US are known for being strict with those who hide their money into banks of countries that do not charge taxes on this amount.
There are well known stories of people who have been jailed for as long as 12 years for off shoring a huge sum of money away from US, considering the other haven to be a safe one.
Apart from jailing, US law can impose a large amount of money as penalty for keeping money away from the country illegally.
An immigrant, who has become a citizen of the country, can be asked for 50% of the money they have outside the soil of US.
One should be prepared to get fiend with an amount of $100,000 for the off shored amount.
Immigrants shielding money
Many experts believe that those who come to the country should not be asked for taxes, but, IRS has learnt that there are immigrants who earn money on US land but rob it off from the authorities. They use all the facilities at land here, and are not ready to make any payment for this.
Sum collected by IRS
IRS is reported of collecting as high as more than $6 billion of money from more than 40,000 immigrants who tried to skip paying taxes and hence shielded the money off.
Lack of awareness
There are many cases when these immigrants go wrong without being aware of the US laws. And hence they are found to be not reporting their asset both in cash and kind to the IRS authorities.
There are many countries in the world, which do not charge taxes on the assets of immigrants coming to them in some place than theirs. And hence many of them could be making this mistake without having the required knowledge on the subject.
They also feel it as burden to pay taxes for the money they earned on a different land than USA, and they did so when they had not been awarded US Citizenship. Before obtaining American Citizenship, these applicants are not informed about the taxes they would require to pay for the asset they had even outside USA.
Advice coming from experts
There are cases reported when a new citizen of American had to pay a penalty of more than 350% of the taxes owed, although the non-payment was due to unawareness.
Therefore, there are legal bodies and individuals suggesting the Government to bring out measures to deal with these cases not so harshly.
Years back, there was hardly a case reported about a new American being penalized for not paying taxes on offshore assets or savings. Now, the courtroom is flooded with many such cases. In some cases the filer is penalized without even committing a genuine fault and being aware of the real laws of the country. After all, the law makers need to evaluate the situation and come up with an unbiased policy which protects the rights of new Americans without compromising upon the revenue generated.
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