Tag Archives: abandon Green card

The Proposed S. 899 Penalty Tax On U.S. Source Income And The Decision To Renounce U.S. Citizenship

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Update – June 27, 2025 – The 899 Penalty Tax has been removed from the “Big Beautiful Bill”:

Introduction – It’s The American (A)Way

The United States tax system is designed to impose punitive tax, reporting and penalties on the non-U.S. income and assets of Americans abroad. Nonresident aliens (those who are neither U.S. citizens nor residents) are taxable ONLY on their U.S. source income.

This reality has driven many U.S. citizens (living abroad) to renounce U.S. citizenship. It has also caused many Green Card holders to abandon their green cards. This is the consequence of U.S. citizenship-based taxation – a system that defines tax residency in terms of one’s citizenship (one may not reside in one’s country of citizenship) – regardless of one’s actual residence. (Green Card holders are deemed to be U.S. tax residents regardless of their residence.)

The United States taxes ALL U.S. source income regardless of the recipient of the income. Therefore, the practical impact of citizenship taxation is to impose U.S. taxation on the non-U.S. source income of individuals who do NOT reside in the United States. To put this in visual terms:

A person born in the United States, with no U.S. source income, is subject to U.S. tax, reporting and penalties on income received from the country where that individual lives.

A Summary Of How Different People Are Subject To U.S. Taxation

1. The United States taxes ALL individuals – regardless of citizenship or residence – on U.S. Source income.

2. The United States taxes its RESIDENTS – regardless of citizenship – on worldwide income.

3. The United States taxes U.S. citizens – regardless of residence – on worldwide income. The United States is the only major country that taxes its citizens on their worldwide income when they do not live in the country.

4. The United States taxes nonresident aliens (those who are neither citizens nor residents) on U.S. source income.

The 2025 “Big Beautiful Bill” proposes a new S. 899 of the Internal Revenue Code. This new section would impose a more punitive U.S. tax regime on the U.S. source income, received by some, but not all, nonresident aliens. The more punitive regime would be imposed on nonresident aliens who are tax residents of countries that are described as “offending foreign countries”. “Offending foreign countries” are countries that the U.S. deems to impose unfair taxes on U.S. corporations or persons. To be clear, the tax paid imposed on the individual, would be based on the tax policies of the country where the individual is resident for tax purposes!

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Some IRS Medic Livestream Videos – 2026 to 2023

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Introduction:

Over the years I have been a guest on the IRS Medic Youtube Channel a number of times. The topics have been varied and of relevance to Americans abroad. I thought I would collect “some” of the videos in one post. If you scroll down, I expect that you will some topics of interest to you. Many if not most of the topics have included written presentations in PDF format. I will add those when I have the time and am able to locate them.

If after watching any of these, if you want to schedule a consultation to discuss your situation:

https://www.calendly.com/renounceUScitizenship

ExpatriationLaw.com

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Those Who Renounced US Citizenship Or Abandoned Green Cards NOT Eligible For Biden Pardon

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Synopsis

Introduction

On October 6, 2022 President Biden pardoned certain individuals (prospectively and retrospectively) for the simple possession of marijuana (whatever that means). The full text of the pardon is here.

A Proclamation on Granting Pardon for the Offense of Simple Possession of Marijuana

Acting pursuant to the grant of authority in Article II, Section 2, of the Constitution of the United States, I, Joseph R. Biden Jr., do hereby grant a full, complete, and unconditional pardon to (1) all current United States citizens and lawful permanent residents who committed the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1), on or before the date of this proclamation, regardless of whether they have been charged with or prosecuted for this offense on or before the date of this proclamation; and (2) all current United States citizens and lawful permanent residents who have been convicted of the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1); which pardon shall restore to them full political, civil, and other rights.

My intent by this proclamation is to pardon only the offense of simple possession of marijuana in violation of Federal law or in violation of D.C. Code 48–904.01(d)(1), and not any other offenses related to marijuana or other controlled substances. No language herein shall be construed to pardon any person for any other offense, including possession of other controlled substances, whether committed prior, subsequent, or contemporaneous to the pardoned offense of simple possession of marijuana. This pardon does not apply to individuals who were non-citizens not lawfully present in the United States at the time of their offense.

Pursuant to this proclamation, the Attorney General, acting through the Pardon Attorney, shall administer and effectuate the issuance of certificates of pardon to eligible applicants who have been charged or convicted for the offense of simple possession of marijuana in violation of the Controlled Substances Act, as currently codified at 21 U.S.C. 844 and as previously codified elsewhere in the United States Code, or in violation of D.C. Code 48–904.01(d)(1). The Attorney General, acting through the Pardon Attorney, is directed to develop and announce application procedures for certificates of pardon and to begin accepting applications in accordance with such procedures as soon as reasonably practicable. The Attorney General, acting through the Pardon Attorney, shall review all properly submitted applications and shall issue certificates of pardon to eligible applicants in due course.

IN WITNESS WHEREOF, I have hereunto set my hand this sixth day of October, in the year of our Lord two thousand twenty-two, and of the Independence of the United States of America the two hundred and forty-seventh.

JOSEPH R. BIDEN JR.

The Winners

Notably the pardon is available ONLY to those who are “current United States citizens and lawful permanent residents”. Clearly a former US citizen who is not a Green Card holder would NOT be eligible.

The Losers

The pardon is NOT AVAILABLE to:

– former US citizens who relinquished their US citizenship

– possibly (depending on interpretation) former lawful permanent residents who abandoned their Green Card

– US Nationals who are NOT US citizens

– non-citizens currently lawfully present in the United Staes under a visa who are NOT current Green Card holders

– current US citizens or lawful permanent residents who were NOT “lawfully present in the United States at the time of their offense” (think undocumented aliens)

And to be very clear

Regardless of current status, if one was not legally present in the United States at the time of offense then one is NOT eligible for the pardon. (Think undocumented aliens at the time of the offense.)

Why should the “status” of the person matter when offering this pardon?

An excellent twitter thread from David Bier discusses this issue …

It’s very clear that in 2022 no person should be convicted of a criminal offense for the mere possession of marijuana. The pardon is offered in recognition of that sentiment. Possession of marijuana is simply not conduct which should be deemed to be a criminal offense. Since the conduct should NOT be deemed a criminal offense, why should the pardon be restricted to those who are:

current United States citizens and lawful permanent residents

The ONLY possible explanation is that ONLY “current United States citizens and lawful permanent residents” are deserving of fair treatment. Who cares about the rest of them?

Let’s put it this way:

Assuming possession of marijuana should not be a crime, it’s still okay to punish those who are NOT “current United States citizens and lawful permanent residents”.

The pardon should apply prospectively and retrospectively to ANY individual who violates this unreasonable law. Why condition the pardon on status?

John Richardson – Follow me on Twitter @Expatriationlaw