Q&A: will the irs go after your money if its overseas?

Question by kevin m: will the irs go after your money if its overseas?
what happens if i move all my money to a european or canadian bank??? im going to get a large inheritence soon,i dont want to pay any cap gains or any other kind of taxes period.its not there money.i was thinking just open a german bank account.can the irs go after your funds in a foreign account?

Best answer:

Answer by bostonianinmo
Not a wise idea at all.

The IRS has tax treaties with many countries. They also have extradition treaties with many countries. And they have offices in some foreign countries as well. And yes, they can levy funds in many foreign countries.

You might find a cooperative third-world country BUT you always have the risk of your assets being “nationalized” and there’s no recourse if that happens — it’s lost forever.

However, if it’s an inheritance, YOU will not be taxed on it. The estate will be taxed if it’s worth more than the exclusion amount (currently $ 2 million) and there’s nothing that you can do to stop that. But once you get your share, you do NOT pay any tax on what you receive.

If you receive stocks or other securities, you’ll get the stepped up basis so if you sell them immediately there won’t be any capital gains to worry about.

Any banking transaction involving more than $ 10,000 is reported to the Treasury Department. That’s been Federal law for many years and there’s no way to stop that; it’s automatic. There are also laws on moving large amounts of currency or netgotiable instruments into most countries. Failing to comply with those laws can result in confiscaton of ALL of the funds by the foreign government.

If you want to risk losing EVERYTHING, or being imprisoned for suspected money laundering (for terrorists even!) then go for it. Personally, I wouldn’t.

What do you think? Answer below!