Should London’s Mayor Boris Johnson pay U.S. taxes and file FBARs? Born in New York, the iconic London Mayor never gave up his U.S. citizenship. But rather than quietly paying U.S. taxes, Mr. Johnson in an NPR interview called it ‘outrageous’ to tax U.S. citizens on their global income. The Mayor hasn’t lived in the U.S. since age 5, but the IRS seeks tax on the sale his U.K. home.
The sale is exempt from tax in the U.K., so Mayor Boris can’t just claim a credit for his U.K. taxes to the IRS. It gladdens the heart of every expat and disgruntled American taxpayer to hear Mr. Johnson say that he won’t pay. It even fuels speculation that the IRS and Mr. Johnson could go to the mat.
Meanwhile, Mr. Johnson is getting support from expats miffed with the American tax code and IRS. Case in point, several Canadians filed suit to block FATCA in Canada. A named plaintiff in the suit wrote the Mayor offering her support. The letter appears here in edited form.
To The Right Honorable Boris Johnson, Mayor of the City of London
Dear Mayor Johnson:
My most heartfelt support in your quest to fight the unjust assessment of IRS taxes. Yes, Mr. Mayor, I know just how you feel. The reports—including this article in Forbes—seems incorrect about how much you might owe the IRS. There could be considerably more at stake than merely U.S. capital gain tax on your house.
Consider fines, exit fees and hefty penalties for failure to file income tax returns. Like many other quasi-Americans, you may not have known about any of this until recently. That’s understandable, because the IRS never informed anyone or published their regulations in any way the public would see.
The USA is the only country in the WORLD that taxes citizenship, rather than residence. America needs tax dollars to fund its deficit. So the IRS is going after every person they consider American in every country.
Like you, many people who once lived in the USA had no choice where they were born, and never considered themselves U.S. citizens. You are British and have no ties to the USA. I know that feeling. However, to date there are only two people in the world, my co-plaintiff and I, who are taking on this issue in court in our home country as Canadian citizens.
via The Tax Lawyer http://ift.tt/1tqSNEh