PREP Podcaster - ”Success Favours The PREPared Mind”

A Simple Regulatory Fix For Citizenship Taxation

In November of 2020, SEAT members John Richardson, Karen Alpert and Laura Snyder published “A Simple Regulatory Fix For Citizenship Taxation”. This was the first article (and possibly suggestion) that the problems of Americans abroad could be solved through regulation.

We participated in a video podcast with Robert Goulder at Tax Notes.

Here is the AI Description of the article.

A Simple Regulatory Fix For Citizenship Taxation

1 source

This Tax Notes Federal article by John Richardson, Laura Snyder, and Karen Alpert examines the complex challenges faced by U.S. citizens living abroad due to America's citizenship-based taxation system. The authors argue that this system disproportionately burdens expatriates with duplicative and intricate tax compliance, often leading to double taxation and hindering their ability to engage in normal financial activities in their countries of residence. They propose that the U.S. Treasury has the regulatory authority and moral imperative to implement a "qualified nonresident" status, which would exempt these citizens from U.S. taxation on non-U.S. source income, thereby alleviating burdens on both expatriates and the IRS. Additionally, the article suggests several alternative regulatory changes to reduce specific compliance issues, such as those related to foreign bank accounts, retirement plans, mutual funds, and small business filings, highlighting that the IRS currently lacks the resources and expertise to effectively administer global tax enforcement.

 

What follows is the AI description of the podcast generated by Poedbean ...

 

"In this episode, we delve into the complex world of U.S. citizenship-based taxation and how it uniquely and often unfairly impacts Americans living abroad. Discover what it means to be caught between two tax systems and why the IRS is just as much a victim as the taxpayers themselves. We explore the persistent myths surrounding U.S. expats and the political challenges of enacting change. The episode highlights a potentially transformative regulatory solution that doesn't require congressional approval, aiming to ease the burden on both expatriates and the IRS. Tune in for a comprehensive discussion informed by a detailed study published in Tax Notes Federal, providing not only a sharp critique but also actionable solutions to a longstanding issue."

If A U.S. Citizen Is Stripped Of His Citizenship, Will He Be Subject To the Exit Tax Regime?

July 12, 2025 - Participants include:

 

Virginia La Torre Jeker - @VLJeker

 

John Richardson - @ExpatriationLaw

_________________________________________________

Introduction:

The Trump administration has served notice of its focus on stripping certain U.S. citizens of their citizenship. This comes on the heels of increased aggression toward Green Card holders. Both citizens and Green Card holders are subject to punitive taxation on the loss of their status.

Today (July 12/25), Virginia published a fascinating article in Forbes where discusses what could happen if a naturalized citizen is denaturalized. The immigration consequences are understood. What are the tax consequences of a U.S. citizen being denaturalized. What are the tax consequences of a a Green Card holder losing his/her immigration status?

This raises questions of great interest. This podcast is a supplement to Virginia's Forbes article describing how this could work.

https://www.forbes.com/sites/virginialatorrejeker/2025/07/12/bombshell-denaturalized-citizen-forced-to-exit-cant-escape-exit-tax/

 

AI Description:

 

"Welcome to our latest podcast episode where tax attorney Virginia LaTorre Jeker joins John Richardson to discuss a pressing issue: the U.S. government's efforts to revoke citizenship of naturalized Americans. While this may initially seem like an immigration issue, Virginia highlights the intertwining of tax and immigration laws, focusing on the possible tax implications for those who face denaturalization.

The conversation navigates through the complexities of what losing U.S. citizenship means under expatriation (877A Exit Tax and 2801 Covered Gift) rules, exploring how these individuals face potential exit taxes. Virginia sheds light on how the tax code distinctly imposes punitive taxes on the  loss of U.S. citizenship, raising intriguing questions on the potential financial burdens, not just for those being denaturalized, but also for their families."

We delve into real-world scenarios, legal precedents, and hypothetical situations to provide a comprehensive look at this multifaceted topic, tailored for both tax professionals and the general audience. Tune in for insights that may redefine the way you see the intersection of immigration and tax laws."

Why U.S. Citizens Abroad Should Be Exempt From Reporting Their Local Accounts To FINCEN (Financial Crimes)

July 11, 2025 - "Why non-resident U.S. citizens should be exempted from FBAR"

 

Introduction:

This is an AI generated podcast which is based on a submission I made in April of 2024 explaining “Why non-resident citizens should be exempted from the FBAR”

What follows is the AI description of the podcast ….

AI Description:

 

"In this episode of The Deep Dive, we examine the controversial world of the Foreign Bank and Financial Accounts Report (FBAR) and its impact on U.S. citizens living overseas. Discover why the seemingly outdated FBAR rules, which mandate U.S. citizens to disclose their local bank accounts to the U.S. Treasury, are under renewed scrutiny. We'll explore whether these regulations still serve their original purpose and delve into the arguments advocating for a reconsideration of whom these requirements should apply to in our globally connected era.

The discussion sheds light on surprising exemptions within the FBAR rules that often conflict with the heavy demands placed on expatriates. The episode raises pivotal questions about the role and meaning of American citizenship today, especially as it pertains to financial reporting. Join us for a thoughtful exploration of how FBAR is stirring debates and prompting some to contemplate renouncing their citizenship altogether."

Unveiling the Secrets of Homeless Income: How Multinationals Exploit Global Tax Treaties

This is an AI generated podcast of a 2014 paper written by Professor Bret Wells and Cym Lowell titled: “Income Tax Treaty Policy in the 21st Century: Residence vs. Source”

Why this is important:

The Trump administration recently proposed (as part of the “OBBB”) a provision that would impose tax penalties on residents of countries that had DSTs (“Digital Services Taxes”). The U.S. objection to DSTs is largely based on the provisions in tax treaties which give the “source country” (where the profits are generated) the right to tax those profits only if the corporation as a PE (“Permanent Establishment”) in that country. Of course, Google, Microsoft, et al do NOT have a “permanent establishment” in Canada, UK, India, etc. As a result many countries (because they cannot tax the income of U.S. multitionals) have enacted DSTs which are a tax NOT income but rather on revenue.

Yes, the standard tax treaties (which are 100 years old) deny the source country taxing rights (absent a PE). But, why is this? Does it make sense in 2025 to deny the source country taxing rights over income?

I came across a FANTASTIC article written by Professor Brett Wells and Cym Lowell which provides some historical perspective on this issue:

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2380241

I then ran it through AI and here is the summary. The AI description is:

Income Tax Treaty Policy: Residence vs. Source

1 source

The provided text explores the historical evolution of international income tax treaty policy, focusing on the shift from source-based taxation to residence-based taxation following World War I. It highlights how the League of Nations' model, which favored residence countries (often capital-exporting nations) and introduced the concept of Permanent Establishment (PE), largely superseded an earlier International Chamber of Commerce (ICC) proposal for profit-split methodologies. The text argues that this historical policy choice, coupled with the later rise of "interim holding companies," inadvertently led to the creation of "homeless income"—profits that escape taxation in both source and residence countries. Ultimately, it suggests that a re-examination of these foundational principles is necessary to address current global tensions surrounding multinational corporations' tax planning strategies and to foster more balanced and equitable international tax policies for the 21st century.

 

 

 

_______________________________________

 

AI description of PODBEAN podcast:

 

"In this episode, we explore the intriguing world of international tax treaties and uncover why some of the world's largest multinational corporations seem to pay surprisingly low tax rates. Delve into the history and evolution of these tax agreements, tracing back to post-World War I Europe, and understand the critical decisions that continue to shape modern global tax systems. Learn about the concept of "homeless income"—profits not taxed effectively in any country—and the controversial mechanisms allowing companies to shift profits to low or no-tax jurisdictions.

We reveal the stark contradictions and outdated policies that have left governments and corporations dissatisfied with the status quo. Discover how historical economic theories and deliberate policy choices have led to today's contentious base erosion and profit shifting (BEPS), a practice under scrutiny by international bodies like the OECD.

Join us as we discuss the changing economic power dynamics between traditional "imperial" countries and emerging economic giants. Explore the future challenges in international tax reform and consider the complex interplay between national interests, corporate strategies, and global economic fairness. This deep dive provides valuable insights into the mechanics and potential reform of a tax system nearly a century in the making."

"Citizenship and Taxation: The Twin Destinies Shaping Global Mobility"

June 12, 2025 - Participant includes:

John Richardson - @ExpatriationLaw

 

On June 12, 2025 SEAT members Laura Snyder and John Richardson separately gave presentations at the Migration Conference held at the University of Greenwich in London, UK.

A complete description may be found on the SEAT site here.

A brief outline of John's presentation (and the slides used) may be found in the blog post here.

This podcast is a recording of John's presentation.

AI description:

 

"Join lawyer John Richardson from Toronto, Canada, as he delves into a vital yet overlooked issue impacting global mobility: taxation as destiny. This episode explores the rarely discussed concept of exit taxes, which pose significant barriers to emigration for people seeking to move from their country of citizenship. John sheds light on how these taxes affect individuals, especially middle-class citizens, preventing them from pursuing new opportunities abroad.

Through his experiences from attending various international conferences, John highlights the importance of establishing multilateral treaties to address this growing concern. He argues for the rights of middle-class individuals to move freely without the fear of punitive taxes on their hard-earned pensions and assets. With examples from history, John draws attention to the urgent need for international cooperation in mitigating these financial barriers, advocating for fair and just treatment of migrating populations worldwide."

The Immigration Dilemma: A Tale of Two Stories

June 12, 2025 - Participant includes:

Dr. Laura Snyder - @TAPInternation

On June 12, 2025 SEAT members Laura Snyder and John Richardson separately gave presentations at the Migration Conference held at the University of Greenwich in London, UK.

A complete description may be found on the SEAT site here.

This podcast is a recording of Laura’s presentation.

An AI description of her podcast is:

 

"In this episode, Laura Snyder delves into the intricacies of immigration, exploring two compelling stories of migration to and from the United States. The first tale takes us back to the 19th century, unraveling the challenges faced by immigrants arriving in America, particularly the risk of conscription by foreign powers like Britain during the Napoleonic Wars. Snyder highlights the enduring issue of dual nationality and the resulting impact on individuals with ties to their homeland.

The narrative progresses to the 20th century and beyond, addressing the modern-day struggle of U.S. citizens living abroad who face the burden of being taxed on their worldwide income. Despite living outside the U.S., Americans grapple with a complex tax system, leading many to contemplate renouncing their citizenship. Snyder reflects on the parallels between historical conscription and current taxation policies, emphasizing the need for evolving international perceptions of citizenship and allegiance.

Through historical insights and contemporary analysis, this episode challenges listeners to reconsider the implications of perpetual allegiance and the responsibilities of both host and origin countries in safeguarding the rights and freedoms of immigrants."

 

Navigating FATCA: The Accidental American's Struggle with Captain Ronald Aries

May 30, 2025 - Participants include:

 

Ronald Aries - @Ronald77171496

 

John Richardson - @ExpatriationLaw

 

Introduction:

 

Someday FATCA historians will seek to understand the impact of FATCA and U.S. citizenship taxation on individuals born in the USA, with no memory of having lived in the USA, who moved from the USA at a very early age and grew up as residents and citizens of other countries. They did NOT think of themselves as Americans. Their lives were fine until the day arrived where they had a rude awakening. They were accused of being a United Citizen.  The accusation came from their financial institution in their country of residence. Under FATCA IGA mandated threats to cut off access to their financial accounts these individuals were faced with few options. The message was clear: they were U.S. tax evaders. It was time to "come clean" and provide the banks with U.S. Social Security Numbers they never had. Either that or produce a U.S. Certificate of Loss of Nationality ("CLN") which they never knew existed. But, absent compliance, they were threatened with the possibility of losing access to their bank accounts. Under these threats various people had various responses. Some officially renounced U.S. citizenship (a citizenship they didn't even know they had). Others acquired U.S. Social Security Numbers and provided them to the banks who graciously allowed them continue their banking access. Some simply hid under a rock and ignored the increasingly loud and angry threats from the banks and from their Americans overlords. But, a select few decided that they:

- would not comply

- would not renounce

- would not run

- would not hide!

Instead they decided to fight!!

Ronald Aries was a retired KLM Captain and a proud Dutch citizen. He decided to fight. His adventures with FATCA covered many of the issues raised by FATCA.

This is the fourth of my podcasts with Ronald Aries. In this podcast we review his background and discuss his latest challenge to the FATCA IGAs. This particular challenged, framed by his courageous lawyer Ellen Timmer was based on the novel theory that:

Even a U.S. citizen (if he really is one) has the general rights to privacy afforded by the general European GDPR ("General Data Privacy Regulation").  The General Data Protection Regulation (GDPR) is a comprehensive data privacy law enacted by the European Union (EU) that came into effect on May 25, 2018. 

The hearing took place on May 19, 2025. The decision is expected within six weeks. Ronald and I will do a follow up podcast to discuss the actual decision when it comes down.

Here is how AI summarized our podcast:

"Join John Richardson as he engages in an enlightening conversation with Captain Ronald Aries, the renowned KLM pilot known for his fight against FATCA's impact on accidental Americans. In this episode, discover Ronald's unique journey as an accidental American born in the United States but raised in Holland, and how it led him to challenge the controversial tax regulations imposed by the U.S.

Explore the complexities and legal battles surrounding FATCA, as Ronald shares personal anecdotes and insights from his recent court case, shedding light on the profound implications of this legislation for individuals unaware of their American citizenship status. Learn about the ongoing tensions between privacy rights, data protection, and international laws, as countries in Europe grapple with the challenge of FATCA compliance.

Experience the human side of this legal saga, as Ronald passionately discusses the personal toll and emotional weight of being entangled in a global financial net, fighting for recognition and fairness. This episode offers a poignant look into the world of accidental Americans, their struggles, and the broader implications of U.S. citizenship-based taxation policies on global individuals."

The Proposed Remittance Tax: Who's In? Who's Out?

May 18, 2025 - Participants include:

Dr. Laura Snyder - @TAPInternation

John Richardson - @ExpatriationLaw

 

Introduction:

 

Part of the "Big Beautiful Bill" introduced by the Trump administration includes a 5% tax on "remittance transfers". Contrary to the publicity, this provision is NOT restricted to "illegal aliens" and is NOT restricted to remittances sent outside the United States.

It is easy to imagine that this could have a "mission creep" that would eventually result in complete capital controls in the United States.

The following links will be helpful in understanding:

- what the proposal means

- who is affected by it

- compliance concerns

- evolution

https://waysandmeans.house.gov/wp-content/uploads/2025/05/The-One-Big-Beautiful-Bill-Section-by-Section.pdf


https://www.whitehouse.gov/articles/2025/05/one-big-beautiful-bill-is-a-once-in-a-generation-chance/


https://punchbowl.news/wp-content/uploads/SMITMO_017_xml.pdf

https://www.law.cornell.edu/uscode/text/15/1693o-1

https://www.law.cornell.edu/uscode/text/26/subtitle-D/chapter-36

AI Description:

"Join John Richardson from Toronto, Canada, as he delves deep into the implications of the recently introduced but contested "big, beautiful bill" alongside Dr. Laura Snyder, President of SEAT. This episode focuses on "SEC. 112105. EXCISE TAX ON REMITTANCE TRANSFERS" of the "Big Beautiful Bill"  concerning the new excise tax on remittance transfers.

Throughout the conversation, John and Laura unpack the details and potential consequences of this legislation. They explore its broader impacts, notably on legal immigrants, green card holders, and even U.S. citizens residing abroad. The discussion highlights concerns about the tax's possible contradictions with equal protection rights under U.S. law and the logistical challenges individuals may face when trying to secure tax credits.

This episode provides insights into how the remittance tax, under the guise of targeting illegal immigrants, effectively broadens its reach, complicating financial transactions for many, and raising questions around citizenship taxation policies. Tune in to understand better these unfolding legislative changes and their far-reaching effects."

Podcast 2: The First American Pope and the FBAR Predicament

May 16, 2025 - Participants include:

 

Virginia La Torre Jeker - @VLJeker

 

John Richardson - @Expatriationlaw

 

On May 4, 2025 Virginia and I did a podcast about the possibility of a U.S. citizen being appointed Pope. You can access that first podcast here:

https://prep.podbean.com/e/a-us-citizen-as-pope-exploring-tax-implications-and-controversies/

 

This podcast on May 16, 2025 continues our discussion. Of course, a U.S. citizen is now Pope.

Here is our discussion.

 

AI Generated:

 

"Join host John Richardson from Toronto and special guest Virginia La Torre Jeker, a U.S. tax lawyer based in Dubai, as they delve into the unique challenges faced by Pope Leo, the first American pope. In this engaging discussion, they explore the implications of U.S. tax laws on the Pope's situation, particularly focusing on the Foreign Bank Account Report (FBAR) obligations that accompany his American citizenship.

As they sift through the complexities of U.S. tax reporting, John and Virginia evaluate the broader impacts these regulations have on Americans living abroad, drawing attention to the broader scope and potential need for reform. They also spotlight the recent Wall Street Journal article by Laura Saunders, which adds depth to the debate on whether or not the Pope is required to file U.S. taxes given his vow of poverty.

This riveting episode not only addresses the pope's tax conundrum but also questions the ethics and practicality of the current citizenship-based tax regime, prompting listeners to rethink the rules of the game."

Toward An Argument That US Citizenship Taxation Violates International Law

May 4, 2025 - An AI conversion of a written blog post into a podcast ...

 

Here is the original blog post from April of 2025:

https://citizenshipsolutions.ca/2025/04/20/toward-an-argument-that-us-citizenship-taxation-violates-international-law/

 

 

AI - Generated podcast:

 

This podcast episode delves into the complexities of FATCA litigation and U.S. citizenship taxation, exploring why legal challenges to FATCA often fail. The discussion emphasizes the distinction between addressing the symptoms of FATCA, such as privacy breaches and discrimination, and tackling its root cause: U.S. citizenship-based taxation.

The episode scrutinizes the implications of the U.S. imposing tax obligations on citizens residing abroad, questioning whether this practice aligns with international law principles. It argues that U.S. citizenship taxation expands the U.S. tax base globally, often conflicting with the tax sovereignty of other nations and potentially violating customary international law (CIL).

Listeners are encouraged to consider whether U.S. citizenship taxation, which bases tax residency on citizenship rather than physical or economic ties, is an outdated practice incompatible with modern international norms. The podcast aims to spark a broader discussion on the need for tax reform, particularly for Americans living overseas.