Reporting gains from Foreign Trusts
The United States is one of only a small number of nations that taxes its citizens, even if they earn money outside the country. Of course, as you’ve probably learned by now by reading other pages of our website, namely Jurisdiction and Nonresident alien individuals, the term citizen applies only to those with a domicile within the District of Columbia, Puerto Rico, Guam and other U.S. territories — not those living in the Constitutional Republic.
There are millions of Americans living in countries all over the world, and the National Government has gone to great efforts to try to convince those in that group that they need to file a Form 1040 and include all benefits incurred in any tax year.
The National Government has created FATCA forms (8938) and Foreign Trust forms (3520) in an effort to make people feel they have the inescapable obligation to report all their earnings anywhere on the planet.
There is far less written by the National Government is regard to how most people have volunteered their way into the U.S. Tax Club — whether or not they realized it at the time with full disclosure.
But nevertheless, it is a proven fact that the obligation to file a Form 1040 (and any related forms, including the 8938 and 3520) is only for those who: 1) have their domicile in the District of Columbia and/or U.S. territories, or 2) do NOT have their domicile in the District of Columbia but have made the election to be treated as one who does have a domicile in this narrow jurisdiction and does not have any Constitutional protections.
The U.S. Code and the Internal Revenue Code are both statutory in nature, so they apply only to those described above. So when reading any legislation referencing these codes it’s important to know the definitions of terms that you — a person born in one of the 50 states of the Union and does not have any connection with the performance of a public office — must adhere to.
Terms like “U.S. Person”, “U.S. Citizen”, “Person” and “Individual” have distinct differences in meaning that what their common, everyday usage may suggest. Below are the STATUTORY definitions of these terms:
Person: A STATUTORY individual, a trust, estate, partnership, association, company or corporation. — 26 USC 7701(a)(1)
U.S. Person: These identify legal fictions that reference a statutory “U.S. Citizen.” — 26 USC 7701(a)(30)
U.S. Citizen: These identify a “person” who was born in the STATUTORY United States (the District of Columbia, et al) AND subject to the jurisdiction thereof (D.C.) — 8 USC 1401(a)
U.S. Citizen: A person is born subject to the jurisdiction of the United States, for purposes of acquiring citizenship at birth, if his or her birth occurs in territory over which the United States is sovereign, even though another country provides all governmental services within the territory, and the territory is subsequently ceded to the other country. — American Jurisprudence legal encyclopedia
Individual: A Citizen of the STATUTORY United States or an alien lawfully admitted for permanent residence. — 5 USC 552a(a)(2)
United States: If any citizen or resident of the United States (District of Columbia) does not reside in, AND does not have his principal place of business in, any United States judicial district (you guessed it, D.C.), such citizen or resident shall be treated for purposes of this section as residing in the District of Columbia. — 26 USC 7408(d)
So, in clarifying the definitions, people who were born in, say, Puerto Rico (a territory, not granted statehood) lives under the exclusive jurisdiction of the District of Columbia and its statutes, which do not have to pass the Constitutional muster.
It’s easy for those living in the Constitutional Republic to mis-identify him/herself as one who lives under that exclusive (and narrow) jurisdiction. Those who do that have essentially volunteered themselves into servitude to the National Government. Think of these folks like branded cattle that have ventured off the ranch.
Getting into this mess in the first place can be as easy as checking a box on a government form that asks whether he/she is a U.S. Citizen (consider the definition above). When a person does this, they are delcaring themselves to be residents of the District of Columbia by statute.
Pertaining to those American Nationals (non-statutory citizens of the Constitutional Republic) who own property abroad, for example a Mexican Fideicomiso, please study the Instructions for Form 3520 and all the references to U.S. Person, person and U.S. Citizen, remembering all the terminology created by the Internal Revenue Service uses the definitions above and NOT the common, everyday use of those terms.
Are you one of these people? If so, do you wish to remain such? Let’s be clear, you have the only vote in this election.
For people who do NOT wish to be labeled as servants to the State, they need to correct this with the National Government.
Our solution: The Revocation of Election
The Revocation of Election Affidavit is a powerful document that clarifies your desired status as one who was not born in the District of Columbia or its territories, AND that you are terminating the election of being treated as one.
This removes you entirely from the U.S. Tax Club for the current tax year, plus all future years.
Filing the affidavit with the proper bureau heads will also remove any obligation to report on foreign bank accounts and trusts, like a Mexican Fideicomiso. As you can see, it provides a lifetime of benefits.
The Revocation of Election meets the criteria and options expressed in the statutory section above. The Affidavit of Revocation of Election is the correct method to get the IRS to stop sending correspondence based on the presumptions of your being a statutory Taxpayer via the ending of the self-renewing initial ‘election’.
In order to be an eligible candidate for the Revocation of Election, you must:
- NOT be a federal employee/official in any capacity.
- NOT have a residence or domicile in the District of Columbia, or any of the U.S. territories, such as Puerto Rico, Guam, etc.
- NOT have derived any income as an American National that is effectively connected with the conduct of a statutory “trade or business” (functions of a public office) within the District of Columbia or U.S. territories.
- have been born in one of the 50 states of the Union, or have at least one parent who was born in one of the 50 states of the Union, or have been naturalized as a citizen of the republic of the United States.
- have made a previous ‘election’, meaning you filed a Federal Income Tax return at some point in your life.
- understand that the statutes of 26 USC §6013(g) relate to those American Nationals (Non-Resident Aliens as defined by Title 26) as the authority for the effective exercise of the ability to revoke the election, and that you can never file another Federal Income Tax return again.
- understand that the Revocation of Election removes you from the U.S. Tax System for the present tax year and ALL future years — but NOT prior tax years.
Send us an email first including the information below to use in the Affidavit. As privacy advocates, this is all we need and all the personal information we want – no more. Please be advised that the 100% Money Back Guarantee applies ONLY to the NOD procedure (since that produces a declaration) and not to this procedure since there is no guarantee the government will mail you a declaration.
In order to prepare your personalized Affidavit, we need the following from you:
- Your full legal name
- Your mailing address, as the IRS has it listed
- Your county and state
- Affirmation that you qualify to each of our 8 criteria above (please Copy and Paste that text into an email and answer each, and include your name, address, state and county)
- Please let us know how you found us.
We will guide you through the use of the Affidavit.