Fugitive Tax-Slaves

Renewing Your US Passport? BEWARE — – State Department Now Transmits Your SSN & Location to the IRS

"Traditionally, the functions of the US Treasury and the Department of State were completely separate. However, we are seeing a continued erosion of this distinction as troubling economic times continue. The US passport renewal form mandates that the applicant supply his Social Security Number (SSN) if he has one. A $500 penalty applies for failure of a passport applicant to provide the SSN, unless reasonable cause can be established. In addition, the statute mandates that the State Department must provide your SSN and foreign residence information to the Department of Treasury, and to notify the IRS if you refuse. So, you lose either way." Continue reading →

Continue ReadingRenewing Your US Passport? BEWARE — – State Department Now Transmits Your SSN & Location to the IRS

Americans: One Divorce You’ll Never Get

"Some people are worried about the future of the U.S. dollar and they believe that moving from the States is a way to distance themselves from its possible decline. Well, yes and no. While diversifying your asset holdings by currency is often a wise move, the truth is that if you're a U.S. citizen you'll never be able to walk away from the dollar completely -- even if you move overseas. Likewise if you're a Canadian or citizen of any other country -- it's hard to totally divorce yourself from your national currency. Here are two reasons why." Continue reading →

Continue ReadingAmericans: One Divorce You’ll Never Get

Americans: One Divorce You’ll Never Get

"Some people are worried about the future of the U.S. dollar and they believe that moving from the States is a way to distance themselves from its possible decline. Well, yes and no. While diversifying your asset holdings by currency is often a wise move, the truth is that if you're a U.S. citizen you'll never be able to walk away from the dollar completely -- even if you move overseas. Likewise if you're a Canadian or citizen of any other country -- it's hard to totally divorce yourself from your national currency. Here are two reasons why." Continue reading →

Continue ReadingAmericans: One Divorce You’ll Never Get

Swiss government signs tax compliance deal with US

"Switzerland and the United States have signed a controversial deal aimed at cracking down on wealthy American tax dodgers. The accord further undermines Switzerland’s tradition of banking secrecy. Finance Minister Eveline Widmer-Schlumpf told a news conference that Switzerland had decided to agree to a bilateral deal with the Internal Revenue Service (IRS) which allows for certain exceptions, notably for the Swiss insurance sector, pension funds and the Swiss National Bank. Swiss banks active in international financial markets have no choice but to apply the US rules, according to Widmer-Schlumpf." Continue reading →

Continue ReadingSwiss government signs tax compliance deal with US

Swiss government signs tax compliance deal with US

"Switzerland and the United States have signed a controversial deal aimed at cracking down on wealthy American tax dodgers. The accord further undermines Switzerland’s tradition of banking secrecy. Finance Minister Eveline Widmer-Schlumpf told a news conference that Switzerland had decided to agree to a bilateral deal with the Internal Revenue Service (IRS) which allows for certain exceptions, notably for the Swiss insurance sector, pension funds and the Swiss National Bank. Swiss banks active in international financial markets have no choice but to apply the US rules, according to Widmer-Schlumpf." Continue reading →

Continue ReadingSwiss government signs tax compliance deal with US

Americans find it difficult to open bank accounts in UAE

"The recently enacted Foreign Account Tax Compliance Act (Fatca) by the US government is the reason for banks to close its doors to US citizens. When institutions fail to report or disclose information the consequences can be grave, one of the penalties being the withdrawal of US Dollar clearing rights in New York, a penalty feared by banks. Meanwhile, US citizens are reported to have been refused by banks when they wanted to open a new bank account." Continue reading →

Continue ReadingAmericans find it difficult to open bank accounts in UAE

Americans find it difficult to open bank accounts in UAE

"The recently enacted Foreign Account Tax Compliance Act (Fatca) by the US government is the reason for banks to close its doors to US citizens. When institutions fail to report or disclose information the consequences can be grave, one of the penalties being the withdrawal of US Dollar clearing rights in New York, a penalty feared by banks. Meanwhile, US citizens are reported to have been refused by banks when they wanted to open a new bank account." Continue reading →

Continue ReadingAmericans find it difficult to open bank accounts in UAE

FATCA Overreach Will Sabotage American Global Competitiveness

"If Congress set out right now to craft a law to sabotage the global competitiveness of the US economy, they’d have trouble coming up with better than the Foreign Account Tax Compliance Act (FATCA). The law is ostensibly aimed at combating tax evasion and requires every foreign institution in the world to act at their own tremendous expense as deputy US tax collectors. FATCA will instead turn the US into an economic pariah and Americans citizens into toxic assets. It will divert untold billions of dollars per year to pay lawyers to comply with a law optimistically expected to raise less than $800 million in tax revenues per year." Continue reading →

Continue ReadingFATCA Overreach Will Sabotage American Global Competitiveness

Outrageous IRS FBAR Penalty: $500K Delinquency Turns Into $22M Fine

"Meet Mary Estelle Curran, age 79 and living in Florida. Lest you think Mary is some sophisticated money launderer or drug runner, she is a widow. She inherited a foreign account in a Lichtenstein Foundation from her deceased husband. While the sentencing is still several months away, the IRS penalty for her account is almost $22 million even though the unpaid tax was less than a million dollars. Why so high? The civil penalties for failing to file an FBAR are based on the size of the unreported account. Under current law, the penalty is the greater of $100,000 per year or 50% of the highest account balance for each year the account is unreported." Continue reading →

Continue ReadingOutrageous IRS FBAR Penalty: $500K Delinquency Turns Into $22M Fine

Sanders Introduces Legislation to End Offshore Tax Havens

"Vermont’s Bernie Sanders introduced legislation on Thursday to prevent U.S. corporations from sheltering income in the Cayman Islands and other offshore tax havens. Every year, said Sanders, corporations and wealthy Americans are 'avoiding more than $100 billion in U.S. taxes by sheltering their income in the Cayman Islands, Bermuda and other offshore tax havens.' Under existing law, U.S. corporations are allowed to defer or delay U.S. income taxes on overseas profits until that money is brought back into the U.S. U.S. corporations are also provided foreign tax credits to offset the amount of income taxes paid to foreign jurisdictions." Continue reading →

Continue ReadingSanders Introduces Legislation to End Offshore Tax Havens