Quote:
Originally Posted by Sly
Americans still have to pay American taxes... I am assuming Brits don't? Either way, if your solution is really that simple... somebody totally missed the ball on this law.
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You have to pay taxes on the money you bring in to the US, you can keep as much as you like somewhere else provided your company is located somewhere else. You can even report it to the IRS (I think you are supposed to) but they legally can't do anything about it until you bring it onshore.
The minute money comes into the US & you don't claim it, you're laundering money.
That is why a lot of people hold their $ elsewhere & bring in whatever they need to use. Your US company A invoices offshore company B for your services. Basically, you're just reaching into a different pocket.
At least that is my general understanding of it all. It isn't illegal.
Everyone here that uses epass or a similar service and withdraws $ from an ATM with no plans on claiming it as income is essentially laundering money. As far as I know epass doesn't have to report anything to the US because of its location... as well as a large number of affiliate programs located offshore (they don't have to 1099 you).
A lot of people get comfortable with that, thinking that's it... but there is always a paper trail, assets, etc. They'll get you if they want you.
PayPal on the other hand which is very similar, is a US based company... everything gets reported to Uncle Sam, leaving you a nice paper trail.