many Americans have already migrated within the United States.

[riverbendviewgal]

Maybe they were born in Virginia, but they went to school in California and, once they graduated, they landed a job in Wisconsin and settled there. Happens all the time. Now a lot of US states have state income taxes but if an American moves five times in as many states, the state he was born in doesn't follow him around annoying him for tax returns when he is an income-earning, property-owning resident of another state. So when an American goes abroad this is the model he has in mind and if, after having moved numerous times within the US, he goes abroad to Belize, it just doesn't occur to him that taxation and out-country migration does not work the same way as internal migration.

Accidental Migrants: Some of the recent research into the American population outside the United States reveals that many (if not most) went abroad thinking that they would go back to the US at some point. As one study participant (a US lawyer in London) reported to Dr. Klekowski von Koppenfels, "I was only supposed to be here for one year and that was 18 1/2 years ago."

As they acculturate in their new homes abroad, they become part of the local tax system and start paying local taxes (national and city taxes). Yes, my fellow Americans in the homeland, if you live in France on a residency permit, you will pay taxes just like everybody else here foreign or native. Ditto for just about anywhere else in the world.

7 million Americans abroad and only a few are even quasi-compliant with the American tax system which requires that any American living outside the U.S. file tax returns and foreign bank accounts reports even where all the income and all those bank accounts are in the country of residence (not the US).

....It occurred to me once, seeing all those American students at McGill University in Canada, that if the IRS/Treasury wanted to make some quick money (10,000 USD for every non-reported Canadian "offshore" bank account) they could simply get the born-in-the-US student list and start checking them (and their parents back in the US) out.

http://thefranco-americanflophouse.blogspot.fr/2014/06/non-willful-non-compliance-how-we-got.html

click on the above link to read the rest. If you have the curiosity to see what Americans living around the world are like.

[Erich Bloodaxe BSN]

1. Does seem kind of stupid that you would

need to pay income tax in the US as an expat who never sets foot on US soil and does not own or operate any business or property in the US in a given year, or earn any income in the US during that year.

[riverbendviewgal]

6. The USA uses a Citizen based tax system while the rest of the world uses Resident based taxation

You are right Erich... it is "exceptionally" stupid....

Too bad the USA does not want to be a player in the world, in stead they op for being greedy.

[pampango]

11. Just another form of American exceptionalism - perhaps one that some liberals support.

[ieoeja]

7. The exemption is huge. I think it is half a million.

Also, I believe they deduct income tax they pay in their country of residence from the taxes they owe the US. Which means for most countries, even those making over $500,000 a year end up paying $0.

The entire purpose of this legislation is catch people who are hiding money in overseas bank accounts. We need to build a paper trail for tracking this issue.

The OP does not want to go through the inconvenience of filling out the paper work. Seriously. They aren't complaining about double taxation, because they are not paying any taxes to the US. They just don't want to fill out the paper work.

[Spider Jerusalem]

9. It's $92K.

Not half a million.

[WhiteTara]

2. Seems like you need to talk with Republican

congressmen. They love this sort of thing.

[riverbendviewgal]

4. This was started by a Democratic president

read your history of FATCA since 2010

I love Obama by the way..... He has done good things. except this stupid law. why don't you work at your congressman to get the USA be like the rest of the world and have Resident Based Taxation.

[WhiteTara]

10. That's what I said. Republicans are your friend

in this case (maybe others, I don't know) but they love nothing better than to give a tax pass. And no, I won't be working with my congresman (puke though he may be) on this issue. I have many things I feel more pressing, but good luck.

[riverbendviewgal]

3. Hey IRS....get these Americans.

It occurred to me once, seeing all those American students at McGill University in Canada, that if the IRS/Treasury wanted to make some quick money (10,000 USD for every non-reported Canadian "offshore" bank account) they could simply get the born-in-the-US student list and start checking them (and their parents back in the US) out.

[riverbendviewgal]

5. Americans love our flag and use it to their advantage.

3. The maple leaf on travellers’ backpacks from all over

While in Ireland, I met two people with Canadian flags on their packs and asked them what part of Canada they were from. They said nowhere – they were Americans who had discovered that showing the Canadian flag earned them special treatment. It’s about respect. It’s a fulfilling sense of pride and a great sense of identity. As a Canadian, we just know we live in the best country.

– Heather Moyse, Olympic gold medalist in the bobsleigh who has also represented the country in rugby

http://www.theglobeandmail.com/news/national/147-reasons-to-love-canada/article19372494/

Happy Canada Day...

[Bluenorthwest]

8. Not exactly all true. The State of California taxes residents of other States for income generated

in CA, they do so for all time. If your work in CA creates reuse, royalty or residual income, CA will tax that income, require filing and this will continue past a lifetime and will also apply to the estates of deceased individuals.

[bemildred]

12. Correct.

It is an ugly mess to deal with too.