U.S. Citizenship – Where taxation and citizenship intersect
“Relinquish or renounce U.S. citizenship – The Course”
What: Relinquish or Renounce U.S. Citizenship – The Course
Who: John Richardson – Toronto Lawyer – Specializing in “solving the problems of U.S. citizenship” and the relinquishment of U.S. citizenship
Toronto, Canada – Saturday October 1/16 – 10:00 a.m. – 3:00 p.m.
Where: Toronto Downtown – Exact address TBA
Cost: $500 per attendee plus taxes
Enrollment limited to 10 participants!
Why would you participate in this seminar?
Facts are stubborn things …
The price for our freedom has sometimes been high, but we have never been unwilling to pay that price Ronald Reagan https://t.co/TQIolHr9RU
— Citizenship Lawyer (@ExpatriationLaw) August 28, 2015
The combination of U.S.
“place of birth” citizenship taxation and FATCA have made it difficult (and in many cases impossible) for U.S. citizens to survive outside the United States. A massive educational and lobbying effort by both groups and individuals has not achieved the results we hoped. The U.S. Senate Finance Committee has acknowledged the concerns of those deemed U.S. citizens abroad. The Committee has NOT addressed those concerns.
The failure to address those concerns means that U.S. “citizenship taxation” and FATCA are NOT likely to be repealed in the near future. Those of you who are 50+ are simply “out of time”. It is reasonable for you (and in many cases necessary) to “cut your ties” with the United States. Many of you feel that you are being forced to renounce U.S. citizenship.
Since U.S. “citizenship taxation” and FATCA are here (for the foreseeable future), many of you feel that your “U.S. citizenship” must be terminated. (But, you have resigned yourself to this painful reality. Otherwise you wouldn’t be on this site.)
U.S. exceptionalism …
There are few countries in the world that confer citizenship based on birth in that country. There are only two countries that impose taxation based on “citizenship”. The United States is the ONLY country in the world that does both. Therefore, U.S. taxation is primarily “place of birth” taxation. Many of you feel (with justification) that:
“It’s unjust. It’s inhumane. I didn’t choose where I was born.”
“Citizenship-based taxation” or “taxation based citizenship” …
U.S. “citizenship” is primarily about “taxation”. U.S. “taxation” is primarily a function of “citizenship”. Should it be called “citizenship-based taxation” or “taxation-based citizenship”?
But, calling it “taxation” doesn’t necessarily make it taxation …
Various provisions of the U.S. Internal Revenue Code operate to:
A. Restrict the life and investment opportunities of Americans abroad; and
B. Impose extraordinary disclosure requirements under threat of draconian penalties.
You must “exit” two U.S. Government databases …
The processing of “relinquishing or renouncing” U.S. citizenship requires that you make a clean exit from BOTH U.S. citizenship and U.S. taxation. You are “in effect” leaving two different data bases.
Renouncing U.S. citizenship may have very significant financial and taxation consequences. The United States DOES impose taxes on “expatriation” (relinquishing U.S. citizenship) and those taxes can be significant.
U.S. citizenship: Where citizenship is about taxation and taxation is about citizenship …
Dealing with both “citizenship” and “taxation” means that you will have to understand (1) aspects of the law of each of “citizenship” and “U.S. taxation” and (2) how those two sets of laws interact. In some cases this can require working with both a “citizenship lawyer” and a “tax lawyer”. The professional fees can (depending on the complexity of the situation) be quite high.
This is why I am offering you the opportunity to participate in my:
Why would you participate in this course and what can you expect?
1. My hourly fee is $500 for an introductory consultation. As you can see, this will give you tremendous value for your money.
2. You will leave with a clear understanding of what you must do to relinquish U.S. citizenship.
Answers to many questions including:
What should I do? In what order? What the costs will likely be? What will the result likely be?
At a bare minimum you will be better able to evaluate information and the quality of advice that you may receive along the way.
3. You will leave with an understanding of what facts matter and what facts don’t matter.
Topics Covered Include:
A. Citizenship and nationality issues (Green Cards too)
– Were you ever a U.S. citizen?
– Are you still a U.S. citizen? Could you have relinquished U.S. citizenship and NOT presently be a U.S. citizen?
– Relinquishment vs. renunciation. What is the difference and why does it matter?
– DS Form 4079: how to properly complete it
– Be careful what you wish for. Do you really want a “CLN” (“Certificate of Loss of Nationality”)?
– Have you transmitted U.S. citizenship to your children?
– Dual citizenship and the renunciation of U.S. citizenship
B. The FATCA Letter
– introducing Uncle FATCA
– You are suspected of being a U.S. citizen. How should you respond?
– What about the “FATCA Self Certification”? Is it an option for you?
– FATCA Form 8938: What it is and how does it relate to ongoing U.S. tax compliance and the expatriation process?
C. Are you a U.S. citizen who is NOT U.S. tax compliant?
– What is U.S. “tax citizenship”? Are you a U.S. “tax citizen”?
– How would a U.S. citizen who is NOT in “U.S. Tax Compliance” safely enter or reenter the U.S. tax system?
D. Living as a “tax compliant” U.S. citizen abroad – how would you do it?
– So, you’re now U.S. tax compliant. Now what?
– What are the investment restrictions that apply to you
– The myth that U.S. citizens abroad generally will NOT owe U.S. taxes
– Mr. FBAR – the nastiest thug on the block
E. Marriage and U.S. citizenship abroad
– Problems and opportunities of the “FBAR Marriage” (marriage between a U.S. person and an an “alien”)
– Problems and opportunities of a U.S. citizen married to a U.S. citizen
F. Two ships passing the night – Why it’s difficult for U.S. tax compliant citizens in Canada to save for retirement
– areas of incompatibility between the Canadian and U.S. tax systems
– be very careful of the sale of your principal residence
– Ms. PFIC and the problem of Canadian mutual funds
– be careful how you carry on business, you may lose your friends and your money
G. The Tax Implications of “relinquishing/renouncing” U.S. citizenship
Information reporting – Form 8854
“Covered Expatriates” – You will be subject to the draconian “Exit Tax” Regime
– what is a “covered expatriate”
– how to avoid “covered expatriate status”
“Non-covered Expatriates” – You will escape without the “Exit Tax”
H. The S. 877A “Exit Tax” as applied to Americans Abroad
– deemed capital gains
– Non-U.S. pensions
You won’t believe what you will learn about the U.S. “Exit Tax” system
I. Tactical Considerations
– two very important reasons why it’s a good time to renounce U.S. citizenship
– border issues and entry into the U.S.
J. U.S. Social Security – Am I eligible if I renounce?
– you would think it would be simple, but …
Final thoughts …
This is NOT a “do it yourself renunciation” course for “covered expatriates”. It’s not even a “do it yourself renunciation course” for non-covered expatriates. You will certainly need professional counsel.
You will leave, with an better understanding of the issues, be better able to retain appropriate counsel.
Registration – two options:
- Please complete the following form. You will receive an email with payment instructions.
2. Old fashioned telephone – 416 840 4529
Ending tax obligation to the US is actually a lot more onerous than renouncing or relinquishing US citizenship, in that it involves both renouncing/relinquishing US citizenship AND making sure you exit with the right tax filings. When one cannot cease tax obligations by merely renouncing US citizenship, the US has in fact created a citizen for tax purposes only, something akin to an accidental American – as for all intents and purposes they too don’t enjoy the benefits of US citizenship, only the obligations and threats to Liberty and freedom that those obligations bring through regimes like FATCA.
S. 7701 of the Internal Revenue Code makes it clear that those who “relinquish” U.S. citizenship (including relinquishment by renunciation) are still treated as “U.S. citizens for tax purposes” until the appropriate notice of relinquishment is provided to the State Department. Once the “notice” is provided (and accepted) the person ceases (on a prospective basis) to be a U.S. citizen for tax purposes. There remains the problem of past tax liabilities AND the problem of the S. 877A Exit Tax triggered by the relinquishment …
The “Exit Tax” is discussed here.