Double Jeopardy—Global Psychopaths at the #IRS

How to screw a Finn with a hotdog stand in Finland

Penalties layered upon penalties–this is the culture of the IRS. And don’t forget–the IRS is now responsible for health care. If you live outside the US, The IRS will give a penalty first for not having reporting yourself, and then disallow your normal deductions, also.

If you are a citizen of Finland, living in Finland, but once have had a US residence visa (greencard), you are required to file US tax forms until you have formally filed the US IRS form I-407. If not, the potential IRS penalties could be bankrupting.

For example, if you should have a business (such as a Finnish hot dog stand), you are required to file either form 5471 and/or form 8865.

Form  5471  ʹto  report  that  a  Finnish citizen  living  in  Finland  is  a  10%  or  more  shareholder  in  a   Finland corporation.  Used  by  certain  U.S.  citizens  and  residents  who  are  officers,  directors,  or  shareholders  in  certain  foreign   corporations.  The  form  and  schedules  are  used  to  satisfy  the  reporting  requirements  of  sections  6038   and  6046,  and  the  related  regulations.

Form 8865 is similar. God only knows which form should be filed, or if both forms need to be filed.

Failure  to  file  Form  5471  penalties:  $10,000  failure  to  file  penalty  per  year  per  person  required  to  file.
A  $10,000  penalty  is  imposed  for  each  annual  accounting  period  of  each  foreign  corporation  for  failure  to   furnish  the  required  information  within  the  time  prescribed.  If  the  information  is  not  filed  within  90  days   after  the  IRS  has  mailed  a  notice  of  the  failure  to  the  U.S.  person,  an  additional  $10,000  penalty  (per   foreign  corporation)  is  charged  for  each  30-­‐day  period,  or  fraction  thereof,  during  which  the  failure   continues  after  the  90-­‐day  period  has  expired.  The  additional  penalty  is  limited  to  a  maximum  of  $50,000   for  each  failure
Form                     Recordkeeping         Learning  about  the  law  or  the  form         Prepare,  send  

5471                    82  hr.,  45  min.                      16  hr    14  min.                                24  hr.,  17  min.
Sch.  J  (5471)     3  hr.,  49  min.                         1  hr.,  29  min.                                 1  hr.,  37  min.
Sch.  M  (5471)    32hr.,  3  min.                                      12min.                                              43  min.
Sch.  O  (5471)    10  hr.,  45  min.                                   24  min.                                            35  min

(    http://www.irs.gov/pub/irs-pdf/i5471.pdf              p16)

The hotdog stand owner is required to file forms requiring (much) more than 150 US tax accountant hours.  If he doesn’t do it–can’t do, or won’t do it, the penalty can be $50,000 per failure. That sounds bad. But it would be great to just have closure.

What did you say? No closure?

That’s right. It doesn’t end there.

If an individual shall fail to file forms 8865 or 5471, the individual must reduce his foreign income deduction by 10% for each 8865 and 5471.

reference form 1116 line 12 instructions p 16 (middle section) http://www.irs.gov/pub/irs-pdf/i1116.pdf

The IRS dominates the judicial, executive, and legislative branches.  The IRS runs your healthcare, and determines every aspect of your life. The IRS has the powers of legislative, executive, and judicial branches. And few, if any of the Bills of Rights apply.

Don’t forget. We are talking not only about the situations inside USA, we are talking about the situation in a hot dog stand in Finland, owned by a citizen of Finland who lives in Finland.

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2 thoughts on “Double Jeopardy—Global Psychopaths at the #IRS

  1. There is not only a need for reform of the tax code, not only a need for a reform of the management of the IRS and its targeting systems, but a reform of the relationship of the tax code to the bill of rights and constitution. It’s only the IRS that gets to act as investigator, judge, jury.

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