It's my understanding that the IRS considers an IBC or offshore corporation to be a flashing red sign screaming "AUDIT ME!!!" Or even better, "HAUL ME INTO TAX COURT!" They seem to consider IBCs an ipso facto evidence of tax fraud, because, well, "why ELSE would you do it?"
I do forex trading. Thanks to the idiots at the NFA and CFTC, we have a whole stack of onerous (and idiotic) regulations that make it difficult or impossible to implement some attractive forex strategies. Worse, nearly every forex broker/dealer in the rest of the world -- like, in places that have real honest protection for account holders, unlike the mess we have here -- now refuses to accept US clients. I know trading and risk a helluva lot better than the pencil-necked geeks at the NFA or in Congress, and I do not want to operate under their braindead regulations.
People often recommend setting up an IBC and opening foreign forex accounts from there. I would not do this with intent to dodge taxes, since the IRS is getting more draconian all the time and finding new ways to discover offshore accounts. For me, the risk/reward is just not worth it.
It would be worth it, for me, to escape the NFA forex regulations. But if the IRS is going to declare me guilty-until-proven-innocent, that makes an IBC pretty unattractive to me.
I know Bobby is an expert in offshore companies, but he has an entirely different aim and attitude about this than I do. Unless I'm willing to renounce US citizenship and move overseas, I don't think his approach works for me. Are there any other IBC holders who could speak on the realities of owning an IBC that you transparently report? Does the IRS say "OK, you reported it, so you're legit, we'll leave you alone" (as if!) or do they say "Thank you for filling out all those PITA forms, now we know you're one of those dirty tax dodgers and we'll make your life hell!!"
I do forex trading. Thanks to the idiots at the NFA and CFTC, we have a whole stack of onerous (and idiotic) regulations that make it difficult or impossible to implement some attractive forex strategies. Worse, nearly every forex broker/dealer in the rest of the world -- like, in places that have real honest protection for account holders, unlike the mess we have here -- now refuses to accept US clients. I know trading and risk a helluva lot better than the pencil-necked geeks at the NFA or in Congress, and I do not want to operate under their braindead regulations.
People often recommend setting up an IBC and opening foreign forex accounts from there. I would not do this with intent to dodge taxes, since the IRS is getting more draconian all the time and finding new ways to discover offshore accounts. For me, the risk/reward is just not worth it.
It would be worth it, for me, to escape the NFA forex regulations. But if the IRS is going to declare me guilty-until-proven-innocent, that makes an IBC pretty unattractive to me.
I know Bobby is an expert in offshore companies, but he has an entirely different aim and attitude about this than I do. Unless I'm willing to renounce US citizenship and move overseas, I don't think his approach works for me. Are there any other IBC holders who could speak on the realities of owning an IBC that you transparently report? Does the IRS say "OK, you reported it, so you're legit, we'll leave you alone" (as if!) or do they say "Thank you for filling out all those PITA forms, now we know you're one of those dirty tax dodgers and we'll make your life hell!!"
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