Its Not Tax... Its Tribute
Are you a US Person? Note... I didn't ask if you were a US Citizen. I didn't ask if you were a US resident. I asked if you were a US Person.
That's because the term US Person is what the IRS uses to determine if you are subject to the US tax system.
Check this out:
1. Are you an American Citizen (even though you may have a different passport)?
2. Is your official place of residence in the United States or do you have a permanent residence permit for the United States? A permanent residence permit means, for example, a green card, an extended stay in the United States this year and during the two past years, or a substantial physical presence test.
3. Are you, for any other reason, subject to American tax?Dual residence, spousal joint tax return, person who has given up US nationality or a residence permit after an extended stay, other reasons.
If you answer yes to any of those questions... you are a US Person... and are subject to the US income tax system.
Imagine... you renounce your US citizenship. You move to Switzerland... you divest yourself of all US investments. You earn no income what-so-ever from any US source. What does the IRS say? Good for you... but we're still coming for 30% of your income for the next 10 years... bitch.
The official IRS position boils down to... "If we say you're subject to our system... you are."
Lets be clear... the problem I have with this... is the idea that someone that earns no money from US sources... should be required to report their income to the IRS... simply because they happen to have lived in the US 3 years ago.
Ok that's not true... I actually have a problem with anyone being forced to report their income to a government agency. Its a loathsome and despicable practice that is incompatible with a free society.
And yes... I am still alive. I've been eyeballs deep in homeschooling for the last several days.. and that is likely to continue for the foreseeable future.