Bruyea & Christensen: NIIT Relief for Expats in Canada & France? Appeals Update

For help with a global US tax issue reach out to the experts at https://IRSMedic.com Join IRSMEDIC host Anthony E. Parent, Esq., Citizenship attorney John Richardson, Esq., Global Advocate for the American Abroad, Keith Redmond, as the three dissect TWO landmark cases—Bruyea (Canada) and Christensen (France)—and their fight against the Net Investment Income Tax (NIIT / 3.8% surtax). In Bruyea v. United States (2024, Court of Federal Claims), the court greenlit a treaty-based foreign tax credit under the U.S.-Canada treaty (Article XXIV) to offset NIIT—independent of IRC limits. Christensen v. United States (2023) delivered the same result for the U.S.-France treaty (Article 24), potentially unlocking refunds for U.S. citizens abroad hit by double taxation on investment income. But the IRS appealed both. Oral arguments were March 3, 2026 and this is our reaction to the government’s incredible claims. Will treaties triumph, or does the 'saving clause' let the U.S. double-dip by playing word games? The government claims the NIIT isn't an "income tax" eligible for treaty-based FTC because it's codified in Chapter 2A (as a Medicare contribution), not Chapter 1. But here's why this claim is so utterly obnoxious—and proof of just how adversarial the government is: NIIT proceeds dump straight into the general fund, just like regular income tax revenue. It's not ring-fenced for Medicare (unlike actual Medicare payroll taxes). So, the U.S. treats NIIT like an income surtax for collection purposes but plays its little semantics to block Foreign Tax Credit, forcing double taxation on expats who've already paid abroad. This is classic government hypocrisy—maximizing revenue while minimizing relief, even when treaties explicitly aim to prevent this. It's a raw deal that underscores how U.S. citizenship-based taxation punishes Americans overseas, turning treaties into one-way streets favoring the IRS. But also show the PURE contempt this government has against anything foreign. We dive into: Bruyea & Christensen breakdowns: What the rulings say Treaty vs. Code: Independent FTC possibilities NIIT's double taxation nightmare for expats Appeal highlights (March 2026) and predictions Government hypocrisy: NIIT treated as income tax (proceeds to general fund) but denied FTC because it's 'Medicare'? Disgusting adversarial tactics—pure revenue grab over fair relief! If you're a U.S. citizen in Canada/France, accidental American, or battling citizenship-based taxation—this could change everything. Refunds? Renunciation? Tune in! Follow us! John Richardson's Blog: https://citizenshipsolutions.ca (search "Bruyea" or “Christensen") Follow @ExpatriationLaw on X for updates Keith Redmond   / americanexpatriates   @Keith_REDMOND Anthony Parent, Esq. https://irsmedic.com @IRS_Medic #ExpatTax #USCitizensAbroad #BruyeaCase #ChristensenCase #NIIT #TaxTreaty #ForeignTaxCredit #RenounceUSCitizenship #FATCA #JohnRichardson"