ExpatriationLaw - X Spaces Lives Discussions - Ending Double Taxation Of Americans Abroad

September 15, 2025

Dave Keating - @DaveKeating - Brussels based journalist and author of “The Owned Continent”

John Richardson - @Expatriationlaw - Toronto, Canada based expatriation lawyer

__________________________________________

About Dave Keating:

“Dave Keating is an American-European journalist in Brussels who moderates live events.Dave is the Brussels Correspondent for France 24. He has also written for the New Statesman, Energy Monitor, IP Quarterly, Euractiv, Forbes and World Politics Review. Previously he was the editor of EuropeanVoice.com, a side publication of The Economist. He is the author of the book The Owned Continent.​​

He is ranked as the number one EU social media influencer for 2023, coming in second in 2024 and 2022 and third in 2021 and 2020.Before arriving in Brussels in 2010, Dave covered the boardrooms of London, the halls of the US Congress in Washington, the cafes of Paris, the politics of Prague, the courtrooms of Chicago and the streets of New York City. He has also covered climate policy in Berlin.

Dave previously covered US politics in Washington and draws comparisons between the American federal system and the European Union. He is well-known in Brussels not only for his reporting but also his conference moderation.

As a broadcast journalist, Dave has worked as a correspondent reporter, a live in-studio analyst, a line producer, a newsmagazine show producer and a segment producer for live news panels.

Originally from the New York City area, Dave holds a Bachelor of Arts degree from New York University in film/television and European history. He also holds a Masters of Science in Journalism from Northwestern University’s Medill School of Journalism.”

I highly recommend his book!

About today’s podcast:

John Richardson interviews Dave Keating about his book The Owned Continent and his argument that Europe is deeply dependent on the United States militarily, economically, and culturally. Keating traces his own move to Europe, explains how English and U.S. infrastructure shape European life, and calls for a stronger, more federal EU to reclaim real sovereignty.

The conversation covers Brexit’s consequences, Canada‑EU ties and Mark Carney’s role, the danger of U.S. control over payments and cloud systems, and practical steps Europe must take—cultural, economic and political—to free itself from American dominance.

Speakers include:

Dr. Laura Snyder

Dr. Suzanne deTreville

John Richardson

Tim Smyth

The Compliance Crisis: 2025 Report on Americans Abroad

1 source

This transcript features a discussion among advocates regarding the 2025 National Taxpayer Advocate Report, which officially identifies the severe compliance burdens facing Americans living abroad as a major problem. The participants highlight how the U.S. citizenship-based taxation system creates “second-class citizens” who struggle with overwhelming reporting requirements, punitive penalties, and a lack of IRS support. A central focus is the report’s warning that the fear and frustration experienced by expats ultimately threatens the integrity of the entire U.S. tax system. The speakers emphasize the gross inequities of exit taxes, particularly regarding foreign pensions, which can make it financially impossible for many to either comply with the law or renounce their citizenship. Ultimately, the dialogue argues that the only true resolution is to separate citizenship from tax residency to end the extraterritorial reach of U.S. tax obligations.

The Compliance Crisis: 2025 Report on Americans Abroad

1 source

This transcript features a discussion among advocates regarding the 2025 National Taxpayer Advocate Report, which officially identifies the severe compliance burdens facing Americans living abroad as a major problem. The participants highlight how the U.S. citizenship-based taxation system creates “second-class citizens” who struggle with overwhelming reporting requirements, punitive penalties, and a lack of IRS support. A central focus is the report’s warning that the fear and frustration experienced by expats ultimately threatens the integrity of the entire U.S. tax system. The speakers emphasize the gross inequities of exit taxes, particularly regarding foreign pensions, which can make it financially impossible for many to either comply with the law or renounce their citizenship. Ultimately, the dialogue argues that the only true resolution is to separate citizenship from tax residency to end the extraterritorial reach of U.S. tax obligations.

_________________________________________________________________

The report includes the following description of a hypothetical U.S. citizen abroad:

“Sue, a U.S. citizen, has lived and worked in Australia for many years after marrying her Australian husband, Sam. As a dual citizen, Sue pays Australian income taxes on her wages but also remains subject to U.S. tax laws. They have been advised their income is always less than the foreign earned income exclusion.

They have joint checking and savings accounts in an Australian bank, and on various paydays the combined balance of their joint accounts exceeds $10,000 USD. Sue participates in an Australian superannuation, a compulsory system for retirement savings. Three years ago, she inherited some stock shares from her Australian aunt, which she keeps in the same brokerage house that maintained her aunt’s account. Sue and Sam have not filed a U.S. income tax return or an FBAR. Sue eventually learns that because she is a U.S. citizen she must also file a U.S. tax return to report her Australian income, with Forms 3520, 3520-A, 8938, and 8621 (depending on the investment in the superannuation). They also must electronically file FinCEN Form 114 (FBAR) using FinCEN’s BSA E-Filing system. If they file tax returns, they may owe U.S. taxes and penalties thereon.

They would also be subject to foreign trust penalties for failing to disclose Sue’s Australian pension plan, FATCA and FBAR penalties, and possibly foreign gift penalties for failure to disclose her Australian inheritance that is not subject to tax.”

In a recent legal discussion, experts analyzed the landmark Supreme Court case Afroyim v. Rusk, which established that the government cannot strip a person of their citizenship without their specific intent to give it up. The speakers highlighted how this ruling provides constitutional protection for dual nationals, making it significantly harder for the state to involuntarily revoke an individual's status. They noted that while this protects those born or naturalized in the United States, the same level of security may not apply to citizens born abroad who rely on statutory laws. Consequently, the experts recommend obtaining dual citizenship from birth to maximize legal options and ensure long-term global mobility. They concluded that while citizenship remains a fundamental right, its practical security often depends on maintaining robust documentation and navigating bureaucratic gatekeepers.

This AI generated podcast is based on a SEAT post announcing our latest article published in Tax Notes. The article explains how President Trump’s pledge to end the double taxation of Americans abroad can be achieved by the U.S. waiving it’s “saving clause” rights under the treaty.

https://seatnow.org/2025/10/06/a-simple-and-unilateral-treaty-fix-for-citizenship-taxation-richardson-snyder-and-alpert/

To test your knowledge of the concepts, check out the flashcards at:

https://notebooklm.google.com/notebook/69edd0bf-f0b3-4855-b544-7f93b17485ea?artifactId=906feeb7-4ee8-40c7-b26e-a3edb8112701

Unilateral Treaty Fix for Citizenship Taxation

1 source

The source argues for a unilateral treaty fix to mitigate the effects of U.S. citizenship taxation on Americans living abroad, particularly focusing on how this causes double taxation. The authors contend that the U.S. Treasury can achieve this by simply declining to use the “saving clause” in tax treaties, which currently reserves the U.S.’s right to tax its citizens as residents regardless of treaty provisions. If the Treasury refrains from invoking this clause, U.S. citizens could be treated as “treaty nonresidents” like Green Card holders, allowing them to benefit from the treaty’s residency “tie breaker” rules. This administrative action is proposed as a way for the President to fulfill a pledge to end the double taxation of expats without requiring legislative or formal regulatory changes. The text explains that the current system, supercharged by the saving clause, forces U.S. citizens abroad into dual tax residency, leading to worldwide taxation and complexity, often on non-U.S. source income.

Tim Symthe - @TpSmyth01

David Bindel - @DavidBindelTx

Dr. Suzanne DeTreville - @SDeTreville

John Richardson - Expatriation Law

This podcast is largely based on a post that appeared on the SEAT site at:

https://seatnow.org/2025/10/06/a-simple-and-unilateral-treaty-fix-for-citizenship-taxation-richardson-snyder-and-alpert/

“This episode examines the U.S. tax treaty “saving clause,” which lets the United States deny treaty residency tiebreaker benefits to U.S. citizens and effectively causes double taxation for Americans living abroad.

Speakers discuss history, practical harms (FBAR, pensions, capital gains), and a proposed executive-branch remedy: simply choosing not to invoke the saving clause so expats can rely on treaty tiebreakers, plus legal and durability considerations.”

This is an AI generated podcast from a presentation I created. The AI description of the presentation is:

Renouncing US Citizenship: Reasons, Rules, and Risks

1 source

“The provided document, primarily authored by John Richardson, offers a comprehensive guide to the decision and process of renouncing U.S. citizenship, focusing heavily on the complex tax implications for expatriates and long-term Green Card holders. The text outlines the statutory requirements for relinquishing nationality, noting that the act must be performed with the intent of abandoning U.S. nationality before a consular officer. A major theme is the potential for double taxation on worldwide income and assets that U.S. citizens living abroad face, which often prompts the consideration of renunciation, particularly as individuals age and accumulate more foreign assets. Significant attention is dedicated to the financial hurdles, especially the “Covered Expatriate” status which triggers the 877A Exit Tax and the associated wealth thresholds and tax compliance requirements. The guide also touches on the practical good and bad news related to income tax, estate tax, and immigration rights following renunciation, including the loss of the right to enter or live in the USA, alongside strategies for avoiding Covered Expatriate status through planning and family considerations.”

I thought it would be interesting to have AI create a podcast of Professor Edward Zelinsky’s 2024 paper titled:

Defending U.S. Citizenship-Based Taxation in Theory and in Practice: An Essay on Fiscal Citizenship in a FATCA World

Here is the AI description:

“Defending Citizenship-Based Taxation in a FATCA World

1 source

The provided text is an academic essay arguing in favor of the United States' citizenship-based taxation of its citizens living abroad, justifying it through the concept of "fiscal citizenship," which asserts that membership in a political community entails a duty of tax support. The author contends that the U.S. system is more administratively efficient and less unique or harsh than critics claim, pointing out that other nations like Canada, Australia, and the U.K. achieve similar worldwide taxation results via complex residence and domicile rules. Furthermore, the essay discusses how U.S. tax treaties and the Foreign Account Tax Compliance Act (FATCA) mitigate some problems for overseas citizens and argues that the generous Section 911 exclusion for foreign earned income makes the U.S. system uniquely taxpayer-friendly compared to other nations. Ultimately, the piece frames the debate as a fundamental disagreement over whether U.S. citizenship is a "one-way street" granting rights without corresponding duties.”

The following AI Generated podcast is based on a presentation that I delivered 10 years ago in London, UK. Not much has changed.

Here is the AI generated description of the presentation:

Sacred Trust: Counselling Through U.S. Citizenship Trauma Abroad

1 source

The provided text, "Sacred Trust: Counselling Clients Through the “Trauma of U.S. Citizenship Abroad” in a FATCAesque World," by John Richardson, outlines the significant challenges faced by U.S. citizens living abroad due to the Foreign Account Tax Compliance Act (FATCA). It details how financial institutions worldwide are identifying individuals with U.S. indicia, leading to many discovering they are considered U.S. persons and are therefore subject to U.S. taxation. The document emphasizes the emotional and financial "trauma" associated with this realization, including the complex decisions regarding renunciation of citizenship and the potential for a hefty "Exit Tax" for "Covered Expatriates." Ultimately, the text highlights the specialized and sensitive counseling required for these individuals, stressing that advisors act as life counselors guiding clients through profound and often life-altering decisions. The source also touches on the negative impact U.S. citizenship abroad has on financial and business opportunities.