valerie McCray who is running as an independent candidate for President of the United States. Please visit her site here.

The first interview with Dr. McCray is here.

The second interview with Dr. McCray is here.

The third interview with Dr. McCray is here.

Dr. Valerie McCray’s Story Dr. Valerie McCray is a unique choice for President of the United States of America. She is entering the presidential race “straight from the trenches” as a psychologist that has spent most of her career working in the aftermath of tragedy.

November 14, 2020 - Participants include:

Dr. Valerie McCray - @DrVMcCray2020

John Richardson - @Independents

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Interview 3: A fascinating discussion with Dr. Valerie McCray who is running as an independent candidate for President of the United States.

In this episode we discuss how the appointment of judges has become an extension of the partisan political process. To put it simply: the very institution that should be independent of the political process and partisan politics has become politicized.

Please visit her site here.

The first interview with Dr. McCray is here.

The second interview with Dr. McCray is here.

Dr. Valerie McCray’s Story Dr. Valerie McCray is a unique choice for President of the United States of America. She is entering the presidential race “straight from the trenches” as a psychologist that has spent most of her career working in the aftermath of tragedy.

November 12, 2020 - Participants Include:

John Richardson - @ExpatriationLaw

Jimmy Sexton - @JimmySextonLLM

On November 8, 2020 I hosted US tax lawyer Virginia La Torre Jeker in a podcast where we discussed why Biden tax proposals would make US citizenship renunciation more urgent. Specifically, more people are likely to be subject to the S. 877A expatriation tax and the tax paid will be higher. The problem is that the COVID-19 pandemic has led to the shutdown of renunciation appointments in most of the world.

To put it simply: it has become almost impossible to renounce US citizenship.

In this session I am joined by Jimmy Sexton of the Esquire Group where we discuss a variety of topics including:

US citizenship and personal identity
why the US citizenship is a disability for some US citizens living outside the United States
why the US exit tax is an attempt to recoup money from a renunciant where the US believes renunciation means the US will lose a profitable taxpayer
what might be a new procedure for individuals to renounce in a COVID-19 world
why the designation of "covered expatriate" causes the "family renunciation"

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Speaking of expatriation, see this interesting perspective from Jimmy Sexton.

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John Richardson - CitizenshipSolutions.ca

November 8, 2020 - Participants Include:

John Richardson - @Expatriationlaw

Virginia La Torre Jeker - @VlJeker

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The election of Joe Biden coupled with Democrats control of the House is not good news for Americans abroad.

There are good reasons for the demand to renounce US citizenship and abandon Green Cards to increase.

On November 8, 2020 I was joined by US tax lawyer Virginia La Torre Jeker to discuss the reasons for this. In general the reasons include that:

More people will be covered expatriates and subject to the US 877A exit tax regime.
Those subject to the exit taxes will pay higher exit taxes!

To be forewarned is to be forearmed! In general people do NOT leave the "Land Of The Free" for free.

October 31, 2020 - Participants Include:

Dr. Valerie McCray - @DrVMcCray2020

John Richardson - @Independents

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Interview 2: A fascinating discussion with Dr. Valerie McCray who is running as an independent candidate for President of the United States. Please visit her site here.

The first interview with Dr. McCray is here.

Dr. Valerie McCray’s Story Dr. Valerie McCray is a unique choice for President of the United States of America. She is entering the presidential race “straight from the trenches” as a psychologist that has spent most of her career working in the aftermath of tragedy.

October 22, 2020 - The Announcement Of SEAT

Participants In SEAT Include:

Laura Snyder - @TAPInternation

Keith Redmond - @Keith__Redmond

Karen Alpert - @FixTheTaxTreaty

David Johnstone - @RealDJohnstone

Suzanne Herman - @SuzanneHerman

John Richardson - @ExpatriationLaw

Please assist SEAT by participating in the SEAT Survey which is found here.

https://nyu.qualtrics.com/jfe/form/SV_bBCzDKX8lI2t3Rb

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http://seatnow.org/what-is-extraterritorial-taxation/

What is Extraterritorial Taxation?

Specifically, the United States of America is imposing worldwide taxation, according to the rules of the US Internal Revenue Code, on individuals who are “tax residents” of other countries who don’t live or earn income in the United States.

For example, did you know that certain French citizens and residents, with no economic connection to the United States are required to pay US taxes on their French income? As long as that French citizen/resident is also a US citizen (usually because she was born in the United States) is required to comply with all the requirements of the US Internal Revenue Code.

No, this is NOT a new law. The United States has always had extraterritorial laws. But, what is new, is a law called FATCA (“Foreign Account Tax Compliance Act”). FATCA is a law that acts as the enforcement tool for US citizenship-based taxation.

The enforcement of US tax laws in your country affects:

individuals who may be subjected to double taxation and will almost certainly be denied the retirement and financial planning opportunities available to their friends and neighbours
the tax base of the country. In many cases the United States attempts to impose US taxation before there is a taxable event in the other country. This effectively steals revenue from the tax base of other countries
the sovereignty of other countries. All countries have their own tax and retirement planning systems. In general …

Our wiki collects facts and figures about the US practice of Citizenship-based Taxation. Check it out here.

September 30, 2020 - Participants include:

John Richardson - @Expatriationlaw

Keith Redmond - @Keith__Redmond

The basic scenario is as follows:

A US citizen moved to Canada. He/she then naturalized as a Canadian citizen with the intention of relinquishing US citizenship. At that moment (without specifically notifying the State Department) that person ceased to be a US citizen for nationality purposes. (Note that the definition of citizen for tax residency changed after June 3, 2004. But, this podcast is restricted to citizenship for purposes of nationality only.)

Therefore, if you are told that the fact of a US birthplace means that you are a US citizen and can vote in the election, caution is warranted.

For a more detailed explanation, see the following blog post:

http://citizenshipsolutions.ca/2015/03/03/renunciation-is-one-form-of-relinquishment-its-not-the-form-of-relinquishment-but-the-time-of-relinquishment/

July 31, 2020 - Participants Include:

Ronan McCrae - @RonanMcCrae

John Richardson- @Expatriationlaw

September 16, 2020 - Participants include:

Anthony Scaramucci - "The Mooch" - @Expatriationlaw

Dr. Karen Alpert - @FixTheTaxTreaty

Mark Fitzpatrick - Switzerland

Dr. Alpert and Mr. Fitzpatrick discuss why they renounced their US citizenship.

The simple #FATCA of the matter is that in 2010 the Obama administration unleashed a series of laws (FATCA) and regulations/executive agreements (FATCA IGAs) that have made the lives of Americans abroad a living hell.

Many of those who wish to live a financially responsible life are being forced to renounce their US citizenship.

The 2020 election is an excellent opportunity for the politicians and political parties to acknowledge these issues.

This podcast continues a discussion that began with Anthony Scaramucci on the first Scaramucci podcast which took place on June 3. 2020.

Some political parties are making an unprecedented effort to win the vote of Americans abroad. But, when it comes to understanding how US laws are destroying the lives of those same Americans abroad, it's not that they don't care.

It's that they don't care that they don't care!

Sepember 9, 2020 - Particpants include:

John Richardson - @Expatriationlaw

Keith Redmond - @Keith__Redmond

Juan from Brazil - living in Brazil for 20 years

Ann-Marie - living in Switzerland for 15 years.

July 20. 2020 - Participants Include:

Ronan McCrae - @RonanMcCrea

John Richardson - @ExpatriationLaw

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Ronan McCrae

Professor of Constitutional and European Law

Faculty of Laws

University College London

This was a fascinating discussion which discusses "citizenship by descent" under Irish law. At the heart of the debate is the question of what should be the connection between a citizen and the country? What are the responsibilities of citizenship? What about citizens voting from abroad?

Does it make sense for Ireland (or any other country) to allow citizenship to numbers that exceed the population of Ireland?

Thanks to Ronan for a very insightful and thought provoking discussion. Listeners might find the following opinion pieces (written by Ronan) to be of interest.

https://www.irishtimes.com/opinion/covid-19-laces-granting-of-irish-citizenship-with-danger-1.4303461

https://www.irishtimes.com/opinion/ireland-must-not-accept-intolerance-from-immigrants-1.597854 https://www.irishtimes.com/opinion/we-need-a-new-definition-of-what-it-means-to-be-irish-1.3978559

July 17, 2020 - Participants include:

Dr. Bernard Schneider - BernardSchneider.com

John Richardson - @ExpatriationLaw

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Dr Schneider is an assistant professor in International Tax Law at the Centre for Commercial Law Studies, Director of the LLM in Tax Law and LLM Research Director. He is also the academic director of the institute of tax law at CCLS. The CCLS is the graduate law program at Queen Mary, University of London.

He teaches international, US and Chinese taxation.

Dr Schneider wrote his PhD thesis on the development of the Chinese income tax system. His main research interests are in the areas of international and comparative tax law, tax policy and administration, the taxation of individuals, tax law as public law and the US and Chinese tax systems.

Dr Schneider graduated from the New York University School of Law with a JD and an LLM in Taxation, and he holds an MIA from the School of International and Public Affairs at Columbia University and an Advanced Certificate in China Studies from Columbia University's East Asian Institute. He studied Chinese at the Mandarin Training Centre of the National Taiwan Normal University in Taipei and at Capital Normal University in Beijing. He is fully proficient in Mandarin Chinese and can read and write traditional and simplified characters.

Prior to completing his thesis, Dr Schneider practised in New York, China and the United Kingdom, primarily in the areas of international and US taxation.

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Dr. Schneider's scholarship includes:

The End of Taxation without End: A New Tax Regime for U.S. Expatriates Virginia Tax Review, Vol. 32, No. 1, 2012

76 Pages Posted: 7 Dec 2012 Last revised: 17 Dec 2012

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2186076

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ACA Conference on Citizenship-based taxation

On May 2, 2014 Dr. Schneider participated with Professor Michael Kirsch in a debate over US citizenship-based taxation.

The Kirsch Schneider debate is available for viewing here. Those interested in "listeners reaction" to the debate can view some live commentary here.

July 15, 2020 - Participants Include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @Expatriationlaw

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In 1996 Congress amended the Immigration and Nationality Act to include a provision which reads:

(E) Former citizens who renounced citizenship to avoid taxation Any alien who is a former citizen of the United States who officially renounces United States citizenship and who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States is inadmissible.

Note that this law applies to those who "renounce" and does not appear to apply to those who relinquish US citizenship in another way. Furthermore, note the large number of conditions that must be met by IMMIGRATION officials before the law could be applied.

I have had a number of inquiries from people asking if this law really applies.

The short answer is that:

There is almost no evidence that the US Government is attempting to apply this law (only two cases from 1996 - 2015, were identified in a 2015 Report From The Department Of Homeland Security); and
It is very difficult for the law to be applied.

By the far the best summary of information on this topic comes from a post at the Isaac Brock Society. Interestingly the Brock post references a 2013 interview that Virginia La Torre Jeker (our guest) had with Willard Yates.

Those who are interested in this topic should read the Brock post in its entirety and the 2015 Report from the DHS. For those who want only a summary of the Brock post, the last paragraph reads:

"So, DHS is trying to say: the Reed Amendment is no danger to you, as long as you observe the rule of “don’t ask, don’t tell” at the consulate and the border. The implied threat of the IRS — “keep paying your accountant to fill out all your forms and prove you owe no tax, or you’ll never see your bedridden grandma again” — is probably a hollow one, absent Congressional action. You can go ahead and waltz your way through the humiliating charade of renunciation. You’ll only be under the same threat of arbitrary visa denial as any other foreigner.

The American Way: keeping your mouth shut and handing over thousands of dollars in order to exercise your human right to choose your nationality."

My personal advice would be ...

I think that you should be aware of the Reed Amendment and understand that you never communicate a tax related motive as a reason for renouncing U.S. citizenship.

It's unlikely that the Reed Amendment could impact you.

But, as they say in the investment world:

"Past performance is not an absolute guarantee of future results."

John Richardson - CitizenshipSolutions.ca

Enjoy the discussion!

Update - Possible additional links of interest:

– here is the link to the interview wtih Bill Yates http://us-tax.org/2018/09/30/if-you-go-you-cant-come-back-the-reed-schumer-follies-past-and-proposed-anti-expat-legislation-interview-with-bill-yates-former-irs-attorney-international/

More Links to Schumer Reed et al Senate proposals from 2013 – they just can’t let it go!!!

https://www.angloinfo.com/blogs/global/us-tax/1243-2/

https://www.angloinfo.com/blogs/global/us-tax/urgent-update-expatriates-banned-from-the-us-senators-reintroduce-taxpatriate-bill-into-homeland-security-bill/

And finally courtesy of Heitor David Pinto at Keith Redmond's American Expatriates Facebook group ...

Since the 2015 report only three of approximately 17,000 renunciants are believed to have drawn the attention of the Reed Amendment ...

Here are more recent numbers. Since 2015, when the Reed amendment was implemented for the first time, about 17,000 people have renounced US citizenship and 3 were denied a US visa for that reason. So the approval percentage is 99.98%.

Until 2015: 0 2016: 2 – 1 overcome = 1 2017: 1 – 1 overcome = 0 2018: 0 2019: 2 https://travel.state.gov/content/travel/en/legal/visa-law0/visa-statistics/annual-reports.html

July 13, 2020 - Participants Include:

Jenny - @CrossBriton

Filippo Noseda - Mishcon de Reya

John Richardson - @ExpatriationLaw

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Jenny has been crowdfunding her UK based anti-FATCA lawsuit. Because her case is based on the claim that the FATCA IGAs violate the GDPR, the case raises issues that impact all IGAs.

In this inverview, Filippo Noseda explains the historical origins of privacy law in the context of EU human rights principles. He also explains why the FATCA flow of information is disproportionate to the objectives sought.

Following a negative decision from government agencies Jenny and Filippo Noseda intend to bring a "judicial review" application in the UK courts. This application is important and will cost a great deal of money.

After listinging to this podcast, you will better understand the objectives and basis of this lawsuit and why it is your interests to contribute.

To see a snapshot of only some of the work done by Mr. Noseda see his permanent online repository here.

The outcome in this lawsuit is likely to have a huge impact on how other FATCA lawsuits (including the Canadian ADSC lawsuit) end up.

Your contributions to Jenny's lawsuit are essential - donate here.

Contributions to the Canadian ADCS FATCA lawsuit may be made here.

July 12, 2020 - Participants include:

Dr. Valerie McCray - @DrVMcCray2020

John Richardson - @Independents

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A fascinating discussion with Dr. Valerie McCray who is running as an independent candidate for President of the United States. Please visit her site here.

Dr. Valerie McCray’s Story Dr. Valerie McCray is a unique choice for President of the United States of America. She is entering the presidential race “straight from the trenches” as a psychologist that has spent most of her career working in the aftermath of tragedy.

July 4, 2020 - Participants include:

Claire Kendal - @ClaireKendal

John Richardson - @Expatriationlaw

"Claire Kendal was born in America and educated in England, where she spent all of her adult life. Her first novel, The Book Of You, was a Richard and Judy title and Sunday Times top ten bestseller. It has been translated into over twenty languages. Claire teaches English Literature and Creative Writing and lives in the South West with her family. I Spy is her third novel."

June 26, 2020: Participants include:

John Richardson - ExpatriationLaw

JR - https://americanexpatfinance.com/news/item/299-eu-parliament-fatca-impact-hearing-tuesday

A fascinating interview with one of the early "Anti-FATCA Pioneers".

Topics include:

the "Oh My God" moment: what it means and how to respond to it
the EU petition
Jenny's anti-FATCA "GDPR" based lawsuit
the need for improving the support for these initiatives

The problem of using FATCA to support US Extraterritorial taxation is larger than the problems of any one individual.

More help is required ...

June 25, 2020 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @ExpatriationLaw

Part 3: Dr. Alpert and John Richardson continue the discussion of what it means to be a nonresident alien and how nonresidents are treated by the US tax system. In Part 3, we discuss how US IRAs and 401ks are taxed to nonresident aliens. Hint: You need to understand the US rules, the local rules and how the tax treaty may modify those rules. This is a difficult and fascinating topic with huge consequences!

Nonresident aliens who created IRAs and 401ks in the United States will find this of particular interest.

June 25, 2020 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @ExpatriationLaw

Part 2: Dr. Alpert and John Richardson continue the discussion of what it means to be a nonresident alien and how nonresidents are treated by the US tax system. In Part 2, we discuss how the US taxation of US source income received by nonresident aliens should impact the decision of whether to renounce US citizenship. Hint: The more US source income you have, the more likely that you could increase your US taxes if you renounce. To be forewarned is to be forearmed.

June 25, 2020 - Participants include:

Dr. Karen Alpert - @FixTheTaxTreaty

John Richardson - @ExpatriationLaw

Part 1: Dr. Alpert and John Richardson discuss what it means to be a nonresident alien and how nonresident aliens are treated by the US tax system.

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June 24, 2020 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

Green card holders who have had the Green Card for eight of the last fifteen years before abandoning the Green Card will be subject to the US Section 877A Exit Tax rules. To be forewarned is to be forearmed!

May 30, 2020 - Participants include:

Virginia La Torre Jeker - @VLJeker

John Richardson - @ExpatriationLaw

There is a difference between the rules for taxation and the rules for immigration. It's entirely possible to have lost the right under US immigration law to live in the United States, but still be subject to US worldwide taxation.

June 19, 2021 - Participants include:

John Richardson - @Expatriationlaw

Anthony Parent - @IRSMedic

Keith Redmond - @Keith__Redmond

This podcast is a continuation of the widely viewed discussion of US Citizenship Renunication that was published on YouTube on June 15, 2020:

https://www.youtube.com/watch?v=j-ldR0VncF0

June 3, 2020 - Discussion with Anthony Scaramucci

Anthony Scaramucci - @Scaramucci

John Richardson - @Expatriationlaw

Thanks to Anthony for sharing his insight into US politics and for his support of change in how US tax policy impacts Americans abroad.

Information on the Scaramucci SALT talks (highly recommend) is here.

Looking forward to "Scaramucci 2" closer to the election!

May 27, 2020 - The decision is released ...

Participants include:

Dr. Gary Botting - http://www.GaryBotting.com

John Richardson - @ExpatriationLaw

Excellent of Canada's extradition law and treaties at GaryBotting.com.

You can read the decision here:

https://www.bccourts.ca/jdb-txt/sc/20/07/2020BCSC0785.htm

To discover Dr. Botting's publications on Extradtion law see ABEBooks.com

May 25, 2020 - Participants include:

Dr. Gary Botting - http://www.GaryBotting.com

John Richardson - @ExpatriationLaw

Excellent review of Canada's extradition law and treaties at GaryBotting.com.