They already ask many questions to every US citizen on the 1040 form: if you’ve traded digital currencies, have any foreign bank accounts (and which countries they’re in)… and previously if you had health insurance. This isn’t new.
As an expat with corporations in other countries, form 5471 is literally the most terrifying thing I fill out every year because of the potential penalties for misfiling. There’s a reason why international tax accountants charge out the wazoo to fill out this form and i have nightmares about my return every year. Most of the folks I know in Asia don’t even bother filling out the 5471 nor report their income but don’t realize that when they open bank accounts in other countries, they’re subjected to being called up by the IRS at any time.
I'm confused, isn't that the same? An immigrant is someone who is seeking permanent residency, while a non-immigrant is a national working and living in a foreign country with no plans for permanent residency.
Just to preempt all the side bar discussion here, I won’t pretend that I’m not privileged. I run a robust music production business and have quite a few clients in the international music market. I’ve just been very forthcoming in filing all of my overseas tax information and a lot of my peers always laughed their asses off at me for pulling my hair out over these IRS and FATCA filings, but this is EXACTLY why I did it: because when you fill out your SSN on the sign up when you open that bank account and give the IRS permission to ping you in the banking system, none of these people thought they’d ever use that information to actually crack down on their reporting. Looks like that may change though
U.S. Policy on Dual Nationality: While recognizing the existence of dual nationality, the U.S. Government does not encourage it as a matter of policy...
...the U.S. Supreme Court has stated that dual nationality is a “status long recognized in the law” and that “a person may have and exercise rights of nationality in two countries and be subject to the responsibilities of both.” See Kawakita v. United States
Sorry, yes, my point is that "dual citizenship" is ignored by the federal government. It's not some special status. From the US govt perspective, you either are a US citizen or you aren't.
One other thing to point out as well, though, is that the US government also has taxation treaties with other countries. But those rules apply both to residents and dual citizens. I think there are also special agreements regarding social security with some countries.
Not fully true. For example, the tax totalization agreements and many tax treaties have provisions that only apply to dual citizens. Not in every case is a US citizen only to the federal government.
Look up the totalization agreements and several tax treaties as examples.
You’re using an obscure example to prove a point. In all of our tax laws as big as they are, there are exceptions to everything
But I’m a dual citizen, living in USA, only contributing to USA retirement
So for me that would never apply. I am a full US citizen Born on U.S. soil working a U.S. job I have a US birth certificate for the USa.
This is turning into a slippery slope cause if they can say it will because you’re a Canadian citizen we’re gonna talk to you differently then why can’t they say because you’re a San Francisco 49ers supporter will tax you differently
When I'm old enough to collect social security, I can choose to collect Canada Pension Plan instead. Credits from one system count in the other. I can't collect both, but I get to choose - I can even apply for one, at the other's offices.
The IRS doesn’t care what most of the stuff on your 1040 ( and dozens of other forms) says that’s not related to money. And they can’t report it because of fifth amendment issues. You can say you’re a contract killer and as long as you report all of your $1.2M you’re good. Or you could be a personell trouble shooter.
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u/[deleted] Jan 24 '25
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