Tax Problem

zoomzx11

Gold
Jan 21, 2006
8,367
842
113
little tax problem

The short answer is that that they can but they won't. Its just not worth the effort in a financial sense. They are too busy with the other enormous problems that the US is facing. Just relax and enjoy yourself, your're safe and sound in the sun on a fabulous Caribbean island. ;)
 

AK74

On Vacation!
Jun 18, 2007
842
36
0
I Am concerned That if i owe the IRS in USA can they come after me in the DR?


If they could, for 75% of us living in DR wouldn`t make any sense.
So, relax and order one more cerveza (on IRS) !
 
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MrMike

Silver
Mar 2, 2003
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www.azconatechnologies.com
It's always best to file and stay current, you never know when you may have to travel to the states, and you never know when the IRs may decide to come after one or two people to make examples for the rest.

Besides, if your income comes from the DR, often the forst 80k/year is tax exempt.
 
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amparocorp

Bronze
Aug 11, 2002
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how much do you owe? 22k? no problem, 2.2 million? you ain't safe! they'll look and dominican banks will cooperate........war on drugs you know.
 

GringoCArlos

Retired Ussername
Jan 9, 2002
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Actually, the first $85,700 is now exempted by claiming the Foreign Earned Income Exclusion. But to claim it, you must file your 1040 each year to receive it. If the IRS sends you a letter claiming you haven't filed for a specific year, you cannot then claim the exclusion - its availability for your use disappears with their letter, and you will be liable for taxes from Dollar 1 just as if you lived within the US.

You become eligible to claim this exclusion on your earnings outside of the US either by staying outside of US territories for more than 330 days in a 365 day period or by becoming a legitimate resident of another country. There are other restrictions, such as owning a principal home in the US even though you claim to be outside the US, etc. It would be best to consult a good tax attorney who has experience dealing with ex-pats' tax issues.

This exclusion doesn't apply to investment earnings or other passive earnings like retirement benefits, just earnings from doing work outside the US.

Should you enter the US, they now have visibility of your IRS status on their computers and if the IRS is looking for you hard enough, the Immigration officer at the port of entry can retain your passport until their questions are answered to their satisfaction.

It may be best to fess up and clear it up. With penalties and interest piling up, it might hurt, but trust me it will be even more painful if you choose to do nothing and let the clock keep running on your mess. Who knows? The US gov't need $$ more than ever right now, and they might settle for a fraction of what they may be claiming is due now, or agree to a payment plan.

Your cheapest option right now might be to invest in an hour of a good tax attorney's time.
 

mike l

Silver
Sep 4, 2007
3,157
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This is all good advice.

Always file and if you do owe them go on a payment plan.

If you cannot pay just send a note to the IRS and ask them to deduct the amount you owe from any benefits you expect to receive later, like Social Security.
 

MikeFisher

The Fisherman/Weather Mod
Feb 28, 2006
13,771
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Punta Cana/DR
www.mikefisher.fun
i would not count on the fact that the IRS does not have a gent in st dgo,
legally they would not even need a agent over here to bring somebody home when the US is looking for that person.
if you are talking peanuts, pay them.
if you are talking peanuts bigger than you actually can efford to pay, than contact them and let them know that you are on it to make a little deal/payment plan aso.
if you are talking big bucks i assume you would not post on this forum about such, but in that case there are easy and legal ways to get the lost biy home. such is done often and usually never shows up in the papers.
and i appreciate the DR's participation on such,
it's time to close some doors for drug money and laundering services.
good luck
Mike