[...] In a news release published earlier this month, the I.R.S. announced the end to offshore voluntary tax disclosure coming as at September 28th, 2018. When coupled with the recent dramatic U.S. tax reform that took place, many U.S. citizens living abroad are in for some unpleasant surprises. It's reaching a point where some richer U.S. citizens are turning to renunciation of their citizenship to stay clear of the impact of these tax changes on their personal wealth and on their estates. The changes are the first signs of the more predatory and aggressive steps the U.S. government is prepared to take to recover tax revenues, partly in the face of the mounting 21 trillion U.S. national debt.
Offshore Voluntary Tax Disclosure
The so-called Offshore Voluntary Disclosure Program requires U.S. citizens to file a foreign bank and financial accounts report (FBAR) for accounts that in the aggregate exceed $ 10,000 U.S. in any calendar year. This means wealth, not income exceeding $ 10,000 U.S. You can find the details of the requirements here. In addition, since March 2010, the Foreign Account Tax Compliance Act (FATCA) has required all foreign financial institutions to search their records for customers with indications that a 'U.S.-person' holds an account with them, such as a U.S. place of birth, and to report the assets and identities of such persons to the U.S. government. You can find details of that act here. Thousands of U.S. citizens living abroad have reported themselves to the I.R.S. to comply with the spirit of these two initiatives. But thousands more have not, at least not yet.
Well now they have about six months to correct that problem.
Meanwhile the U.S. has recently adopted other tax changes that also impact dual citizens and even green card holders living outside the USA. Continue Reading Here Transition Tax