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Memorial Day weekend tribute to OSS commandos in south west France

A US Second World War military operation in southwest France is to be remembered the weekend before Memorial Day to mark the 80th anniversary of the founding of the Office of Strategic Services (OSS), a precursor to the CIA.

Published: 20 April 2022 08:52 CEST

Memorial Day weekend tribute to OSS commandos in south west France

One of the two steles honoring the two OSS commandos killed in action in the Tarn in August 1944. Photo courtesy of Meredith Wheeler

During its short span, the OSS ran 13 important secret missions in France around D-Day, including one in the Tarn département that played a key role in the liberation of the country by preventing Nazi forces based there from reinforcing troops in Provence, under attack from invading Allied forces on the south coast.

Between May 27th and May 29th, a series of events will take place in Albi, Brassac, Boissezon, Le Vintrou and Lautrec to honour the bravery of OSS officers, who parachuted into the département to co-ordinate and lead resistance efforts in the area.

A new commemorative flag honouring the OSS’s role in France’s Liberation will be unveiled at the commemoration events.

An exhibition parachute jump will take place on the morning of Friday May 27th, three days before Memorial Day proper, with both French and American special forces, at the drop zone where the 15-man OSS team dropped by moonlight in August 1944.

Among those participating in the commemorative 2022 parachute drop is Marine Corp Military Attaché from the US Embassy in Paris, Colonel Ed Norris, USMC.

On Saturday, May 28th, floral tributes will be laid at the steles at Le Rialet and Betges honouring US soldiers and the French Resistance fighters who died opposing the Nazi occupation.

Relatives of one of those men are travelling from San Diego to attend the special ceremony.

The following day, an exhibition of US and French World War Two military vehicles will go on display in Lautrec.

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Americans in France: Will my tax situation change if I get French citizenship?

Gaining French citizenship can have plenty of benefits for Americans living in France, from the right to vote in French elections to freedom of movement in the EU – as well as a more intangible sense of belonging in the country you now call home.

However, Americans living abroad always have to contend with the United States’ system of citizenship-based taxation, which requires US nationals to report their global income to the IRS yearly, however long they have been out of the country.

This may result in making two tax declarations every year if they move to a country – like France – which requires yearly declarations from all residents.

As a result, Americans have to think about possible tax consequences before making decisions to move, invest, or perhaps take on a second nationality.

To help answer the question of whether there are special tax ramifications for French-American dual nationals living in France, The Local spoke with tax expert Jonathan Hadida from HadTax.

Hadida said: “There is really no impact. You still have yearly reporting requirements to both countries, and from the French side you will still continue to give you the benefits of the tax treaty”.

Key items, such as your US-based pension, would continue to be taxed in the US and not France regardless of whether or not you take on French nationality too.

READ MORE: Ask the expert: What Americans in France need to know about 401(k) and other pensions

Unfortunately, many of the limitations Americans in France experience would also remain in place. French investment options, such as the Assurance Vie, would still unwise for dual nationals, as the IRS sees them as PFICs (Passive Foreign Investment Company).

While the Assurance Vie is a great tool for being tax efficient for non-Americans, and can offer alternatives to the regimented, traditional French inheritance process, for Americans living in France (including those with dual nationality) it can lead to lengthy and complicated dealings with the IRS.

“To the US tax authorities, you are still American first, second, third and fourth place. They don’t really care that you are also French,” Hadida said.

“The only real change to your tax situation would be giving up your American citizenship, but keeping your US citizenship in addition to French citizenship does not really change anything.”

What happens tax-wise if I renounce my American citizenship?

Renouncing US citizenship is not as simple as scheduling an appointment at a US embassy or consulate, paying the applicable fee, and declaring that one does not want to be American.

There are several factors to consider, and depending on your situation, in the long-run it might be more advantageous to hold onto your US citizenship to continue benefiting from certain parts of the US-France dual taxation treaty (PDF).

For others, keeping US citizenship might be onerous with its yearly reporting requirements, as well as the difficulty it can pose with putting money into French investment vehicles due to citizenship-based taxation and FATCA (US legislation that passed in 2010 to track money laundering).

While renouncing your American citizenship undoubtedly pushes you further out of the reach of the IRS, you should consider that you might owe an exit tax, if you are deemed a ‘covered expatriate’. Usually, this is only required of high-net worth individuals (worth more than $2 million).

According to the US expat tax site 1040 Abroad, this also includes people who failed to comply with tax obligations in the five years preceding their renouncement, as well as people who had “an average annual net income tax liability exceeding a specified threshold” (as of 2022, this number was set to $178,000).

People renouncing US citizenship can also be subject to a special inheritance tax on gifts made to US citizens or residents, following their renunciation.

READ MORE: How to renounce American citizenship in France – and why you might want to

You should also think about your US-based investments.

“You would no longer benefit from the tax treaty in the same way if you give up your US citizenship. For example, Article 24 of the treaty covers investment income, making it taxable in the US and giving you a deemed credit in France.

You would lose this benefit if you renounce, and this could make a big difference if the taxation level is lower in the US, as it often is with dividends or capital gains.

“Your IRA and pension plans will continue to be taxed in the US because this is based on where the pension is earned, not nationality, but you might have to start filing a non-resident tax return to the US after renouncing citizenship,” Hadida said.

The tax expert said that renouncing citizenship should be decided on a case by case basis.

“Every situation is different, and for some people it might not make sense to give up certain benefits from the US-France tax treaty. You should speak with a financial advisor before deciding”, he said.

READ MORE: Divorce, stress and fines: How citizenship-based taxation affects Americans in France

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