“Foreigners” Who Are Actually U.S. Citizens“Foreigners” Who Are Actually U.S. Citizens

The United States is unique in that once you become a U.S. citizen, you experience the long taxation arm of Uncle Sam. Under this regime, U.S. citizens, regardless of where they live, are subject to U.S. income (and other) taxes on their worldwide assets. Understanding and complying with the rules can be challenging. Furthermore, it’s possible that an individual can be a U.S. citizen and not know it. Let’s look at the complicated rules surrounding U.S. citizenship and examine what you can advise foreign clients who discover they’re actually U.S. citizens.

Confusing Citizenship Rules

While qualifying for U.S. citizenship is often difficult for non-citizens who want “in,” learning that they’re already U.S. citizens can be an unpleasant surp...