Implementation of FATCA Causes Headaches for Expats

It has become increasingly difficult for U.S. citizens to open bank accounts overseas. The reason is that the IRS has started to implement the Foreign Account Tax Compliance Act, or FATCA for short. FATCA was passed in 2010 in an attempt to prevent overseas tax evasion activities. Unfortunately, many experts believe it is causing more harm than good. FATCA creates additional reporting requirements for U.S. taxpayers. All U.S. citizens were already required to report to the IRS information on...
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Tax Tips – Marriage to a Non-US Citizen

Many United States expatriates find love when they travel abroad. It’s not uncommon for an American to come to Costa Rica and come to marry a young Tico or Tica. However, a U.S. citizen needs to consider certain tax consequences when marrying a non-citizen. U.S. citizens must usually file tax returns every year, even when they do not live in the United States. When you are married and you live with your spouse, you cannot...
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Hiding Foreign Income Increases Likelihood of IRS Audit

In 2007, a whistleblower at a major bank in Switzerland disclosed to the IRS millions of dollars in assets belonging to U.S. citizens that were never properly disclosed. This led, in 2009, to one of the biggest settlements in IRS history. Since then, the IRS has been especially vigilant in seeking out foreign income and assets of U.S. citizens. If you are a U.S. citizen, you must disclose many of your foreign assets and report...
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