US Overseas Entrepreneurs and the IRS

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Joining Anthony and Claudine in this IRSMedic podcast is Keith Redmond, a frequent guest and well-respected global advocate for Americans overseas, Accidental Americans, and the associated populations who are adversely affected by US government policy overreach (e.g. FATCA – Foreign Account Tax Compliance Act, US practice of Citizenship Based Taxation – CBT, etc.)

Keith will present evidence at an upcoming House and Ways Committee Hearing on the FATCA Repeal Bill which will be re-introduced in the House by Congressman Mark Meadows and re-introduced simultaneously in the Senate by Senator Rand Paul in April of 2017 to explain the global damage FATCA has caused and to touch on the onerous US tax compliance is for American entrepreneurs living overseas and those Americans overseas who have a small to medium size business.

Along with Keith, is our international man of mystery, “Mike Wilson” the pseudonym of an American entrepreneur living somewhere in “Scandinavia”.

Mike shares his example. He paid a tax professional USD 2,000, yet he owed the IRS nothing from his income abroad.

Further, as we interviewed Mike, it became clear that even though he spent an estimated 50 hours researching that tax code, he mistakenly though he had to file Form 5471 for his foreign corporation, but he didn’t. Also, he did not file a return on his foreign pension, which opened him up to additional risk.

Should the IRS be forced to change its way or should the tax code make life tough for American entrepreneurs who live overseas?