Are Expat Tax Complications Overblown? | Special Guest Michael Scranton
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- Опубліковано 5 вер 2024
- www.irsmedic.c...
If you area fan of this channel, you know we dedicate substantial resources to advocating for one of the least politically represented groups, US expats living overseas. While some US retirees may still have simple filings, we have found tax filings for those working outside the US can be difficult and the path to finding the “right” tax answer often proves elusive, all under the threat of huge penalties the IRS loves to assess in very unfair and grotesque manner. These abuses go on, we claim as there is no one in congress who wants anything from US Expats but their vote. Regular homeland Americans lives in their bubble in ignorance and indifference to the various complications such as PFICs, CFCs, GILTI, FBARs, FATCA, Tax treaties. From 5471, Form 3520-A, Form 3520, Form 8938, Form 8621, Form 8858, Form 920, along with transition tax.
However, we don’t wish to ignore any evidence to the contrary. Enter Michael Scranton. Michael is a US expatriate living and working in Argentina. And he claims that tax compliance is vastly overblown. Michael will be given a complete opportunity to law out his case.
Joining host Anthony E. Parent, Esq, is John Richardson, Esq. of CitizenshipSolutions.ca, along with Keith Redmond, advocate for and consulate to the American overseas. You can join Keith’s group here. / americanexpatriates
A lively discussion will be had!
First, thank you to all the hosts for putting this together. As someone born outside of the USA, but took (voluntarily) US citizenship to support my family and so we could remain in the USA, we have inherited the burdens of US empire into our lives. As the show demonstrated, everyone's situation is different. I think Keith explained that very well here. To assume that one's personal experiences with freedom is the same as others is naive at best, and potentially arrogant. Yes, many countries do not respect individual human rights. Many countries only respect corporate rights at the expense of the individual. We must choose where on this great planet we wish to reside based on these factors, but I do believe the choice has to be made without encumbrance from past residencies. We are not owned by any foreign power - we are individuals and respect (although I agree should be earned) should not be denied because of some lawmakers in one country's houses of power.
Does the USA respect individual human rights? I thought so when I took citizenship. Today I'm not as sure. Blindly assuming it is better than another country does not consider the incarceration rate, the lack of political choice and manipulation by unelected power brokers, the eradication of individual freedoms vs. the empowerment of corporate overreach. The fact that a W2 employee is overtly taxed while a corporation has loopholes is not the fault of the average Joe worker. It is by design and a system that poorly represents the very people that vote the politician into power. In a country of laws, those laws are routinely hacked by lawmakers with the capabilities to do so. Unfortunately that is not representing the average individual, and in summation I cannot, in good faith, consider this any representative to the term "freedom".
No. The US government detests humans rights. But will insult us by claiming it does. We are ruled by people who despise us.
44:30 pertinent question. He assumes everyone understand 100% of the rules and therefore an actor always acts in its best interest. But US taxation is not a game theory optimal situation. Knowledge is hidden to an average individual.
Absolutely, that five year old that left the US decades ago should have known the USA would tax the hell out of the sale of his London home. You are right that knowledge is hidden, Michael is a good example of an American with a lot to learn and may well do so the hard way one day.
@@mikebreen2890And let’s not forget that any tax legislation enacted in the US invariably creates a cascade of new challenges, impossibilities and confusion. I didn’t learn about any of this stuff until I had been in Canada for a decade and was a partner in a consulting firm. Choices I made to optimize my financial situation in Canada became disastrous when my US tax problems were taken into account. Michael seems nice but he lacks humility. He has found something that works for him for now, in part due to some idiosyncratic circumstances and good luck. But maybe one day he will find a rule change imposed a retroactive tax on all his real estate or the IRS will determine that buying individual shares in companies abroad is an act of financial treason and impose outrageous reporting requirements and punitive taxes. Maybe his portfolio at that time will be a bit underwater and he won’t even be able to sell it to clear his obligations. And maybe the countries where he owns properties will suddenly triple the rate of taxation for property transactions for non-citizens. Maybe then he will understand that buckling under the weight of unfair, illegitimate, punitive, life ruining tax burdens feels a lot like the loss of freedom. He thinks because you have a choice to renounce that there is still freedom involved in these decisions. OK, I guess we are free to kill ourselves if things ever get too bad so we all enjoy freedom all the time. I wish Michael luck but as he swings into midlife, it’s possible the shit is going to hit the fan in his life on this issue and maybe he will engage with subjects that he knows seemingly quite little about with a bit more curiosity, more humility, more empathy and a bit less naive and doctrinaire concept of personal freedom.
He thinks all Americans abroad have fat wallets and took a decision to leave knowing the system they would live under, nonsense. He doesn't even know WHO he is talking about.
The funny thing about this conversation is that he assumes everyone had a choice. 😂. Like you chose where you were born
Yup, if you can't get that promotion at work and can't take part in business while your family comes under ever increasing pressure, make a choice. Now what would that choice be when you have no second citizenship and no money?
Michael?
Critical commentors at ease please. Our Fellow Traveler Michael S. has been quite fortunate in his expat success moreover that he benefits from a stateside bank account instead of a Fatca subject money pit. So while he appears oblivious to most pitfalls short of double taxation, he is not at fault for his luck that could dissipate at any moment.
I don't begrudge him his fortunate position (which I believe is more luck than judgement) but I DO begrudge his preaching and judgement for others from his position of ignorance.
OF COURSE this is how this interview was going to go, it was clear from his Twitter comments. He's clueless as to the position of other Americans all over the world, it's clear from his comments that he has no idea who these people are. Note his comment when it comes to other Americans abroad, he thinks they are all people with money that left with knowledge of US tax code and laws under their belt.
He talks about choices as if renunciation was an option for everybody, you can either live life as a second class human being or dump your British family, great choice! Just renounce, what's hard?
He doesn't get the freedom issue because he thinks the taxes are low and therefore he's free, he fails to notice that the freedom question has nothing to do with the amount of tax but who has you on a leash using the tax code instead of a rope. He's an idiot, a lucky idiot and indeed, his luck could dissipate at any time just as it has for so many Americans abroad in the past.
The man is completely missing the point regarding taxation and freedom. It's not about the level of taxation and suggesting people can just renounce is idiotic. The comment about the FEIE shows he doesn't know how taxes are generated. He's just another one of these "I don't have a problem therefore there isn't one" and those complaining should renounce folks that I hate with a vengeance.
The issue is not TAXATION Michael, it is being OWNED for taxation purposes by a government, you are property. Still does not understand that being owned for taxation is not freedom.
Most people CANNOT RENOUNCE, it is NOT a choice for most.
Perfecty said.
And now he's under the impression that Americans abroad must have had lots of money. Sorry, the man is preaching from a position of ignorance about how this works on many real lives and about who is impacted by this. Likely why he believes Americans abroad have so many choices.
Swains Island guy checking in. Michal S. in order for your daughter to transmit citizenship to her children born outside the US with a non-US citizen father she needs 4 years of US physical presence over age 14. But if the birth-father is also a US citizen outdide the US or she gives birth on US soil she would bypass such physical presence requirement. Even less preferable if she is not married when the baby is born outside the US, Woke preferential rules permit her to transfer citizenship regardless of the father/sperm donor.
Such a blessing when you don't want to live there, US "citizenship."
This guy has no idea, he's living in a bubble that protects him from the harm of the US tax system and has no idea who Americans abroad really are and what they are having to live with. Look at his disbelief that some might find $2,350 a problem and apparently believes renouncing citizenship is such an easy thing to do.
He doesn't even know how the taxes work because of his circumstances. Unreal.
@@mikebreen2890Yeah, arguing it from a purist point of view is so pointless. The guest is not representative of where the real issues are. He works remotely in sales, schedule-c, makes USD and lives in the country where the USD stretches far. Yeah buddy, you're good. Can you square that with the scenario rep. Bayer outlined with an accidental American, a mother of a disabled child in Switzerland the IRS went after?
@@tmax6771 Exactly. Through luck or judgement (it really doesn't matter) he's in an exceptional position where US tax code and associated laws are not harming him - yet. It's all very easy to defend the system in his position but his lack of empathy and understanding of the position many others find themselves in is troubling. I can see where the heated X thread came from!!!!
His comments make it very clear that he cannot understand the position of millions of ordinary people living in places like Europe, people with families and homes and who not have vast amounts of cash to make choices that can be extremely limited in the first place. Live with persecution and discrimination of leave your entire family behind to go live somewhere, after you borrowed the airfare?
Note how accidentals had to be explained to him.
He's a narrow minded and selfish fool who really deserves to be bitten in the ass by US tax code and laws one day, that should help him understand. .
@@tmax6771 ua-cam.com/video/5yUE2Lk3AwY/v-deo.html
Sounds like a Twitter Argentina influencer 😅
Swains Island guy again. Is there a US-Argentina tax treaty? I would presume negative.
Yeah no there isn't, SIG
The discussion about freedom is BS. You are free to off yourself. All your problems are gone.
I just wrote something similar before reading your comment. It made my blood boil how flippant he was about renunciation.
Michael I think had a huge red pill suppository. Whenever attempting to justify the US tax regime, one will at one point, sound ridiculous. There is no other outcome as the US tax code is indefensible no matter what your claimed ideology is.