You may owe Taxes that you don't even know

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Are you an American ex-pat living abroad?
Or do you live in America but own a foreign bank account?
Are you a dual citizen?
If so, you’d better scour the IRS rules or check with your tax accountant or attorney. You may owe the IRS thousands of dollars but not even know it.
H/t beloved fellow Joseph.
Americans who are being subjected to this unjust IRS-Obama persecution are real people like you and me – U.S. citizens married to foreigners who left the U.S. decades ago, retirees whose lives spanned multiple countries, dual-taxpayers trying to do their U.S. taxes themselves in foreign places, where accountants that know U.S. tax laws are few.
Marvin Van Horn, a 62-year-old U.S. citizen and permanent resident of New Zealand, semi-retired, bought a home there with his Australian wife a decade ago. When he learned about the new IRS reporting rules, he followed them and paid a small tax he owed but the penalty for failing to file the foreign bank account reporting form (FBAR) was $90,000.
When the IRS agent learned he had rented his house and not reported that income the penalty spiralled to $172,000. After negotiations with IRS’s Taxpayer Advocate Service, the result was a single “non-wilful” failure to file FBAR penalty of $5,000 per year, or $25,000 total. There are an estimated five to six million Americans living offshore and another 39 million immigrants in the U.S. who face similar IRS issues with overseas disclosure if they have foreign bank accounts back home.
Yet in 2009 there were only 534,043 FBARs filed, according to a report by the Treasury Inspector General for Tax Administration.
Indeed, many Americans abroad inherited foreign assets from foreign-born parents and relatives or they have simply lived abroad for years ignorant of FBAR requirements.
All of this IRS-Obama induced tyranny involves mainly U.S. citizens, but the new rules have ensnared thousands of Canadians, many of whom were not only ignorant of IRS rules, but of the fact that they were U.S. dual citizens.
One 54-year-old Canadian, who was born in Canada and has only worked in Canada, recently discovered that she’s a dual citizen for tax purposes because her mother, then a U.S. citizen, registered her with the U.S. embassy at birth. She faces a $75,000 penalty.
Jack Townsend, a Houston tax attorney, who writes on these issues in his Federal Tax Crimes blog, said: “The people who made out well are the real crooks who have been doing this for years, while the people who don’t have that culpability are getting hammered because of the one-size-fits-all rule.â€
I have no sympathy for Americans who cheat on their taxes. Illegal tax evaders should be caught and penalised. But stupid, harmful rules should be repealed immediately to take into account innocent mistakes.
Honest, taxpaying Americans and others who desire real financial privacy, true asset protection and expert investment advice should continue to employ offshore banks, investment advisers, insurance and annuity specialists – and not be scared away by the IRS from the very real benefits offered by the world’s leading offshore financial centers with which the Sovereign Society works.
We will help you go offshore with full legality and tax compliance – the IRS be damned.
Faithfully yours,
Bob Bauman, JD
Chairman, Freedom Alliance

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3 responses to “You may owe Taxes that you don't even know

  1. First, one must decide : What is taxed ? 🙂

  2. Dear Dr. Eowyn, I admire your hard work in publishing information on this topic!

  3. Help, I am an Australian citizen who moved to the US in April 2010. Now I realize that I might have a FBAR report overdue from accounts I had in Australia from long before moving here. I can’t think any other developed country that demands that residents report their overseas accounts.


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