Accidental American Nightmare

Much has been written and spoken about the Internal Revenue Service’s new “Relief Procedures for Certain Former Citizens” regime since it was unveiled earlier this month – apparently to enable mostly “accidental Americans” who have relinquished their U.S. citizenship, or are hoping to, the chance to easily and cheaply enter into U.S. tax compliance.

The general consensus seems to be that only a relatively small and select number of individuals will be eligible to participate in the new program, and that the participants will also tend not to be wealthy, since they must have net assets of less than US$2 million if they are to be accepted.

The fact that those participating in the program may not need to get a Social Security Number, if they don’t already have one, has been highlighted by some observers as a potential attraction for many would-be program participants.

On Thursday, Anthony Parent of Wallingford, Connecticut-based Parent & Parent LLP, also known as IRS Medic; John Richardson of Toronto-based Citizenship Solutions; and Keith Redmond, of Paris-based American Overseas Global Advocate, an American expat advocacy group, discussed in detail the IRS’s new Relief Procedures program, how it compares with previous IRS programs, and who is likely to benefit most from it.

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