Dual/Triple CitizenShip Tax Issues & FACTA

[joesinclar]

Great Forum.

Here is my situation : I am a French Born Citizen (French Passport Holder) as well as a Naturalized Citizen of the United States (US Passport) since 2005. I currently live in West Africa. I do have a Social Security Number in the US
but I have left the US over 3 years ago. I do not hold any US Assets or Properties of any kind. I haven't been filing any taxes in the US for over 4 years (Would not have been significant enough of a filing anyway). I have a US drivers License as well

Both my US and French passport are under my current French Name . I have the possibility through my father's to obtain a new passport from a West African Country. I may be able to obtain this new foreign passport under a
different name. My Father's original name. Not sure yet if it's possible, Could also be just an addon of his name to mine

I am currently working on a large project in Africa with big earning potential and i am trying to set myself up to avoid the Big Brother's Tax Hammer. As the asset volume will be significant enough to raise the US Taxman interest.

My questions : How should I go about setting myself up to avoid paying US taxes as much as possible if any at all ?

Should I obtain my New West African Passport and open a company and bank account under that new passport/Nationality ? Will that solve my problem. ?

Is it a problem to have a new passport with a different name or could it be a blessing in my case. ?

If I can only add my father's name to my existing, could I open the bank account with my first name and my father's name ?

I know European Banks requires Dual US/EU citizen to declare their status and they do report assets/income to the IRS. Are there Banks that do not apply by these rules ?. (FACTA)

Will using my West African passport to protect my assets/income/ allow me to avoid these headaches. ?

While I have no Assets in the US or plan to own any (rental will be fine) I will still like to Enjoy living there for a Few Months in a year or more and easily enter/leave the country with my US passport.

I plan to be living between France, West Africa, Asia and US. So could try to have a fixed residence wherever is best.

I have heard about something called the International Consultant status which allow to pay a fixed reasonable tax no matter where you live. any input on this ?

I am Trying to Avoid a renunciation of Citizenship if at all possible which seems to be more trouble and does not take effect before 10 years later anyway from what I understand.

Thank you very much for your great assistance.

Joe

[Libertarian]

If you hold residency or a US passport you are REQUIRED to file taxes with the US on your worldwide income. You are exempt from taxes on up to about $95k IF you live outside of the US for more than about 330 days (these number are accurate within about 10%, it varies year to year) any taxes you pay outside of the US on your income may be applied to offset your US obligations. If you are not outside of the country for almost ALL of the year then you owe regular taxes on that income and receive no exemption.

Failure to file taxes (whether you owe or not) you can now be stopped and arrested at the border.

Your best option is to renounce your US citizenship, otherwise you will be playing a cat and mouse game with the taxman. The US is the only country in the world that claims taxes on your worldwide income. Many natural born us citizens are doing the same. There is no 10 year obligation. Visit http://www.taxesforexpats.com/index.html they have lots of good article and references to obligations as someone who lives overseas and earns income.


Though as other countries continue to spend money on their socialist programs there is talk of other countries doing the same. I heard the french socialist candidate had a lead over Sarkozy (spelling?) so France may go that way as well. They need to feed the machine and they think taxes will do it. It never has. "The problem with socialism is eventually you run out of other people's money" -Thatcher

I'd get that African passport and new name.

[Libertarian]

And this just in....France now has a new Socialist President claiming to tax the "wealthy" at 75%. I'd get that other pp ASAP.

[GWPro]

I have to agree with Libertarian, you may be better off renouncing US citizenship. It will eliminate the need for you to look over your shoulder at all times.

With that said, since you were born in France your birthplace on the pp would say France as opposed to a US born dual French national.

This gives you the benefit of opening a bank account using your French passport without the bank having knowledge of your US citizenship.

I have a few banks that would be ideal to work with your scenario.

[TheOffshoreAdvisor]

Yo renounce his citizenship he would need to file taxes for any years he has not and pay incomes tax, interest and late fees. If he is wealthy he would have to pay a wealth tax of around 30%.

The French passport is your best bet as you may have some trouble banking on an African passport in some jurisdictions. And as your passport does not state anything relative to the US and you do not live in the US you would like not even be asked as part of the FACTA reviews required of banks that deal with US banks or businesses. If a bank or foreign financial institution has no business dealings with any US entity they do not have to participate in FACTA.

I have heard rumors that HSBC is considering opening a subsidiary bank that has no ties to the US or US businesses at all so it does not have to go through the FACTA regime in fact.

[Libertarian]

Originally Posted by TheOffshoreAdvisor

Yo renounce his citizenship he would need to file taxes for any years he has not and pay incomes tax, interest and late fees. If he is wealthy he would have to pay a wealth tax of around 30%.

If you don't catch up on the filings and renounce and try to return to the US you get flagged and stuck in jail for failure to file. He has been out of the US for 3-4 years and unless he has made more than $9?,000US he is exempt from taxes, just late fees for filing. He can clear this up very inexpensively, then renounce and return on his french passport.

If he is wealthy, he pays expatriation tax on projected exposure over $6??,000 otherwise just on the normal liquidation estimates.

Otherwise, if he doesn't catch up, it doesn't matter if he returns on his US or French pp, the IRS goons will be waiting. Clean up the mess, renounce, be free.

[TheOffshoreAdvisor]

Yes, it may not be difficult for him if little income, just filing all back 1040ez it looks like and then visiting a local US consulate. He has no US assets so no exit tax. He should not tell them it is for tax purposes as they can reject your application if you say tax purposes.

He can simple state he has no need for it any longer -- but it sounds as if he does not even need to renounce and just use his French passport - just don't visit the US until you file and file annually afterward a 1040EZ.

[Libertarian]

If he uses his French passport in a country that exchanges with the US, he is screwed. He needs to renounce and then he is only obligated to France. When he got his US pp, he showed his French pp. They know he has dual citizenship and is flagged if he uses either unless he ditches his US.

You can renounce for any reason you want, taxes or not. They can't keep you from giving up citizenship. They can however deny re-entry and if you say you are giving it up for tax reasons, that may prevent the re-entry, however they can't stop you from renouncing.

So instead of tax reasons I'd say "due to banks and international companies not wanting to hire me because I am a US citizen and the compliance requirements for banks and companies to do business with a US citizen abroad are so costly and intrusive on their own sovereignty, I can't get work. Additionally, because the US is bombing every country on the planet and bribing the ones they aren't and forcing a useless drug war on the world, carrying a US passport makes me a target for violence and retribution and kidnapping. So I fear for my life when acting as a US citizen abroad and feel safer carrying the passport of a less hostile nation" or something to that effect.

[Poverello]

[QUOTE=Libertarian;4751156] The US is the only country in the world that claims taxes on your worldwide income. QUOTE]



Not the only , together with the Philippines

[TheOffshoreAdvisor]

The US is the only G-20 country and OECD member that requires residents pay on their worldwide income. France has stated that perhaps they should do the same.