More Americans Give Up Citizenship As IRS Gets Aggressive Overseas

[Martinghoul]

Quote from GG1972:

Wrong on 2 & 3
if you are born in us or your parents born in us you can attain citizenship str8 without going thru greencard to citizenship process that most aliens have to go thru

for taxes upto 84k earned in another country is tax free though u must report it even if u don't have to pay taxes on it- over the top of 84k you get tax credit if you pay taxes in another country with which us has a tax treaty ( pretty much Canada aussi uk etc)
check and verify all info on IRS site b4 you beleive anything said on these forums

I accept the correction for 2. I should have been more precise and mentioned that there are rules regarding exemptions etc.

You're incorrect on 3. A former US citizen is subject to immigration laws of the US same as any other alien (with a special exception for citizens who renounced before they reached the age of 18). Furthermore, there's the 1996 "Reed Amendment", which would, if properly enforced, mean that a former citizen who is determined to renounce their US citizenship for purposes of avoiding taxation may be inadmissible to the US and ineligible for a visa.

 

[Ivanovich]

Quote from peilthetraveler:

You have to list your assets on the exit interview. Sure you could lie about what you own i suppose,but the IRS can just look up past income tax forms and see what you make and deduce about how much assets you probably have.

Anyway...whatever bank you transferred your money from would probably just transfer it back. The only really safe way is to use all cash or store your wealth in liquid saleable investments that can not be easily seized...like physical gold.

This doesn't sound right. If my money was moved all over the place, and I lied in the interview, what would the embassy do (remember, I'd be doing this in a foreign nation's US embassy)? Would they say "Sorry, you have to remain American until you're truthful."

LOL! I know so many expats in Russia that simply fell off the radar in the US. None of them pay - or have paid - any income taxes at all and the IRS has no knowledge of their making any money.

 

[misterno]

I used to know many dual citizen Americans living in middle east and none of them ever filed taxes for US. There is no way this can be implemented globally.

 

[zboy2854A]

Quote from misterno:

I used to know many dual citizen Americans living in middle east and none of them ever filed taxes for US. There is no way this can be implemented globally.

This is true, to the extent that the IRS simply doesn't have the resources to go after citizens abroad, just like they don't have the resources to check and audit every taxpayer who cheats on their tax returns here in the U.S. But I will say that if the people you speak of never even bothered filing returns at all, they will have big problems if and when they ever return to the U.S.

 

[Trader KGB]

Quote from Martinghoul:

Furthermore, there's the 1996 "Reed Amendment", which would, if properly enforced, mean that a former citizen who is determined to renounce their US citizenship for purposes of avoiding taxation may be inadmissible to the US and ineligible for a visa.

This has never been used against anyone, most likely b/c it would be rather difficult to prove..

 

[MohdSalleh]

Quote from Ivanovich:

This doesn't sound right. If my money was moved all over the place, and I lied in the interview, what would the embassy do (remember, I'd be doing this in a foreign nation's US embassy)? Would they say "Sorry, you have to remain American until you're truthful."

LOL! I know so many expats in Russia that simply fell off the radar in the US. None of them pay - or have paid - any income taxes at all and the IRS has no knowledge of their making any money.

luckily we still have the supreme court. In commonwealth countries, i have heard cases where they issue a mareva injunction and freeze your assets worldwide

 

[peilthetraveler]

Quote from schizo:

Could anyone answer the following questions?

1) If you decide to live abroad, is it easy to obtain permanent residence or citizenship?

2) Dual citizenship is allowed by certain countries. Are you then required to file taxes in both countries even if your principle residence is outside USA?

3) Once you give up your US citizenship, what happens should you decide to change your mind later? Is their a special procedure for these prodigal sons or are they equally treated as "alien"? I've heard that it's a real bitch to get a green card here in the states.

1. Depends. Like for me my dad was Irish so I easily obtained Irish citizenship (they let you obtain citizenship through your grandfather too) Most 3rd world countries will give you a retirement visa if you can prove you have 50k in assets.

2. You file taxes in both countries, but if i remember right, the US lets you deduct whatever you paid in that country off your taxes here. So like if you lived in europe where taxes are higher, you wouldnt have to pay taxes in the US (but you still have to file)

3. If you are a citizen of a european country its pretty easy to get a green card. Actually, you dont even need a visa to come here if you are a citizen of europe...you get to stay visa free for 90 days. Once you are here, its not like you really need to get a green card. Any job is not going to question a white guy with an american accent if he is really a citizen or not. You just get a DMV ID card and go. You can probably use your old SS # also.

 

[Martinghoul]

Quote from Trader KGB:

This has never been used against anyone, most likely b/c it would be rather difficult to prove..

True, it hasn't, not yet anyways... However, you know what they say about desperate times? All it takes is a decision by Attorney General's office and you probably would have a hard time appealing it, given you won't have access to a US court.