Objectively speaking, how can the IRS collect taxes from U.S. citizens with income or bank accounts outside of the U.S. associated with their alternative citizenships?
Note that the USA requires compliance to the US tax code and other laws when the US citizen does not live in the USA, this is unique and a big problem.Bottom line first - The US government has virtually zero power to force the residents of other nations to file and pay taxes to the USA, and virtually zero power to enforce penalties or assessed taxes on the residents of other nations.A handful of nations have mutual collection arrangements with the US, but there are none that will collect if the person was a resident citizen of their own nation at the time the US assessed taxes and penalties. NO nation will collect for the IRS in those circumstances.Most US persons living in other nations can tell the IRS to go pound sand, and should, particularly if they are the citizens of those other nations. There is far more danger in compliance than disobedience, because there is nothing fair or reasonable in the way the US treats citizens with foreign financial lives.How does the US find these accounts?There is a truly vile law the US shoved down the throat of the world using threats and lies called the Foreign Account Tax Compliance Act, FATCA. This law requires financial institutions all over the globe to sniff out any sign of US-ness in their client bases and report those accounts to the IRS.So, this bulk data collection and infringement of privacy has resulted in the IRS sitting on millions of reports of US person held bank accounts all over the world, literally millions of them. Now, the IRS has no way of knowing if these people should even be filing, often no way of knowing if they really are US citizens, most will owe no tax anyway due to offsets for local taxes paid and no way to make them file or pay. On top of that the IRS have already said they simply cannot process this, they donu2019t have the systems, the money or the manpower.What the hell is the point!?Oh yea, some of those account holders will live in the US but say, hereu2019s an ideau2026.How about targeting them? As it stands they are just lost in the noise of millions of reports the IRS canu2019t process.Oh yea, and when FATCA was proposed you can be sure as hell that the big dirty money held by US residents in foreign banks vanished faster than the morning mist in August.So, the US government forced the entire world to spend hundreds of billions of dollars by bullying and lies to get to money that wasnu2019t there, in the process forces other nations to make life yet more miserable for US citizens abroad by adding local discrimination to US persecution, has managed to get millions of reports the IRS cannot use while the real resident tax evaders hide in the noise, and has managed to raise a fraction of what FATCA has actually cost and what has been raised is illegitimate theft from other nations by any other world standard and in the meantime thereu2019s waiting lists to renounce US citizenship all over the world.Oh yea, and no way to make any of the u201cAmericansu201d that they have discovered in other nations actually comply, the only money raised is from victims scared in to compliance. Oh, yea, that bullying thing again.Way to go USA, how to win friends and influence people.