US global income tax

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Nano


I think he has to pay tax on that sell. If he sold the company after he had mailed passport, then it will be difficult to get him (I looked up the law regarding renouncing citizenship for tax, I think it does not apply to him since he is a Korean native). The second part is terrible, although I have no idea about Korean law, I assume they also have some form of child/spouse support?, maybe his wife can go to a Korean court?
 
Regarding supported by government, since he is a PhD, it is most likely in the form of NSF grant or DRAPA grant. Most of the foreign PhDs in US, especially ones in less commercial focused fields, are supported by US government. They do not have any obligation to the US/US government for that support.
 
Tour,





As I understand it, he transferred the money to a shell company in the Virgin Islands, then to Italy, and then to Korea. He traveled to each of these countries to assure transfer. When he got back to Korea, and the money arrived, he denounced his US citizenship. I just want to see the U.S. Government mess with him a bit, make his life hell.





These laws were made for scum bags like this. I am sorry for you having to pay taxes in the U.S. when the income will not be earned in the United States.





I understand that if his research was done with U.S. Grant money there is no obligation.
 
Nano


I think it will depend on how he arrange the deal. I am not a expert in corporate tax, but it is likely the US company is in fact a branch and the headquarter is in Virgin island. This is not unusual since Virgin island has no corporate tax. If that is the case, then there is no tax from the sell of the company since the company is not headquartered in Virgin island. The trip to Italy is rather strange, since I don't know any advantage can be gained from doing that. Although it is possible he set up a shell company in Italy then buys the shell company from Virgin and then sell it to someone. In such a case, it will be very hard to prove he is in fact the owner. In the past, court has been very reluctant in ordering "the pierce of the corporate veil". The situation is further complicated by the fact he is not even residing in US any more. IRS in this case is almost powerless.


For child support, apparently the law is indeed different in Korea. It is far more likely he renounced US citizenship to prevent his wife from getting her half of the share then avoiding paying taxes. She will have to go to a Korean court to get money from her ex and Korean court is not very friendly towards woman. I
 
Tour,





The company was venture funded by credible organizations. Venture groups don't play funny business with off shore companies because, as I am sure you know, their end game is to go public or sell. Financial records have to be very clean and audited. In this case the money was paid to him as in individual by a public company. I remember hearing about the wire transfer instructions and thinking it was a little odd.





Anyway, I have no idea how to get the attention of the IRS. I will fill out a form and send it to the IRS and hopefully they can act on the tip. I am sure they get lots of tips.
 
Nano


Best of the luck to your lady friend, I am sure she is having a difficult time. Offshore companies are actually quite common, majority of the bear stearns fund are cayman island based. Quite a few companies I know that listed on Nasdaq are also based there. In any case, if he got paid in US for work performed in US or he was a citizen at the time then he has to pay the back tax. So you go get him nano.
 
tourbillon, I've lived and worked in 3 Continents, Europe, S. Africa and lately here in the US.

I had one week's notice to get here and start work, I flew out of Heathrow Monday morning and started working the next Day in California, I didn't have a clue what I was letting myself in for, so of course I had to get a SS number, Driving Licence, open a Bank account all whilst working 7 Days a week but it was great, an adventure, although I must tell you moving to another Country is never how you think it's going to be....

For instance, after 2 weeks at work, meeting People and making Friends etc it was just like working anywhere else, I learned I had to pay x% in tax, SS, State Tax etc but I didn't care, I'm more than happy to pay everything I'm expected to. To me it's part of doing business, I've never felt like a Foreigner here and I think there's a special bond between people in the UK and US, plus I've never looked upon any American being a Foreigner, I'm a big believer in "when in Rome..." and if you don't like it, LEAVE...

Whatever rate you get taxed, whatever amount of Money you make it's going to be a great experience for you and your wife, Paris is one of my Fave Cities, in fact, I worked 60 miles from Paris for 6 months (At peugeot) another great experience....apart from the looooong wet/dreary winters over there which you never get used to....

The point of this reply to your OP is that it's hard to put a $$$ value on an opportunity like this, but that's just my way of looking at life....you'll be shocked at the amount of Americans living in Paris, you'll make a lot of new Friends, look at life from a different perspective...One thing I've learned to be true, and I don't know who said it but "You can never go home" . But go for it mate!! Just look at paying all the Taxes as part of doing business. Incidentaly, you should beable to find a blog similar to this directed at 'mericans living in Paris, people are always happy to give advice, just do a google on it..Bon Voyage and good luck!!
 
Peter, great advice.


For me, I took the job because it is something new. It is completely different from my previous work, and it will allow me to look at things from a different perspective. I figure I am still relatively young so I want to try out different things and see which one I like the most.
 
tourbillion - I just got through with an audit for a couple with foreign earned income and foreign passive income. Tax code relating to foreign income is some of the most convoluted and complicated mess I have dealt with in an audit. The purpose behind the code is to tax US citizen income earners while not double taxing them. This is (not) accomplished through the foreign earned income exclusion of $82,400 and a tax credit for taxes paid to a foreign government on income above the $82,400 or just a tax credit to taxes paid. There are housing and other exclusions and deductions and they change depending on income, the city of residence, and some other more minor factors. The two main forms are 2555 and 1116 and the accompanying worksheets.<p>


Normally, when a non-client asks to procure my service to prepare their tax return, 9 times out of 10 I tell them they can prepare their own return using Turbotax. And I believe it, because Turbotax is a helluva program for most tax payer circumstances. If you have any doubts, a few folks in here may speak up in this thread and verify. My preference is audit representation and the subsequent returns. But Turbotax is <b>NOT</b> adequate for taking the foreign earned income exclusion or taking the credit on any passive foreign income amount of over $600. It is close to impossible to file a correct return for these issues using Turbotax. If you find it necessary to file a return which includes the above issues, find a tax professional who has filed more than a few returns including a 2555 and 1116s. And personally I would recommend an Enrolled Agent as opposed to a CPA. Further, I would suggest you have the return preparer prepare the return using the foreign earned income exclusion and the foreign income credit and again using only the foreign income credit. Oddly, the advantage is not always gained by one method over the other. It varies from circumstance to circumstance.
 
nano, i dont know if this might work... but i had an obnoxious french neighbor. before one of his trips back to his homeland, i asked him if he would bring me back an authentic french brie. i also asked if he wouldnt mind getting me this really snazzy watch i wanted from duty-free. i would pay him back. lastly, i asked if he could secure the watch and brie together with wire and duck tape just so neither got damaged.





i havent heard from him since.
 
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