cosywolf Posted September 21, 2011 Share Posted September 21, 2011 This should interest any ex-Americans or any ex pat Americans, and their children. This could stop ex-pats and people and children with dual citizenship ever being able to visit the States and their families again for fear of being detained, even if they have never worked in the States. It could even result in bank accounts being plundered by the American government, whether you feel you owe them tax or not. I don't like what America is becoming. The IRS is making a worldwide push to squeeze money from Americans living abroad and from anyone who holds dual citizenship, whether they know it or not. It doesn't matter if the "duals" want US status, have never set foot on US soil, or never conducted business with an American. It doesn't matter if those targeted owe a single cent to the IRS. Unlike almost every other nation in the world, the United States requires citizens living abroad to file tax forms on the money they do not owe as well as to report foreign bank accounts or holdings such as stocks or RSSPs. The possible penalty for not reporting is $10,000 per "disclosed asset" per year http://mises.org/daily/5666/The-Attack-on-Accidental-Americans Going after the college money earned by children born and raised in Canada (or elsewhere) is just one part of the international enforcement effort. The entire package is called the Foreign Account Tax Compliance Act or FATCA; it was a revenue-raising provision that was slipped into one of Obama's disastrous stimulus bills. Starting in 2013 — or 2014 if an exemption is granted — every bank in the world will be required to report to the IRS all accounts held by current and former US citizens. If account holders refuse to provide verification of their non-US citizenship, the banks will be required to impose a 30 percent tax of all payments or transfers to the account on behalf of the IRS. Banks that do not comply will "face withholding on U.S.-source interest and dividends, gross proceeds from the disposition of U.S. securities, and pass-through payments."[5] Link to comment Share on other sites More sharing options...
alternageek Posted September 21, 2011 Share Posted September 21, 2011 This isnt a new rule and only really affect people earning over $70K pre-tax. The only thing thats changing is instead of those born on US soil on accident renouncing at age 18, they no longer can and are forced to file. I dont think its right. Theres loads of duals in this world who have either never lived there or no longer live there with no plans to return permanently. The only way out is to do a formal renunciation - which still requires you to file for some time AFTER you stop being a formal citizen I have to file every year. I also have to opt out of company UK pensions and the like as Im taxed YEARLY on those. BTW I think the only other country that forces its citizens to do the same is Iran... Link to comment Share on other sites More sharing options...
cosywolf Posted September 21, 2011 Author Share Posted September 21, 2011 Some of this is new legislation, due to come into force in 2013 Anybody who doesn't think it affects them should consider how comfortable they are with the idea that America thinks it can demand the details of the bank accounts of UK citizens and effectively garnish their wages for imaginary tax bills. Where do you think that kind of totalitarian behaviour ends? As for the 70,000 USD limit, I doubt the two girls mentioned in the article earned that through their summer jobs. And frankly, I don't care if they did. They don't owe it to the states. I moved over here when I was a child. I have dual citizenship, I guess, but no American passport or any intention of returning to live there. I am a full UK citizen and have been since I was a child. I have never filled in an American tax return. Never knew I was expected to. Why would I? I don't work there, never have, never intend to. My financial situation is none of their business. This is extortion. Theft. Fraud. Link to comment Share on other sites More sharing options...
Harleyman Posted September 21, 2011 Share Posted September 21, 2011 Some of this is new legislation, due to come into force in 2013 Anybody who doesn't think it affects them should consider how comfortable they are with the idea that America thinks it can demand the details of the bank accounts of UK citizens and effectively garnish their wages for imaginary tax bills. Where do you think that kind of totalitarian behaviour ends? As for the 70,000 USD limit, I doubt the two girls mentioned in the article earned that through their summer jobs. And frankly, I don't care if they did. They don't owe it to the states. I moved over here when I was a child. I have dual citizenship, I guess, but no American passport or any intention of returning to live there. I am a full UK citizen and have been since I was a child. I have never filled in an American tax return. Never knew I was expected to. Why would I? I don't work there, never have, never intend to. My financial situation is none of their business. This is extortion. Theft. Fraud. Cant understnad why you refer to yourself as a dual citizen Just go go to the US embassy in London and formally renounce your US citizenship? It can be done I understand. Lee Harvey Oswald renounced his in Moscow after he left the US Link to comment Share on other sites More sharing options...
skinz Posted September 21, 2011 Share Posted September 21, 2011 Cant understnad why you refer to yourself as a dual citizen Because the poster has dual citizenship? Why wouldn't the poster make a reference to it? Link to comment Share on other sites More sharing options...
Sierra Posted September 21, 2011 Share Posted September 21, 2011 Because the poster has dual citizenship? Why wouldn't the poster make a reference to it? Because (I assume) the op is not really using her dual citizenship so why have it? This is nothing but an old fashioned shakedown. Freaking IRS. Someone once said they'd rather deal with the mafia. cosywolf, what can the IRS do to you if you don't pay? Link to comment Share on other sites More sharing options...
alternageek Posted September 22, 2011 Share Posted September 22, 2011 As for the 70,000 USD limit, I doubt the two girls mentioned in the article earned that through their summer jobs. And frankly, I don't care if they did. They don't owe it to the states. You are required to FILE, but only have to PAY tax once you hit the $70K threshold. The fine being applied is due to non-filing. It used to be you could file ten years at once, but it looks like this new law circumvents that. My sister works in the dept of the IRS that deals with people who dont pay/file and can ask her for any changes and what could happen or how mandatory it really is. Ive emailed her to see whats been worded to her and what she can advise.. I agree its wrong - its essentially taxation without representation and the reason WHY Americas founders went to war with the British... I dont plan on ever going back to live on a perm basis or even collecting my Social Security when I retire, so why do I need to file? Ill also never personally earn over $70K (I barely make $25K) They should be focusing their attentions on the REAL tax dodgers. Link to comment Share on other sites More sharing options...
Nineteen66 Posted September 22, 2011 Share Posted September 22, 2011 It can be done I understand. Lee Harvey Oswald renounced his in Moscow after he left the US Oswald expressed his desire to renounce his US citizenship to embassy official Richard Snyder by handing in his passport. However it never actually happened, he remained a US citizen and the passport sat there at the embassy. Obviously it cannot be because the US knew he would subsequently be returning to their fold a little later but after a couple of years, when Oswald was ready to return he picked up his passport and sailed to the US with his Russian wife Marina. Apologies for the interlude Link to comment Share on other sites More sharing options...
John X Posted September 22, 2011 Share Posted September 22, 2011 This reminds me of how the US government managed to jail Howard Marks even though he was not an american citizen, had never broken american law and had never committed a crime on american soil. They just changed their law to say that you could still be tried in an american court for a crime committed abroad if your crime affected any person in the United States. John X Link to comment Share on other sites More sharing options...
Harleyman Posted September 22, 2011 Share Posted September 22, 2011 Taking citizenship of an adopted country does not always mean that the obligations you have to country of birth automatically disappear. In some cases the mother country can oblige an ex-pat to fulfil military service in times of war. Of course there's no way they can make you do it if you are not physically present but on the other hand that means you can never ever go back to mother country for a visit because you could be arrested as a deserter on arrival. The immigration departments have detailed sh*t lists on all their computers. As far as the thread subject here's concerned and looking from the other end I wouldn't pay taxes to the Inland Revenue for money earned in the US either. God only knows I pay enough to the IRS as it is Link to comment Share on other sites More sharing options...
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