A Mexico Land TRUST, is not a FOREIGN TRUST for IRS purposes - ("cannot be what it isn't"). But, a Liechtenstein “Stiftung” - private FOUNDATION with no reference to the word TRUST is a FOREIGN TRUST for IRS penalty purposes - ("would be what it isn't"). casetext.com/case/rost-v-un… Image
Here is IRS Rev. Rul. 2013-14 which decided that certain Mexican Land Trusts are NOT trusts for IRS purposes irs.gov/pub/irs-drop/r… Image
Here is the August 11, 2022 decision of the US Court Of Appeals - 5th Circuit that ruled that a Liechtenstein "Stiftung" (a German word meaning, roughly, "foundation" or "endowment.") ARE trusts for IRS purposes casetext.com/case/rost-v-un… Image
#Americansabroad never know when their life activities may be subject to the US penalty regime. They live in fear of the Sword Of Damocles. The ancient Greeks anticipated the tyranny of Forms 3520, 3520A and the rest of the US tax, form and penalty regime
We see time after time the impossibility of understanding how the US IRC applies to various non-US AKA "foreign" financial arrangements. The impossibility of US @CitizenshipTax is explored in "Mission Impossible - Extraterritorial Taxation and the IRS" papers.ssrn.com/sol3/papers.cf…
We at @SEATNow_org believe that a "Regulatory Fix For Citizenship Taxation" is possible as described in this discussion with @TaxNotes
In conclusion ... “It would be so nice if something made sense for a change.”
― Lewis Carroll, Alice in Wonderland Image

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More from @ExpatriationLaw

Nov 13
This informative summary of the differences among U.S. state income taxes naturally leads to a discussion about the difficulty in severing @taxresidency from high tax states like CA, NY and Mass.
Whether constitutional or not I suspect that these high tax states will attempt to impose “Exit/Departure Taxes” on individuals who try to sever @taxresidency with the state.
As discussed in this WSJ article by Hank Adler California has already proposed a very “progressive” exit tax on people who sever @taxresidency. Great article here. wsj.com/articles/a-cal…
Read 13 tweets
Nov 2
Tuning in on the live argument in the Bitter #FBAR case. Will tweet some of my thoughts/impressions as this unfolds. supremecourt.gov/oral_arguments…
Suggestion that existence of "reasonable cause" mitigates against the threat of draconian penalties.
Judges suggesting that the quantum in the unreported accounts matters. "If you fail to do what the secretary required you to do then you are subject to a penalty of $10,000".
Read 48 tweets
Oct 31
The National Whistleblower Centre has filed an amicus brief in Bittner - TOTALLY DEVOID OF LEGAL ARGUMENT - arguing for per account #FBAR penalties because higher penalties would create incentives for Whistleblowers" to report @InFBARWeTrust violations. supremecourt.gov/DocketPDF/21/2… Image
As evidence of the significance of #FBAR violations (and therefore the need to incentivize whistleblowers) the brief cites statistics on the small number of FBARs filed in comparison to the far larger number of #Americansabroad (relying on info from @aaro). ImageImage
The brief seems to advocate that: 1. There is severe #FBAR noncompliance 2. The Government needs whistleblowers 3. Per account penalties will result in higher total penalties 4. The higher the penalty the more likely the whistleblowers will step in to assist the government. Image
Read 8 tweets
Sep 28
2022 FATCA Report: If US doesn't agree to amend #FATCA IGAs to include full reciprocity and respect GDPR (which it won't) options include: 1. Blocking law generally 2. Blocking law for @USAccidental 3. Deem #FATCA inapplicable to European residents period! europarl.europa.eu/RegData/etudes… ImageImageImage
The very last paragraph explains that #FATCA is not in the spirit of multilateral cooperation. Basically it saying that the US is essentially a 100% taken and a 0% giver. But, we know that Image
A "blocking" statute is a law that "blocks" the application of certain laws ... en.wikipedia.org/wiki/Blocking_….
Read 10 tweets
Sep 25
In her own words “Nancy” in a message to @DemsAbroad (1) fails to identify #Americansabroad as a priority while mentioning other groups (2) confirms that your value is ONLY in your vote. A vote for a Democrat anywhere is a vote against every American abroad everywhere.
@DemsAbroad Did @DemsAbroad assist in drafting this message? If yes DA confirms #Americansabroad are not a priority. If no @TheDemocrats confirm #Americansabroad not a priority.
Seriously, @DemsAbroad needs to respond to this “tone deaf” message from Nancy. You couldn’t invent a more offensive message if you tried. Maybe @DemsAbroadCan (home of so many potential voters) could/should respond?
Read 8 tweets
Sep 8
Lesson from @VLJeker: Some people may never be able to renounce US citizenship. Others may have capacity to renounce now but may not have the capacity to renounce in the future. The inability to renounce has implications for estate and life planning and should be taken seriously!
@VLJeker I have and do see cases where the aging process has eroded the capacity to form the intention to renounce. The result is that certain people are forced to continue to live and die as US citizens. While not a problem for US residents, it can be a big problem for #Americansabroad.
Problems of living/dying as @USCitizenAbroad include: 1. US @citizenshiptax regime while alive 2. Estate having to file US tax returns at death 3. Difficulties leaving assets to nonresident alien spouse 4. Possible Estate Tax 5. Estate Tax return to transfer certain US assets
Read 7 tweets

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