Important to understand Hurd bill - H.R. 4501 - is NOT restricted to a Papal exemption on foreign source income. It’s an exemption from Subtitle A of the IRC which is exemption from tax on ALL income (including US source). But this will NOT solve Pope Leo’s problem because … 1/

https://twitter.com/acavoice/status/1950692916151582941

Hurd bill - H.R. 4501 - does not include an exemption from Subtitle F of the IRC which is where all the penalty laden foreign asset reporting requirements live. But exempting the Pope from Subtitle F would not be a complete solution bc … 2/

Labor Rally Taking Place Now On Capital Hill To Support A Vote On The Social Security Fairness Act (WEP provision) youtube.com/live/gT5uZYesX… x.com/IRS_MEDIC/stat… Interesting and motivating ... Frequent references to the fact that the fight to repeal WEP and GPO has been going in since 1983 (40 years). Adovacy is difficult!

Principle 7 - understanding what the #endingdoubletaxation of #Americansabroad means:

It's critical to understand how US @citizenshiptax makes it harder and more expensive for U.S. companies to hire U.S. citizen employee/managers/executives. Nobody understands this better than Jim Gosart - @jgoshksk ... @CitizenshipTax Wisdom of @jgoshksk -

https://x.com/jgoshksk/status/1859265146519949547

Principle 6 - understanding what the #endingdoubletaxation of #Americansabroad means:

The biggest obstacle to change to the US @citizenshiptax extra-territorial tax regime is NOT Congress or Treasury

The biggest obstacle to change is (amazingly) #Americansabroad as a group.

Because, @citizenshiptax affects different people very differently, it is hard to (1) define the problem (people understand it in how it affects them) and (2) willingness to actively campaign for change.

All #Americansabroad must come together to demand the severance of citizenship from @taxresidency. Let's consider different groups and imagine how
@citizenshiptax affects members of those groups. Those with their financial center of gravity in the US might object to the compliance/filing requirements. But are not likely to experience the destructive affects of having a financial center of gravity outside the USA.

Least impacted: 1. Those who retired in the USA and moved abroad 2. Wealthy Americans who move abroad 3. Employed expats who are temporarily abroad.

Most impacted: 4. Emigrants living permanently abroad 5. Accidental Americans who file U.S. taxes

Could go either way: 6. Digital nomads (often use FEIE to avoid paying tax anywhere).

Principle 5 - understanding what the #endingdoubletaxation of #Americansabroad means:

Starting in "Principle 1" I explained that the problem of the #doubletaxation of #Americansabroad exists in relation to non-US income sources received by individuals who do NOT live in the USA (AKA #Americansabroad.

Key point: If @USCitizenAbroad does NOT have non-US income sources and assets, the US @citizenshiptax will be experienced mostly as filing a US tax return while living outside the USA. From that perspective it's easy to see why non-resident US citizens with US income sources and assets are not hugely impacted by US #citizenshiptaxation. Let's be a bit more precise. Imagine you have a @USCitizenAbroad with an investment portfolio of US stocks, US Social Security or a US pension. Even if taxed by the non-US country, the US generally has first right of taxation (it's US source income). US will NOT impose punitive taxation bc it's US source income. (The other country will generally provde a credit for US tax paid.

Principle 4 - understanding what the #endingdoubletaxation of #Americansabroad means:

Let's summarize "some" of the costs of the US @citizenshiptax regime to BOTH @USCitizenaboad and the countries where they live.

First, Costs of US @CitizenshipTax to #Americansabroad

- #Americansabroad are in effect subject to a separate and more punitive tax regime than Homeland Americans. On this point see:

citizenshipsolutions.ca/2019/03/12/the… Second, the lost opportunity of not being able to participate in retirement and financial planning programs created by their country of actual residence:

citizenshipsolutions.ca/2017/08/04/the…

Third, the horrible fees to tax preparers to prepare (often incorrectly) US tax returns. It is obvious that compliance costs should be considered a separate tax on UScitizenship.

Principle 3 - understanding what the #endingdoubletaxation of #Americansabroad means:

Because @doubletaxation of #Americansabroad is caused by US @citizenshiptax it is clear that ending the #doubletaxation of @USCitizenAbroad can be ended by ending #CBT - AKA separation citizenship from @taxresidency. This is the ONLY solution that solves the problems of all people, all the time and under all circumstances.

That said, other solutions have also been proposed.

These other solutions which RETAIN US #citizenshiptaxation and solve the problems of some but all include ...

- Proposals that RETAIN US @citizenshiptax but provide relieving provisions for some of the effects of #CBT for some people but not for others. Examples include:

- the 2018 Holding Bill and the later Beyer bills which mostly exclude most non-US source income from US taxation but are aimed at limited forms of income and leave ALL reporting requirements in place (Form 5471, Form 8938, Form 3520, Form 3520A, Form 8621, FinCEN 114, etc.)

Note that although these might enddouble taxaion they are limitedin scope.

Principle 2 - understanding what the #endingdoubletaxation of #Americansabroad means:

Q. Why would non-resident U.S. citizens (AKA #Americansabroad) be subject to @doubletaxation by the U.S. and their country of residence?

A. Because due to US @citizenshiptax they have @taxresidency in both the US and their country of residence. This means they may be subject to taxation by both countries on the same income. To put it simply, US citizens - living outside the US - are ALWAYS subject to @doubletaxation on non-US source income.

US #citizenshiptax is the primary cause of the @doubletaxation of #Americansabroad. There is a difference between #Americansabroad being "subject to @doubletaxation because of US @citizenshiptax and actual #doubletaxation.

For double taxation to exist both countries must subject the same income to taxation. If the same income is NOT subject to tax in both countries there is no double taxation, but there may be taxation based on US citizenship. For example, US citizens living in Canada are US taxable on the cap gain on sale of primary residence. But Canada does not tax this gain. Hence, no double taxation.

If you who wonder whether @DemsAbroad has any interest in issues facing #Americansabroad, here's the answer. @TheDemocrats do NOT care about @citizenshiptax and #FATCA AND "They don't care that they don't care." It's ONLY about your vote!! via @YouTubeyoutube.com/live/9cgIbShsW… @DemsAbroad @TheDemocrats @CitizenshipTax @YouTube The "Americans Abroad for Harris-Walz-Live" delivered the following message to #Americansabroad:

https://x.com/ExpatriationLaw/status/1831988096281329727

UNITED STATES v. SCHWARZBAUM (2024) - Aug. 30, 2024: 11th Circuit (citing Gorsuch dissent in Toth Supreme Court cert petition) disagrees with 1st Circuit ruling in Toth and rules 8th Amendment excessive fines clause applies to aspects of #FBAR penalties. caselaw.findlaw.com/court/us-11th-… The Schwarzbaum #FBAR case is a very interesting decision with fascinating decision of English law. Key excerpts (no substitute for reading full decision) caselaw.findlaw.com/court/us-11th-…

Biden 2025 Green Book contains proposals exacerbating impact of US @citizenshiptax on #Americansabroad by creating @doubletaxation. Do NOT be fooled by references to "High Income" and "Wealthy". Reform of "taxation of capital income" = trouble for all! home.treasury.gov/system/files/1…
The 2025 Green Book repeats proposals in 2024, 2023 and 2022. For "some" of the impacts on #Americansabroad see this 2022 post from @VLJeker us-tax.org/2022/04/21/par…

This will be interesting. The larger issue is how the meaning of the treaty is to be determined and whether the US Treasury is the one to determine that meaning. But, it’s clear that USA has declared war on French residents afflicted/disabled by U.S. citizenship.

https://twitter.com/ACAVoice/status/1784794739847405738

USA is arguing that US/France tax treaty should be interpreted to REQUIRE @doubletaxation if France dares to tax investment income sourced in France and received by US citizens (property) resident in France. Treaty #savingclause used to create #doubletax and not avoid it.

Congratulations to @MonteSilver1 and @GOPIsrael - the #GILTI lawsuit remains alive!! news.bloombergtax.com/daily-tax-repo… The oral argument in Monte Silver v. IRS (definitely worth listening to) is here ... courtlistener.com/audio/89880/mo…

Interesting analysis from @DanNeidle. Example of the use of procedural rules to avoid analyzing what the #FATCA IGAs are really about (especially in application to UK residents). Should the UK really allow the US, to claim UK residents as US taxpayers? taxpolicy.org.uk/2024/03/08/sec… @DanNeidle Par 5 of ruling Judge makes factual mistakes: 1. #FATCA IGAs are NOT US "treaties". 2. US tax authorities do NOT transfer information on "US citizens resident in the UK". Transfer is on individuals RESIDENT in UK (not citizens) who hold accounts in US!. assets.caselaw.nationalarchives.gov.uk/ewhc/kb/2024/5…

Looking forward: @Keith__REDMOND, @IRS_MEDIC and @Expatriationlaw discuss the US #PFIC rules. Interestingly @RonWyden in his "Billionaires (so called) Tax Act" is applying PFIC (as applied to #Americansabroad) to resident Americans. Similarity to #PFIC 1: @RonWyden's "Billionaires Tax Act" imposes an annual "mark to market" tax on "tradable" (think publicly traded stocks) assets. Pay tax without an actual sale ... finance.senate.gov/imo/media/doc/…

When it comes to the Moore @USTransitionTax MRT case (to be argued Dec. 5/23) there is almost no agreement on what the case is even about (reflected in the statements of the interviewees.) Some thoughts on what was said ... cnb.cx/3QRdSfu @USTransitionTax 1. Earnings accumulated before 2017 by CFCs were NOT "deferred". They were earnings of a non-US corp, that were not taxable by the US as per US tax law. There was never ANY obligation to bring those earnings into the US tax system. The TJCA created both new income and a new tax!

US Model Tax Treaty: Par 4 of Article 1 includes "saving clause" that (1) allows US residents but NOT citizens to be treated as having @taxresidency - as per Art 4 - in treaty partner country + (2) denies US citizens (limited exceptions) treaty benefits. home.treasury.gov/system/files/1…


@TaxResidency Both US citizens and Green Card holders are subject to all provisions (worldwide tax, reporting and penalties) of US tax code. Green card holders (but not citizens) may use treaty (dual @taxresidency tie break) to become "treaty nonresidents" and taxable only on US source income.

@goodtaxtakes @Tyler_Menzer Case 4 taxing nonres citizens as the book demonstrates) is (unlike case for taxing GC holders) not based on anything except tradition, ignorance, stupidity and mistakenly equating residence and citizenship. It’s obvious that the author of book doesn’t understand @citizenshiptax. @goodtaxtakes @Tyler_Menzer @CitizenshipTax Cook v. Tait is not about taxation. It’s about the relationship between the state and the citizen as it was understood in 1924 (the citizen was the property of the state). This is discussed in this video.

Hypocrisy from @SenateFinance, @RonWyden
+ @MikeCrapo. Complaints abt: 1. Canada's DST tax on US companies CDN SOURCE revenues + 2 Retroactive tax (Hello @USTransitionTax). Ignores USA does both via @citizenshiptax on CDNs #FATCA, #PFIC, #savingclause finance.senate.gov/imo/media/doc/… With this level of stupidity it's hard to know where to begin, but let's start with the fact that the USA itself targets foreign companies AND ESPECIALLY the Americans that work for them though US @citizenshiptax, @USTransitionTax, #GILTI, #PFIC, #SUBPartF finance.senate.gov/imo/media/doc/…

2016 US Model Treaty has a more expansive "saving clause" than OECD and UN "saving clauses". 1. Like the OECD and UN Treaties it "saves" the right to tax US residents (as determined by treaty). 2. It also "saves" the rights to tax its "citizens" period. home.treasury.gov/system/files/1…


2016 US Model Tax Treaty has three "saving clause" provisions: 1. "Saves" US right to tax its "residents" (as determined under treaty tie break rules). 2. Tax US citizens who are residents of treaty partner country (treaty tie break rules don't apply) 3. Tax former citizens!

The 2017 OECD Model Tax Treaty, added a "saving clause". The purpose was to ensure that "residents" (as determined under treaty) would be taxed as residents and NOT as nonresidents. The purpose was to protect the domestic tax base. read.oecd-ilibrary.org/taxation/model…
Commentary leading up to the implementation of the OECD "saving clause" confirms the purpose was to ensure that "residents" could NOT be treated as "nonresidents" to gain treaty benefits to which they were not entitled. The commentary explains: read.oecd-ilibrary.org/taxation/preve…