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I'm not sure I'd describe it as fascinating, so much as abusive. The really complicated and intricate bits are the web of Tax Treaties, Tax Treaty Protocols, Revenue Procedures, and memos that redefine how a foreign concept maps on to US tax code. All of this complexity (and the accounting cost that goes with it) is because the United States is the only developed country in the world that taxes nonresident citizens. You end up with so many situations where it's hundreds to thousands of dollars to compliantly report foreign income, even though the total tax owed is $0. |