Taxes

Who can and cannot be a dual national, as well as the joys and frustrations accompanying that status. Includes ROC Passport and Military Conscription issues
Forum rules
While the moderators are happy to help point people in the right direction for legal assistance and to attempt to keep these forums civil and tidy, please bear in mind that an Internet forum is not the place for providing or receiving legal advice or for the creation of any attorney-client privileges or obligations. Also keep in mind that Forumosa and the moderators cannot conduct comprehensive reviews of all laws or legal concepts referenced or discussed within these forums – laws and regulations are updated and amended, interpretations do change, and sometimes the legal landscape can change very fast. Forumosa provides these legal forums for general informational purposes only. By using these legal forums, you agree that the information does not constitute legal or other professional advice and no attorney-client or other relationship is created between you and any other posters on these forums. DO NOT CONSIDER THE FORUMS TO BE A SUBSTITUTE FOR OBTAINING LEGAL ADVICE FROM A QUALIFIED LICENSED ATTORNEY.

Taxes

Postby Spearhead » 26 Nov 2007, 03:31

I know that as a US Citizen, I'm supposed to pay taxes on total worldwide income. However, if I open a bank account in Taiwan using my TW passport, work for a short time in Taiwan, and even earn interest on the bank account itself, what are the practical chances that the IRS would even find out if this income is not declared? I assume that I can even just keep the money in Taiwan if wiring it back to the USA will attract notice.

I know about the moral issues of tax evasion, etc. so please no condescending replies! Does anyone know of anyone that has done this and actually gotten a letter from the IRS about undeclared income?

Thanks
-Spearhead
Spearhead
Ink Still Wet in Passport (shífēn xīnshǒu)
Ink Still Wet in Passport (shífēn xīnshǒu)
 
Posts: 2
ORIGINAL POSTER
Joined: 25 Nov 2007, 03:46



Postby Screaming Jesus » 18 Apr 2008, 18:41

Not very likely. With other countries (like Japan) there is more government-to-government sharing of information, but Taiwan is in this weird diplomatic situation, and the amount of money involved probably isn't worth chasing.

Even if the government there and here opened up all their records to one another, and the U.S. was willing to surmount the language problem, a basic difficulty is that the U.S. system is based on the SS number--which nobody here will ever ask for (except U.S. banks, which are required to do so by law). And it's no good trying to track people according to passport numbers, because those change, and anyway are not cross-listed with SS numbers very well. (Remember, a lot of people don't HAVE an SS number, especially if they are very young, or haven't spent much time in the U.S..)

The IRS can still catch you, however, if your spending patterns back home fail to tally with your ostensible lack of income. They catch a lot of people that way.

Oh, one more thing: although you are required to file U.S. taxes, you shouldn't owe anything unless you make more than about USD 80,000 a year. That's because the U.S. and Taiwan have a tax agreement designed to prevent double-taxation, and the U.S. excludes this amount. Of course, they might still say you owe something--and then what are you going to do, fly to DC to appeal it? (They routinely do this for amounts of under USD 500, because any higher and it triggers some kind of automatic review.) Also, some states may consider you their resident for the purpose of assessing state income taxes.
Screaming Jesus
Overpaid Foreign Athlete (duō fù xīn shuǐ guò gāo de wài jí yùn dòng yuán)
Overpaid Foreign Athlete (duō fù xīn shuǐ guò gāo de wài jí yùn dòng yuán)
 
Posts: 3522
Joined: 06 Mar 2003, 13:39
2 Recognized(s)



Postby Incubus » 18 Apr 2008, 20:29

What if one has been lax in filing for a few years, does the person have to file retroactively or just file and pretend nothing's amiss. I'm being hypothetical, of course. :p
Incubus
Wild Chicken Bus Driver (yě jī chē sī jī)
Wild Chicken Bus Driver (yě jī chē sī jī)
 
Posts: 1984
Joined: 15 Dec 2002, 13:44
Location: Taipei
12 Recommends(s)
35 Recognized(s)



FRIENDLY REMINDER
   Please remember that Forumosa is not responsible for the content that appears on the other side of links that Forumosans post on our forums. As a discussion website, we encourage open and frank debate. We have learned that the most effective way to address questionable claims or accusations on Forumosa is by engaging in a sincere and constructive conversation. To make this website work, we must all feel safe in expressing our opinions, this also means backing up any claims with hard facts, including links to other websites.
   Please also remember that one should not believe everything one reads on the Internet, particularly from websites whose content cannot be easily verified or substantiated. Use your common sense and do not hesitate to ask for proof.




Proceed to Dual Nationality



Who is online

Forumosans browsing this forum: No Forumosans and 2 visitors

You can use Google to do math for you. Just type the equation, like 23*7+15/3=, and hit Enter. Oh, yeah: on the computer, * means "times" and / means "divided by."
More tips from David Pogue