Author Topic: Accidental Americans  (Read 696 times)

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Offline larrabee

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Re: Accidental Americans
« Reply #15 on: April 26, 2018, 05:54:02 PM »
Nan, yes, I know what you mean. It is crazy making. Nobody anywhere else in the world would even imagine such a law could exist, and yet some homelanders think it is normal and ‘you should have known’. Grrrrrrr

This is why the accidental I know doesn't believe me when I tell them! The way it is, you couldn't make this stuff up!
March 28th 2013-Moved to UK, husband on spouse visa.Oct 20th 2015-Applied by mail for FLR(M).Feb 1st 2016 FLR(M).March 7th 2018 ILR. YAY! March 21st NCS&JCAP appointment.

Offline Same Boat

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Re: Accidental Americans
« Reply #16 on: April 26, 2018, 08:16:28 PM »
The USG has been aware of the plight of the Accidental Americans quite a few years now, i believe it came up in the Obama administration but no relief has been provided yet. It is the Fatca that exacerbated the problem because in some places, accidentals are being turned down for financial services, bank accounts, mortgages, loans, career advancement to name a few. Accidentals without a US birth place should ignore everything unless they intend to move to the USA.

Prior to Fatca people went about their business without a clue (as did I). I also never lived in the USA as an adult and had no way of knowing these rules as education is non existent until Fatca.

I don't think citizenship taxation will be abolished so easily. The USA is in debt, and no one wants to be seen to be helping rich homeland Americans avoid tax by moving overseas. If the laws do change, they could also be changed back. The best advise is to evaluate your relationship with US citizenship. Renounce if you see no benefit to US citizenship. There is the option to ignore everything too but one must weight up their own individual circumstances as to the risks.

Offline theOAP

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Re: Accidental Americans
« Reply #17 on: April 27, 2018, 10:33:44 AM »
The USG has been aware of the plight of the Accidental Americans quite a few years now, i believe it came up in the Obama administration but no relief has been provided yet.
Even the 2016 Green Book proposal did not allow a simple exit; 5 years of compliance was still required.

https://www.angloinfo.com/blogs/global/us-tax/relief-for-accidental-americans-obama-administrations-2016-revenue-proposal/

I don't think citizenship taxation will be abolished so easily. The USA is in debt, and no one wants to be seen to be helping rich homeland Americans avoid tax by moving overseas. If the laws do change, they could also be changed back. The best advise is to evaluate your relationship with US citizenship.
I agree. As unpopular as the ACA proposal was (is?) in certain circles, IMO, it is probably the best representation of what could eventually come to pass (as a near term solution). It contained a 3/5 year qualifying period and reduced yearly reporting required to confirm foreign residence to enable the exemption.

Hopefully, the TTFI initiative will have a proper hearing, but the risk, as you noted, is if it is passed by one political party over the objections of the other political party, it would be vulnerable to repeal in the future. Consensus is required for a permanent fix, whether for accidentals or all US expats. Given the comments by some Congresspersons in the recent House committee session on the unexpected consequences of FATCA, this will not be an easy task. Selling it to the typical, uninformed US voter would also not be an easy task. Finding an acceptable 'spin' is critical, and 'morally correct' is probably not sufficient.

Let's hope the revenue neutral figures obtained by ACA private research are accurate.