IRS to seek tax from USA citizens all over the world

[ktlight]

This came in the email from a friend who works at Barclays Wealth in Canary Wharf. This friend was discussing that Obama has set in motion that USA citizens all over the world will be expected to pay tax to IRS, no matter where they live and earn.

"I was talking about the irresistible rise of the IRS and the tax forms that they expect all overseas US citizens to fill out etc.

There are two separate tax forms, one which has been in existence for several years (FBAR) and the one I am working on which they expect to be filled in from this year, and the banks will start to look for US citizens from next year (if the regulations, which are still in draft, don’t change substantially).

The IRS site has a few pages devoted to both, but of course they are in impenetrable language.

I suggest just googling FATCA will come up with tons of stuff, but in addition I attach a short summary of the act and it’s intentions and what bank around the world are being asked to do, and here http://isaacbrocksociety.com/2011/12/11/fatca-a-ticking-time-bomb-for-the-economy/ is a link to a site mainly visited by Canadian ‘US persons’.

And here
http://www.aca.ch/joomla/index.php is a website for all citizens abroad, but based in Switzerland."

[Soul Safari]

The UK has been on this for a few years to my knowledge. I heard this maybe 2/3 years ago- A shortlist of countries were drawn up where UK citizens were to be tracked down in foreign lands and pay tax. The FIRST (and only places i heard so far) was Spain, Thailand and USA..

Not heard much since so would be nice to hear an update on this..

[Maia Gabrial]

They (the IRS and the US govt) must be getting desparate for money to come up with a scheme like this. What most people believe is that where you work and earn money is where you pay the taxes. It has nothing to do with their nationality. It doesn't make sense to pay to a country that has nothing to do with another country's economy. Is this blatant greed and attempted control so obvious? This is a ridiculous scheme that's going to bring down the house of cards...

Of course, the ultimate goal should be to NOT have to pay taxes at all... We may still be heading that way.

And that has the clear sound of a VERY bright future ahead....!

[CdnSirian]

As far as I am aware US citizens have always been required to pay taxes to the US regardless of where they live and work. Seems like maybe they are just reinforcing this law.

[nomadguy]

This came in the email from a friend who works at Barclays Wealth in Canary Wharf. This friend was discussing that Obama has set in motion that USA citizens all over the world will be expected to pay tax to IRS, no matter where they live and earn.

"I was talking about the irresistible rise of the IRS and the tax forms that they expect all overseas US citizens to fill out etc.

There are two separate tax forms, one which has been in existence for several years (FBAR) and the one I am working on which they expect to be filled in from this year, and the banks will start to look for US citizens from next year (if the regulations, which are still in draft, don’t change substantially).

The IRS site has a few pages devoted to both, but of course they are in impenetrable language.

I suggest just googling FATCA will come up with tons of stuff, but in addition I attach a short summary of the act and it’s intentions and what bank around the world are being asked to do, and here http://isaacbrocksociety.com/2011/12/11/fatca-a-ticking-time-bomb-for-the-economy/ is a link to a site mainly visited by Canadian ‘US persons’.

And here
http://www.aca.ch/joomla/index.php is a website for all citizens abroad, but based in Switzerland."

Barclays is UK company.

[albativo]

As far as I am aware US citizens have always been required to pay taxes to the US regardless of where they live and work. Seems like maybe they are just reinforcing this law.

I agree with you CdnSirian - I don't think this is a new rule. My wife is a US citizen and had to file US taxes even when we lived in Scotland in late 90's and early 2000's. US citizens living overseas are choosing to expatriate to get around this.

[Maia Gabrial]

As far as I am aware US citizens have always been required to pay taxes to the US regardless of where they live and work. Seems like maybe they are just reinforcing this law.

I think that if you worked part time somewhere else and part time in the US, it has to be reported.