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Financial Planning / Tax Strategies


Subject:  Re: Investing from offshore accounts Date:  11/22/1998  1:00 AM
Author:  lbird Number:  6436 of 127544

1. All U.S. citizens are taxable on income from whatever source earned, regardless of country in which assets are located.

2. If you want to cheat, you may or may not get caught, but if you do, the IRS is out to make examples of people who do this (makes for good press for them, and they need it right now).

3. There is a box on your 1041 which you must check if you have control over an offshore account, or are a beneficiary of an offshore trust. If you don't check it and you have gone through the trouble of establishing offshore accounts, it is pretty easy to prove deliberate fraud, and yes, incarcerate you.

Bottom line: unless you either (1) renounce your citizenship and move offshore, or (2) are currently not a U.S. citizen, and are willing to spend less than half the year in the U.S., then you are playing with fire.
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