In a twist the Roman Catholic Church most likely didn’t see coming, newly elected Pope Leo XIV could also be going through extra than simply non secular obligations—he may owe the IRS.
In keeping with early studies (and quite a lot of breaking information segments), the brand new pontiff has ties to america. And as any U.S. expat is aware of, meaning one factor: regardless of the place you reside—or preach—citizenship-based taxation follows you. Even when your new mailing deal with is inside Vatican Metropolis.
It’s the sort of story that feels like theological trivia till you bear in mind how the U.S. tax code works. The IRS doesn’t care what your title is. lIf you’re a U.S. citizen, and also you’re receiving earnings or perks—regardless of how sacred—you’re anticipated to file.
So… does that imply the Pope must submit a 1040?
Let’s have a look.
Does the Pope even receives a commission?
Popes don’t draw a paycheck, and Pope Francis—previously Jorge Mario Bergoglio—made it clear from day one which he wished no a part of a wage. Like Pope Benedict XVI earlier than him, he embraced the vow of poverty, a gesture that aligns with each Church custom and fashionable expectations round humility and optics.
Nonetheless, the position comes with comforts that go nicely past a typical paycheck.
Whereas the Catholic Church avoids language like “wage” or “compensation,” the truth is that the position of the Holy Father comes with a deeply resourced help construction. It might not seem on a W-2, however the materials advantages are actual—and vital.
Right here’s what that sometimes seems like:
- A non-public condo within the Apostolic Palace, maintained by the Curia
- Full-time entry to healthcare, safety, and family workers
- Ceremonial stipends—sometimes in euros
- Limitless use of Vatican transport, together with the Popemobile
- Journey allowances, clothes, meals, and state-funded residing bills
- Diplomatic items and non-cash perks that, underneath U.S. regulation, may very well be construed as taxable advantages
These should not symbolic. They’re operational. They replicate the logistical actuality of managing a worldwide establishment headquartered in Vatican Metropolis, and funded partly by Peter’s Pence, historic actual property holdings, and centuries-old monetary mechanisms managed by the Holy See.
Even Cardinal Prevost, who participated in the latest conclave, has acknowledged that whereas popes could take a vow of simplicity, the institutional help is something however.
This raises a extra nuanced query—one not simply of theology, however of tax regulation: At what level does help develop into compensation? And what occurs when that query crosses worldwide borders?
Why Pope Leo XIV may owe the IRS
The papacy comes with world affect, non secular authority—and, doubtlessly, a U.S. tax file.
As a result of he was born in Chicago, he’s thought of a U.S. citizen—and underneath the U.S. tax code, that makes him a U.S. individual for tax functions. That label could sound imprecise, but it surely carries very actual obligations: particularly, to report your worldwide earnings, file an annual tax return, and probably disclose overseas monetary belongings—even for those who now stay inside Vatican Metropolis and journey solely by Popemobile.
Why does this matter?
As a result of within the eyes of the IRS, “U.S. individual” doesn’t simply imply citizen. It contains:
- Residents, even when they haven’t lived within the U.S. for many years
- Inexperienced card holders, whether or not energetic or lengthy expired
- Those that move the substantial presence take a look at
- And sure—unintended People, who could not even know they’re on the hook
Briefly, being American-born—even many years in the past, even post-conclave—is sufficient to set off lifelong submitting obligations, regardless of whether or not you’re the Catholic Pope or the US President. And whereas the Holy See may view the Pope as past such earthly logistics, the IRS is much less deferential.
With world information-sharing agreements like FATCA, even establishments as sovereign because the Catholic Church don’t provide cowl. The IRS isn’t searching popes. But it surely additionally doesn’t care the way you spend your Sundays. For those who’re a U.S. individual, you file.
Might the Pope simply surrender his U.S. citizenship?
If Pope Leo XIV wished to sever his final authorized tie to the U.S., renunciation is theoretically on the desk. However for a pope born in Chicago, the method is a high-stakes train in worldwide paperwork, not only a symbolic transfer.
What would it not truly contain?
- A proper declaration: He’d want to look in individual at a U.S. consulate or embassy, full the DS-4079, and swear his intent earlier than a consular officer.
- The exit tax: If his internet value or common annual U.S. tax legal responsibility during the last 5 years crosses IRS thresholds, he’d be hit with the “exit tax.” This implies he’d be deemed to promote his worldwide belongings the day earlier than renouncing, triggering capital beneficial properties tax on any appreciated worth.
- Timing issues: Underneath U.S. regulation, you stay a U.S. individual till the paperwork is full. If renunciation happens partway by a tax 12 months, he’d owe a closing dual-status return, plus all required disclosures (suppose: FBARs, FATCA, and extra).
- Diplomatic optics: This isn’t simply private finance—it’s geopolitics. For the primary American-born pope, such a transfer can be carefully watched in Washington, Rome, and Vatican Metropolis. It’s the sort of choice that might make headlines around the globe—and set a brand new precedent for high-profile People overseas.
It’s value noting that renunciation is irrevocable and comes with lack of U.S. advantages (like Social Safety and embassy safety). And for high-profile people, it usually means a extra thorough IRS evaluation of years previous—particularly with the present concentrate on unintended People.
So, may Pope Leo XIV surrender his U.S. citizenship? Legally, sure. Virtually, it’s a labyrinth. And for now, he hasn’t given any indication he intends to.
The papacy meets the IRS
The thought of a pope submitting a U.S. tax return sounds just like the punchline to a very area of interest joke. But because of America’s citizenship-based tax regime, it’s not simply potential—it’s precedent-setting.
For the primary time, the Vatican, the Jesuits, and the worldwide Catholic Church should ponder how a pontiff’s American birthplace—Chicago, not St. Peter’s Basilica—may set off annual paperwork with the IRS. It’s an uncommon intersection of symbolic management, real-world legal responsibility, and the inescapable attain of the U.S. tax system—even for a head of state.
The takeaway? Within the fashionable world, citizenship travels with you, from New York to Italy, from conclave to the Sistine Chapel. And sure, typically all the best way to the Apostolic Palace.
If you end up navigating cross-border tax complexity, Vibrant!Tax is right here to assist U.S. residents worldwide (and their members of the family) keep compliant. As a result of even with a worldwide mission, it helps to have steering on the superb print.
Attain out for those who want readability. Even when your new workplace comes with a view of St. Peter’s.
