# Dual Citizen Living in Panama



## CRGringo (May 29, 2013)

I could use a bit of advise, as I am about to file silently for th last three years with an accountant and hope I am doing the correct thing. (i have never filed)
I am german/american dual national but have lived in Panama for 20+ years.
I own shares(usually a 50% or less stake) and appear on the board on a number of local business and a few throughout latinamerica.
I sign in a handful of these corporate accounts, and some have gotten to have over $100,000 balances over the years.
My income is under $95k/year and i expect to report on around 6 bank accounts, around 4 corporate and 2 personal.
I am a bit nervous regarding the fines that could potentially be applied, perhaps I can get information on:
1) I could be fined on corporate accounts I just sign in, even though I am not the owner?
2) Lets say I do get fined heftily, I heard the amount can be negotiated recently on a podcast? I have no assets in the US or plan on going back. What could the worst consequences be for a person like myself, unattached from the US?
3) do debts to the irs prescribe?

thank you for any advice


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## Bevdeforges (Nov 16, 2007)

Despite all the hype the IRS likes to put out, they aren't lying in wait to pounce on people who (a) didn't realize they had to file and (b) don't owe much in the way of taxes anyhow. If you've been paying whatever taxes you are supposed to on the shares and corporate investments, it shouldn't be a problem.

The thing about reporting the bank accounts is an information filing only. Ultimately, they are supposed to be looking for accounts generating income that you aren't reporting.



> 1) I could be fined on corporate accounts I just sign in, even though I am not the owner?


Very doubtful that you'd be hit on this. Most folks who work overseas in anything resembling a financial position are signers on their employers' accounts. Reporting it is just a formality.


> [2) Lets say I do get fined heftily, I heard the amount can be negotiated recently on a podcast? I have no assets in the US or plan on going back. What could the worst consequences be for a person like myself, unattached from the US?


They aren't going to fine you until they have notified you that you're under suspicion of having concealed something. But if you have no US ties, and owe little if any taxes, they probably won't bother.


> 3) do debts to the irs prescribe?


Not sure what you mean here. But the IRS has very limited "powers" outside the US. Now, if they were to team up with the tax authorities in your country of residence for some reason, then yes, they could get pretty nasty. But if you're square with the folks in your country of residence, they have no reason to cooperate with the IRS.
Cheers,
Bev


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## CRGringo (May 29, 2013)

Thanks Bev,

Makes me feel a bit better regarding this all. 

By prescribing, i read somewhere that the irs has something like 10 years to collect any debt, otherwise it prescribes and basically becomes noncollectable.


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## BBCWatcher (Dec 28, 2012)

Do you mean "expires"? Yes, it does.


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## BBCWatcher (Dec 28, 2012)

I want to amend this blanket statement a bit. Tax-related statute of limitation provisions have some potential holes, so it might not be fair to say that all tax issues sunset after 10 years. Allegedly California has no limitation on how old uncollected back taxes can be, for example.

It's better to file (and file truthfully) if you want the statute of limitations to time out more quickly and more reliably.


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## Bevdeforges (Nov 16, 2007)

Technically speaking, there is a statute of limitations on "errors" in filing. But legally the sun never sets on income not declared at all. Which is what makes it worthwhile to file something, even if you take an "aggressive" tax stance. If the IRS doesn't come back at you within the statute of limitations period, you're home free.
Cheers,
Bev


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## CRGringo (May 29, 2013)

Thank you for the explanations, they have reduced my anxiety about this whole process. My main concerns are the penalties for not reporting, as I am clear that i personally did not earn any taxable income.
I will be filing soon and hope all goes well.


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