Of course, I can't actually know this story is real (unsurprisingly, many affected expats wish to remain anonymous), but as I dig into expat issues I'm reading about stuff like this more and more in the past few months. I've read about quite a few people who have been surprised to find out they're still Americans. I've read about retirees on fixed incomes on the verge of bankruptcy over penalties for not knowing they were taxed abroad. I read about one American woman living outside the who's dirt poor who found out she had to file tax returns, owes no taxes, but can't afford to pay the tax preparer fees for her taxes (you may not need them, but we expats don't get a short form). Being poor shouldn't be a crime.
Read on to understand why so many expats are getting increasingly frustrated with the US government.
I thought it real when I was WARNED that I would relinquish my US citizenship upon becoming a Canadian citizen in 1975 – where is the US’s responsibility to have communicated to me that this was no longer true when the country changed its law? Where was my choice in the matter of retaining my US citizenship? I had made my choice – I took the Oath of Canadian Citizenship in 1975 because that is where I wanted to live, raise my family, work, pay my Canadian taxes, volunteer my time, be a contributing citizen. I liked what I experienced and what I saw for my life here in Canada.
I foolishly thought I had no tax responsibility to the country which I had relinquished my citizenship. The US for decades turned a blind eye to me and to the estimated six million around the world regarding responsibility to file taxes. Did that not set some sort of precedent? Where was the US’s responsibility to absolutely communicate to us, all along, that we did have to file our taxes returns each year, no matter what the cost to us, no matter the little or zero revenue it brought in to the US? Where was our education on FBARs? Why does the US not even have a tax office of any kind in Canada? Why cannot we get answers to our tax questions from the various IRS phone numbers we are to call, usually with long distance charges? Why is the only advice I’ve received from the IRS is to consult cross-border accountants and US tax lawyers for my answers? Why are the regulations so complicated that my compliance depends on me being able to use my retirement savings for fees to cross-border accountants and US tax and immigration lawyers?
I foolishly thought I had no tax responsibility to the country which I had relinquished my citizenship. The US for decades turned a blind eye to me and to the estimated six million around the world regarding responsibility to file taxes. Did that not set some sort of precedent? Where was the US’s responsibility to absolutely communicate to us, all along, that we did have to file our taxes returns each year, no matter what the cost to us, no matter the little or zero revenue it brought in to the US? Where was our education on FBARs? Why does the US not even have a tax office of any kind in Canada? Why cannot we get answers to our tax questions from the various IRS phone numbers we are to call, usually with long distance charges? Why is the only advice I’ve received from the IRS is to consult cross-border accountants and US tax lawyers for my answers? Why are the regulations so complicated that my compliance depends on me being able to use my retirement savings for fees to cross-border accountants and US tax and immigration lawyers?
Amazing isn't it? I dived into this subject last summer and still haven't surfaced. At first I felt like a complete idiot - figuring out all the implications of my decision to marry and move abroad took months and the help of more than one of the professionals you cited above. I am still not sure I understand it all. The next subject I will tackle is inheritance which appears to quite a mess when one spouse is a US citizen living abroad married to a foreign national. Thank goodness for Isaac Brock. I felt so much better when I realized that I am hardly alone in my confusion and my anger. Nice antidote to the people who imply or outright say that this is my fault for marrying one of those foreign guys and living in his country. I've read so many negative remarks about expats in the past couple of months that I wake up every morning thinking that maybe I should just relinquish and be done with it. My country doesn't seem to want me so why am I torturing myself trying to remain a US citizen?
ReplyDeleteVictoria, after you wrote about requesting a lower salary because the US tax system makes a higher salary less attractive, I can only wonder: how much money are you losing being a US citizen?
DeleteGood question, Curtis. Well I went to another interview at the recruiting company the other day and we had a very long talk about salary. According to her and her company's research (they had a very nice reference book for Paris IT salaries) I am worth somewhere between 90k and 130K Euros (120K - 174K USD).
DeleteOuch! And to be entirely realistic there may be no way I can bring that down. If I try to get a lower position that pays less, I'm not really credible because I do have a lot of experience and no one understands why I would want that kind of job. The other option is just to give up and write my blog. For free! :-)
My husband and I are in OVDI and because of Nina Olson's report to congress about the shenanigans going on at the IRS, we decided to take our case up with the tax advocate within the IRS. We had our first discussion with TAS today and are beginning to feel encouraged that we may not have to have our retirement ruined by late filing penalties and FBAR penalties. I strongly advise talking to them (they are arms length to the IRS and report only to congress) before letting acute discouragement settle in. This is from someone who's had PTSD over this issue for more than a half a year now. I'd like to see what direction things go in the next while before deciding to renounce. Besides, can't do anything before squaring up with the IRS and that could take months. Our rep at TAS said that the OVDI took in many more people than the had anticipated. I said that their fear tactics must have worked really well. I won't say what she said, but it was not contradictory.
ReplyDeletebubblebustin: I think it's sad that you're considering renouncing. I don't say that because I think it's the wrong thing to do. I think it's sad that our country is pushing us in this direction. I see people emigrating from other countries, but the US is the only major industrialized nation that I know of which is actively pushing away its expats.
DeleteI know Calgary. She is a real person, and her case is real.
ReplyDeleteI am also a real person just like you an Victoria. My is Peter W. Dunn and I gave up my citizenship upon being a Canadian in 28 February 2011.
Thanks for linking to the Isaac Brock Society. For people like bubblebustin, we have a very active readership and discussion format. Had we existed before, we may have talked a lot of people into avoiding the OVDI and saved them a lot of trouble.
Peter, thanks for the reply. I quite like what the Isaac Brock Society is doing. Thanks for the amazing work!
Delete" I think it's sad that our country is pushing us in this direction."
ReplyDeleteI completely agree with you. What is worse is that so many people in the homeland seem completely oblivious to what is going on. This is not good for America. Other countries see their expats as valuable assets - we seem to be tagged as criminals and sinners (against what I do not know and am afraid to ask).
The Isaac Brock Society is just amazing and people like Peter and Calgary and others are now minor deities in my universe. :-) I'm still very angry but I now know that I am not alone.