Mobility Space #69 - The Birthright Citizenship Case Affects All Americans' Citizenships w/ @ExpatriationLaw@TAPInternation and @AlexUgorji_
Now available on Youtube.
https://t.co/lSo1B4RUKW
The IRS is weighing a box on the 1040 asking if you are not a US citizen or hold dual citizenship.
But this box will not change what anyone owes. US citizens already report worldwide income no matter where they live, and non-citizens owe based on where they reside and where their income comes from. The box doesn't change a single tax bill.
It's even stranger to ask who is a dual citizen because as long as you are a US citizen (irrespective of other citizenships) you are taxed the same as all other US citizens. There is no special tax treatment for dual citizens.
Naturalized citizens disclosed their other citizenship when they applied to become US citizens. Those born abroad to a US parent documented theirs through a CRBA with the State Department. The government already has all of this on file.
So all this new rule does is put an asterisk on millions of tax returns for further review by the government.
I work with many internationals who live and build here and file a 1040 every year. Most would not like being put in a special "ready for further review" box and may start looking to other countries for their businesses and investments.
I'm struggling to see the benefits to this policy.
...Most Serious Problem Number 9 spotlights the difficulties faced by overseas taxpayers as one of the most serious problems of US tax administration.
6/6
Also check out Laura's earlier article, "Taxpayer Advocate to IRS: Your Task Is To Administer a Worldwide Tax System. Do It", which examines the National Taxpayer Advocate’s 2025 Annual Report to Congress...
https://t.co/j4fuldaELu
5/n
Laura explains that "For those born or naturalized in the United States, citizenship exists independently of any governmental authority. Fourteenth Amendment citizenship belongs to the individual, and only to the individual. It does not belong to anyone else...
3/n
The article
(1) examines how citizenship-based taxation violates 14th Amendment citizenship; and
(2) explains the danger not just for overseas Americans but for all in delegating matters of constitutional rights to the Joint Committee on Taxation.
2/n
@AARO director and tax committee chair Laura Snyder has authored a newly published article "Taxation Affects 14th Amendment Citizenship: A Critical Lesson":
https://t.co/UX1OfveuBp
1/n
@BethLougen An excellent article which confirms/explains how @citizenshiptax +#FATCA have turned the USA into a fiscal prison. On another level the #PFIC rules show how complexity is a “form” (pun intended) of tyranny.
@repdinatitus I like that your spotlighting our issues but do we need a commission? This has been a huge problem for years and years! There are 100000s of testimonials proving that RBT needs adopting. Just ask @TaxFairUSAbroad or have a look @SEATNow_org
Perspective: @TAPInternation examines how citizenship-based taxation violates 14th Amendment citizenship and explains the danger not just for overseas Americans but for all in delegating matters of constitutional rights to the Joint Committee on Taxation. https://t.co/3JgUtiTCJX
No governmental unit or anyone else may impose any obligation that shifts, cancels, dilutes, destroys, abridges, or affects citizenship. And yet, it's clear that Americans abroad are second-class citizens. Read Laura's full article here: https://t.co/VY0wVWaiwT.
Laura argues that this occurs in violation of the 14th Amendment, which guarantees citizenship to every person born or naturalized in the United States. As the U.S. Supreme Court held in Afroyim v. Rusk, the 14th Amendment completely controls citizenship, placing it beyond the power of any governmental unit or anyone else to destroy.
In a recent, eloquent article for Tax Notes, Laura Snyder, President of Stop Extraterritorial American Taxation and a TFFAA Board member, argues the IRS’s failure to administer a worldwide tax system raises constitutional issues and has serious repercussions not only for overseas Americans but also for the U.S. tax system as a whole. @WaysMeansCmte@WaysandMeansGOP@SenFinance@SenateFinance@YourVoiceAtIRS@RepLaHood@SenToddYoung https://t.co/kv8wW2Mndi