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Tag Archive for American Citizens Abroad

American Citizens Abroad Unveils Online Tax Fairness Campaign To Urge Congressional Hearings

AMERICAN CITIZENS ABROAD

The American Citizens Abroad has unveiled a major online campaign it says is aimed at ensuring U.S. lawmakers hold hearings this fall on the “wide range of tax compliance issues” currently affecting Americans resident overseas – including the Tax Fairness for Americans Abroad Act.

The online write-in campaign, entitled “Tax Fairness for Americans Abroad: An Idea Worth Fighting For!”, is needed because hearings need to be held, the ACA explains, “so that the US House Ways & Means Committee can hear about the wide range of tax compliance issues facing the overseas Americans community from stakeholders and citizens.”

“With knowledge from hearings, the tax-writing committees and legislators will start to look at specifics of the legislation for refinement,” the ACA continues, in a statement issued on Thursday as part of its official launch of the new campaign.

“Treatment of items like Social Security income, income associated with the new “transition tax” and GILTI, and different types of PFIC income, will need more consideration, and details will need to be worked out to determine how these income streams will be taxed under a new residency-based regime.

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For The Duke And Duchess Of Sussex And Baby Archie Harrison Mountbatten-Windsor Tax Life Is Complicated

John Richardson Toronto Lawyer

The marriage of Meghan Markle to Prince Harry has generated an awareness of the regulatory requirements on U.S. citizens who live outside the United States. This is only part of the problem. To focus on how U.S. citizenship-based taxation affects ONLY U.S. citizens is selfish and misguided. After all, by marrying Prince Harry, Meghan Markle is now part of a family which includes non-resident aliens.

How do the rules of U.S. “citizenship-based taxation” affect people who are not U.S. citizens, but have chosen to interact with U.S. citizens?

Forget Meghan and the baby. Time to ask: How might being the father of a U.S. citizen and the husband of a U.S. citizen create a link between Harry and the IRS? “American expats hoping global spotlight on royal baby’s U.S. tax affairs will drive change.

My thinking along these lines began with:

What about Internal Revenue Code Section 318? This would deem “Baby Sussex” to be (for IRS purposes) the owner of any the shares of any U.K. corporations that Harry might own. This is only one of many instances where (to put it simply) the U.S. citizenship of one family member can become a problem for the whole family. In any event, this series really needs a post, describing what could happen, when a U.S. citizen becomes part of what is otherwise, a family of “non-resident aliens”.

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State Tax Considerations For American Expats

One of the more common tax questions from American Expats is do I have to file a State return?

Unfortunately, there is not an easy answer to that question, as it depends on the State and your personal situation… but you may have to file a return. There are a few factors that you need to look at first.

• Do you still own property in the State? Some expats keep their home and rent it out. In that case a return must be filed.

• Are you still receiving income from the State? Interest, dividends, bank accounts, mailing address and other types of State sourced income may trigger a need to file. Read more

At Last – Great News From The IRS For US Expat Tax Filers Who Are Late Or Non-Compliant

IRS Building in WashingtonThe IRS has declared filing three years back taxes is adequate for most US expat tax filers who are delinquent and there shall be no penalties for late FBARs (Foreign Bank Account Reports) from those who were unaware of the requirement to file.

This brings a clarity and welcome relief to many American expats who in the past may have been reluctant to file US income taxes because there was no assurance that they would not be further harassed (or assessed exorbitant penalties and fees) because they simply didn’t know – or they didn’t trust the potential outcome if they did attempt to come forward and become compliant with US tax laws…


As an online tax accounting firm which exclusively serves Americans living abroad, we had originally interpreted the three year rule as the best option for its clients and that opinion is now fully endorsed by the IRS itself. The IRS has clarified that, for Americans living overseas who are delinquent in filing their US income taxes, filing three years back taxes will bring the vast majority (those who owed less than $1500 per year) into full compliance with new IRS rules.  This is confirmed on the IRS website itself.Additionally, the IRS goes on to state that for those who need to file FBARs (Foreign Bank Account Reports), filing 6 years is sufficient and that that late filers who were not aware of the requirement will not be penalized for making quiet disclosures in this manner. Read more