Here’s the exact reason why I woke up to 9/11. One thing I don’t remember seeing back in April 2012 is the direct link between the IRS crackdown and Sept. 11, 2001. Here is the link clearly spelled out:
Here is a sign that life is getting complicated for U.S. taxpayers with assets abroad: More of them are deciding they are better off cutting official ties with America.
In the first half of 2013, 1,809 people renounced their American citizenship or permanent-resident status, according to a tally by Andrew Mitchel, a tax lawyer who tracks U.S. data. At that pace, the 2013 total would double the previous high of 1,781 renunciations in 2011.
While U.S. taxes on world-wide income have existed for decades, experts say laws regarding such income were seldom enforced.
That changed after the attacks of Sept. 11, 2001, in part because of concerns about terrorism. In 2004, Congress imposed severe penalties—up to $100,000 or 50% of the account, whichever is greater, per year—on U.S. taxpayers who choose not to tell the IRS about foreign financial accounts totaling $10,000 or more.
Yes, it costs me a big buck to submit annually to this nonsense. No, I really don’t want to renounce my citizenship. I still think there’s hope that America will wake up to the nonsense.