This is a very common statement being made lately by scores of Americans living outside the US. The reason is the enactment of the Foreign Account Tax Compliance Act or FATCA. In fact Expat groups, foreign banks and governments and have been communicating their concerns particularly surrounding the privacy aspect and the IRS intrusion on their finances. But nothing has stopped the implementation of the next phase of FATCA, which takes effect in July of 2014.
What is important to understand is that the Tax Law hasn’t changed in regards to foreign income. That has always been taxable, subject to exclusions etc. What FATCA does is gives the IRS information on foreign accounts held by US citizens. So Americans can no longer shelter their income in foreign tax havens like the Caymans. That income must be Read more