Thread: Money taken out of USA subject to additional tax?

I believe I remember reading that a bill (not yet passed) would impose a 30% tax on all money taken out of the USA beginning Jan 2013. Can anyone tell me the bill number or if this passed? I cannot seem to find any information about this. Thanks for your help!

http://www.panamaforum.com/panama-ba...ed-out-us.html (The January 1st 2012 30% take on $ wired out of US?)

Yes - that's the thread I had seen earlier but could not find it again ! THANKS for your assistance!

It was hit heavily on other threads too but I cannot find them.

Due to government not knowing what it will require from non-U.S. banks the regulations have been delayed in coming into effect. (It has nothing unfortunately to do with a realization of the extreme burden these laws have imposed on U.S. banks and perhaps the fact that routine funds transfers as a part of global commerce become ridiculously burdensome.)

To my knowledge, non-U.S. banks have not been required to commit to becoming an approved foreign bank, but I would believe many will not do so to avoid the burdens of U.S. reporting requirements. It's not only concern with reporting requirements, but generally opening themselves up to jurisidication of U.S. courts and our outrageous, litigation-happy civil system and silly governmental agencies. Most watched the UBS experience and vowed to never do business with U.S. citizens.

So, the government decides a 30% withholding on all wired funds from the U.S. will ensure that they get their share even though no one can explain how a transfer of funds is a taxable event? Why do I owe 30% tax because I decide to buy a condo in Panama? The answer of course is that there is no tax and the 30% bears no relationship to the transfer. The U.S. talks a good game on free trade, but in reality they do not want to see Americans investing abroad and believe that everyone having a foreign account is a tax cheat. Consider the fact that U.S. citizens are already required to disclose foreign financial activities by:

Form 1040 - Individual Tax Return (Must check box and identify foreign bank account)
Form 1041 - Foreign Trust Tax Return (complete income statement and balance sheet)
Form 3520 - Transfers to Trust by U.S. citizen
Form 3520A - Trustee report on transfers (with another income statement and balance sheet)
Form 926 - Transfers to a Foreign Corporation
Form 5471 - Report on Foreign Corporations Owned or Controlled (with complete income statement and balance sheet)
Form TDF 90-22.1 - Disclosure of Foreign Accounts

And now, effective for 2011 we learn of yet another new form requesting the same information as existing forms, Form 8938.

Get the idea how the U.S. government sees transfers and foreign investment?

Its very interesting how the U.S. is making it harder for people to take their money offshore...I am sure this is a bad omen...

Originally Posted by Rick54

Its very interesting how the U.S. is making it harder for people to take their money offshore...I am sure this is a bad omen...

It is one thing Republicans and Democrats agree on -- don't let the Sheeple know what's happening to them - we don't want them (actually, their money) to flee.

Personally I don't feel safe holding dollars, much less keeping them in the U.S...

When it comes to the offshore investing game, you really have to do your own research. It helps if you can find an offshore law firm you can trust, but you have to do your own research as well. Talk to people and get a feel for the waters. If you do happen to be looking for an offshore law firm, you can always check out Mata & Pitti, attorneys at law. Just find the firm you trust.