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I have never heard of that one, about being paid by a non-US corp for 2 years, but
it flies in the face of what I have been told over and over, that a US citizen
pays taxes on income "from whatever source derived", anywhere in the world. I
have never seen or heard of a legitimate tax saving plan that lawfully reduces or
avoids tax otherwise due from a US person.
Most if not all of the tax deduction schemes I have seen aimed at US citizens are
really tax avoidance schemes, where the goal is to keep IRS from discovering the
income is to a US person, and/or that person is you. If you get away with it, you
save a lot of taxes. If you don't, you will save a lot of rent, food, clothing
and entertainment expenses while you serve your time. Either way, you save!!!
When you, a US person, deal with the foreign financial types, bankers, lawyers,
etc., who set up these things, I have found that the substantial, credible,
responsible ones want no part of a US tax scam violation. So, if you find someone
to go along with your "scheme", it is very likely because you are the one being
scammed, or at least you may be about to cast your fate (and money) with some
unusually unreliable and disreputable people.
You do get credit for taxes paid to a foreign tax authority, up to the amount of
the tax, so if you pay taxes in, say, Switzerland, of US$100,000 on your income,
and your US tax is US$95,000, you owe nothing!!! OTOH, if you pay US$35,000 to
Switzerland and owe a total of US$95,000, you get credit for US$35,000, leaving
you owing US$60,000.
So if you work for a Monagast entity you pay no tax to them (Monaco), and the US
takes it all.
Or so I understand. I am the 17th reason to use H & R Block, BTW.
Jim Allen
Robert Cummings wrote:
> See told you I didn't know. What about leaving the US for two years but
> keeping your citizenship. There is special consideration on your income
> like no tax from US if paid by a foreign Corp during a leave of absence of
> not less than 2 years. You might be correct about 25% ownership but isn't
> that the incentive for establishing an Offshore Corp to take advantage of
> the tax or lack off from the US.
>
> Robert
> >> SNIP <<
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