IRS vs expats


The Taxpayer Advocate Service which, in vain, tried to help me in my recent and still ongoing interaction with the IRS, has issued their 2011 Annual Report to Congress entitled, “Introduction to International Issues: Compliance Challenges Increase International Taxpayers’ Need for IRS Services and May Undermine the Effectiveness of IRS Enforcement Initiatives in the International Arena.” It is available online on the IRS web site as a 144 page pdf file and, as most bureaucratic reports, is lengthy, convoluted, and confusing. Nonetheless, it highlights the problems that the IRS is causing for Expats and is highly critical of them. If you can’t find it, click on the link above and then click on “International” and you’ll download the file.

It starts with the statement, “In recent years, globalization has pushed an increasing number of taxpayers (including small- and medium-sized businesses and individuals) to seek economic opportunities…

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4 thoughts on “

  1. You are correct. Americans abroad are not counted in the census upon which the apportionment of the House of Representatives must be based (Article 1, Section 2). Congress is also supposed to approve the election of presidents. Therefore there is no US government with respect to Americans abroad.

    Do you know about the Isaac Brock Society

    • Thank you for your comment confirming my thoughts about taxation without representation. This was a major basis for the American Revolution against the King of England. It’s “deja vu all over again.” Incidentally, I have joined the Isaac Brock Forum and hope to be an active participant.

      • You are welcome here and at Isaac. We need all of the active participants we can get to debate the issues and help spread the word everywhere. Particularly useful right about now would be to look for online press articles worldwide and in your country and respond to them with comments. Many articles deal with the “millionare whale” aspect of FBAR, FATCA, and double taxation. These articles need to be responded to with our “minnow” side of the story. If your country has a bill of rights and bank and personal privacy laws, you could describe in your postings how FATCA and the other intrusions violate them.

        As to taxation without representation, there were arguments proffered by such people such as Jeremy Bentham to say that parliament “virtual represented” its kinsmen even though they were far away, but these arguments were effectively defeated by the Declaration of Independance. I find it very odd that the US is so hypocritical in dealing with its citizens abroad in a similar way to that the crown did to the colonists. Also, in addition to violating the Article 1 Section 2 requirements, US policy violates the principle of dominant nationality, as well as the 4th, 5th, and 8th amendments, and probably others as well (we could be charged criminally by the IRS for proffering such “frivolous” constitutional arguments. But we have the right to say what we want under the 1st amendment!)

  2. What they are doing constitutes taxation without representation. Who, after all, is my representative in the US. Senate and House of Representatives? That’s correct, I do not have anyone to represent me. Nonetheless, I am taxed as if I did.

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