What do you think the IRS's position on the TFSA will be? Should I use it?

The short answer is that regardless of how a TFSA is exactly treated by the IRS it WILL BE TAXED as current year income. So, there is no point in investing in one if you have to pay US taxes on it as that defeats the entire point of a TFSA. Then there are the potential complex tax filing forms that MAY be demanded by the IRS, who has shown no movement in clarifying US tax treatment of Canadian TFSAs.

The solution to this and all your previous threads remains: renounce your US citizenship.

For this specific thread: $50,000 sounds like a lot, but whatever you earn on it will be dwarfed by legal fees if the IRS so much as challenges your TFSA. Let alone what you'll have to pay in interest and penalties if they win.

FrancisBacon wrote: ↑ The solution to this and all your previous threads remains: renounce your US citizenship.

For this specific thread: $50,000 sounds like a lot, but whatever you earn on it will be dwarfed by legal fees if the IRS so much as challenges your TFSA. Let alone what you'll have to pay in interest and penalties if they win.

Or...don't use a TFSA until they officially comment, if he wants to keep his citizenship...

The issue is that from what I see of his previous threads, he has major tax problems. This TFSA issue is tiny compared to them, hence my advice.