THE IRS IS WATCHING YOU SO PAY UP

Read more from New York Times

When You are in Mexico, How can the IRS Find Out You have Not been Filing Your Tax Return?

We are often asked by expatriates living in Mexico  who have not filed their US tax returns for many years (and have seemed to have dropped of any IRS list)  how the IRS could ever find them or determine they are not filing their US tax return each year.  Here are just  some of the ways:

1.  Applying for social security benefits or pension benefits

2. Opening US bank and financial accounts

3. Inheriting money from their parents or others and failing to report income generated by those funds.

4. A Whistle blower. The IRS pays finders fees for those who turn in tax evaders whether the snitch is a US person or a foreign person.  The largest whistle blower fee paid to date  is $104 million.

5. Renew a passport (you now must give the Government your social secuirty number) which is then sent to the IRS.

6. From a foreign countries tax agency exchanging information with the IRS under treaties or  FATCA.

7. Form public domain information on the internet, websites, Linkedin, Facebook, Twitter, etc.

8. Registering the birth of a child born abroad with the US Embassy.

Which one is not filing their US Tax Return?

9. Marriages or divorces (that are public record) that reveal your existence.

10. By entering the US with a foreign passport that shows you were born in the USA

11. Stolen information from foreign banks and financial institutions given to the IRS

12. When your older children apply to US colleges or learning institutions and list information about their payments who long ago dropped out filing tax returns.

13. From other Americans in the US or abroad who do business with you

14. From suspicious activities forms filed with the IRS (yes this is an actual IRS form often filed by Banks or other financial institutions, car dealers, etc ).

15. As a result of information provided to it by the Serious Organised Crimes Office (SOCA) or   the US Treasury's Financial Crimes Enforcement Network.

16. From data provided the IRS by other taxpayers entering the Offshore Disclosure Program.

17. Forming a corporation or LLC in a foreign country that requires you register yourself as the owner your US  citizenship.

An ever increasing number of countries are agreeing with the IRS that the best way for all of them to collect more taxes is to share information about their residents.  Computers and the internet are making it easier to gather data and locate those who previously could successfully disappear into the world.  It is difficult to guess exactly when in the near future, but for sure within the next 5 to 10 years  there  will be no where to run and no where to hide.

We can help you solve your nonfiling problems before it is too late. We have been assisting Gringos in Mexico with their US taxes for over 22 years and know the best ways to re-enter the US tax system.  Email us at ddnelson@gmail.com 

Mexican Bankers May Give IRS Information on American's Financial Assets in Mexico

Read below the Reuters story explaining how the IRS is getting foreign bankers to disclose the details of all of their American depositors.  This process is likely to be followed in Mexico which has the world's second largest number of American taxpayers living, working and owning property there.  Past cases reveal that the IRS will pay substantial whistle blower finders fees to foreign bankers and financial professionals to reveal all data on their American clients. It will only get tougher in the future in Mexico to hide both financial assets and Mexican real estate and business interests.  READ ARTICLE HERE

What the article does not state, is the very probable possibility that this Banker is being paid huge whistle blower fees for revealing all of the information on his ex bank clients.  Those finders fees are large enough to allow the recipients to retire in luxury for the rest of their lives. Turning Americans with assets abroad into the IRS is extremely profitable.  See IRS Form 211 for the form used to turn in Taxpayers in exchange for handsome finders fees.

The IRS has special forms for reporting Mexican corporations, Mexican Fideicomiso Property Ownership, Mexican Bank Account and other Mexican Financial Assets which must be filed with your US tax return. Failure to file those forms  or filing them late can result in penalties of $10,000 or more and possible criminal prosecution. The "good old days" of not disclosing your income or property in Mexico and disappearing fast.