Win Or Lose: Expatriates And The IRS
For decades, people who earned money overseas had to deal with reporting their revenue accurately tot he IRS. From this case the wave of tax havens for people who some wanted to skirt the IRS laws and for those who wanted to protect their assets from competitors, thieves, and even spouses. With the enforcement of the new FATCA or Foreign Account Tax Compliant Act of 2010 was designed to makes rue the IRS obtains factual information about citizens’ accounts held abroad by U.S. Taxpayers in the foreign financial institutions.
What’s going on here is that with the FATCA law in place, Americans who have assets abroad are forced to make a harsh choice, acquiesce or denounce their U.S. Citizenship. The number of people doing so leaped in early 2015, enough to send alarms out to the government and expatriate communities. There are thousands of expatriates and an actual global industry designed to educate and accommodate them including a range of citizenship by investment countries. Many find leaving the U.S. Is the only way to save their assets or to have their taxed assets be put to use that is actually beneficial and equitable to them. Many expats, as they’re called, live in developed countries that have a very high tax rate, however, what they get for that high tax rate is 10 times more than they would get in the U.S., such as education, medical, real estate, and other government services that they find lacking in the U.S..
You won’t find much of an argument there even among American citizens. It seems that the American infrastructure is rigged against the best interest of anyone who is making ground economically. The expats who are in their senior years have to evaluate on whether to survive or not, and for that reason they have to denounce their citizenship and live abroad.
Other countries are welcoming these expats with open arms as they’re bringing in well needed revenue, taxes, and experience. Even a senior with a long career in their field can turn that knowledge into quite a formidable income in the foreign markets. The big fear is that younger people may catch on. The creature comforts once thought to be only had in the U.S., are now found worldwide such as internet and other goods and services. A young person can find employment abroad and gain much ground financially and other countries are seeing the wellspring this can be.
It’s a shame that for some Americans, the only way to survive in America is to leave it, but that’s just a testament to the irresponsibility of government regarding accommodating the public in favor of corporations and big banking.