whalesurfer

You're absolutely correct. ..and that's exactly why this flight attendant was trying to challenge the IRS. She was NOT trying to argue if this or that should qualifies as overseas income. She was arguing that income taxes should be assessed based on ones residency and not ones passport. That's how the entire world, except the US and Eritrea, does it.

Here's an excellent article which explains the differences between the US and the rest of the world when it comes to taxation..

"...The U.S. is the only country that taxes its citizens on their world-wide income, no matter where they live.
OK, there’s also Eritrea. It imposes what is derisively termed a “diaspora tax” on its citizens.
Otherwise, though, the basic rule is that countries impose their taxes on individuals based on their residency, not their citizenship..."

Tax History: Why U.S. Pursues Citizens Overseas - Washington Wire - WSJ

NEDude

There is a group based in Canada called the Isaac Brock Society that is focused on all things dealing with American expats when it comes to citizenship based taxation, FATCA, FBAR and other requirements American expats have to deal with. A lot of good resources and information.

The Isaac Brock Society | Liberty and justice for all United States persons abroad

pierre66

Haven't been on APC for a while but want to add to this post.

I'm an American that has had bona fide residence in China for the past 6 years, flying for a Chinese airline. Knew I was likely to get audited and thus kept thorough records all this time. Plus I got international tax attorney advice before even moving offshore.

Well, of course, last year they decided to take a shot at me. They audited my first and second year in China, both were flying 744's internationally. The examiner in Puerto Rico was completely invasive and relentless - after I snail mailed him 5 inches of documents he wanted, he began to nit-pick. I wanted to choke the fxxxxer but of course you have to bend over and take it or no doubt get placed on some list!

Anyhow, after proving my Chinese residence 3 different ways, one that required a special trip to Shanghai and obtaining police residence records, I won - as I knew I would from the outset. That was only the final part of the incessant and ridiculous demands this guy had.

The guy never said "okay" at the end, I just received a refund due notice in my USA snail mail. That was nearly 5 months ago and the $2,500 they owe me has still not shown up......

We were lucky enough to receive passports from a criminal, bankrupt and predatory government. They are scraping the barrel and we are easy, defenseless targets. The price we pay just to have the little blue travel document......

If I had been 5 years younger when I came over here I would have bought an economic citizenship from Dominica and renounced.

Starlifter

Yes, they are after the small fish. Got a notice from my Austrian bank today with regards to FACTA. I received this same notice from my Slovak bank last Summer. Thank goodness I have been keeping thorough records for years...

Probe

Here is from the IRS website:


https://www.irs.gov/Businesses/U.S.-...ional-Airspace

Probe

This one is good as well. It is from KPMG, and is written in plain language instead of the gibberish that is IRS forms and instructions.

http://www.kpmg.com/US/en/IssuesAndI...USTAA_2013.pdf