Tax consequences of becoming a US citizen.

[Duncan Frissell]

On Tue, 9 Jul 2002, Tim May wrote:

> Why do you think a person without a green card is exempt from IRS
> jurisdiction?

I assumed that he meant a US non-resident.  Obvi


>
> Unless one's stay is a short one (see below), income or other money
> earned while in the U.S. (and maybe earned outside the U.S. if the IRS
> can make a nexus case) is taxable. Illegal aliens are supposed to file
> tax returns...and they certainly don't have green cards!
>
> Here's what Uncle Sam says:
>
> "You will be considered a U.S. resident for tax purposes if you meet the
> substantial presence test for the calendar year. To meet this test, you
> must be physically present in the United States on at least:
>
> 1.	31 days during the current year, and
> 2.	183 days during the 3-year period that includes the current year
> and the 2 years immediately before that, counting:
> *	All the days you were present in the current year, and
> *	1/3 of the days you were present in the first year before the
> current year, and
> *	1/6 of the days you were present in the second year before the
> current year.
>
> --end IRS quote--
>
> There are some exemptions, for student visa persons and athletes
> competing in games, but basically the idea is that you owe tax on money
> earned in the U.S., regardless of citizenship, green card, or other
> status.
>
> > or
> > get a US citizenship since you're already in their jurisdiction anyway.
> >
>
> I think this is terrible advice. Becoming a U.S. citizen exposes a
> person to not only the _current year_ tax scheme but also the "for ten
> years after you leave the U.S." tax scheme. (Yes, any U.S. citizen who
> moves anywhere in the world must, technically, file U.S. tax returns for
> 10 years after leaving. And pay various kinds of taxes, though the
> amount may be different from what he would have paid had he remained in
> the U.S.)
>
> Also, a person having extensive offshore (outside the U.S.) assets may
> well find his assets are now taxable in the U.S. And for those with
> capital assets not taxed in their home countries (e.g., Germany, Japan),
> this may be quite a shock.
>
> A U.S. passport buys almost no protection. The U.S. will not defend its
> citizens, only its imperialist interests.
>
>
>
> --Tim May
> "That government is best which governs not at all." --Henry David Thoreau