Archive for April 2012
Kelly Phillips Erb
Mammoth bill makes IRS play border control
Forbes (23 Apr 2012)
“So let me summarize for you: if the IRS liens or levies you, the Department of State can choose to restrict your right to travel without a judicial hearing.”
What’s U.S. citizenship worth?
Wall Street Journal (23 Apr 2012)
The 1788 renunciations of US citizenship officially reported for 2011 show a skyrocketing rate of increase. McGurn ruminates on these “canaries in the coal mine.” He concludes by deploring the US tax code’s punitive “Berlin Wall approach” toward extraterritorial citizens.
Terry Ritchie / Brian Wruk
Tax cheats beware
Advisor.ca (17 Apr 2012)
Despite the unfortunate and misleading title, this article packs a lot of information into a few words, with focus on the Canadian situation. A rightly identified crux is requirements entailing “the additional level of tax compliance and reporting on foreign assets and accounts.”
No taxes, no travel: why the IRS wants the right to seize your passport
Atlantic (17 Apr 2012)
Legal experts conclude that legislation now proposed to “deny, revoke, or limit” passport rights for taxpayers with serious delinquency could withstand constitutional challenge.
Atossa Araxia Abrahamian
Special Report: Tax time pushes some Americans to take a hike
Reuters U.S. (16 Apr 2012)
This extensive report provides an overview of main issues and current situation, together with perspectives from Canada and Europe. A broad shift toward renunciation of U.S. citizenship is made clear. The experience of Peter Dunn in Canada is offered as a case study. This is perhaps the best account so far of the pressures faced by U.S. women married to citizens of other countries.
For Americans abroad, taxes just got more complicated
New York Times (15 Apr 2012)
Print version: International Herald Tribune (16 Apr 2012)
This article details the requirements and penalties of the new IRS Form 8938 in the context of FBAR and FATCA. “Not even the I.R.S. is certain how many of the estimated four million to six million Americans living abroad will be affected. … Congress’s new focus on Americans abroad suggests it soon will not be possible to just ignore the I.R.S. and hope no one notices.”
The People vs the IRS
Bloomberg Businessweek (5 Apr 2012)
The history and work of Taxpayer Advocate Service director Nina Olson are described at length. At her behest, a social anthropologist and tax lawyer has categorized tax evaders into eight categories of noncompliance: procedural, asocial, habitual, symbolic, brokered, economic, lazy, and normalized. The article in no way intersects with the particular difficulties faced by extraterritorial persons.