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by ryankask 4487 days ago
I moved to the UK a few years ago and I couldn't agree more that the IRS rules and regulations unfairly penalize "average" US citizens that live and operate abroad.

FBAR, FATCA and if you start a business, form 5471 and friends. I got some quotes from a few accountants and I will likely have to pay thousands of dollars for assistance just to fill out informational forms and pay (maybe) a few hundred dollars in US taxes.

1 comments

I think that's the most ridiculous thing about it:

Whether you are an American who moved to a treaty country, or a treaty country resident who moved to the US, it is not likely that you'll have to pay a lot of US taxes if at all. (The treaties I am familiar with are quite reasonable). However, unless you are a tax professional yourself, you are going to be "taxed" by a professional to prepare all those papers that you must file.

I know someone who moved to the US, and whose tax filing on one year topped 150 pages of "informational data" despite not having to pay one cent.

I have never met a person who is in any way familiar with the US tax code who thinks it is makes any sense or is reasonable. Only people who never had to really deal with it think so.

Additionally, the US is one of the few countries that punish their citizens with US tax even when they don't live in the US anymore...
It is, effectively, the only country in the world that does this. It's shameful.

http://hodgen.com/does-the-united-states-stand-alone/

Wow... I really like the US, but these draconian laws make it difficult to justify moving there. Of course, if you grow up like this and don't know better...
> Of course, if you grow up like this and don't know better...

Also, if you don't plan on moving out of the country, which the majority of Americans (and probably citizens of most countries) don't.

To be fair, the earned income tax exemption is sufficiently large enough that you will be making six figures before you have to pay a penny in U.S. tax. You still have to file though.
Wasn't part of the reason people wanted independence from the British to avoid paying the king's taxes?
They refused to pay without representation. But US expats can actually vote from abroad.

(Not that the votes seem to matter - you get to choose which faction of the military-industrial faction gets a salary this year, but not anything of consequence)