PREP Podcaster - ”Success Favours The PREPared Mind”
News:News Commentary
July 15, 2020 - Participants Include:
Virginia La Torre Jeker - @VLJeker
John Richardson - @Expatriationlaw
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In 1996 Congress amended the Immigration and Nationality Act to include a provision which reads:
(E) Former citizens who renounced citizenship to avoid taxation
Any alien who is a former citizen of the United States who officially renounces United States citizenship and who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States is inadmissible.
Note that this law applies to those who "renounce" and does not appear to apply to those who relinquish US citizenship in another way. Furthermore, note the large number of conditions that must be met by IMMIGRATION officials before the law could be applied.
I have had a number of inquiries from people asking if this law really applies.
The short answer is that:
1. There is almost no evidence that the US Government is attempting to apply this law (only two cases from 1996 - 2015, were identified in a 2015 Report From The Department Of Homeland Security); and
2. It is very difficult for the law to be applied.
By the far the best summary of information on this topic comes from a post at the Isaac Brock Society. Interestingly the Brock post references a 2013 interview that Virginia La Torre Jeker (our guest) had with Willard Yates.
Those who are interested in this topic should read the Brock post in its entirety and the 2015 Report from the DHS. For those who want only a summary of the Brock post, the last paragraph reads:
"So, DHS is trying to say: the Reed Amendment is no danger to you, as long as you observe the rule of “don’t ask, don’t tell” at the consulate and the border. The implied threat of the IRS — “keep paying your accountant to fill out all your forms and prove you owe no tax, or you’ll never see your bedridden grandma again” — is probably a hollow one, absent Congressional action. You can go ahead and waltz your way through the humiliating charade of renunciation. You’ll only be under the same threat of arbitrary visa denial as any other foreigner.
The American Way: keeping your mouth shut and handing over thousands of dollars in order to exercise your human right to choose your nationality."
My personal advice would be ...
I think that you should be aware of the Reed Amendment and understand that you never communicate a tax related motive as a reason for renouncing U.S. citizenship.
It's unlikely that the Reed Amendment could impact you.
But, as they say in the investment world:
"Past performance is not an absolute guarantee of future results."
John Richardson - CitizenshipSolutions.ca
Enjoy the discussion!
Update - Possible additional links of interest:
– here is the link to the interview wtih Bill Yates http://us-tax.org/2018/09/30/if-you-go-you-cant-come-back-the-reed-schumer-follies-past-and-proposed-anti-expat-legislation-interview-with-bill-yates-former-irs-attorney-international/
More Links to Schumer Reed et al Senate proposals from 2013 – they just can’t let it go!!!
https://www.angloinfo.com/blogs/global/us-tax/1243-2/
https://www.angloinfo.com/blogs/global/us-tax/urgent-update-expatriates-banned-from-the-us-senators-reintroduce-taxpatriate-bill-into-homeland-security-bill/
And finally courtesy of Heitor David Pinto at Keith Redmond's American Expatriates Facebook group ...
Since the 2015 report only three of approximately 17,000 renunciants are believed to have drawn the attention of the Reed Amendment ...
Valerie McCray 2: Discussion with @DrVMcCray2020 - @Independents Candidate For President Of The United States
Introducing @SEATNow_Org - A New Organization With The Singular Focus Of Ending US @CitizenshipTax
Born in the USA? Those who relinquished US citizenship under INA 349(a) are NOT eligible to vote in the November 3, 2020 US election
Interview with @RonanMcCrae 2: On The Nature Of Citizenship
Scaramucci 2: If they want the Expat Vote -They Need To Understand The FATCA Life!
In an election season, the parties want the vote of Americans abroad. But they don't care that they don't care about the issues that impact Americans abroad
Ronan McCrea Discusses Citizenship By Descent In Ireland: Do The Rules Make Sense In The Modern World?
China is NOT adopting citizenship-based taxation: Dr. Bernard Schneider of Queen Mary explains how tax residency is defined in China
"Jenny" of FATCA UK Lawsuit Fame And Her Lawyer Filippo Noseda Discuss Why FATCA Conflicts With The GDPR
Dr. Valerie McCray - Independent Candidate For President Of The United States
Fourth Of July Interview with US born UK Author Claire Kendal about her newest book "I Spy" (with US citizen subplot)
John Richardson interviews "JR": Architect of the anti-FATCA petition to the EU Parliament: Why the FATCA lawsuits must be supported
Part 3: US Taxation of Nonresident aliens: How US IRAs and 401ks are taxed to nonresident aliens
Part 2: US Taxation of Nonresident aliens: How US Source Income May Affect Your Decision To Renounce US Citizenship
Part 1: US Taxation of Nonresident aliens: What is a nonresident alien? The taxation and witholding on FDAP and ECI income
Abandoning The Green Card: Careful the United States may hit you with a special "Exit Tax" on the way out and another possible tax to your heirs
US Tax Residency And the Green Card: Green Card holders are subject to US worldwide taxation even when they don't live in the USA and the Green Card has expired
Renounce US Citizenship: "Some" tax and immigration implications of transitioning from US citizen to nonresident alien
Discussion with Anthony Scaramucci: Wide ranging conversation including the taxation of Americans abroad and the state of US politics
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