US taxes cost some expatriates their citizenship

"Complicated rules, including disclosures, cause Americans to sever ties with home country

A year ago, in Action Comics, Superman declared plans to renounce his U.S. citizenship.

"'Truth, justice, and the American way' — it's not enough anymore," the comic book superhero said, after both the Iranian and American governments criticized him for joining a peaceful anti-government protest in Tehran.

Last year, almost 1,800 people followed Superman's lead, renouncing their U.S. citizenship or handing in their Green Cards. That's a record number since the Internal Revenue Service began publishing a list of those who renounced in 1998. It's also almost eight times more than the number of citizens who renounced in 2008, and more than the total for 2007, 2008 and 2009 combined.

But not everyone's motivations are as lofty as Superman's. Many say they parted ways with America for tax reasons.

The United States is one of the few countries to tax their citizens on income earned while they're living abroad. And just as Americans stateside must file tax returns each April — this year, the deadline is Tuesday — an estimated 6.3 million U.S. citizens living abroad brace for what they describe as an even tougher process of reporting their income and foreign accounts to the IRS. For them, the deadline is June......

http://www.msnbc.msn.com/id/47063487/ns/business-personal_finance/#.T4ylI2VKmnI

I've been filing the FBAR since I moved here,today I read in the NY Times about a new very complicated form that even tax people find difficult,that basically asks for the same info as the FBAR,what assholes.

I'm not sure if the law has changed but renouncing your citizenship still left you on the hook for reporting over the next 10 years, can anybody confirm or deny this?

Neil, we received warnings last year, that our holding in Mexico may be reported to the IRS. Personally, I take offense....already paid taxes on the money....time for a revolt.....politicians receive increases.....people that worked their ass off on SS got a meager 3?% over the past 3 years......they the political idiots....moved housing into the CPI....removed fuel. How many seniors don't have fixed housing costs....not to mention housing is in the toilet.

Sorry if I screwed up thread, but the only way to fix the problem is to remove the golden parachute from the rich assholes in government...put them on social security, remove their retirement benefits(They are already rich). and medical benefits...they work for us....LMAO

Intercasa wrote:I'm not sure if the law has changed but renouncing your citizenship still left you on the hook for reporting over the next 10 years, can anybody confirm or deny this?

Having read up a little on it that's my understanding also,you don't get off the hook that easily.

viajero wrote:

Intercasa wrote:I'm not sure if the law has changed but renouncing your citizenship still left you on the hook for reporting over the next 10 years, can anybody confirm or deny this?

Having read up a little on it that's my understanding also,you don't get off the hook that easily.

Only if you ar Charlie Wrangal......LMAO........scuse the spellin

I know there is an expatriation fine you get to pay when renouncing your citizenship.

http://www.irs.gov/businesses/small/international/article/0,,id=97245,00.html

I am a retired 100% disabled Veteran, and haven't filed a tax return since 1995. I have lived in Mexico since 2005 and do to good luck have saved some money most for my Mexican wife when I go. do I have to file this form, I have never heard of it?

Just cause you have to file doesn't mean you have to pay. The limit is something
like 75KUSD before you have to pay. The fee for leaving the country has a big
limit before you pay a tax. Oregon for example you don't pay state taxes if you
are not in the state for less than 30 days. Any fed taxes in mexico can be
deducted against your US tax obligation. Now be aware they are going to tax
you on any 401/IRA type savings but you have not paid taxes on that money
anyway. Now your situation may be different but filling is different than paying!

Z