Comments on: Questions, Questions, Questions 2

By: Philly

Philly — Mon, 23 Nov 2009 04:15:33 +0000

Thanks. Also I note it looks like you are just starting up a new site devoted to tax information. A good niche, IMO. If you want a sub-niche, one where you can really rank some ketwords, think about advice directed specifically to US expats. There are a lot of us, therules are somewhat complex, and from my lay readings it seems the US IRS is not really clear in their own minds how they will handle many issues that are simple within the US.

In particular, most of the IRS’s guidance applies directly to folks who work at salaried jobs overseas. That particular niche isn’t all that more complex than a US resident. But folks like me who earn money online and have no salary? A different kettle of fish it seems. A wide open field I would say.

By: Small Business Tax Guru

Small Business Tax Guru — Mon, 23 Nov 2009 03:51:15 +0000

I’ve been involved in taxations for longer then I care to admit, both on the individualized side (all my working life history!!) and from a legal point of view since satisfying the bar and following tax law. I’ve rendered a lot of advice and rectified a lot of wrongs, and I must say that what you’ve put up makes perfect sense. Please continue the good work – the more individuals know the better they’ll be outfitted to cope with the tax man, and that’s what it’s all about.

By: Philly

Philly — Wed, 28 Jan 2009 02:26:43 +0000

Let’s try to keep US politics out of our discussions here, shall we, please? One of the reasons I live in the Philippines is that I don’t have to listen to the BS spouted by every candidate for years before election day comes around. It doesn’t make a difference which party they represent, they all promise chnage and then they all appoint law breakers, hacks, ner-do-wells and lobbyist-supported “axe grinders” to important posts. Raises my blood pressure and I don’t doubt it does the same for others.

My country suffered 16 years of mis-management by two “me first” presidents and while I am willing to give the new guy some slack, and wish him success, his appointees so far have been disappointing to say the least. Let’s just move on to important things about the Philippines if we could, please.

By: Elle

Elle — Tue, 27 Jan 2009 17:02:26 +0000

Consider the Secretary of the Treasury’s strategy:
http://finance.yahoo.com/news/Source-Geithner-failed-to-pay-apf-14050873.html

Note (1) the lack of penalties; (2) how he almost got away with not
paying SE taxes for two of the years he had self-employment income.

If Congress wants people to take their taxes seriously, they need to stop confirming crooks as IRS bosses.

Disclaimer: I have always voted Democrat for all members of the U.S. Congress and the U.S. Presidency.

By: Philly

Philly — Tue, 30 Sep 2008 04:09:22 +0000

@Ellen: Yep, I knew this post would spark some discussion/interest. reporting income is not the same as having to pay taxes on it … what you have to pay is acompletely different issue than what you have to report. But I thought I would throw it out there just because so may US folks I have herad from have the idea that you don’t have to file, don’t have to declare, etc. While your comment was sitting here awaiting a response, our good friend Bob
http://liveinthephilippines.com/bobm/
sent me two links which I’ll republish here.
http://www.usexpatriate.blogspot.com/
http://www.taxmeless.com/index.html
seems to be a wealth of information there from a US-based CPA-Attorney … I know I will be spending some reading time there for sure. As always, thanks for commenting.

By: Ellen

Ellen — Tue, 30 Sep 2008 02:04:53 +0000

Hi Dave, sigh, here we go again. I agree, that IRS and any country’s tax authorities, has far-reaching arms. Not sure of the US, but Canada has a catch all rule to close all loop-holes – it is called the GAAR (General TAx Avoidance Rule). If they don’t catch you under any of the other statutes, then more than likely, they can catch you under the GAAR. BUT you can be very creative in your business set-up, in going around these rules – by hiring a good tax lawyer PLUS a creative CPA.

Declaring “world income” is just that – ALL income irregardless of where you are, unless otherwise stated or specifically exempted in a TREATY agreement between the 2 countries.

If you are a small business, just keep-it-simple-stupid (KISS principle) and declare all your income and pay the taxes due, unless you have lots to spare to hire a good CPA and TAX attorney for advice. You can sleep better this way.

By: Philly

Philly — Mon, 29 Sep 2008 07:19:34 +0000

@Philly: Since the time I first responded to this message, I came across another blog here in the Philippines which is published by a guy with about as unimpeachable authority on this subject as one can have … a retired agent of the IRS … Rusty Ferguson http://rustyferguson.com/?p=310 Some may enjoy Randy’s views, it’s good to see some more expertise online and the world can always use another retired federal emoyee … but then again, I’m biased

By: Philly

Philly — Mon, 29 Sep 2008 04:23:28 +0000

@Paul: Got it Paul … thanks for the additional clarification. It is appreciated.

By: Philly

Philly — Mon, 29 Sep 2008 04:22:18 +0000

@pogidaga: Sorry guy, I don’t make the laws, I only live under them *sigh*. As I said, it’s a common misconception that a US citizen gets tax advantages by living overseas. As far as federal taxes go, it just isn’t the case (except for some provisions regarding salaries paid from outside the US … more than I want to get into here).

A lot of folks have concerns about somehow losing their US citizenship. One of the reasons that aside from criminal activity it’s very hard to lose your US citizenship is, Uncle Sam might lose his tax claims. By the way, permanent resident aliens (Green Card holders) have essentially the same liabilities ans well as non-resident ailens in some cases. The reach of the IRS is long, indeed.

By: pogidaga

pogidaga — Mon, 29 Sep 2008 04:08:15 +0000

I’m confused. If a U.S. citizen moves outside the U.S. and works outside the U.S., what claim does the IRS have on his income? Do i have to pay them no matter where i live, even on the moon? What the hell?