Posted on March 12, 2016 by Banc De L Asteroide Posted in Issues regarding US persons abroad 38 Comments The future for Americans not living in America A major bank disallows certain US citizens residing in Sweden Share this:TwitterFacebookEmailLike this:Like Loading...
@George – I agree ACA seem to be misleading people by claiming it’s necessary to join ACA but I don’t agree that any applause is due. This credit union account is just a way for US citizens abroad to resolve the CBT trap (and stop getting hassled by banks) by investing in, and paying their “passive-income” tax to, America (where they don’t live) instead of Canada or UK or Australia or Japan or Barbados where they DO live, and raise their children, and use the schools and roads and hospitals.
It’s not right.
By the way, is there any penalty under Canadian law for lying about not being a U.S. person? Or is it just a moral of telling the truth to be U.S. compliant?
@John Dunne, very sound advice……
A condor tells a different tale:
“There have recently been several instances where U.S. taxpayers were detained and questioned by the DHS when crossing the U.S. border (even in transit) on whether they comply with their U.S. tax obligations. Consequently, those U.S. taxpayers were contacted by the IRS in an attempt to collect outstanding U.S. tax liability. Generally, the IRS sends such U.S. taxpayers Letter 4106 in which it advises the taxpayer about the U.S. tax assessment, tax liability outstanding (including any penalties and interest, as applicable) and any enforcement or collection action that the IRS may be pursuing if the taxpayer chooses to ignore the letter.”
I asked him if he had personal knowledge of DHS grilling Canadians about taxes, to which he responded “people are routinely stopped at the border and are asked questions about their tax compliance.”
He also claims that the CRA ignores the revenue rule that prevents the CRA from collecting taxes from Canadians on behalf of the IRS!
That condor is full of s–t. More scare tactics.
I’ve traveled in and out of the US for over 40 years and have been asked just about every question under the sun. Not one of them ever mentioned tax.
Great digging about other ways to get an account with State Department Federal Credit Union. I wasn’t sure whether I could join the American Consumer Council as a non-resident USC, but a quick email reply from them confirmed I could.
I don’t know that ACA would have any kind of ethical obligation to inform Americans about other less expensive alternatives, because as you’ve discovered, a quick visit to the State Department’s website names the other organizations you can become a customer through. Still, you think they might have mentioned it.
That’s basically what I told him.
By the way, why the hell would a long time expat ever want to move money back to a US based account after all those years out of the US? Yeah, FATCA and FBAR are a PITA but that’s nothing compared to when or if the IRS invents a reason to use that new stateside leverage they previously didn’t have.
I live in a border town… I use to do alot of day trips to the US… I have never been asked about my tax situation…. been asked about food I could be carrying… Me being a smart ass… was like… what… U think I look fat… is that what u are saying… huh… well.. I am waiting for an answer…. lmao… he looked like a deer in head lights… he didn’t know what to do or say… hubby made me stop… I was having fun….
Fun is the last thing I’ve ever expect to have at a border crossing – but good for you, USFP!
John Dunne: excellent points. I’ll go further: I gave my children US citizenship, but they have another passport and EU birthplace. They can deal with the matter prospectively, and in an informed manner later on. The US passports will come in handy if they want to live there, that’s always possible. But they will be free to ignore the whole thing completely if they wish. Not much the US can do either way. It’s different for me with my US birthplace, and banking issues.
“By the way, why the hell would a long time expat ever want to move money back to a US based account after all those years out of the US?”
A few years after TD Waterhouse merged with Ameritrade, they closed all of TD Ameritrade’s accounts of residents of Japan. There’s another operation called TD Direct, which also doesn’t accept any residents of Japan. I’m not sure if TD Waterhouse excludes themselves too, but they don’t want me anyway.
TD Bank used to have two branches in Japan but closed them years ago.
One time I tried to open an account at a securities broker owned by I think Bank of Montreal. They didn’t believe it was possible that a Canadian citizen living in Japan might have a Canadian social insurance number, though I don’t recall if that was their only reason for refusing.
Global Securities didn’t answer my inquiry through their web site.
Kids can have a great career without the US… One kid in my family will make more money then I will ever see in my lifetime…. internet security… I am trying to be his fave person… lol
US was once thought as great… no one wants to have the noose around their necks for being there… Who the hell knew that the supposed progressive US has slavery laws…