Between March and May of 2023 I had three discussion/podcasts with “Vance” of MyLatinLife.com.
I have put them all in one post. They will be of interest to “Digital Nomads” and “Remote Workers” generally.
All 3 episodes from John Richardson (@ExpatriationLaw) & My Latin Life 🌴
1) https://t.co/NxVOnvfk79
2) https://t.co/swPgdvuwiH
3) https://t.co/fkiSyvYPg5— My Latin Life 🌴 (@MyLatinLife) July 6, 2023
Interview 1:
Interview 2:
Interview 3:
John Richardson – Follow me on Twitter @Expatriationlaw
John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:30 – 21:30
What: John Richardson informal information and discussion session for those impacted by US extraterritorial overreach
When: Thursday October 13, 2022 – 19:30 – 21:30
Where: Sutton Arms – Wine Room
6 Carthusian Street, London, EC1M 6EB
Cost: No charge for the session. You may wish to purchase a beverage at the location.
How to get there: There is a map at the bottom of the home page of the Sutton Arms Site:
https://www.sutton-arms.co.uk/
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Attention!! Date, time and location updated!! – Thursday Oct. 13/22 – 19:30 – 21:30 – New location! See here.
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John Richardson – Information Session – London, UK – Thursday Oct. 13/22 – 19:00
What: John Richardson informal information and discussion session for those impacted by US extraterritorial overreach
When: Thursday October 13, 2022 – 19:00 – 21:00
Where: Pret A Manger – Directly Across From Russell Square Tube (careful to choose the correct Pret)
40 Bernard Street, London, WC1N 1LE
https://www.pret.co.uk/en-GB/shop-finder/l/london/40-bernard-street/284
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Introduction
Life is full of rude awakenings. More and more people are experiencing their OMG moment …
The Twin Horrors Of FATCA And Taxation Based Citizenship as described by @Amy_From_Sydney https://t.co/SHxNUp37WR via @YouTube
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 20, 2022
This is Part 2 of the series. In Part 1, I identified that it is essential that individuals (and governments) unite to bring an end to the US tradition of “citizenship taxation”. “Citizenship taxation” – what a phrase. The words are not descriptive of anything. It clearly has something to do with some form of taxation. The inclusion of the word “citizenship” makes it sound almost patriotic. But maybe, not. Maybe it’s just part of what means to be a citizen. Since only the United States has citizenship taxation, perhaps taxation is what it means to be a US citizen. If so, then perhaps US citizenship should be called “taxation based citizenship”. The concept of citizenship means different things in different countries. Is this a statement that the essence and the meaning of US citizenship is taxation and only taxation?
Citizenship Taxation – Theory vs. Reality
A supporter of citizenship taxation is someone who THINKS about “citizenship taxation”. An opponent of citizenship taxation is anybody who has tried to LIVE under citizenship taxation.
https://www.citizenshiptaxation.ca
I guarantee you that there is not a single supporter of US citizenship taxation who actually understands it!
Toward An Understanding: Citizenship Taxation And The Seven Deadly Sins
Introduction – The First Of A Series Of Short Posts
My name is John Richardson. I am a Toronto, Canada based lawyer. I am also a founding member of “SEAT” (“Stop Extraterritorial American Taxation”). I am an advocate for reforming the US laws which apply to US citizens who live outside the United States as permanent residents of other countries. The problems experienced by Americans abroad are at the “boiling point” and something must be done. This post is motivated by the following twitter thread which reveals the pain, desperation, anger and divisiveness experienced by Americans abroad:
FOR IMMEDIATE RELEASE – Taxation Task Force submission to @WaysMeansCmte Oversight Subcommittee in advance of hearing with the @YourVoiceAtIRS on Challenges facing taxpayers https://t.co/RY7M37kfCB #Taxation #IRS
— Rebecca Abroad (@AbroadRebecca) February 7, 2022
This is the first of a series of short posts in which I will share my thoughts and suggestions for how to proceed. I welcome your comments both here and on twitter where I am @Expatriationlaw.
Blind Partisanship Is Not Productive
I want to state at the outset that I am an independent and am not a member of any political party. I have been and continue to be supportive of independent candidates in Canada (and anywhere else). I state this because during this series of posts, I will express sentiments that are critical of political parties. When I criticize the Democrats it’s not because I am a Republican. It’s because the Democrats are deserving of criticism (or vice-versa). Healthy democracies are dependent on accurate observations and objective analysis. Excessive partisanship is simply an excuse for reasoned analysis.
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 19, 2022
The Difficulty Of Living As A US Citizen Outside The United States
First, if you are a “retiree living abroad” where all of your income is US sourced this post is NOT for you. You are filing the same US tax return while “retiring abroad” that you would if you were living in the USA. You are probably filing tax returns ONLY in the USA. Therefore, the US citizenship tax regime does not impact you in the same way. This post is for those who live permanently outside the United States and your income sources, assets and retirement planning are associated with the tax systems of other countries (foreign to the United States).
Second, As permanent residents of other countries, US citizens are treated as BOTH tax residents of the United States and tax residents of the countries where they live. In other words, they are subject to the full force of two (often incompatible) tax systems. Think of it. US citizens living outside the United States are subject to the tax systems of two countries at the same time. Leaving aside the anxiety this induces, the time that it takes to comply, the heightened threats of penalties and the outrageous costs of compliance (think tax accountants and lawyers), this puts Americans abroad in a position where:
1. They are subjected to a tax system that is more punitive than the tax system imposed on US residents
2. They are often subject to double taxation (the foreign tax credit rules and the Foreign Earned Income Exclusion do not prevent many forms of double taxation)
3. The US tax rules prevent them from engaging in the normal financial planning and retirement opportunities (Canadian TFSA and UK ISAs are not tax free for US citizens)
4. In many countries, because and only because of their US citizenship they are prevented from maintaining the normal financial accounts they need to live in a normal way (this is the direct result of the 2010 Obama FATCA law)
The cumulative weight of these problems is that US citizens living outside the United States are being constructively forced to renounce their US citizenship in order to survive. But, it gets worse. Since June 16, 2008 certain Americans abroad who renounce US citizenship (“covered expatriates“) are forced to pay a special expatriation tax on their non-US assets to achieve this goal. (You can find a video of my discussing US citizenship renunciation here.)
Americans abroad are NOT renouncing because they don’t want to be Americans. They are renouncing because the US tax and regulatory regime is forcing them out of their US citizenship!
It’s The System Not The Parties
Regardless of which political party is in power, tax laws will continue to change.
As long as the United States employs citizenship-based taxation, changes in US tax laws will continue to have dramatic (sometimes intended and sometimes unintended) effects on Americans abroad. These negative effects and outcomes will continue regardless of which political party is in power.
For example:
Another example of the evil of @citizenshiptax imposed on #Americansabroad. The 3.8% NIIT cannot be offset by foreign tax credits which guarantees the double tax of #expats. Shouldn’t @AbroadRebecca be complaining? @Taxresidency cannot be based on citizenship period. https://t.co/4dbIPy38KT
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 13, 2022
The 2017 TCJA became law under the Republicans. The effects on Americans abroad were horrible. (Examples include: Transition Tax, GILTI, those using the “Married Filing Separately” category were required to file with zero income)
The 2010 FATCA law was enacted under the Democrats. The effects on Americans abroad were horrible. (Examples include: Form 8938, FATCA bank account closures, etc.)
Therefore, it is a mistake to bicker over which political party has done more or less damage to Americans abroad. As long as citizenship-based taxation continues and tax laws continue to evolve, whatever political party is in power will – by changing tax laws – continue to damage the lives and finances of Americans abroad.
Individual American Abroad Must Unite To Get This System Of Law Changed
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) February 19, 2022
Conclusion for today: The problem is the system! It’s not the political parties.
You have the right to vote. The question is not which party to vote for. The question is how can you most effectively use your vote to end US citizenship-based taxation and encourage FATCA repeal.
To be continued …
John Richardson – Follow me on Twitter @Expatriationlaw
Considering renouncing US citizenship? Interesting, thoughtful and balanced 2018 discussion with Buffalo immigration lawyer @JoeGrasmickhttps://t.co/Xp9zPk1I2r via @expatriationlaw
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) January 1, 2022
In 2018 I had a discussion with Buffalo Immigration Lawyer Joe Grasmick about a number of issues including renouncing US citizenship. The discussion was videoed as part of my “Retain Or Renounce” series. It was a very interesting and balanced discussion. (We also discussed some of the dos and don’ts of Green Card abandonment.)
I wanted to share Joe’s LinkedIn post today (December 31, 2021). His post reinforces the reality that (although Americans abroad are clearly suffering from the tax and regulatory regime) US citizenship does have value.
I completely agree with Joe that the consequences of renouncing US citizenship (notwithstanding the problems) should be fully understood and appreciated.
This is an incredibly significant development. See the following posts on their Facebook site. They also have a new Twitter feed. Follow them at @RepOverseas.
Republicans Overseas position On What Pure Residence-based taxation means:
Tax Talk 1 – November 22, 2021
Tax Talk 2 – November 29, 2021
Tax Talk 3 – December 10, 2021
Tax Talk 4 – December 15, 2021
Tax Talk 5 – December 20, 2021
Tax Talk 6 – December 27 2021
Tax Talk 7 – January 3, 2022
Tax Talk 8 – January 21, 2022
Another Tax Talk is up!https://t.co/yDusMLr3zq
— Republicans Overseas Global (@RepOverseas) January 22, 2022
Tax Talk – January 24, 2022
Another episode in RO Tax Talk is available!https://t.co/OAaqDBYtgK
— Republicans Overseas Global (@RepOverseas) February 3, 2022
Discussion @TAPInternation @FixTheTaxTreaty @Expatriationlaw moderated by @RobertGoulder: "Citizenship-Based Taxation: A Simple Regulatory Fix" https://t.co/E6LFAh7C8P via @YouTube
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) January 27, 2021
Background
In 2016 I first made the suggestion that citizenship-based taxation could be changed through Treasury regulation. In October of 2020 John Richardson, Dr. Karen Alpert and Dr. Laura Snyder completed a paper titled “A Simple Regulatory Fix For Citizenship Taxation”. The idea advanced is that:
Although Congress and the Internal Revenue Code created the problem of “citizenship-based taxation”, Treasury has the authority and moral duty to fix the problems of citizenship-based taxation.
Discussion
In 1924 the Supreme Court of the United States considered U.S. citizenship-based taxation in the case of Cook v. Tait. Of course in 1924, the laws of both citizenship and taxation were very different. I have previously explored the evolution of citizenship, taxation and citizenship-based taxation.
The article has received fairly wide distribution (including in the academic community).
Abstract
This article explains the simple regulatory actions that United States Department of the Treasury can take that would, in the absence of legislative change, improve the lives of Americans living overseas and permit the IRS to better focus its limited resources to more effectively administer the U.S. tax system.
The article can be read at SSRN here.
The 2020 article can be at Tax Notes here.
I welcome your comments.
John Richardson – Follow me on Twitter @Expatriationlaw
On June 3, 2020 I plan to do a podcast with Anthony Scaramucci of Skybridge Capital and SALT Conference fame. The June 3 podcast has its roots in the following @Scaramucci tweet which was the subject of discussion at the Isaac Brock Society.
Win Win for U.S./Many of the NINE million Expats who may start voting would forgo the relief checks (spent overseas)/They want Residency Based Tax as per Rep. Platform (Promise kept)/Most do not pay tax BUT pay expensive fees to file/Save $$ on checks/Google it
— Anthony Scaramucci (@Scaramucci) April 17, 2020
Mr. Scaramucci’s tweet generated a great deal of discussion. If you click on the tweet, you will see, what some of the responses were.
A third party individual has arranged for me to do a podcast with Mr. Scaramucci. This will take place on June 3. In order to provide background information for “citizenship taxation”, FATCA and how they impact Americans abroad, I would ask that you reply to the following tweet. It is your opportunity to contribute to the conversation.
Hi – yes I am scheduled to speak with @Scaramucci on June 3. I hope to discuss the trials and tribulations of #Americansabroad in a #FATCA and @citizenshiptax world. Would greatly appreciate everyones specific suggestions to highlight the injustices.
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) May 27, 2020
Feel free to leave a comment to this post. I will ensure that it finds its way into the twitter thread.
John Richardson – Follow me on Twitter @Expatriationlaw
Before moving to the post, if you believe that Americans abroad are being treated unjustly by the United States Government: Join me on May 17, 2019 for a discussion of U.S. “citizenship-based taxation” as follows:
"What Is The Future Of Citizenship-Based Taxation?" Prof. William Byrnes (Texas A&M Law), Prof. Edward Zelinsky (Cardozo Law), John Richardson (Canadian attorney who represents US-Canada dual nationals), Kat Jennings (CEO Tax Connections) https://t.co/LP63MHEFYS
— William Byrnes (Tax Monk) (@williambyrnes) May 5, 2019
You are invited to submit your questions in advance. In fact, PLEASE submit questions. This is an opportunity to engage with Homelanders in general and the U.S. tax compliance community in particular.
Thanks to Professor Zelinsky for his willingness to engage in this discussion. Thanks to Kat Jennings of Tax Connections for hosting this discussion. Thanks to Professor William Byrnes for his willingness to moderate this discussion.
Tax Connections has published a large number of posts that I have written over the years (yes, hard to believe it has been years). As you may know I oppose FATCA, U.S. citizenship-based taxation and the use of FATCA to impose U.S. taxation on tax residents of other countries.
Tax Connections has also published a number of posts written by Professor Zelinsky (who apparently takes a contrary view).
You will find Part 1 to Part 14 of this series of posts here.
Laura Snyder discusses the “emotional toll of U.S. non-resident taxation and banking policies
Laura Snyder has written (in addition to her original four posts) a series of five posts describing and exploring “The Emotional Toll of US Non-Resident Taxation and Banking Policies“. Part 10 of this series (comments of Nando Breiter) was a prologue to Ms. Snyder’s five posts.
Now over to Laura …