A Simple Regulatory Fix For Citizenship Taxation

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 Taxation

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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."