Yes getting back to the tax thing . . . The OP, I believe was posting
about the requirements to keep the USA IRS informed and aware of your income
streams both inside the USA and outside the USA.
- - This brings up the relationship of taxes
to cruising and cruising boats (kind of what CF is supposed to be about). I have had some very convoluted and complicated tax situations over my working years and have spent more than my share of time hassling it out with the IRS about how much I legally owe them.
- - When you are young and financially productive paying your "fair share" but not any extra is a constant concern. I suspect we all have worked hard for our money
and would like to be able to keep the maximum possible so we can buy the cruising boat and retire to a life of adventure.
- - But once you do head
out in your cruising boat snail mail has a difficult time finding you and it can takes months to catch up with. Since IRS and other official government
inquiries usually require a response within 90 days you can get into complications over simple things very easily.
- - So simplifying your revenue stream and tax obligations becomes a high priority. Who wants to spend a lot of your time in paradise hassling over tax matters back home? So moving things into tax sheltered or non-taxable or other simplifications tax-wise is very wise. If you can get things organized such that you can use the Form 1040EZ that would be a worthy goal. But if not, then at least get the 1040 down to a couple of pages with the minimum of attached schedules.
- - I suspect the main thrust of the ex-pat frustration with dual or other citizenship and taxes
is the need to keep up or well versed in the complications and convulsions of taxing regs in more than one country. But there are ways to organize your obligations to reduce the "paperwork" and hassles. Some of them may not be as efficient as others to keep your tax obligations to the legal
minimum, but the reductions in tracking, filing and worrying about IRS inquiries is well worth a few more sheckles.