EvOTraderV2 Registered: Jan 2012 Posts: 296 New Post 04-03-13 01:59 PM This is information you can obtain from your accountant or attorney. I suggest all of you consult with yours prior to make any investment-related decisions. Quote from snooptrdr: did you source that? i'd like to see it. what a copout . your attorney/accountant is likely to be clueless. if you have the info post it and then suggest it be further verified.
Why don't you use the search button? This has been discussed by others on the board. The information is out there. The form you must fill out is a 1040es or a TD F 90-22.1. If your accountant and lawyer is clueless, you need to find new ones. No professional accountant that specializes in trading is going to be "clueless". As for the sports betting, Yes. If a US resident runs a foreign betting service, it is illegal for that U.S. resident. If it is a bunch of Russians in Moscow running the service, the U.S. can not go to Russia and shut down something legal. The same reasoning is behind why the US government can't invade Amsterdam and arrest their citizens for smoking pot there. The U.S. DOES have the ability to regulate who advertises and solicits Americans. That's where people get confused and believe non-solicitation means it is illegal for them to accept you. If it is legal in their country, it is legal for them to do it. The US can go after them if they solicit & there is some type of agreement or treaty in place between the countries for this type of situation. If the US wants to stop foreign brokerages from offering services, they have to input controls into the US brokers to oversee all of the activities foreign brokers do. Their auditors and the SEC have oversight and if they have a treaty with the country you are doing business in, they may have some oversight. I would guess this is subjective and based on each individual country. However, I assume those overseeing the markets in this country know that for anyone making any type of legitimate trading income will not want to pay the extra taxes. These Bahamas companies don't even have taxes. They don't report squat to the U.S. You yourself will have to report what you earn based on what comes into your US bank accounts. If you don't report the income, the IRS will audit you will be in a world of hurt. They can also request information about your foreign accounts since you are a "subject" of the U.S.. The bottom line is, it is more expensive because you have to report your income and you will be taxed at rates higher than what you pay on capital gains made in the US. The US government doesn't even have the ability to see a presidential candidate's foreign bank accounts (as was the case with Mitt Romney).
http://www.irs.gov/Businesses/Income-from-Abroad-is-Taxable Income from Abroad is Taxable Many United States (U.S.) citizens and resident aliens receive income from foreign sources. There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with accounts in Liechtenstein. The interest of the IRS, however, extends beyond accounts in Liechtenstein to accounts anywhere in the world. Consequently, the IRS reminds you to report your worldwide income on your U.S. tax return. If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents. See Publication 525, Taxable and Nontaxable Income for more information. Additionally, if you are a U.S. citizen or resident alien, the rules for filing income, estate and gift tax returns and for paying estimated tax are generally the same whether you are living in the U.S. or abroad. Hiding Income Offshore Not reporting income from foreign sources may be a crime. The IRS and its international partners are pursuing those who hide income or assets offshore to evade taxes. Specially trained IRS examiners focus on aggressive international tax planning, including the abusive use of entities and structures established in foreign jurisdictions. The goal is to ensure U.S. citizens and residents are accurately reporting their income and paying the correct tax. Foreign Financial Accounts In addition to reporting your worldwide income, you must also report on your U.S. tax return whether you have any foreign bank or investment accounts. The Bank Secrecy Act requires you to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if: You have financial interest in, signature authority, or other authority over one or more accounts in a foreign country, and The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year. More information on foreign financial account reporting requirements is in News Release FS-2007-15, Foreign Financial Accounts Reporting Requirements and Publication 4261, Do You have a Foreign Financial Account? Consequences for Evading Taxes on Foreign Source Income You will face serious consequences if the IRS finds you have unreported income or undisclosed foreign financial accounts. These consequences can include not only the additional taxes, but also substantial penalties, interest, fines and even imprisonment. Reporting Promoters of Off-Shore Tax Avoidance Schemes The IRS encourages you to report promoters of off-shore tax avoidance schemes. Whistleblowers who provide allegations of fraud to the IRS may be eligible for a reward by filing Form 211, Application for Award for Original Information, and following the procedures outlined in Notice 2008-4, Claims Submitted to the IRS Whistleblower Office under Section 7623. Page Last Reviewed or Updated: 23-Jan-2013
You will have to contact a lawyer that is licensed to conduct business in your state as well as a CPA. I am in no way, shape, form, scope or measure providing anyone here with advice and I take no liability for any stupidity someone tries to do to illegally hide their income or reduce paying their taxes. if you're making enough $$ trading, paying for an accountant's tax service should not be a problem.
"It is illegal for US residents to be working for an international firm without a work permit for the country the firm is registered in. " from EvOTraderV2 what are you referring to? is it illegal for a US resident to work for a french firm without a US work permit or a french work permit? what is your definition of international firm ?
Without actually moving to France. The same way a Chinese person would need a work-visa to work in the US. Therefore, if someone is operating as a foreign broker-dealer but are physically living inside the US, they are breaking the law.
to be understood you have to write in complete sentences. "Without actually moving to France is not a complete sentence. '"foreign broker-dealer but are physically living inside the US" i suppose you mean occupy physical space. international banks do it all the time but do not do business with US residents. ""It is illegal for US residents to be working for an international firm without a work permit for the country the firm is registered in. " from EVO... this is a blanket statement which is incorrect. an american resident does not need a work permit to work for an international firm unless he is physically located in the country.
dude stop trolling. I was answering your question - "what are you referring to? is it illegal for a US resident to work for a french firm without a US work permit or a french work permit?" I'm done with this thread. I suggest you seek professional advice from a licensed attorney and CPA specializing in your field.
you are making remarks some of which are unclear and some of which are not true. to accuse someone of trolling under those circumstances is a copout.
Wrong. Answering a question is not "a copout" simply because you are incapable of understanding what was implied. If you feel the information isn't accurate, consult with your attorney and accountant. If you need they are "clueless" find new ones. Again, I am not providing any type of legal advice for everyone. My recommendation is to contact a license attorney and CPA and discuss the options yourself. Work-permits are not a difficult thing to understand. If you want to be employed by a UK company, you need a work-permit to be hired which you obtain with residency status. There's a reason people use the term "illegal alien" when referring to workers without visas. This does not refer to traders/customers of the brokerage firm. It refers to employees of that firm. Firms like Lake Street and Broad Street operated as foreign firms but were US residents and as far as I know, operated from the US. They were not foreign-nationals. Therefore, they are under the jurisdiction of their local court system and any applicable regulatory requirements such as the SEC. Lake Street would have turned out differently if they were Mexicans operating out of Mexico City. They then would be subjected to Mexico's securities laws. If they were Mexicans operating in Mexico and registered with the Mexican authorities, they'd probably still be up and running today.