Quote:
Originally Posted by GlobalGreen
... because they don't have to pay any taxes on their income... for some it's even a reason to move to Panama in the first place...
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Well, that only works if you are not an American; citizens of the U.S. are required by law to pay income taxes to the U.S. gov't, regardless of where they live on the planet. So while one is not paying income tax to the Panamanian gov't, one is paying to the gov't of country where they don't even reside.
Another lovely little note is that you will continue to be required to pay taxes until (you)
"give notice of your expatriating act or termination of residency (with the requisite intent to relinquish citizenship or eliminate such status) to the Department of State or the Department of Homeland Security and provide and initial expatriation statement (Form 8854) to the I.R.S."--unless you left the country before June 3,2004 when these new regs went into effect
http://www.irs.gov/pub/irs-pdf/i1040nr.pdf
IRS.gov Search Results
Write your congressperson and suggest an amendment...
Cheers.
p.s. I love the avatar! Why not put a porcupine in a gas mask?