— U.S. Citizen Abroad (@USCitizenAbroad) June 17, 2012
Subject to applying for an extension, your U.S. tax return was due this past Friday June 15. During tax season, the discussion of the problems of citizenship-based taxation have become louder and louder. After many discussions with U.S. citizens abroad, I have concluded that:
There is not a single investment vehicle outside the United States that will not plant the seeds of future U.S. tax problems. These problems if not attended to early (translation they must be eradicated) will eventually grow so big that:
A. Not only is financial planning and saving impossible; but
B. Your honest attempts to save and invest will bankrupt you with either incredible expensive compliance requirements or “surprise taxes and penalties”.
C. U.S. tax compliance is now so expensive and complex that U.S. citizenship has been priced out of the market.
I invite your comments on this topic. Please refer to the specific financial product and any tax or reporting issues. I desperately want to be proven wrong on this point. So, please explain the financial products that are viable for those who are subject to U.S. tax laws.
Those who missed my earlier post on PFICs – your future financial solvency may depend on reading it!
Thanks in advance.