I attended a U.S. tax seminar yesterday and where the following link was given out on what does not “constitute” reasonable cause for not filing your tax returns. If you use any of these reasons you can be assessed a 5000.00 penalty.
I can say that after coming out of that meeting yesterday I can only conclude that, unless one took a vow of poverty, it will be well nigh impossible to get out of this mess without incurring a lot of pain. According to the presenter the IRS is coming out sometime soon with guidelines on how dual citizens can become compliant.
You know I have been watching the CNN business show, “Your Money”, every weekend for over a year and never once have they dealt with the issue of taxation of expats and dual citizens or green card holders. Neither have they have never mentioned FBAR’s, FATCA or double taxation.
While many of you want see that as unusual I believe that what makes it unusual is the fact that this show is hosted by two Canadians- Ali Velshi and Christine Romans. Why won’t these Canadian citizens address an issue that is affecting their country and must be affecting them also?
Chapter 8 On Taxes
“Taxes are a portion of the produce of the land and labour of a country, placed at the disposal of the government; and are always ultimately paid, either from the capital, or from the revenue of the country.”
From this passage we can see that any steps that one country may take in order to impose its tax regime on its citizens who reside in and earn their wealth in another country is not a tax that is being levied on its citizens but is in fact a tax that is being levied on the economic productivity of their country of residence.
In other words what the “Savings” clause says about the U.S. is that it does not understand economics at all.