Originally Posted by
Blogndog
In fact, I'm sure the Vatican will never choose an American Pope because suddenly all the Vaticans finances would be subject to IRS reporting requirements.
Regardless of IRS statements and probably fervent belief to the contrary, the Vatican, as a sovereign state in and of itself, can & will tell the US IRS to go get bent if they ever tried that.
Originally Posted by
GUWonder
I doubt that the US Treasury wants to see its tax treaties end up like Swiss cheese due to overreach aimed at foreign citizens who claim to have relinquished US citizenship, if they ever even acknowledged having it.
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That would not suit a UST interested in maximizing long-term revenue sources.
I've wondered at times what the actual UST/IRS policy is on that front. Certain governments outside the US structure things so that it is explicit policy for tax departments to maximize short term revenue - even at the expense of long term revenue and if it destroys companies entirely. New Zealand and Australia, for example, have explicit policies in that direction. I know of instances where they have bankrupted companies to gain overdue taxes owed even when the companies can show they have solid plans and financing in place to survive long term, and repay the tax debts and penalties. The tax authorities would rather get the money now over get the money later, keep people employed, gather penalty payments, etc.