PREP Podcaster - ”Success Favours The PREPared Mind” – Details, episodes & analysis

December 22, 2024 - Participants include:

 

Laura Snyder - @TAPInternation

Keith Redmond - @Keith__Redmond

John Richardson - @ExpatriationLaw

 

AI Description:

 

"Join hosts John Richardson, Keith Redman, and Laura Snyder as they delve into the intricacies of citizenship-based taxation and its impact on Americans living overseas. Broadcasting from Toronto, Washington D.C., and France, they discuss the year's significant events, from tax advocacy efforts to bills addressing double taxation and social security justice for Americans abroad.

Listen in as they reflect on the challenges and successes of 2024, highlighting the struggle to decouple U.S. citizenship from tax residency and envision a fairer taxation system. With heartwarming holiday wishes, this episode offers insights and a rallying call for unity and change in the expat community's ongoing tax advocacy efforts."

December 21, 2024 - Participants include:

 

Doris Speer - @AARO President

 

John Richardson - @ExpatriationLaw

 

On December 21, 2024 the U.S. Senate passed H.R. 82 - The Social Security Fairness Act. H.R. 82 eliminated the "Windfall Elimination Provision" and the the "Government Pension Offset".

 

Bottom Line: Many public employees in the United States and U.S. citizens living outside the United States will no longer have their Social Security pensions reduced.

AI Description:

 

"Hello from Toronto, Canada! On this momentous December 21st, 2024, John Richardson offers a deep dive into a significant shift impacting Americans living abroad. Forget about tax discussions; something monumental happened yesterday in the U.S. Senate.

The Senate's approval of H.R. 82 marks the repeal of the Windfall Elimination Provision (WEP), a long-standing Social Security obstacle that unfairly reduced benefits for many Americans overseas. Host John welcomes Dora Speer, president of AARO in Paris, to demystify this issue and explore the milestone achieved through powerful advocacy.

Tune in to understand why this repeal is essential for expatriates and how combined effort led to this landmark change. Plus, join the conversation on future tax reforms and how vital organizations like AARO are driving change for expats worldwide."

November 1, 2024 - Participants include:

 

Rebecca Lammers - @AbroadRebecca

 

John Richardson - @Expatriationlaw

 

AI Description:

 

"Join John Richardson as he engages in a dynamic conversation with Rebecca Lammers, head of the Democrats Abroad Taxation Task Force, from her base in London. As an advocate for Americans abroad, Rebecca shares her journey from Ohio to becoming a pivotal voice in international tax reform discussions.

Rebecca elaborates on the significance of November for American expatriates, the complexities of U.S. tax laws, and her role in the Taxpayer Advocacy Panel. Delve into the intricacies of tax compliance challenges faced by Americans living overseas and the advocacy efforts aimed at achieving residency-based taxation.

Throughout the discussion, Rebecca highlights the strategic initiatives undertaken by Democrats Abroad, the hurdles of navigating a partisan Congress, and the importance of incremental reforms. With a focus on actionable steps and future goals, Rebecca emphasizes the need for continued advocacy and engagement to alleviate the tax burdens on Americans abroad.

Tune in for insights into the ongoing efforts to reform U.S. tax policies and the collective push towards a more equitable system for expatriates worldwide."

October 25, 2024 -  Participants include:

 

Virginia La Torre Jeker - @VLJeker

 

John Richardson - @ExpatriationLaw

 

This was a podcast that came together quickly. On October 24, 2024 the IRS announced that it would no longer automatically assess penalties to file Form 3520 reporting the receipt of foreign gifts. (The requirement is found in Internal Revenue Code 6039F (see below).

Notably this does NOT end the penalty regime for the failure to report foreign gifts. It simply means that the penalties will no longer be assessed without considering reasonable cause.

In the words of the Taxpayer Advocate:

"Spoiler Alert

The IRS has ended its practice of automatically assessing penalties at the time of filing for late-filed Forms 3520, Part IV, which deal with reporting foreign gifts and bequests. And…

By the end of the year the IRS will begin reviewing any reasonable cause statements taxpayers attach to late-filed Forms 3520 and 3520-A for the trust portion of the form before assessing any Internal Revenue Code (IRC) § 6677 penalty. This favorable change will reduce unwarranted assessments and relieve burden on taxpayers by giving them the opportunity to explain their situation before the IRS assesses a penalty. TAS has recommended these changes for years and the IRS listened. IRS Commissioner Danny Werfel announced these changes during the UCLA Extension Tax Controversy Conference."

The complete blog post is here ...

 

https://www.taxpayeradvocate.irs.gov/news/nta-blog/irs-hears-concerns-from-tas-and-practitioners-makes-favorable-changes-to-foreign-gifts-and-inheritance-filing-penalties/2024/10/

 

________________________________________

AI Description:

 

"In this episode, John Richardson from Toronto, Canada, reconnects with Virginia Latorre Jeker to discuss a significant announcement by the IRS regarding foreign gift reporting. The IRS has revised its procedure and will no longer automatically impose penalties for late filing of Form 3520 when a U.S. person receives a foreign gift or bequest exceeding $100,000. This change comes after years of advocacy, including efforts by the National Taxpayer Advocate, highlighting the unfairness of the previous policy.

Virginia explains that while the penalty regime remains in place, the IRS will now assess reasonable cause statements before issuing penalties, providing a fairer process for taxpayers. However, John and Virginia stress the importance of seeking professional advice to ensure compliance with reporting obligations and to craft strong reasonable cause statements if needed.

They also clarify that this procedural change applies solely to foreign gift and bequest cases, not to other 3520-related issues. Virginia shares resources available on her tax blog for those interested in understanding more about foreign gift reporting requirements. The episode wraps up with a hint at future discussions on related topics."

__________________________________________________________

Here is the text of Internal Revenue Code 6039F:

26 U.S. Code § 6039F - Notice of large gifts received from foreign persons (a)In general If the value of the aggregate foreign gifts received by a United States person (other than an organization described in section 501(c) and exempt from tax under section 501(a)) during any taxable year exceeds $10,000, such United States person shall furnish (at such time and in such manner as the Secretary shall prescribe) such information as the Secretary may prescribe regarding each foreign gift received during such year. (b)Foreign gift

For purposes of this section, the term “foreign gift” means any amount received from a person other than a United States person which the recipient treats as a gift or bequest. Such term shall not include any qualified transfer (within the meaning of section 2503(e)(2)) or any distribution properly disclosed in a return under section 6048(c).

(c)Penalty for failure to file information (1)In generalIf a United States person fails to furnish the information required by subsection (a) with respect to any foreign gift within the time prescribed therefor (including extensions)— (A) the tax consequences of the receipt of such gift shall be determined by the Secretary, and (B) such United States person shall pay (upon notice and demand by the Secretary and in the same manner as tax) an amount equal to 5 percent of the amount of such foreign gift for each month for which the failure continues (not to exceed 25 percent of such amount in the aggregate). (2)Reasonable cause exception

Paragraph (1) shall not apply to any failure to report a foreign gift if the United States person shows that the failure is due to reasonable cause and not due to willful neglect.

(d)Cost-of-living adjustment

In the case of any taxable year beginning after December 31, 1996, the $10,000 amount under subsection (a) shall be increased by an amount equal to the product of such amount and the cost-of-living adjustment for such taxable year under section 1(f)(3), except that subparagraph (A)(ii) thereof shall be applied by substituting “1995” for “2016”.

(e)Regulations

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.

(Added Pub. L. 104–188, title I, § 1905(a), Aug. 20, 1996, 110 Stat. 1913; amended Pub. L. 115–97, title I, § 11002(d)(13), Dec. 22, 2017, 131 Stat. 2062.)

 

October 18, 2024 - Participants include:

 

Virginia La Torre Jeker- @VLJeker

 

John Richardson - @ExpatriationLaw

 

On October 16, 2004 Virginia published the following article in Forbes:

 

Surrender Green Card At The Border: Form I-407, U.S. Tax Expatriation

Today we discuss that article.

 

AI Description:

"Join host John Richardson from Toronto as he engages in an insightful conversation with Virginia La Torre Jeker, a renowned U.S. lawyer based in Dubai. This episode delves into the multifaceted world of U.S. green card holders, exploring the significant life decisions and potential tax implications associated with holding and relinquishing a green card.

Virginia, a Forbes contributor and experienced blogger, shares her expertise on the delicate balance of maintaining U.S. residency and the legal and tax considerations for green card holders. Discover why obtaining a green card is a monumental decision, comparable to acquiring a new status in life, and learn about the critical procedural steps necessary for those looking to sever their U.S. tax residency."

Gain valuable insights into the complexities of long-term residency, expatriation, and the potential pitfalls that green card holders may encounter at U.S. borders. Whether you're a current green card holder or considering applying for one, this episode provides essential knowledge to help you navigate the intricate landscape of U.S. immigration and tax laws."

October 14, 2024 - Participants include:

 

Jerz - @TheJerzWay

 

John Richardson - @ExpatriationLaw

 

President Trump's announcement to end double taxation for Americans abroad has received great attention. It's clear what it means for long term U.S. emigrants.

Another groups of Americans abroad includes digital nomads and remote workers. A long time commentator on digital nomads is Jerz (a U.S. citizen abroad). He recently supported support for President Trump's initiative suggesting that it was a reason why all Americans abroad should vote for Donald Trump.

https://x.com/TheJerzWay/status/1845155499890683978

I thank Jerz for joining me in this podcast which took place on October 14, 2024.

 

 

_________________________________________

AI Description:

 

"Join John Richardson in a compelling discussion with Jerz, a prominent figure in the Second Citizenship, Digital Nomad, and Global Mobility space, as they explore the intricacies of acquiring second citizenships and the challenges posed by U.S. citizenship-based taxation. Broadcasting from Toronto, Canada, on Thanksgiving Day, John welcomes Jerz, who is speaking from Brazil, to delve into this transformative journey.

In this episode, Jerz shares his insights on the three primary paths to obtaining a second citizenship: by descent, investment, and residency. He provides a detailed overview of each method, highlighting the benefits and potential pitfalls. The conversation shifts to the broader implications of U.S. citizenship-based taxation, discussing President Trump's proposal to end this practice and how it affects Americans living abroad.

Jerz emphasizes the importance of understanding the financial and personal impact of U.S. taxation laws, urging listeners to consider the value and purpose of acquiring another citizenship. Whether you're an American abroad or contemplating a move, this episode offers valuable perspectives on navigating global mobility and the potential benefits of policy change."

July 10, 2024 - Participants include:

 

Vance - @MyLatinLife

John Richardson - @ExpatriationLaw

 

In this episode we discuss the 2024 Republicans Overseas Tax proposal to end U.S. citizenship taxation.

 

AI Description:

"Welcome back to the My Latin Life podcast! Since 2014, we've been your trusted guide to traveling and living in Latin America. In this episode, we reconnect with John Richardson, an expert in expatriation law, to discuss the complexities of American taxation abroad. John is part of SEAT (Stop Extraterritorial American Taxation), an organization advocating for significant changes to the taxation laws affecting Americans living overseas.

Join us as John delves into the latest developments in the fight against citizenship-based taxation. He shares insights on the role of Republicans Overseas in advancing this cause and discusses the potential for legislative and regulatory changes. We explore the complexities of U.S. tax jurisdiction and the impact on Americans who live and work abroad, highlighting the need for reform to align with global standards.

Whether you're a digital nomad or an American expatriate, this episode provides valuable information on how you can get involved in advocating for change. Tune in to learn more about the efforts to sever the link between citizenship and tax residency and the potential implications for the future."

October 11, 2024 - Participants include:

 

Dr. Karen Alpert - @FixTheTaxTreaty

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

 

About SEAT:

 

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

This particular podcast is a response to a Tax Notes article discussing the recent Trump proposal to end the double taxation of Americans abroad. The article is found here:

https://www.taxnotes.com/tax-notes-today-federal/financial-reporting/trump-vows-end-double-taxation-overseas-citizens/2024/10/11/7m68f

Of particular interest, and the reason for this podcast, is the following excerpt quoting Professor Avi-Yonah:

 

"Reuven S. Avi-Yonah of the University of Michigan Law School believes concerns over double taxation are exaggerated, noting that in addition to the income exclusion limit and tax credit, many U.S. citizens live in countries that have a tax treaty with the United States, and those treaties often provide “tiebreakers” to ensure there isn’t double income taxation. “Thus, the double taxation argument is spurious,” Avi-Yonah said in an email. “There are many more cases where Americans living overseas enjoy double non-taxation because of sections 911 or 933 than cases of double taxation.”

 

We disagree both the general sentiment expressed and the claim that the treaty tie-break provision is available to U.S. citizens living outside the United States.

 

AI Description:

 

"In this episode, John Richardson from Toronto, Canada, discusses a major proposed development in U.S. taxation policy with Dr. Laura Snyder in Paris and Dr. Karen Alpert in Australia. President Trump's recent announcement to end the double taxation of American citizens abroad has stirred significant interest and controversy. The discussion centers around an article from Tax Notes and the differing perspectives described in the article about this policy shift.

 

Dr. Snyder and Dr. Alpert, both members of the organization "Seat Stop Extraterritorial American Taxation Now," delve into the complexities and implications of the U.S. tax system for Americans living overseas. They critique the views of Professor Ruven Avi-Yonah, who argues that concerns over double taxation are exaggerated and often mitigated by the "treaty tie break" provision tax treaties.

The conversation highlights the challenges faced by expatriates, including definitional and timing issues in tax codes, which can lead to double taxation despite the existence  of tax treaties. The episode calls for more inclusive dialogue involving experts with firsthand experience of these tax challenges, advocating for a reevaluation of the U.S. citizenship-based taxation system."

October 4, 2024 - Participants Include:

 

Solomon Yue - @SolomonYue

 

John Richardson - @ExpatriationLaw

 

Introduction:

 

Republicans Overseas recently announced that President Trump has recognized the unfairness of the tax treatment of Americans abroad and has committed to the principle of eliminating double taxation on them. In this podcast I discuss this message and explore what it means for Americans abroad.

 

AI description:

 

 

"In this engaging episode, host John Richardson reconnects with Solomon Yu, a long-time advocate for ending the double taxation of Americans living overseas. From Toronto to Oregon, the conversation spans continents and decades of activism, as Solomon shares his personal journey from escaping communist China to becoming a key figure in Republican politics and a founder of Republicans Overseas.

Solomon discusses the challenges and triumphs in his decade-long fight against citizenship-based taxation, highlighting the latest breakthrough: a recognition from former President Donald Trump on the need to address this issue. The episode delves into the complexities of U.S. tax laws affecting Americans abroad, the historical context of this advocacy, and the potential impact of Trump's support in the upcoming elections.

Listeners are taken through a narrative of perseverance, legal battles, and political strategy, as Solomon outlines the path forward for Americans overseas. With insights into the political mechanisms at play and a call to action for voting, this episode is a must-listen for anyone interested in the intersection of tax policy, expatriate rights, and American politics."

September 4, 2024 - Participants include:

John Alan - @JohnAlanPod

Keith Redmond - @Keith__REDMOND

Anthony Parent - @IRS_Medic

John Richardson - @ExpatriationLaw

 

Note: This podcast was hosted by John Alan and originally was published by him on September 8, 2024 at his John Alan Pod site.

The podcast is reposted here with the kind permission of John Alan.

 

 

AI Description:

 

"Join host John Allen in this episode of "Coming Home with John Allen" as he discusses the complex world of U.S. taxation for Americans living overseas with tax experts John Richardson, Anthony Parent, and Keith Redman. These seasoned professionals dive deep into the intricacies of the U.S. tax code, particularly how it impacts American expats and emigrants.

Discover the distinctions between short-term expats and long-term emigrants, and how the U.S. tax system treats them. The conversation highlights the severe challenges faced by Americans abroad, including the citizenship-based taxation system, the threat of double taxation, and the lack of proper representation and protection.

Learn about the proposed solutions, such as severing U.S. citizenship from tax residency and reforming the current tax regulations. Gain insights from personal experiences and expert advice on how to navigate the tax landscape, mitigate fear, and make informed decisions. This episode is a must-listen for anyone grappling with the complexities of U.S. taxes while living overseas."