Opinion: Why it's wrong to insist a U.S. move to residence-based tax regime be 'revenue neutral'

As awareness of the problems associated with the Obama-era law known as the Foreign Account Tax Compliance Act (FATCA) has gradually become more widespread, there's been more discussion about the possibility of the U.S. moving away from its globally-all-but-unique citizenship-based tax regime, to one based on residency. The proposal has even begun to crop up in discussions with some of the candidates who are hoping to win the Democratic party's nod for president this year.

As such discussions have become more frequent, so too has the use of the term "revenue-neutral" – the idea being that the U.S. could move to a residence-based scheme only if it were to mean that the U.S. Treasury would not lose so much as a penny from its coffers in the process.

Here, three regular commentators on U.S. expat tax issues – Toronto-based citizenship lawyer and tax expert John Richardson, Australia-based tax-fairness crusader Karen Alpert, and Paris-based IRS Taxpayer Advocacy Panel overseas representative Laura Snyder – explain why they believe it is unfair to America's estimated 9 million expatriates to insist that such a move only be done in such a way as to spare Homeland taxpayers the potential obligation to make up for any tax revenue shortfall that might result...

Frozen bank accounts latest: Dutch MPs submit questions on 'accidental American' issues to Treasury officials

Dutch Parliamentarians have submitted a list of some 25 questions on the subject of "banks that, in response to the U.S. FATCA legislation, are refusing to provide services to Dutch nationals who also have American citizenship" to the country's treasury minister and deputy treasury minister, in the latest development in a long-running issue about how non-U.S. financial institutions should handle the accounts of those of their 'accidental American' clients who lack so-called tax information numbers (TINs). 

U.S. Treasury belatedly reveals 'regulatory reform' talks with EU

The U.S. Treasury this week revealed that it had met last Tuesday and Wednesday in Washington with representatives from a number of EU organizations, including the European Commission, European Banking Authority and the European Securities and Markets Authority, "to exchange views on financial regulatory developments". It said the meetings had taken place as part of ongoing regulatory discussions between the Treasury and the EU entities.

U.S. Treasury remains silent as bank accounts of EU 'accidental Americans' still being frozen

The U.S. Treasury is continuing to maintain its silence with respect to the issues European banks have been struggling with for months over their perceived need to report to the U.S. – under the tax evasion law known as FATCA – government tax information details on certain of their American account-holders that they don't have, European banking sources, expat groups and others report...

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Questions continue to be asked, as U.S. list of Q4 renunciants contains fewer than 300 names

Once again, the number of individuals whose names appeared on the latest U.S. government "Quarterly Publication of Individuals, Who Have Chosen to Expatriate" is being questioned for seeming to contain far fewer names than it should – and in particular, for still not containing the names of certain individuals whose Certificates of Loss of Nationality (CLNs) were issued more than a year ago.

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Opinion

Opinion: Why it's wrong to insist a U.S. move to residence-based tax regime be 'revenue neutral'

Opinion: Why it's wrong to insist a U.S. move to residence-based tax regime be 'revenue neutral'

As awareness of the problems associated with the Obama-era law known as the Foreign Account Tax Compliance Act (FATCA) has gradually become more widespread, there's been more discussion about the...

Feb-23-2020