Lief Simon’s Annual Tax Guide For Americans Living, Investing, And Doing Business Overseas
As is well touted these days, the United States, along with Eritrea and now China, are the only countries in the world to tax their citizens on worldwide income even if they reside elsewhere.
The United States has put serious enforcement mechanisms in place, including now FATCA, shifting the burden to banks worldwide, which must now report on their U.S. account-holders. Foreign banks with American clients must relay account information to the IRS each year, including to do with interest earned. The most galling part of this ridiculously extra-territorial piece of legislation is that the world’s governments and banks have fallen in line and agreed to cooperate with the IRS’s ever-expanding information-gathering agenda.
What are we Americans to do?
The only way to walk away from the IRS for good is to give up U.S. citizenship, which isn’t an easy thing to accomplish even if you have a second passport already in hand. The alternative is to comply with the reporting requirements.
In this Special Report, therefore, Lief Simon provides his annual summary of tax-reporting requirements for Americans living or investing outside the United States.