The Dirty Dozen (movie not FATCA)
The Dirty Dozen (movie)

Legal challenges that US persons have to deal with, living overseas.

The following legal challenges are extremely problematic for USA persons:

  1. No foreign bank will open an account for a US person or US person beneficiary.(Other than a bank of the overseas employer for their income overseas)
  2. No offshore brokerage will open an account for a US person. This means that if a USA person can open a foreign bank account/brokerage account he can’t purchase any non-US registered investments. IF he could purchase those investments they would all be PFIC’s (no sense, no reason, bad idea, high tax and high reporting costs)
  3. All of the 23 Trillion in funds registered in Luxembourg are not available to USA persons and if they were they would be a PFIC. All USA funds held by US persons resident in the U.K. are similar to a USA PFIC in UK tax terms! This means move to UK and all your USA funds are a UK tax problem and you can’t buy UK funds or you have a PFIC problem. Catch 22.
  4. Additionally, if a USA person goes offshore the IRS wants to know Why? This means going offshore is a virtual red flag and will be audited by the IRS.
  5. There are certainly no confidential offshore accounts other than FATCA non-compliant financial institutions/trusts/ etc. And in that case a US person cannot transfer money to/from account due to up to 60% withholding costs!
  6. IF a USA person goes to a S.E.C. registered advisor outside the USA, eg. in London or Switzerland then he has access to the same investments that he can access from an account within the USA…which means, what is the purpose? He went overseas but his investments stay in the USA…makes no sense. He did not geo-diversify.
  7. A USA person cannot open an offshore IBC or LLC, well they can, but they can’t get a bank account for it. And the IRS wants to know why would they do that offshore as there is no U.S. tax advantage? (Red Flag for audit)
  8. A non-resident USA person cannot open a bank account in the USA for an LLC, IBC or other business account. (not these FATCA days)
  9. Many USA banks and brokerages have written letters to non-resident USA persons asking them to close their account. I can name names if you wish to know the extensive list
  10. PFIC Form 8621 and Foreign Corporation Form 5471 the IRS consider guilty of tax evasion until proven innocent of tax evasion by proper reporting and payment of tax. Both reporting and tax would cause the IRS to ask…why are you doing this as there is no U.S. tax advantage and higher costs than staying at home!
  11. Offshore PPVLI Life policies have no IRS recognized regulator and can be considered suspiciously tax avoidance vehicles and will be audited. Once a Non-MEC policy is a MEC policy it is always a MEC policy and cannot be changed.
  12. If the IRS considers that, that ”thing” you are doing offshore has the only purpose of tax reduction/avoidance they will disallow it! (Which means that even if a U.S. attorney organized it then it becomes suspiciously suspect unless that ”thing” overseas has a Government Regulator and IRS Recognized)

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Solution to the FATCA Dirty Dozen:

The RAPS © (Regulator Asset Protection Structure) IRC 402(b) Foreign Retirement Plan solves all of the ” dirty-dozen” problems legally.


Complete the Form to Get the Free Report

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