Can Form 8854 Individuals 2023-2024

Last week, I had a woman come into my office who was adamant about giving up her US citizenship. She was accompanied by her young daughter, and by the end of our conversation, tears were streaming down her face. Her daughter, who was born in America but had never lived there, posed a unique challenge in explaining the concept of being an American. It was a poignant and moving moment for both of us. It saddened me that she felt compelled to let go of her citizenship due to tax reasons. One of the main issues she faced was that as a US passport holder and citizen, she was required to pay taxes on her worldwide income, regardless of where she resided. It was as if wherever she lived, it was considered the 51st state in terms of taxation. Interestingly, there are only three other countries, besides the United States, that base taxes on citizenship – Irit, RIA, and North Korea, which we jokingly refer to as the "tax axis of evil". This legislation aimed at banks and financial institutions has created complexity and headaches for individuals and institutions alike. Financial institutions now have to disclose information about their American clients if they want to continue doing business with the US. Many European banks decided to stop accepting American clients altogether to avoid the burden and costs associated with this reporting requirement. In fact, some UK banks have started reaching out to their client base, asking if they are American, as the responsibility falls on the banks to provide this information. Non-compliance can result in hefty fines, so institutions are being pressured into cooperating. It is disheartening that Americans living abroad are not adequately represented in Congress. It would be beneficial to have representatives who speak other languages, possess passports, and have firsthand experience...