Americans overseas...coming currency controls

[Thailandnotes]

I’m not sure how many itulip posters are Americans living overseas, but here are a few questions for you…

Do you file tax form TD F90-22.1 detailing your overseas money?

What do you think will happen in 2014 when the US requires overseas banks to cough up all info on US citizen’s accounts? Some banks in Asia are making noises that they will force Americans to close accounts rather than deal with the bureaucracy.

A friend who was trying to get IRA disbursements deposited to the country where he lives, reported that his bank was refusing.“It is illegal for non US residents (even if the are US citizens) to have a US bank account.” New on me and I’m highly doubtful.

[globaleconomicollaps]

Re: Americans overseas...coming currency controls

We sent in the form. I have contemplated relinquishing US citizenship, but I'm not sure what I would get out of it. I talked to Mark Nestmann about it and there didn't seem to be any tax advantages. Arguably the civil rights situation is better in the US than France ( where I live ).

This is the way I see the reporting requirement threat:
The issue is not that the US will prevent you from moving money over seas so much as that the forms are given to any law enforcement office that asks for them. Many ( not to say most ) police departments are funded by asset seizures. With tens of thousands of departments all hunting for their next meal ticket, it seems likely that one of them will invent a reason to seize your funds for "money laundering". It is for this reason that you should store most of your wealth in the form of gold coins or bars in a safe that only you have access to and that you keep the key. This type of ownership is not reportable presently.

[cobben]

Re: Americans overseas...coming currency controls

his bank was refusing.“It is illegal for non US residents (even if the are US citizens) to have a US bank account.” New on me and I’m highly doubtful.

My experience over the years has been that there are enormous differences between banks and brokers (and not only in the US) as to how willing they are to expend the effort required to support internationally based customers.

My advice if your bank or broker is causing you unreasonable problems is to look around for others that are more willing to help you.

Your friend might try looking into Etrade, which has full banking services also for foreigners.

[Sharky]

Re: Americans overseas...coming currency controls

Do you file tax form TD F90-22.1 detailing your overseas money?

I file -- but I consider it a huge invasion of privacy. Enough so that it makes me consider giving up my US citizenship (especially when combined with the requirement to pay US taxes, even though I no longer live in the US).

What do you think will happen in 2014 when the US requires overseas banks to cough up all info on US citizen’s accounts?

My understanding is that the US can only effectively pressure banks that have branches in the US. If my bank cooperates with the US, I will do my best to find one locally that doesn't. Although several banks in NZ are Australian-owned, there is at least one that's NZ-owned, with no overseas branches. Failing that, NZ also has "building societies" -- similar to a savings and loan in the US.

[lewman]

Re: Americans overseas...coming currency controls

We sent in the form. I have contemplated relinquishing US citizenship, but I'm not sure what I would get out of it. I talked to Mark Nestmann about it and there didn't seem to be any tax advantages. Arguably the civil rights situation is better in the US than France ( where I live ).

If you're worth less than US$2m, what you're going to get out of relinquishing your US citizenship is that you no longer are required to go through the agony every April of filling out tax forms (that is, unless you for some reason enjoy it ) and of course, you won't have to pay tax either. Cost to you would be the removal of the ability to move back to the U.S. But I guess there would be exceptions such as marrying an American (may not work as nicely if you're already married and your spouse is also relinquishing his/her citizenship But then again, perhaps it's a great excuse to divorce your current and find a new one ).

I'm of the opinion that any Americans already living overseas should discuss this matter with a "real" tax advisor or attorney so as to get properly advised. Too many Americans I've met make assumptions based on wrong information they obtained from their cousin's cats and as a result, make wrong decisions.

Good Luck.

[doom&gloom]

Re: Americans overseas...coming currency controls

As an American in todays world you are crazy to try and avoid reporting anything that is traceable. The key word is the underlined one. Just like the "cash economy" in the US that never pays taxes, such economies will spring up overseas to allow US citizens to launder money (for a fee less than their tax rates at home) and recycle it into "real" assets like rental houses in corporate names, etc etc. For the truly dedicated or connected, there will always be an out. Look how much drug money runs round the world (and even in the US) without ever being "reported" but somehow gets invested in all kinds of "legit" real estate and the like.