On Wednesday the US Treasury Department reached broad agreements with five European nations on a proposal to prevent US taxpayers from dodging taxes through oreign owned and controlled accounts.
Those countries are France, Germany, Italy, Spain and the UK. Folks, the western world is tightening the noose around your necks.
The window of opportunity is quickly fading for Americans to implement offshore banking into your asset protection planning. I could tell you countless stories of Americans who have had their domestic accounts seized without any due process of law. The only way to truly keep your money safe is to internationalize your assets.
In addition to the agreement reached yesterday between the US Treasury Department and the five European nations, the IRS also released the new proposed regulations for implementation of the 2010 law known as Foreign Account Tax Compliance Act, or FATCA.
For reference, you can read an article I wrote in December on EscapeArtist titled, “FATCA – Is 2012 the Last Year for Opening an Offshore Bank Account for Americans?”
As of this week though, the IRS is further clarifying those regulations. Essentially it means that foreign financial institutions must report US account holders to the IRS or be subject to US tax penalties.
In other words, the US has said if every country in the world doesn’t play by our rules, we are going to penalize them.
Many individuals now with offshore assets will need to file two separate disclosure forms with Big Brother in 2012 or risk draconian penalties. Take a look at the table below:
As you can see from the above table, the rules can be quite complicated and now you can actually be in violation of both sets of rules making you liable to both sets of penalties.
Long term, this means that many foreign financial institutions will stop accepting American clients due to the draconian laws the US is attempting to impose on the world.
The only way to be truly free from the constraints imposed by the US or any other nation is to internationalize your assets and your life. Now is the time to implement an offshore company and offshore banking into your asset protection plan.
As 2012 progresses, the noose will continue to tighten. Hopefully we won’t all be hanged by Christmas.
4 Responses
This article is confusing to me because in one breath they suggest that all foreign accounts of US citizens and residents will be reported and taxed. In the next breath the tell us to internationalize our assets and life.
If doing so will be reported to the IRS anyway and tax will be owed, why bother? If fact, having an account off shore is a huge red flag to the IRS to come and get some of one’s assets.
It seems to me that to only way to be completely off IRS radar is to not have any accounts anywhere. Not even gold storage. Not an annuity. Not own land in one’s own name off shore. Not be visible anywhere or in anyway.
It seems to me that by having an off shore account or some kind of ownership one is forcing foreign entities to report to the IRS. They hate that. Why would they do that? They will simply tell me to go way. Why deal with American citizens and permanent residents?
Hey there! Great post! Please when I will see a follow up!
Write more, thats all I have to say. Literally, it seems as though you
relied on the video to make your point. You clearly know what
youre talking about, why throw away your intelligence on just posting videos to
your site when you could be giving us something enlightening to
read?
I drop a comment whenever I especially enjoy a article on
a site or if I have something to valuable to contribute to the conversation.
It’s caused by the fire communicated in the article I browsed. And on this post The Noose Tightens | Offshore Asset Protection Planning. I was moved enough to post a comment :) I actually do have a few questions for you if it’s allright.
Could it be simply me or do some of the responses appear like they are coming
from brain dead individuals? :-P And, if you are writing
at other online sites, I’d like to follow everything fresh you have to post. Would you make a list every one of your communal sites like your twitter feed, Facebook page or linkedin profile?