had an discussion with a co-worker today. he thinks US gov won't know unless you declare it in the states, but i think they do. i told to be safe and declare it because sooner or later the IRS will find out and he'll end up with a hefty penalty.
had an discussion with a co-worker today. he thinks US gov won't know unless you declare it in the states, but i think they do. i told to be safe and declare it because sooner or later the IRS will find out and he'll end up with a hefty penalty.
Maybe they don't now, but they are trying their hardest to find you. There isn't a tax treaty or information sharing arrangement yet, however rumour has it that the IRS are beefing up their presence here.
Hong Kong Is New Target of U.S. Crackdown on Taxes (Update1) - Bloomberg.com
If your co worker is also earning less than c. US$93,000 plus a bit of his rent bill he may be in a position where he doesn't owe any US taxes under his foreign earned income exclusion.
Also when he goes back to the US how does he propose explaining to the IRS what he lived on out here in HK with an employment visa in his passport?
You will get screwed if you evade taxes. In other words, don't even think about it, son, because we know what you're thinking. The system is smarter than you.
Posted via Mobile Device
Last edited by zymu; 15-02-2010 at 07:16 AM.
An American ( pilot ) friend of mine, just got landed with a $20,000US income tax bill. And he didnt say a word to the IRS, almost 2 years working here.
Uncle Sam knows everything about you, outside the land of the free. Unless you ditch all forms of agency reporting mechanism, ie stop using credit cards, stop using bank accounts, mobile phone accounts, remove anything that is attached to your identity, because it will all be monitored by your GOVT. It's the same back in Australia, the Bureau of Stats, reports to ASIO & the ATO, keeping an "innocent," watchful eye, on every Australian. Ask Paul Hogan.....You're guilty till proven innocent when it comes to what the Tax Department thinks.
Most, if not all sophisticated first world countries monitor their people, nobody should be surprised.
Last edited by Skyhook; 15-02-2010 at 11:25 AM.
Hoges versus The Taxman < Before he went to court.
Australias favourite son, Paul Hogan, got accused by the Australian Tax office for hiding millions that he never owed. After a multi million dollar court fight, he won lol
Kicked the greedy ATO right where they deserved it, right in the cods.
Last edited by Skyhook; 15-02-2010 at 01:06 PM.
There is also no statute of limitations with the IRS