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John Richardson - lawyer for
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Jan 18 • 9 tweets • 5 min read
Post from @1040abroad (includes) attempts to define who is an ”Accidental American” (not defined in US law). US Treasury has made consistent attempts to help them without defining them. How should “Accidental American” be defined? taxconnections.com/taxblog/being-… via @TaxConnections
The first recognition of the problem of "Accidental Americans" is found in the 2015 Obama budget proposal discussed here ... See the screen shots for what was proposed. citizenshipsolutions.ca/2015/02/08/the… ImageImage
The second recognition of the problems of "Accidental Americans" appeared to result in the 2019 "IRS Relief Procedures For Former Citizens" as discussed here ... citizenshipsolutions.ca/2019/12/18/irs… ImageImage
The third recognition of the problems of "Accidental Americans" comes in the March 2022 Biden Green Book which is designed to allow certain individuals to expatriate easily. citizenshipsolutions.ca/2022/03/29/bid… ImageImage
The fourth recognition of the problems of (and caused by) "Accidental Americans" came in Dec. 30/22 - Notice 2023 - 11. The effect of the Notice was that FFIs would NOT be required to close the bank accounts of certain Accidentals who do not have SSNs. taxconnections.com/taxblog/the-ca… Image
The fifth recognition of the problems of (and caused by) Accidental Americans was the Jan. 6/23 announcement by the State Dept that it intended to reduce fee for a CLN from $2350 to the 2012 level of $450. A clear intention to make renunciation easier. citizenshipsolutions.ca/2023/01/10/sta… Image
It can be inferred that US wishes to remove "Accidental Americans" from US tax base. The preceding five steps are attempts to encourage the easy/painless renunciation of US citizenship in accordance with US law and improve US tax compliance in a @CitizenshipTax and #FATCA world.
The term "Accidental American" is neither a definition nor concept in US tax or nationality law. It will be interesting how US defines the groups of people targeted by various programs/initiatives. For example, the 2019 "Relief Procedures For Former Citizens" is narrowly defined.
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More from @ExpatriationLaw

John Richardson - lawyer for
Dec 31, 2022
Notice 2023-11: Temp relief provided to banks under Model 1 #FATCA IGAs who can't provide SSN numbers of #Americansabroad ("preexisting accounts only") if the gov joins banks in taking specific steps to educate individuals about FATCA + @citizenshiptax. home.kpmg/us/en/home/ins…
Purpose of Notice 2023-11 is to ensure that banks in a Model 1 #FATCA jurisdiction won't be deemed to be "non-compliant" with the IGA if they can't provide a US SSN for "pre-existing accounts". The notice can be accessed and read in its entirety here ... irs.gov/pub/irs-drop/n…
Step 1: The relief is available to the banks in a Model 1 #FATCA IGA jurisdiction and ONLY if the government of the jurisdiction commits to engaging with (1) individual US citizens (2) the banks and (3) US Treasury to facilitate compliance.
Read 17 tweets
John Richardson - lawyer for
Dec 30, 2022
Lots of discussion on "reciprocity" question. What does "reciprocity" mean? Q. Is it possible for there to be "reciprocity" when "obligations" are in the form of an agreement (possible contract) or where the contract is the result of duress? Consider the following examples ...
What if Mr. A makes Mr. B "an offer he can't refuse"? Mr. B agrees to the obligation. Is this "reciprocal" or is this an agreement under duress? Can one really say this "classic" staple of American culture - is an example "reciprocity? Is it thuggery?
A second example ... neither Roxie nor Mamma Morton is behaving in a spirit of kindness/generosity. What is called "reciprocity" is about avoiding sanction (which is why all governments entered into #FATCA IGAs).
IRC 1471 imposes sanctions. Reciprocity?
Read 10 tweets
John Richardson - lawyer for
Dec 29, 2022
Excellent article by @HelenBurggraf explaining that the new Argentina IGA (like previous #FATCA IGAs) is NOT reciprocal. An earlier and lengthy expose explaining in detail why #FATCA IGAs are NOT and likely will never be reciprocal agreements is here ... citizenshipsolutions.ca/2022/07/24/the…
The remarks from Ambassador Stanley are clearly designed to suggest the US Argentina #FATCA IGA is "reciprocal". Whether by accident or design this statement is not accurate.
It is useful to examine the exact text of the US Argentina #FATCA IGA to determine what Argentina is required to do and what the US is required to do and decide whether the agreement is reciprocal. home.treasury.gov/system/files/1…
Read 10 tweets
John Richardson - lawyer for
Dec 20, 2022
#RBT countries understand "saving clause" to protect the internal tax base. Bc of @citizenshiptax + #FATCA US uses "saving clause" to BOTH PROTECT internal tax base + EXPAND tax base by claiming people with @taxresidency in other countries as US taxpayers. taxconnections.com/taxblog/croati…
Both OECD + UN Treaties include a "saving clause" which "saves" right of a country to tax its "residents". All countries (including the US) make "residency" a sufficient condition for @taxresidency. Only the US has @citizenshiptax. Hence, "saving clause" speaks only of residents.
The evolution of the "saving clause" found in US Tax Treaties is VERY (really) interesting. Watch how they become tighter over time. Here is paragraph 3 of Article 4 of the 1973 US Romania Tax Treaty. It applies to (1) "residents" (as defined by treaty) and (2) "citizens".
Read 12 tweets
John Richardson - lawyer for
Dec 16, 2022
Appears a delay in processing US tax forms is making it difficult for Canadian residents to comply with their Canadian tax obligations. Nobody told them about the perils of the cross border tax world when one lives in Canada and is paid for working in US. cbc.ca/news/canada/wi…
The relevant treaty provision ... canada.ca/en/department-…
Article XV says that the salary earned by the Canadian resident nurses who work in the USA "may" be taxed by the USA. Article XXIV par 3 says that the income is "sourced" to the USA which gives the USA the first right of taxation ... canada.ca/en/department-…
Read 6 tweets
John Richardson - lawyer for
Dec 10, 2022
When flying over international waters or on a cruise ship in international waters, US citizens are indeed subject to double taxation bc and only bc of US citizenship. Explained by @1040Abroad and @Expatriationlaw here … citizenshipsolutions.ca/2022/01/20/air…
To clarify it is US citizens with @taxresidency in another country that are subject to #doubletaxation. Think pilots, cruise ship employees and #Americansabroad who work on the plane. See this podcast with Jim Gosart of @RepOverseas where we discuss.
The #doubletaxation of income earned in intl waters is one more consequence of @citizenshiptax and another example of how #Americansabroad are taxed more punitively than US residents. Here is a series of podcasts with @RepOverseas explaining the problems citizenshipsolutions.ca/2021/11/30/rep…
Read 5 tweets

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