Posted on 09/01/2022 5:38:12 PM PDT by algore
A Boston grandmother has been fined $2.1million by the IRS for failing to report $4.2million in a Swiss bank account given to her by her Jewish father who fled Nazi persecution in the 1930s.
Monica Toth's father, a successful businessman, opened the account shortly before his death in 1999 in case his daughter ever needed to flee the country to escape persecution as he did.
Her father was traumatized by his family's experience of escaping Nazi Germany in the mid-1930s, when he relocated to Argentina, where his daughter was born, according to Reason.
'Like many who fled Germany or later survived the Holocaust, he felt strongly that his daughter should have a reserve of money in case she might one day have to flee government persecution
Toth, 82, moved to the US at the age of 22, while her parents stayed behind in South America. In 1980, she became a naturalized citizen.
Now Toth says the IRS and the US government are violating her Eighth Amendment rights, which protects against 'excessive' fines or bails or inflicting cruel and unusual punishments against citizens.
Under the Bank Secrecy Act of 1970, all US residents have to file a Foreign Bank and Financial Accounts (FBAR) form with the IRS each year to identify any foreign accounts that holds more than $10,000.
Toth claims she was unaware of the form and had retroactively filed five years' worth of reports in 2010, according to the Institute for Justice.
After she filed the forms, the IRS audited her and she received a FBAR penalty totaling $2,173,703 in 2012. The IRS can impose a penalty - which is different from a fine - for a 'maximum of either $100,000 or half the balance in their unreported account, whichever sum is greater.'
(Excerpt) Read more at dailymail.co.uk ...
Looks like the Commies got to her.
This is a friggin’ disgrace. What make the IRS think that money belongs to them?
Plank #3 of the Communist Manifesto: Abolition of all rights of inheritance.
Plank #4 of the Communist Manifesto: Confiscation of the property of all emigrants and rebels.
Curious if you support getting rid of the IRS and its Amendment 26 or are you all tingly and giggly waiting to see its mountain of tax rules descend upon the lower subjects?
Sounds like she should have used the money for the purpose it was established for her.
You have to report foreign bank accounts on your tax return. I had to do it.
The IRS is stealing the money of dead Jews.
They really are Nazis.
I found this link on “FATCA”
https://www.swissinfo.ch/eng/us-legislation_swiss-banks-to-tell-all-under-fatca/40473870
Yes, I seem to remember reading some time ago that Swiss bank accounts were no longer “secret.” And I don’t believe that old woman is innocent. I bet she’d made plans for its disposition or transfer when she dies. The holocaust is no excuse.
“You may need to pay UK Income Tax on your foreign income, such as:
wages if you work abroad
foreign investment income, for example dividends and savings interest
rental income on overseas property
income from pensions held overseas
Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.
Whether you need to pay depends on if you’re classed as ‘resident’ in the UK for tax.
If you’re not UK resident, you will not have to pay UK tax on your foreign income.
If you’re UK resident, you’ll normally pay tax on your foreign income.”
https://www.gov.uk/tax-foreign-income
The woman in question is a US resident. So yes, she owes taxes on income made overseas, just as a UK citizen would.
“German tax law determines how much foreign income must be taxed. Thus, all expenses (Werbungskosten) are normally taken into account.
Foreign income includes
Salary for employment abroad
Dividends from shares of companies from abroad
Income from self-employment that took place abroad
Income from deposits / deposits with foreign financial institutions
Income from foreign investment funds or bonds
Income from agriculture and forestry, if cultivated land is located abroad”
https://germantaxes.de/tax-tips/foreign-income/
Looks like Germany too!
“The general rule is that a person who is a resident of Italy is assessable on worldwide income unless they are exempt under the provisions of a double taxation treaty.”
https://home.kpmg/xx/en/home/insights/2021/07/italy-taxation-of-international-executives.html
Italy too!
“Curious if you support getting rid of the IRS and its Amendment 26”
I’d prefer a sales tax with no income tax or a flat tax. But I’ll never see either. In the meantime, I’m in favor of obeying tax law. I don’t cheat on mine. Do you?
My thoughts Exactly,
Now she can only go Half
A$$ Far !
.
She’s 81,
She better get Packin’!
Well, I’ve lived overseas for 20 years and know plenty of Brits, Germans, and Italians and none of them pay global income tax on money earned outside their country.
Americans are the only suckers forced to pay tax on any money earned overseas.
But you know better I guess.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.