Discussion in 'Economics' started by kxvid, Apr 1, 2010.
So...let me get this straight: the United States enacts a tax law that requires foreign banks to become collection agents for the IRS or cease doing business with Americans. Just like that, huh?
Why do I get the feeling that foreign banks will avoid the hassle and not take any US customers? Fuck stashing money in safe deposit boxes...we know how well that worked out during the last depression. Looks like it's back to stuffing the old mattress again.
Excuse me for being in a hurry. Let me get this straight: if I want to wire $10,000 to my family in another country, then I have to pay $3,000 to the IRS? Guess what, sovereign funds are buying less useless US notes, so we are forced to filled to gap.
What about this form of wealth confiscation by forcing us to convert our retirement savings into Treasury notes and annuities? Anyone heard more on this?
The Roth IRA is a great deception: pay your taxes now rather than later; Uncle Sam wants your money now rather than when you retire.
This means that those too poor to retire in the USA would have pay 30% tax for taking their money to live in a less expensive country?
I just read through the provision for the first time...
First, the law doesn't go into effect until 2013.
Second, I don't read it applying to wires sent to a foreign national.
Third, even if you had a foreign account and you are a US person, and the wire was going to your foreign account, there is a carve out for accounts up to $50,000.
Last, there needs to be an "agreement" between the foreign bank and the US Treasury, presumably because the provision seems to trump tax treaties, the laws of the foreign bank's country, and international law which is bullshit anyway (longstanding debate with an international lawyer friend of mine).
Addendum: And the 30% withholding is for a "recalcitrant account holder."
Basically, the IRS wants from the foreign bank your name, address, tax ID number, and how much money you have in a foreign account. If you don't cooperate, then you are a "recalcitrant."
IOW, forget about parking money overseas without the IRS knowing about it. It used to be all you had to do was answer 2 questions at the bottom of Schedule B on your 1040 about whether you had foreign accounts. I guess now the IRS won't just take your word for it.
Better get that mattress ready.
Better explained by:
perhaps they are doing this to prevent people moving money abroad exchanging from dollars to other currencies to maintain dollar value.
Or, perhaps the laws intend to discourage US citizens' money from leaving the country so that the Federal government can, one way or another, confiscate it.
Thanks Nestmann is a pretty good source last time I checked.
US citizens who retire abroad continue to receive payments after death. Deaths are not reported automatically as in the US...
maybe they should stop this big gaping fraud hole first.
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