Tax residency vs. physical presence: The four questions you must ask before making a country your home

An introduction to “tax residency” … Most people equate residency with physical presence. They assume that where you are physically presence determines where you live. They further assume that where you live is where you pay your taxes. Conclusion: The country where you live is the country where you must be “tax resident”. Not necessarily! […]

Physical presence as a necessary condition for being a US "resident" under the Internal Revenue Code

Introduction Every country in the world with the exceptions of Eritrea and the United States claim tax jurisdiction based on “residence”. Although the tests for “residence” may differ, “residence based taxation” means that it is possible to sever your tax connection to a country by severing residence. The nations of Eritrea and the United States […]

CARES Act Relief: How US citizen taxation leads to sending relief money to individuals outside the United States and denies relief money to individuals inside the United States

Introduction This post is based on my Quora answer to the question: “Do you agree with the policy of not issuing checks to US citizens who jointly file taxes with someone who has an ITIN?” Part I – Objective Analysis This post focuses on the class of individuals entitled to relief. It does not discuss […]

Part 8 of series: Former ACA Tax Director Jackie Bugnion recalls the 2014 Kirsch Schneider debate on "citizenship-based taxation"

Before moving to the post, if you believe that Americans abroad are being treated unjustly by the United States Government: Join me on May 17, 2019 for a discussion of U.S. “citizenship-based taxation” as follows: "What Is The Future Of Citizenship-Based Taxation?" Prof. William Byrnes (Texas A&M Law), Prof. Edward Zelinsky (Cardozo Law), John Richardson […]

Article 4 paragraph 2 of the U.S. U.K. Tax Treaty: A clause preventing the use of the tax treaty tie breaker for some Green Card holders

Introduction – In The 21st Century The Most Important Thing About A Person Is His Tax Residency Interestingly the U.S. UK tax treaty appears to have created a "saving clause" for some #GreenCard holders – looks like they may have no residency tie breaker option (very bad!) Why should some Green Card holders be treated […]

Considering the EB-5 Visa? The IRC S. 877A Expatriation Tax Demonstrates that "Not All US @TaxResidency Is The Same!"

Considering the EB-5 Visa? The U.S. S. 877A Expatriation Tax Demonstrates that “Not All @TaxResidency Is The Same!” — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) May 20, 2018 “Understanding U.S. Tax Residency … The United States uses a form of “deemed tax residency“. The Internal Revenue of the United States deems that […]

Canada U.S. Tax Treaty – Article XXVIA: How the 5th Protocol Enhances protection for Canadian citizens

Canada U.S. Tax Treaty – Article XXVIA: How the 5th Protocol Enhances protection for Canadian citizens — John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) May 6, 2018 Introduction – The Purpose of this post This is an addition to “The Little Red Tax Treaty Book“. I was recently asked the following question: I […]

On what date does an individual (other than a U.S. citizen) begin or end @USTaxResidency

This is an interesting and important question. This question is always important for determining how the Sec. 877A “Exit Tax” applies to “permanent residents” AKA “Green Card Holders” who with to abandon their permanent residence. There are many other many other reasons why this matters. U.S. tax residency (which is an example of “deemed tax […]

Determining Tax Residency In the United States: Citizenship and other forms of deemed tax residence

Introduction The search for second passports and #offshore havens via @FT – how the #CRS and #FATCA have created @TaxHavenUSA — Citizenship Lawyer (@ExpatriationLaw) May 20, 2017 The advent of the OECD Common Reporting Standard (“CRS”) has illuminated the issue of “tax residency” and the desire of people to become “tax residents of  more […]

Be careful what you "fix for"! A Holiday Gift: What to do about the unfiled #FBAR

As 2016 comes to an end … Received #greatholidaynews today from two "ecstatic" renunciants who confirm that the wait time for CLNs is down to 2 – 3 months in Canada! — Citizenship Lawyer (@ExpatriationLaw) December 17, 2016 I suspect that history will show that that the growth in renunciations of U.S. citizenship (and abandonment […]