To amend the Internal Revenue Code of 1986 to establish an elective residency-based income tax for nonresident citizens of the United States, and for other purposes.
About This Bill
Committee
Latest Action · December 18, 2024
Referred to the House Committee on Ways and Means.
This bill would allow U.S. citizens living abroad to voluntarily switch to a residency-based tax system instead of the current citizenship-based system, meaning they would only owe taxes to the United States on income earned while residing in the country, not worldwide income. To elect this option, citizens must meet IRS requirements, including paying a one-time tax on the appreciation of their worldwide assets as of the election date, though certain property like retirement accounts, U.S. real estate, and principal residences abroad are exempt from this immediate tax. The bill includes a provision allowing citizens to defer payment of taxes on non-readily tradable property until they actually sell it, provided they post adequate security. Additionally, the legislation would require foreign financial institutions to stop discriminating against U.S. citizens who are residents of their countries and would establish a system for issuing nonresidency certificates with a $100 application fee, adjusted annually for inflation.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.