Bahamas

Yeah I agree. But there is little doubt that the IRS will frown on this.
I just wonder if they look at these "legal" setups and
scrounge around for some technicality to nail you with.
You mess up one little thing in the smallest of ways, and
BAM your in court with the I.R.S.

peace

axeman

 

Quote from the above-mentioned link:

“Those attempting to illegally evade U.S. income tax through the use of ‘so-called’ tax haven countries will find they are not beyond the arm of the IRS. Promoters and clients of international evasion schemes can continue to expect scrutiny and enforcement by the IRS and the Department of Justice.” (emphasis supplied)

There is a clear distinction between tax 'evasion' and tax 'minimization.' Someone who truly lives and works in another country, albeit trading, is not evading taxes. Especially if you are simply claiming an exemption for foreign earned income.

Totally different from someone trying to hide business activity in a foreign trust or corporation.

Cheer,

kp

 

What has that got to do with what we are talking about ???

 

As in any business; including the little grocery store on the corner.

That is their job ...

 

Exactly ...

 

Bottom line. If you earn and live outside the States you're exempt. If you earn outside but live within you're in a grey area depending on how your earnings are structured. The people who are in clear violation of tax law are those who earn outside and attempt to repatriate unreported income here in the U.S. The most common "new" method is using credit cards issued by foreign banks. Payments for goods and services here in America are income. Using an offshore account to payoff those balances is the electronic version of bringing a suitcase of hundred dollar bills into the country on a speed boat.

 

"Anyone may so arrange his affairs that his taxes shall be as low as possible: he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes."

- Federal Judge Learned Hand, Helvering v. Gregory

 

Pabst,

You say live outside and "earn outside"...does that mean, if you live outside but receive dividends/capgains from a US based company, the cash flow is 'not' exempt from taxes where divs from a european company would be?

Tnx!
Bruce

 

Subject to withhholding; but you probably can get a refund...

 

mettoxx- I have been looking at your name for a long time and could not figure out what it means. But now I may have it. Since I need to lose a few pounds would I be able to say using your nomenclature that my name is metooxxxiii