Friday, July 9, 2010
THE REALITIES OF OFFSHORE ASSET PROTECTION
The days of moving money to an offshore account are gone --- The United States is the only industrialized nation that taxes its overseas citizens, subjecting them to double taxation: taxation in the US and in the country of residence.
The federal government has implemented tougher rules requiring expatriates to report foreign bank accounts exceeding $10,000, with stiff penalties for failure to comply.
Americans living abroad are often denied financial services because of the increasingly complex rules imposed on other countries by the US when dealing with expatriates.
The US Department of Justice (DOJ) is engaged in litigation against Swiss banks accused by the DOJ of helping wealthy Americans hide billions of dollars in Swiss bank accounts. To absolve itself of of criminal charges, UBS has agreed to pay $780 million in penalties and release the names of 250 clients the IRS suspects of evading taxes. Some much for bank-customer confidentiality.
In February, DOJ filed a civil lawsuit against UBS seeking the identities of 52,000 more Americans suspected of stashing a total of $15 billion at the bank. The next hearing on this case is set for August 3 to allow time for settlement.
DWIGHT EDWARD TOMPKINS
Attorney at Law
This blog is intended for informational purposes only and is not a substitute for legal advice from a qualified attorney in your jurisdiction.
I help people protect their families through affordable, personalized estate planning. Tompkins-Law.com I am in solo practice in Orange County, California where I focus on estate planning, family trusts, living trusts, wills, corporations and business succession planning. I speak Spanish and serve the latino community. Fideicomisos-Testamentos.com