American citizenship and taxes

if an american citizen goes to DR and starts a business over there, is that person still expected by the IRS to file income tax returns even when that income is generated in the DR?

does this mean that American citizens are to be forever burdened by the damn IRS no matter if they go to another country?

how can an American citizen legally escape from the IRS?

would becoming a Dominican citizen liberate an American from paying taxes to the IRS??

just renounce your American citizenship and you will be free from the I.R.S.

1. Yup

2. Yup

3. Die (but without alot of money)

4. Nope, not necessarily

1. yes, but I think you're allowed a certain amount to be earned tax-free.
2. yes
3. can't
4. would never think of giving up my citizenship

Try this link, could be very helpfull.

cant renounce either... They have some absurd claim on your money if you do that too... I dont know the details

The IRS and the us gov own you and will forever.
there are 2 countries that tax their citizens worldwide income... usa and Libia..... think about that. (the land of the free ....)

Clinton signed a order making it illegal to give up your citizenship to save taxes and they will with hold 50 % of your worth if you try.

I've done a bunch of research on this (Ascot included), but you only get half the equation...the Dominican half.

If you have money, you can get away from the IRS (sort of)...it just takes some planning, legal documents, and money. First, you create a trust in the US to hold your property. Then you purchase (or create) a Dominican corporation for your local acquisitions and business operations. That way, you pay taxes locally for local activity. Any gyrations you do in the US will be taxed there. And if you decide to pitch it all and head back to the US, you sell your business. Any money you bring back will be taxed as any other gain would...hopefully it will soften the dent you put in Social Security/401/IRA, etc. Bottom line, you should pay where you play. Uncle Sam will let you have as much leash as you want, but if and when you repatriate, he'll take his cut.

It doesn't seem fair that America can collect tax for money you make in the DR. Yes, people can work for American companies working there and receive their paychecks back in a US bank, but the DR must condone this due to the goodwill and commerce it creates. And those people are on work visa type activity, not intending to stay. But to set up shop, get credibility, I'd imagine you'd just about have to be "Dominican" (corporate-like) person to make any headway. And at that point, might as well cross-over as a citizen completely.

By the way, I also found during my surf that Uncle Sam is getting ****ed off about this scenario. You have a website, sell products, etc. You contract your ISP in Jamaica, for instance. You hire a billing company out of Panama to do the credit card thing. And your Dominican (or other...you can mix this around) corporation collects. They don't know where to tax. IRS says boo-hoo. Just don't try to bring the dough home (if you're American). But for non-US companies, it is a slice of American pie, to go.

Good luck. (I can't wait to leave either)

If you renounce your American citizenship then they assume you are doing it to get out of taxes. they then have the "right" to take about 1/2 of what you have and then you are still liabable for taxes for the next 10 years. Too many high taxed individuals were leaving the country so they changed the laws to keep the money

Jerry

Canada too taxes worldwide