hey American ex-pats!

#1 Dec 5th, 2012, 10:12
Join Date:
Mar 2005
Location:
The Land of Enchantment. Soon.
Posts:
12,138
  • Sama is offline
#1
FATCA: Obama's New Year surprise against American expats

"Today, American expats live all over the world - having adventures in Africa, creating art in Berlin, helping children in Cambodia, discovering ancient spirituality in India..... But all this may soon come to an end.

FATCA ... has the potential of destroying the lives of Americans living overseas, but most Americans and politicians don't care. In all the drum beating about getting the tax dodgers and the fat cats, FATCA is about to take effect immediately beginning January 2013....

American citizens are the only people in the world required to be taxed on their income if the income is made outside the United States. This results in an unfair double taxation. But it is not only the American expat that the IRS will go after. It is also anyone who is a permanent resident or a dual citizen of the United States. That means that if you are an immigrant to the US that still owns a house overseas and collects rent on that house, you have to declare and pay taxes on that income even if none of it will ever come into the United States.

In addition, expatriates will lose all privacy of their financial information that the Americans who stay in their own country will retain.

There will also be heavy fines levied on American expats, permanent residents and dual citizens who do not file United States tax forms regularly after January 2013 - fines that can amount to thousands of dollars whether the person has made taxable income or not....

...The American traveling in India and working for ashrams may find that the ashrams are preferring to hire people from other countries over her."
My India Photos, 2005-2017
"When you are truly genuine there will invariably be people who do not accept you. And in that case, you must be your own badass self, without apology." -- Katie Goodman
#2 Dec 5th, 2012, 12:48
Join Date:
Aug 2006
Location:
Homeless
Posts:
20,566
  • nycank is offline
#2
Quote:
Originally Posted by Sama View Post FATCA: Obama's New Year surprise against American expats

"Today, American expats live all over the world - having adventures in Africa, creating art in Berlin, helping children in Cambodia, discovering ancient spirituality in India..... But all this may soon come to an end.
Why ? What will end ? Based on what rule making ? and what aspect ?

Quote:
Originally Posted by Sama View Post FATCA ... has the potential of destroying the lives of Americans living overseas, but most Americans and politicians don't care. In all the drum beating about getting the tax dodgers and the fat cats, FATCA is about to take effect immediately beginning January 2013....

American citizens are the only people in the world required to be taxed on their income if the income is made outside the United States. This results in an unfair double taxation. But it is not only the American expat that the IRS will go after. It is also anyone who is a permanent resident or a dual citizen of the United States. That means that if you are an immigrant to the US that still owns a house overseas and collects rent on that house, you have to declare and pay taxes on that income even if none of it will ever come into the United States.

In addition, expatriates will lose all privacy of their financial information that the Americans who stay in their own country will retain.

There will also be heavy fines levied on American expats, permanent residents and dual citizens who do not file United States tax forms regularly after January 2013 - fines that can amount to thousands of dollars whether the person has made taxable income or not....

Huh ? That is not news, it is sour-grapes political hack piece by the losers of the Nov 6th election. The person who wrote the article, probably flunked freshman course in basic fact-finding.

Americans always had to file their 1040s annually irrespective of where they lived, so what else is new ? There are fines levied on non filing of tax returns. Probably, the person who wrote this piece forgot, how Eliot Ness got Capone

We have to declare and file for our worldwide income, irrespective of how much we made here or there. This is as old as income tax and traces back to 1860s.

All employers, have to report to IRS withholding and payroll and SS deductions, so, the author probably has never even filed a 1040EZ
India and China have a dual-taxation agreement with the US, so that is a no brainer.

There is nothing in that article that was not there since beginning of the tax code. FATCA is to prevent a tax dodge. FATCA related rules went into effect last year's filings. People who have avoided a filing tax while abroad should have no sympathy because citizens here have to file on time. In fact, expats get an automatic 2 month extension.

US has taxation treaties with many countries. US citizens (and resident aliens) should consult their tax accountant, or if they have a business with substantial income outside US, then their auditor and CPA.

You have to make over $250,000/year filing single without deductions, alimony payment, child support, yada yada; to pay more in the coming year. YES ! If the Bush II tax holiday for were to lapse come Dec 31, some of us might have to make the adjustments and make the tax accountant work harder.

What Next will they come up with ?

Quote:

...The American traveling in India and working for ashrams may find that the ashrams are preferring to hire people from other countries over her
."
Where is the empirical data and/or tax-code rule making for that statement ? A US Citizen/resident working in an ashram cannot make more than 10,000 Rs/month which is less than $200/month. American citizens must consult their accountant, and/or get more information from the nearest US mission. Or see if the Ashram paid you more than what IRS want you to file on


[Disclosure: I do not file my own taxes, an accountant does that filings. Consult your tax expert for specifics of your case.]

[ ]
#3 Dec 5th, 2012, 13:10
Join Date:
Oct 2004
Location:
Chennai, India
Posts:
70,811
  • Nick-H is online now
#3
Quote:
American citizens are the only people in the world required to be taxed on their income if the income is made outside the United States.
This is not, or only partially, true. If I was living in UK, or even spending more than three [I think] months a year there, the UK tax authority (subject to the double taxation agreement that UK also has with India) would certainly tax my Indian earnings. Of course, there are get-out possibilities for very rich people with expensive accountants, but to go further than my status of being not ordinarily resident to being not domiciled is difficult and expensive in itself. I'm not bothered: it's working out that I don't even visit UK these days.

Disclosure: My Indian tax returns are handled by an accountant. My UK earning is tiny and taxed at source, and I don't get any of that back because I don't live there
#4 Dec 5th, 2012, 14:20
Join Date:
Sep 2001
Location:
Land that shakes and bakes.
Posts:
15,830
  • edwardseco is offline
#4
Quote:
American citizens are the only people in the world required to be taxed on their income if the income is made outside the United States
Actually, at least at one time India did this as well. MY old Marathi textbook author got in a tax fix because of the American payments the sales. neat to meet people you know indirectly in the waiting rooms of govt. offices..

Disclaimer: I strongly emphasize doing your own taxes so that you can engage in managing your tax exposure for long term tax savings..
#5 Dec 5th, 2012, 19:47
Join Date:
Mar 2005
Location:
The Land of Enchantment. Soon.
Posts:
12,138
  • Sama is offline
#5
Quote:
Originally Posted by nycank View Post The person who wrote the article, probably flunked freshman course in basic fact-finding.
"Koshek Rama Moorthi is the author of How to Be a Good Dog, (or Learning to Better Serve Your Masters)"
#6 Dec 6th, 2012, 00:07
Join Date:
Sep 2004
Location:
Hollywood/Bangalore/Kochi
Posts:
5,046
  • crvlvr is offline
#6
I think these are all old/existing laws. But, it possible that Uncle Sam start enforcing some of them more effectively due to their budget crisis.
#7 Dec 6th, 2012, 00:34
Join Date:
Aug 2006
Location:
Homeless
Posts:
20,566
  • nycank is offline
#7
Quote:
Originally Posted by crvlvr View Post I think these are all old/existing laws. But, it possible that Uncle Sam start enforcing some of them more effectively due to their budget crisis.
One thing the IRS does well - Implement the new regulations. Auditing and Enforcement at two different things. Rich tax dodgers or defaulters do well to research countries which have no extradition treaty with the US.

IRS cannot and does not go after every hotdog vendor who under reports his/her cash income and drives a mercedes

Quote:
Originally Posted by Sama View Post "Koshek Rama Moorthi is the author of How to Be a Good Dog, (or Learning to Better Serve Your Masters)"
Do you have an ISBN No: for the book ? I cant locate it on Amazon or NYPL's books in print.
#8 Dec 7th, 2012, 08:41
Join Date:
Mar 2005
Location:
The Land of Enchantment. Soon.
Posts:
12,138
  • Sama is offline
#8
Quote:
Originally Posted by crvlvr View Post I think these are all old/existing laws. But, it possible that Uncle Sam start enforcing some of them more effectively due to their budget crisis.
I thought that's what the article is about: that the govt will start enforcing an existing law....
#9 Dec 7th, 2012, 09:25
Join Date:
Aug 2006
Location:
Homeless
Posts:
20,566
  • nycank is offline
#9
Quote:
Originally Posted by Sama View Post I thought that's what the article is about: that the govt will start enforcing an existing law....
It's not a news article The author has no book out yet FATCA was implemented and people had to file it with their 1040 in 2011.







[ What do the original b**bo, Donna Rice, Weekly Standard, Intelligent Design, Anti-Gay agenda, Tea Party & the publishing group of the above blog have in common ? ]
#10 Dec 28th, 2012, 19:59
Join Date:
Dec 2012
Location:
Ahmedabad & Berne
Posts:
128
  • Outlooker is offline
#10
The group Democrats Abroad - http://www.democratsabroad.org/ - is very vocal to the US about the dopey tax laws. I went to a meeting earlier this year in Switzerland, and 99% of the Americans there had tax issues. That and issues in renouncing citizenship (as cloudy and unintelligible as the taxation issues). I dunno, maybe there's a Republicans Abroad as well.
Wherever you go, there you are. And if you're traveling the world, you're just farther.
#11 Jan 30th, 2013, 22:39
Join Date:
Apr 2010
Location:
Asia
Posts:
79
  • chagall is offline
#11
Consult the overseas tax laws for your country; they are different from the resident (stateside) regulations.
#12 Jan 31st, 2013, 22:32
Join Date:
Sep 2004
Location:
Hollywood/Bangalore/Kochi
Posts:
5,046
  • crvlvr is offline
#12
Quote:
Originally Posted by Sama View Post I thought that's what the article is about: that the govt will start enforcing an existing law....
From what I gather, with the US Govt is using the Anti Terrorist laws to get banks to provide details. And using that information to go after potential Tax dodgers also. Indian banks are complying. In the past IRS would do audits for only large amount (as each audit cost ~$10K and it was not worth it to go after smaller amounts) Now they just throw stuff out there ans see what sticks. It could start with just a simple letter asking for an explanation. Most people pay up as its not worth the fight.

Quote:
Originally Posted by nycank View Post ... Auditing and Enforcement at two different things. .
Nope, it's essentially the same. Auditing is one way of ensuring compliance, which is part of enforcement. But, I did not mention anything about auditing. so what gives?
#13 Jan 31st, 2013, 23:02
Join Date:
Aug 2006
Location:
Homeless
Posts:
20,566
  • nycank is offline
#13
Quote:
Originally Posted by crvlvr View Post Nope, it's essentially the same. Auditing is one way of ensuring compliance, which is part of enforcement. But, I did not mention anything about auditing. so what gives?
Not really true. From the smallest S-Corp. one person operation, to a Maryland incorporated NYSE company, all get outside auditors like KPMG, Anderson, IBM et. al. to do their audit, which is signed and delivered. It is part of governance. IRS can and does challenge those verified and certified audits. IRS has the legal teeth to enforcement including confiscation or property and criminal prosecution. Two different entities.

When we sign our 1040s we are certifying that we have truthfully done due diligence.

Similar Threads

Title, Username, & Date Last Post Replies Views Forum
Looking for female ex-pats! Aug 18th, 2012 01:46 1 1393 India Expat Area
Ex-Pats in Jaipur Dec 19th, 2010 22:04 19 6192 Jaipur
Ex-Pats for a beer in Jaipur Nov 6th, 2010 00:06 11 2798 Jaipur
Female ex-pats to socialise with? Aug 11th, 2009 12:10 18 4186 Moving to Chennai
ex pats Sep 17th, 2006 06:17 7 1883 Goa


Posting Rules

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Forum Rules»
Trackbacks are Off
Pingbacks are Off
Refbacks are Off
Thread Tools
Display Modes

Search Engine Optimization by vBSEO 3.3.2
© IndiaMike.com 2018
Page Load Success