Thinking of Moving To Another Country In Retirement? (state, blogs, friend)
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The IRS is getting desperate. My sister emigrated to Canada in 1969 but never renounced her American citizenship. Beats me how the IRS tracked her down but they did, telling her that because she failed to file US tax returns (even though she didn't make any money in the USA) she was subject to fines. So.... she had to go to Toronto, hire a lawyer, blah blah blah, and now has to go to the US embassy in Toronto to renounce her citizenship to stop from being harassed. It still isn't over. I told her to just write the IRS a nasty letter and NEVER come back to visit the US ever again.
I read something a while back on some of the more aggressive tactics of the IRS against US expats living long term in Canada, some for decades, and some who had filed US tax returns faithfully every year, though they had NO income generated from US sources and paid every dime to the Canadian tax authorities. The article I recall said that the Canadian tax authorities wrote a letter to the IRS telling them to back off, and that Canada was not a tax haven, as taxes are higher than in the US, and to focus their efforts on the Caribbean when looking for off shore tax havens. It was a pretty funny article. I applaud the Canadian gov't for taking a strong stand against some of the over the top tactics of the IRS, who should be looking at corporate tax evaders who hide millions and more offshore, along with hedge fund CEOs, etc.
I read something a while back on some of the more aggressive tactics of the IRS against US expats living long term in Canada, some for decades, and some who had filed US tax returns faithfully every year, though they had NO income generated from US sources and paid every dime to the Canadian tax authorities. The article I recall said that the Canadian tax authorities wrote a letter to the IRS telling them to back off, and that Canada was not a tax haven, as taxes are higher than in the US, and to focus their efforts on the Caribbean when looking for off shore tax havens. It was a pretty funny article. I applaud the Canadian gov't for taking a strong stand against some of the over the top tactics of the IRS, who should be looking at corporate tax evaders who hide millions and more offshore, along with hedge fund CEOs, etc.
Thank you for this additional info. What I find strange is the USA sex industry; I worked in strip clubs for over 10 years, yet never, never did any IRS agents come in. I claimed my earnings and paid state and federal tax ( I had my reasons!) and even more strangely, neither the feds or the state cared where the money came from! So then I get to thinking how easily it would be to launder money by claiming you are a stripper. Seems very strange to me.
Sometimes I've toyed with the idea of living in Victoria, BC. I've always liked Canada, but I'm a little surprised to hear they would get involved in a tax dispute between the US govt. and a US citizen.
At age 49 I retired and we moved to the Philippines, our roots! We've been here 14 yrs now! We've paid our U.S. income taxes every year via on-line using Turbo Tax! We don't often pay State tax since we are permanent residents in the Philippines. We only pay state tax whenever we vacation in California for a few weeks or months once every 3 yrs or so! We pay no taxes here, except for the value added tax (VAT) on everything we buy here for our monthly living expenses.
Providing their incomes originate from the States, all American expats pay federal taxes, no matter where they reside. Does not matter the name of the bank with whom they do business, filing federal income tax return is mandatory for American expats who receive any money from any source in the US.
Soon after retirement, we moved to Italy and lived there for almost seven years (April 2001 - November 2007). Our bills were paid by an Italian bank, our credit cards were issued by an Italian bank, our money was in an Italian bank, and we paid our medical insurance to the Italian National Health. We received absolutely no benefits from the States, still, we had to pay federal tax every year, simply because the pension was from the States.
When you came back to the US did you keep your money in an Italian Bank? How many hundreds of millions in untaxed money does Mr Romney have salted away in Switzerland, the Caymans and several other countries?
We should all remember that retired transplants who receive public pensions are leaving behind the source of that income and the many years of contributions the residents of that state made to their salaries and pensions. We then go another state that has probably given us next to nothing and use the payments from our former state to contribute to the well being of the residents in our new state and not the state feeding us. How many transplants pay taxes to their former state if they no longer live there?
We should all remember that retired transplants who receive public pensions are leaving behind the source of that income and the many years of contributions the residents of that state made to their salaries and pensions. We then go another state that has probably given us next to nothing and use the payments from our former state to contribute to the well being of the residents in our new state and not the state feeding us. How many transplants pay taxes to their former state if they no longer live there?
Yep! Blame the public employees. Why not? Everyone else does.
What you fail to mention is that we not just contributed to our pension funds but ALSO paid taxes effectively making us ALSO those tax payers you allude to. In return we provided public services the residents of the state considered important if not essential.
To answer your question, probably none of us. We don't pay any taxes to our former state. Nor do we consume any state resources, use any state benefits or rely on and help wear out any of the state's infrastructure. No footprint, no taxes. That shouldn't be too difficult to understand.
The mental midgets in DC strike again. Just how do these morons expect to accomplish this? The foreign bank is under NO obligation to give the US Gov't any information. What do the dimwits in DC think they're going to do for non-compliance, send them to bed without their supper. Oh wait, we're not feeding them. How stupid can "our" elected morons be? The entire article is a farce, at best.
Actaully foreign bnaks are being more and more co-operative with the IRS ;for example.Wiht the need to have worldwaide access any country that is large can punish banks they think are not be so .Just part oft eh wroldwide economy really.
We should all remember that retired transplants who receive public pensions are leaving behind the source of that income and the many years of contributions the residents of that state made to their salaries and pensions. We then go another state that has probably given us next to nothing and use the payments from our former state to contribute to the well being of the residents in our new state and not the state feeding us. How many transplants pay taxes to their former state if they no longer live there?
When I worked in PA, I paid PA income taxes and Property Taxes, When I worked in New Jersey and Delaware the same applied, I'm sure California didn't allow me to escape owing them a dime. I guess I'm even with them since I do am not a burden on any of their systems. As a transplant to Arizona I have been an asset rather than a burden. I pay taxes and haven't cost them a dime. If states didn't want these transplants they wouldn't give them the tax benefits they give them. After all Florida has made an industry of caring for elederly transplants.
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