Re: OT- UK Socialized Medicine was Re: Low cost Mass production of PV

 
After renouncing citizenship, the person no longer has any

    IIRC, if you renounce US citizenship, you still have to pay income tax
for 10 years. How can that possibly work? This country gets stupider by the
minute.....

  jim@home.con says...


My understanding is that, if the renunciation of US citizenship
is viewed as sincere, then the tax liability stops immediately.  
As long as the person doesn't try to work at a job in the US.  
And I am sure the gubmint would prefer that s/he just stay away
altogether.

However, if the State Department decides that the renunciation
was motivated solely to avoid tax liability, they can refuse to
respect it, and designate the person as still being a citizen
(and still being taxable.)  Forever.  Even if the person is
permanently living in another country.


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Jim wrote:


TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter N - Tax Based on Income From Sources Within or Without the
United States
PART II - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
Subpart A - Nonresident Alien Individuals

-HEAD-
Sec. 877. Expatriation to avoid tax

-STATUTE-
(a) Treatment of expatriates
    (1) In general
        Every nonresident alien individual who, within the
    10-year period immediately preceding the close of the taxable
    year, lost United States citizenship, unless such loss did
    not have for one of its principal purposes the avoidance of
    taxes under this subtitle or subtitle B, shall be taxable for
    such taxable year in the manner provided in subsection (b) if
    the tax imposed pursuant to such subsection (after any
    reduction in such tax under the last sentence of such
    subsection) exceeds the tax which, without regard to this
    section, is imposed pursuant to section 871.
    (2) Certain individuals treated as having tax avoidance
    purpose
        For purposes of paragraph (1), an individual shall be
    treated as having a principal purpose to avoid such taxes if -

            (A) the average annual net income tax (as
        defined in section 38(c)(1)) of such individual for
        the period of 5 taxable years ending before the date
        of the loss of United States citizenship is greater
        than $100,000, or
            (B) the net worth of the individual as of
        such date is $500,000 or more.

        ...

(b) Alternative tax
        A nonresident alien individual described in
    subsection (a) shall be taxable for the taxable year as
    provided in section 1 or 55, except that -




You would have to be an expatriate (former US Citizen) who then
becomes a "nonresident alien individual".  The tax code so far as I
have read, only applies to "nonresident alien individuals" that still
have a financial nexus within the US.  If the expat has no financial
nexus within the US, The only way the US dictatorship could reach that
expat is to invade a sovereign country.

Oh, wait... The US is doing that already.




Snicker... Yep.

One does not have to expatriate to avoid Federal Income Taxes. One
only needs to read the statutes and regulations AS WRITTEN.


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    I'm not complaining; I haven't paid federal taxes since I can
remember....