U.S. Citizenship and Young Adults: Navigating The Special Rules Imposed On U.S. Citizens Abroad

Update

These seminars will include discussion and analysis of the IRS “relaxed opportunities” for people to come into compliance.
 

“Life planning, career planning and the reality of U.S. citizenship for Americans abroad”
“Everything I wish I had known, but couldn’t even have imagined to ask!”

During the winter, John Richardson presented a number of seminars for those concerned with the obvious problems of U.S. citizenship (including the “threshold question” of whether you really are a U.S. citizen).

Seminar topics have invariably included the problems of: FBAR, FATCA, investing, retirement planning, mutual funds, U.S. tax compliance, renunciation, etc.The official “FATCA Launch” of July 1, 2014 will surely make the existing problems worse.

U.S. citizens living outside the United States are subject to a regime of rules that diminish their “life opportunities”. These rules are such that U.S. citizens abroad live at a disadvantage relative to the citizens of any other nation. Those attending previous seminars have been primarily “middle aged” people, who have attempted to plan for their retirement, only to find that their retirement plans are threatened, because of their birth in the United States.

A shared sentiment has been:

“If only, I had known about these rules earlier … This is information that my children and other young adults need to hear! What does all this mean for my children?”

The seminar on June 22 will be a session specifically designed for your children and young adults. They will be exposed to (at least “some”) of that information that they need to hear!

U.S. citizenship can be seen as an opportunity. It can also be seen as a liability. U.S. citizenship will impact virtually EVERY aspect of your life! When it comes to the problems of U.S. citizenship abroad,”An ounce of prevention is worth a pound of cure.”

For those who DON’T understand the “rules imposed on U.S. citizens abroad”, U.S. citizenship can become a very big problem. In fact the older you get, the bigger the problems become. For those who have not been compliant with the “Rules of U.S. Citizenship Abroad”, the aging process is one of accumulating tax and penalty liabilities.

For those who DO understand the “rules of U.S. citizenship abroad”, it is possible to life a successful life. It’s just that it will require specific and specialized planning.

An awareness of the “rules of U.S. citizenship abroad” will equip you with the knowledge you need to:
• Live your life in compliance with U.S. rules; OR
• Decide that the “rules of U.S. citizenship abroad” are simply not worth the trouble.

Who: John Richardson, B.A., L.L.B., J.D – CitizenshipSolutions.ca

When: Sunday June 22, 2014 – 11:00 am – 1:00 pm

Where: Downtown Vancouver, 1010 Richards Street, V6E 3B4, Richards & Nelson, Gallery Condo Building, Amenity Room, Entrance at REAR of BLDG on lane. Metered parking on street or lot at Richards & Smithe. Canada Line Yaletown stop. Expo & Millenium Lines – Granville Station.

Admission: $20 individual or $40 for a family of up to four people

Hope to see you and your families on June 22. Spread the word!

12 thoughts on “U.S. Citizenship and Young Adults: Navigating The Special Rules Imposed On U.S. Citizens Abroad

  1. A great read for any parent with a dual US/CDN child.

    Excerpt:

    “Liabilities of U.S. citizenship – Burdens of U.S. citizenship:

    You have the obligations to:

    - register for the military service (“the draft”);

    - pay taxes to the U.S. and pay those taxes under the same rules that apply to U.S. residents;

    - file U.S. tax returns every year regardless of where you live;

    - file numerous “information returns” which may include the private and financial information of others.

    - pay estate and gift taxes

    Now, you may ask “so what?” Let me try to explain to you why this might matter in your life. But, once again, these are just some thoughts. I leave it to you to decide whether these are considerations that are significant to you.”

  2. I don’t think selective service would be an issue in these days of a volunteer military. It’s money they want, and they want it from anywhere, notwithstanding that IRS revenues are at record high levels.

    One in four Americans is getting some sort of government assistance, such as food stamps, Medicaid, Social Security, government or military retirement or disability. One in four.

    Factor in the untold number of adults (probably millions) who have stopped looking for work. Consider how the dead have been voting in the last election (hint: they didn’t vote against Obama), the multiple times Obama voters vote for the gimme candidate-du-jour (in several precincts in some cases), the illegals voting, the voter fraud, George Soros’ company counting the votes, and you have the deck stacked pretty well against us.

    Consider all the scandals that have occurred in the last five-and-a-half years (Holder being found in contempt of Congress, the IRS being unleashed and isn’t currently restrained in its persecutions of Obama’s opponents), coupled with Congress and the courts continuing to refuse to rein in this administration and what we have is probably what we’ll continue to have.

    Obama-types will continue to promise goodies to tax consumers, while at the same time preach and pontificate how all taxpayers should pay their “fair share” (that’s what FATCA was all about!!). Long-term unemployed will continue to rely on government support, the money printing presses will ramp up some more, and the number of people actually paying taxes will continue to shrink, so of course they will want to target ex-pats with FATCA. They are so stupid that they believe that we are not paying taxes where we live.

    At some point, the nation will collapse on itself like post-World War I Germany. I don’t want to think about what happens then.

  3. My son never registered with Selective Service. We had no idea the U.S. considered him American until recently. When he was born all the information I had was that he would or we would have to register him as a citizen and that he would have to claim it upon reaching 18 years of age. We never registered him and he never claimed it. Those were the rules as I read them on the State Dept website at the year of his birth. I decided not to register him as I thought that should be his decision. At around the age of 16, I started to inquire of him if he wished to claim American citizenship. He said “No” and so that was that. I thought. Now I have come to realize through all this they claimed him without his or my knowledge in the matter. For heavens sakes. He refuses to renounce as he says he’s “not American” He has NLD which can make some people really narrowed in on hard facts about certain matters…well….try telling someone with NLD they are a thing that isn’t logical. So he’s not going to renounce. Nevertheless, the U.S. will still claim these kids and eventually come after them. Selective service my rear end! That’s exactly the reason I didn’t register him to as American to begin with.

    • @recalcitrant

      Ah, I see. Not my words. This is John Richardson’s comment.
      I can’t defend or refute it.

  4. I will have to politely disagree with any idea that life abroad is in any way.compatible with any concept of material success. This is because financial success is inextricably linked to any country’s tax system and currency management skills.
    The inherent incompatibility of.tax systems makes success for U.S. expat impossible. And this is readily apparent when you realize that the U.S. political system is geared toward making success impossible for expats.

    • I am sorry but I do not understand where there is any disagreement? My son renounced for exactly the reasons you describe and which I described; i.e., not being able to save and so on.. Could you explain where the point you disagree with is located?

  5. @PYYJ

    Yes, odd isn’t it? I had no idea about filing anything for myself nor my son. Had he chosen to retain his USC and gone to grad school in the States, he would automatically been denied any sort of financial aid whatsoever. Plus been liable for a $250,000 penalty. As he is at the beginning of his career, he had to decide whether to be unable to plan for a retirement in Canada via deferred tax accounts and whether he wanted to face paying capital gains someday, on the sale of a principal residence in Canada to a country he did not live in. He opted for renouncing and I think many young people need to be aware of this now, before they get into deep, restrictive options with serious consequences.

  6. One rule of citizenship (if you want to retain it in good standing) for young men is, from age 18-28 you have to remain registered with Selective Service. Ironically, at the same time I was wracking up 10 years of non-filing and becoming an unregenerate tax criminal, I was also reliably keeping my Selective Service info up to date. Funny what one knows and one doesn’t know.

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