Forums > Areas > Jalisco's Lake Chapala Region

Don

Nov 30, 1919, 12:00 AM

Post #1 of 22 (2896 views)

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IRS horror stories in ajijic

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can the IRS seize your property there,and also bank accts. or investments there.Do you know anyone this has happened to in the area.Do you have to report to the IRS when you buy a home,sinse all cash for them?
Don

anon

Nov 30, 1919, 12:00 AM

Post #2 of 22 (2887 views)

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File annually to activate the 3-year statute of limitations!

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You should file annually so you fall under the 3 year statute of limitations.From http://www.taxmeless.com/"If you do file your tax return each year while living abroad, the statute of limitations for IRS audits will expire three years after you file those returns. That means the IRS cannot go back (absent fraud) and try to audit or change those returns later. Therefore, you should file your return even if you have no income or don't owe taxes in order to force the statute of limitations to run and eliminate future problems when you decide to return to the U.S."

Hnery

Nov 30, 1919, 12:00 AM

Post #3 of 22 (2887 views)

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What did you do?

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No Message

Me...

Nov 30, 1919, 12:00 AM

Post #4 of 22 (2888 views)

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IRS: Are we in La La Land or what.

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Listen one could make a comfortable living on the 25% that the IRS pays for locating delinquent and tax evading Americans located here at lakeside. Your social security numbers can be obtained from Gobernacion. Don't be fooled by these posts, the transfer of amounts over 1,000.00 US is monitored but generally ignored. Move more, say 300K, and we’ve got radar, and you better have a good lawyer that can tell you how to do this legally and in a low key manner. Give it your best...will they come after you, probably not. Can they come after you? Advisors in posts before you give advice read the extradition agreements between countries; it specifies financial irregularities, i.e. fraud, embezzlement, evasion, money laundering, etc... If they can find out what personal items the hijacker's of 9-11 bought and with funds from where, what makes you smarter than well trained international terrorists, arrogance? Get a good US based LLM, a lawyer with a master's in Taxation. See if he agrees with the well intended untrained "tax" advisors in this forum. Roll the dice...you may come up a winner, or loser.

the real Me

Nov 30, 1919, 12:00 AM

Post #5 of 22 (2888 views)

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IRS: Are we in La La Land or what.

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Amigo, the voy a comunicar con e meail porque ese mensaje no es de mi. otro ejemply de los gueros pendenjos bill meadows

John R

Nov 30, 1919, 12:00 AM

Post #6 of 22 (2887 views)

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IRS horror stories in ajijic

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"Dropping out of the system" is a really bad idea unless you never intend to return to the United States again. I do know a number of people who, after living abroad for a long time, have been painfully audited on return.Living abroad automatically gives you a fairly healthy exemption, at least if you have established either residence (say, with an FM3) or physical presence (330 days out of the year).If you are wealthy enough that such an easily claimed exemption doesn't matter, you are probably wealthy enough to hire a decent tax accountant.If you are living in Mexico, especially if you are not paying taxes in the United States, you could also come to the attention of Mexican tax authorities (fans like to use the word "tax terrorism" for Hacienda) whose tax rates are probably not going to be any lower than those north of the border.

Alvaro

Nov 30, 1919, 12:00 AM

Post #7 of 22 (2881 views)

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IRS horror stories in ajijic

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One hires a tax accountant to fill out forms and keep books. One hires a tax lawyer to answer legal questions. Don't hire a blacksmith when you need a veterinarian. I'm a CPA/tax lawyer...and believe me, most of the schemes you hear about ways to escape Uncle Sam's grasp are simply folklore and will get you in a heap of trouble, should you ever be audited. Rolly has given me such good advice on so many topics in the past, I decided to let go and post on one of the few topics I know anything about.
Sincerely, Alvaro

Nov 30, 1919, 12:00 AM

Post #8 of 22 (2882 views)

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Questions for JR

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Have never heard of any exemption for Americans living abroad - we still pay taxes based on the same tax tables as those living in the States. Please tell us all if there's something we've been missing out on. This exclusion to $78,000 - is that for income EARNED abroad? I can't believe it applies to U.S. investment income.Also, foreign (e.g., U.S.) income is not subject to Mexican tax, and Americans are not required to pay taxes to Mexico unless they earn income here - at least that is my understanding. Please again let us know if you have other information.

John R

Nov 30, 1919, 12:00 AM

Post #9 of 22 (2882 views)

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Right: Applies to foreign income. I overstated earlier

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John R

Nov 30, 1919, 12:00 AM

Post #10 of 22 (2882 views)

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I got it wrong. Apologies to all. (nfm)

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Rolly

Nov 30, 1919, 12:00 AM

Post #11 of 22 (2882 views)

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Question, John R

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I was unaware of the exemption you mentioned. Could you give us mare details? Reference number? etc...Thanks

John R

Nov 30, 1919, 12:00 AM

Post #12 of 22 (2882 views)

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Question, John R

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Form 2555 (or 2555-EZ) is for the Foreign Earned Income Exclusion.It can lead to excluding income of up to $78,000 a year, depending on the easy-to-follow instructions (g).cheers

Uncle Jack

Nov 30, 1919, 12:00 AM

Post #13 of 22 (2887 views)

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The problem goes a bit beyond that.

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You don't even have to return to the U.S. to reappear on the radar screen. If you have to renew your passport out of the country....Gotcha!

Rolly

Nov 30, 1919, 12:00 AM

Post #14 of 22 (2882 views)

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Don, please give us the URL

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Don, please give us the URL of the newsgroup you mentioned.Thanks

Uncle Jack

Nov 30, 1919, 12:00 AM

Post #15 of 22 (2886 views)

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Some interesting reading Expats and the IRS

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If you haven't been paying your taxes, good luck!http://www.taxmeless.com/page4.html

Don

Nov 30, 1919, 12:00 AM

Post #16 of 22 (2882 views)

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IRS horror stories in ajijic

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If you are a US citizen expat,USlaw requires that
you meet the same guidelines for filing a return that anyone living inside the US meets ( income
above certain level,etc, spelled out in front
of 1040 instructions.)US citizens are required to fill US tax returns
on their worldwide income, from ALL sources. Under some conditions, a foreign tax exclusion can
be claimed, but a return MUST be filed. Woe to you
if you are caught lying on it.....Most of those who "drop out" are caught when the
re-enter the US and get back into the system. When
the IRS sees that returns haven't been filed in a while, they get curious, and you will be audited...Remember, all US banks report interests to the
IRS under your social security number. The records
are there , as well as the records of cash
transfers. Once you attract their attention....For specific info on tax matters, go to the newsgroup
misc.taxes.moderatedIt is staffed by CPAs and tax lawyers, and the
advice from that source is MUCH more accurate
than the tax advice you get from a bunch of retiree drop-outs.......(especially on THIS
website)
Don

Don

Nov 30, 1919, 12:00 AM

Post #17 of 22 (2882 views)

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Don, please give us the URL

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Rolly, Since I don't know what newsgroups your
provider subscribes to, I would suggest that you
begin by using deja news. www.dejanews.comThen, under "Groups" specify the newsgroup
misc.taxes.moderated
Dejanews is a universal, web based free service.
It is more cumbersome, but if you post from
a variety of computers using a variety of
services, it is a good common denonminator.... Don

Judy King

Nov 30, 1919, 12:00 AM

Post #18 of 22 (2880 views)

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IRS horror stories in ajijic--NO--nfmsg

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Bob Story

Nov 30, 1919, 12:00 AM

Post #19 of 22 (2881 views)

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IRS horror stories in ajijic--NO--nfmsg

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If they can prove to the Mexican government's satisfaction that their claim is valid, you might be in for a rude surprise under Article 33 of the Immigration Laws of Mexico.

DON

Nov 30, 1919, 12:00 AM

Post #20 of 22 (2884 views)

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IRS horror stories in ajijic--NO--nfmsg

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THANKS JUDY,I KNOW A FEW PEOPLE THER THAT SAY THEY DONT FILE A RETURN.CAN THE IRS SEIZE MONEY IN A MEXICAN BANK?OR YOURE HOME THERE.THANK YOU FOR YOURE REPLY.I HAVENT LOST ANY LOVE FOR THE IRS HA.
THANKS DON

Bob Story

Nov 30, 1919, 12:00 AM

Post #21 of 22 (2883 views)

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IRS horror stories in ajijic--NO--nfmsg

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No, I'm not an attorney, just a taxpayer who cashed in our retirement plan to make a down payment on our home here in Mexico and then got a registered letter from the IRS informing us that we owed about $10,000 in income taxes that we are now paying over a 10 year period. This extended payment plan was recomended by our Mexican Tax Lawyer to avoid any problems with Article 33 of the Mexican Immigration Laws which stipulates that if a foreigner does not pay his just debts he/she can be deported.

DON

Nov 30, 1919, 12:00 AM

Post #22 of 22 (2882 views)

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IRS horror stories in ajijic--NO--nfmsg

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dON ARE YOU A ATTORNEY?
dO YOU KNOW OF ANYONE THEY HAVE MESSED WITH.IKNOW A FEW PEOPLE THERE THAT SAY THEY JUST KINDA DROPPED OUT OF THE SYSTEM,WITH NO HASTLES.IS THE IRS NOTIFIED WHEN YOU PAY CASH FOR A HOME.CAN THEY ATTACH MONEY IN A MEXICAN BANK.I AM NOT A TAX EVADER I JUST MAY DROP OUT OF SYSTEM TO.
THANKS DON