TCJA and Expanding the definition of and number of "Controlled Foreign Corporations" subject to Subpart F

As goes the number of “Controlled Foreign Corporations“, so goes the size of the U.S. tax base. The “messaging” was that the United States was moving to a system of “Territorial Taxation” for corporations. The reality is that the TCJA has actually increased the number of “non-U.S. corporations” that the United States claims to be […]

Green card holders: the "tax treaty tiebreaker" rules and taxation of Subpart F and PFIC income

Before you read this post!! Warning!! Warning!! Before a “Green Card” holder uses the “Treaty Tiebreaker” provision of a U.S. Tax Treaty, he/she must consider what is the effect of using the “Treaty Tiebreaker” on: A. His/her immigration status under Title 8 (will he/she risk losing the Green Card?) B. His/her status under Title 26 […]

To punish 100 #GILTI Corporations is to punish millions more individuals

Introduction: As Goes Tax Reform For US Multinationals, So Escalates The Harm To Individual Americans Abroad In the 18th century people were "guilty". In the 21st century people are #GILTI. — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) April 14, 2021 The Problem: The proposed changes in International Tax (mostly in relation […]

Proposal by @JoeBiden to increase the GILTI tax has particularly vicious implications for #Americansabroad

Well look here, Biden proposes to double the #GILTI tax with no apparent exemption for small business. This is a declaration of war on the tax base of other countries (and of course #Americansabroad). — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) June 25, 2020 Introduction Proposal of @JoeBiden to raise […]

The S. 911 Foreign Earned Income Exclusion: It’s origins, journey, opportunities and limitations

This 1981 article on the S. 911 FEIE explains the purpose was to make it less expensive for US corps to hire US citizens. It was NOT motivated by any desire to help #Americansabroad. "THE FOREIGN EARNED INCOME EXCLUSION: REINVENTING THE WHEEL" on JSTOR — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) […]

Seriously now, who’s GILTI? Senators Wyden and Brown attempt to reinforce the punishment of GILTI Americans abroad

Prologue — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) March 15, 2020 Americans abroad who are individual shareholders of small business corporations in their country of residence have been very negatively impacted by the Section 951A GILTI and Section 965 TCJA amendments. In June of 2019, by regulation, Treasury interpreted the […]

US Treasury proposes that foreign income subject to high foreign tax be excluded from definition of #GILTI

In general – Good News For American Entrepreneurs Abroad … On Friday June 14, 2019 US Treasury proposed in Notice 2019-12436 that any foreign income earned by Controlled Foreign Corporations be (subject to election) excluded from the definition of GILTI income. This will be particularly welcome to Americans living outside the United States, who are […]

Part 32 – So, you have received a letter saying that your @USTransitiontax is also subject to the 3.8% NIIT

Look here – Canadians may be required to fiance Homelander Health Care! "Distributions from Canadian RRSPs are subject to #Obamacare surtax while distributions from US plans exempt" via @ExpatriationLaw — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) June 9, 2019 This is Part 32 of my series of blog posts about the […]

Part 5 of series: What does U.S. "citizenship-based taxation" actually mean and to whom does it actually apply?

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 […]

Considering renouncing US citizenship? Meet a person who I suggested NOT commit #citizide

#FATCA is USA is forcing certain #Americansabroad to renounce US citizenship bc of unreasonable demands. @CitizenshipTax may not be per se unconstitutional – but when it reaches point where people can't comply @USSupremeCourt in Afroyim v. Rusk says NO! — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) December 2, 2018 For […]