Tax consequences of becoming a US citizen.

[Gabriel Rocha]

		On Tue, Jul 09, at 02:02PM, Tim May wrote:
| Why do you think a person without a green card is exempt from IRS 
| jurisdiction?

I should have been clearer. I was speaking for his specific case, but as
it was pointed out, it applies to people who don't come here to work.

| 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!

Nor do they have Social Security numbers, or worker's rights, but that's
another issue.

| 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.

The US is one of the few countries that I know of (or about) that do not
allow people ona  student permit to work.

| 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.)

Well, going back to his specific case. His options are slim. He already
holds a green card, that makes him a US citizen as far as tax laws are
concerned. (note that you cannot legally keep a green card and not meet
the tax residency requirements)
 
| 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.

This applies wether he is a US citizen or not, green card holder or not,
Sealand citizen or not. Once the IRS sinkstheir claws into you, you're
screwed. Even if you give up your green card, you are still subject to
them for awhile. (A friend in Switzerland had a great deal of fun after
giving up his green card and still being contacted by the IRS)

| A U.S. passport buys almost no protection. The U.S. will not defend its 
| citizens, only its imperialist interests.

More so now than ever, I do have a tendency to agree with you. But, as
someone whose passport is not the pretty blue book that yours is, I
disagree. "Protection" is a relative term, show up in Russia and you're
kinda screwed one way or another, but show up in Genneva, Switzerland
and get stopped by the police, (or any other first world country) and
start speaking something other than English (or the local language) and
you will have a hard time. Specially in Europe, they have massive
profiling of foreigners and even if US Citizens may get a hard time just
fr being American, by far and alot, that blue passport will most
certainly get you out of a jam or keep you from being thrust into it.
Like it or not, the US passport is well respected throughout the world
("respect" also being very relative.) I have had a few occasions where I
would have been very screwed as a Brazillian, but got off well because
people thought I was American. It matters, even if the .gov won't come
to your rescue lance ablaze sitting on a white horse.