Aug 19, 2013
According to a recent WSJ article on American Expats: http://online.wsj.com/…014772169287210.html more American expats are considering renouncing US citizenship.
“… . In 2004, Congress imposed severe penalties—up to $100,000 or 50% of the account, whichever is greater, per year—on U.S. taxpayers who choose not to tell the IRS about foreign financial accounts totaling $10,000 or more.
For CURRENT details, see our master article on taxes at: IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article
Critics point out that this penalty is for not filing a form, not for evading taxes. Bryan Skarlatos, a New York partner with law firm Kostelanetz & Fink who has handled hundreds of offshore accounts cases, says the total includes more than a dozen in which the tax and interest owed on offshore accounts was less than $20,000. Yet the IRS assessed penalties of more than $1 million, he says. The IRS declined to comment. ”
FATCA and the Exit Tax Problems with Renouncing Citizenship continue here.
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You can read the full article at: FATCA Fallout for US Expats Living Abroad
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© Steven M. Fry
Read on, MacDuff.