Anyone have experience just walking away?

[Nigital Domad]

I have a client of means (~5M GBP) who is considering simply walking away from her US life. She already has other citizenship (CBI nation), residence, a new life set up. If she walks away still owing tax man a few hundred thousands in tax, what is worse govt might realistically do?
Revoke passport?
Put her name on a naughty list (she already changed her name in new country so she doesn't care)?
Send navy seals to find her?
Anyone know someone who has actually walked away and never looked back? How did it turn out for them?

 

[daniels27]

You mean she just wants to leave the US and live elsewhere under a different name with unpaid tax debt in the US?

Most countries have clear rules on debt collection. They will simply follow those. Either they can enforce it or not.

Most likely not, but she may not be able to renew. She definitely won't be able to enter the US again. I think there have been cases of previous students returning with unpaid parking fines being help up at immigration. I guess that will apply to federal tax debt too.

Most lists are for criminals. If she has been charged, she will end up on the appropriate list.

Not sure which country she got he passport from, but as far as I remember of all caribbean ones, there is only one that allows for name changes and all of them report back to to the US.

Probably not.

Maybe this one:
https://www.tagesanzeiger.ch/der-geflohene-taeter-bezieht-iv-rente-in-thailand-805833877928

 

[Nigital Domad]

Yah. She feels she paid millions in taxes over the years so she has performed her duty as a loyal citizen. Now she just wants out especially due to her opposition to the current regime (which she does not want to give another dollar to). My place is not to judge-just to assist.

 

[daniels27]

Honestly, it really depends on how much she is worth and how much she owes. Depending on the case, it may make more sense to pay off and leave in peace. Especially if she is young and maybe one day will be back in the US for whatever, opens a bank account there. You also don't know what countries they will have asset-freeze agreements in future, something which may strike her back easily in 50 years. And then pay all with 7% interest?

My advice, pay and forget. If she has not yet filed, she can ask for an extension and then fix the business with additional expenses and kickbacks elsewhere later.

 

[Martin Everson]

I think this guy pretty much answers your first few questions.






Some states also publish lists of delinquent tax payers i.e Oregon. Hence her old name could end up on a naughty list where friends and even family may snitch to IRS on her (for a reward) if they know where she is...lol.

https://www.oregon.gov/dor/programs/Collections/Pages/delinquent-taxpayers.aspx

I hear her. Bottom line is unless she changes her bio-metrics (not just name and passport) and keep he rmouth shut on her movements the US intelligence machine can probably find her if they really wanted too - starting with the country she last traveled to after leaving US and following the travel paperwork trail.

My gut instinct says nothing will happen but why mess with the US and its overreaching nature. I won't judge but won't advise her to vanish without paying all taxes owed to Trump government.

 

[Nigital Domad]

Thank you both! I have read others thinking about this but I have never heard of someone actually doing this (or knowing someone who did - other than dishonourable / criminal elements which my clients certainly are not.)

 

[daniels27]

Yes, and there is a reason for this, which you will find if you keep scrolling.

“Every man has property in his own person.”

In other words, it really does not make much sense to escape a 200k tax bill, if you have previously invested years into education, building credit, etc. It really does not make sense to not pay 200k taxes if you have a solid credit history in the US giving you access to 400k of credit on loans and credit cards. You could simply pay the taxes with borrowed bank money (and then later offer the banks to pay off 50k instead of the amount due). That just as an example, she probably still have social security retirement benefits, etc. which she will most likely lose, it just does not make much sense from a logical point of view. Unless it is about criminals with really nothing left.

 

[Nigital Domad]

Agreed. But at this point it is also a moral issue for her-not just monetary. And if the US continues to decline (in her eyes) and she feels she cannot in good conscience support that government (or if it truly devolves into a more Fascist state) she wants to use this time to prepare to walk away forever.

Like I say before - I am not judging her. Just try to help where I can.

 

[daniels27]

Her breathing also causes big moral issues in terms of CO2 output. Still, she keeps breathing.

Yes, you should try to persuade her not to follow this route. It really unly makes sense for criminals but not for people with 5M net worth. Maybe in 1970, this was a cool plan. But not today. One day, she will pass by a country that has some agreement with the US and then, she will be detained for tax payment. And this will be the amount due now with 7% interest. I highly doubt that this can be in her long-term interest.

You can help her increase expenses for 2024 to lower the taxes due. The US is known for little auditing and many people were able to liquidate a prosperous US business, renounce US citizenship and get out. You can check the posts by this guy:

 

[diro]

I don't know if I would risk all the troubles, the US and the three letter agency can reach you worldwide if they want.

 

[W Fish]

Sure they can. They can without walking away as well.
So the question is not if they can, it is not to give them reason to. 😉

 

[daniels27]

Maybe, @W Fish can help her reduce the tax bill by spending more on marketing?

 

[diro]

Regardless of the circumstances, I would strongly recommend that any U.S. citizen who finds themselves in this situation seek help from a specialist in tax debt resolution.

There are plenty of professionals out there who focus specifically on dealing with the IRS, and they can provide advice based on experience from potentially thousands of clients they've helped throughout their careers.

 

[myshufflemix]

I would do that in any EU country at any time, since I know how to hide within Europe. But playing with the US tax office is like playing with fire!

 

[davefish]

a friend of mine did the same thing and walked away and stayed out of sight in Lebanon for few years owing around 1m ish , 5 years later he went on vacation to Mexico using his LEB passport , They were waitng for him as soon as the plane landed and was sent to jail in NY the next week .. Never f**k around with Merica

 

[Nigital Domad]

So seems like: as long as all taxes are paid (even if no renounce citizenship - just walk away forever) then "former" empire citizen should not be of interest to empire anymore?

 

[Martin Everson]

Pay to Caesar what belongs to Caesar as the saying goes and all should be good. The sad fact is that with the emperor in Washington poor policies the US will be in a perilous fiscal position long term. A wealth tax seems a certainty when the Dems get back in after Trump has screwed the economy. Not sure how she could escape that.