Anyone have experience just walking away?

[Nigital Domad]

I have a client of means (~5M GBP) who is considering simply walking away from her US life. She already has other citizenship (CBI nation), residence, a new life set up. If she walks away still owing tax man a few hundred thousands in tax, what is worse govt might realistically do?

Revoke passport?

Put her name on a naughty list (she already changed her name in new country so she doesn't care)?

Send navy seals to find her?

Anyone know someone who has actually walked away and never looked back? How did it turn out for them?

 

[daniels27]

You mean she just wants to leave the US and live elsewhere under a different name with unpaid tax debt in the US?











Nigital Domad said:






If she walks away still owing tax man a few hundred thousands in tax, what is worse govt might realistically do?

Click to expand...

Most countries have clear rules on debt collection. They will simply follow those. Either they can enforce it or not.











Nigital Domad said:






Revoke passport?

Click to expand...

Most likely not, but she may not be able to renew. She definitely won't be able to enter the US again. I think there have been cases of previous students returning with unpaid parking fines being help up at immigration. I guess that will apply to federal tax debt too.











Nigital Domad said:






Put her name on a naughty list (she already changed her name in new country so she doesn't care)?

Click to expand...

Most lists are for criminals. If she has been charged, she will end up on the appropriate list.



Not sure which country she got he passport from, but as far as I remember of all caribbean ones, there is only one that allows for name changes and all of them report back to to the US.











Nigital Domad said:






Send navy seals to find her?

Click to expand...

Probably not.











Nigital Domad said:






Anyone know someone who has actually walked away and never looked back? How did it turn out for them?

Click to expand...

Maybe this one:

https://www.tagesanzeiger.ch/der-geflohene-taeter-bezieht-iv-rente-in-thailand-805833877928

 

[Nigital Domad]

Yah. She feels she paid millions in taxes over the years so she has performed her duty as a loyal citizen. Now she just wants out especially due to her opposition to the current regime (which she does not want to give another dollar to). My place is not to judge-just to assist.

 

[daniels27]

Honestly, it really depends on how much she is worth and how much she owes. Depending on the case, it may make more sense to pay off and leave in peace. Especially if she is young and maybe one day will be back in the US for whatever, opens a bank account there. You also don't know what countries they will have asset-freeze agreements in future, something which may strike her back easily in 50 years. And then pay all with 7% interest?



My advice, pay and forget. If she has not yet filed, she can ask for an extension and then fix the business with additional expenses and kickbacks elsewhere later.

 

[Martin Everson]

Nigital Domad said:






I have a client of means (~5M GBP) who is considering simply walking away from her US life. She already has other citizenship (CBI nation), residence, a new life set up. If she walks away still owing tax man a few hundred thousands in tax, what is worse govt might realistically do?

Revoke passport?

Put her name on a naughty list (she already changed her name in new country so she doesn't care)?

Send navy seals to find her?

Anyone know someone who has actually walked away and never looked back? How did it turn out for them?

Click to expand...



I think this guy pretty much answers your first few questions.









Some states also publish lists of delinquent tax payers i.e Oregon. Hence her old name could end up on a naughty list where friends and even family may snitch to IRS on her (for a reward) if they know where she is...lol.



https://www.oregon.gov/dor/programs/Collections/Pages/delinquent-taxpayers.aspx











Nigital Domad said:






Yah. She feels she paid millions in taxes over the years so she has performed her duty as a loyal citizen. Now she just wants out especially due to her opposition to the current regime (which she does not want to give another dollar to). My place is not to judge-just to assist.

Click to expand...



I hear her. Bottom line is unless she changes her bio-metrics (not just name and passport) and keep he rmouth shut on her movements the US intelligence machine can probably find her if they really wanted too - starting with the country she last traveled to after leaving US and following the travel paperwork trail.



My gut instinct says nothing will happen but why mess with the US and its overreaching nature. I won't judge but won't advise her to vanish without paying all taxes owed to Trump government.

 

[Nigital Domad]

Thank you both! I have read others thinking about this but I have never heard of someone actually doing this (or knowing someone who did - other than dishonourable / criminal elements which my clients certainly are not.)

 

[daniels27]

Nigital Domad said:






other than dishonourable / criminal elements which my clients certainly are not

Click to expand...

Yes, and there is a reason for this, which you will find if you keep scrolling.



“Every man has property in his own person.”



In other words, it really does not make much sense to escape a 200k tax bill, if you have previously invested years into education, building credit, etc. It really does not make sense to not pay 200k taxes if you have a solid credit history in the US giving you access to 400k of credit on loans and credit cards. You could simply pay the taxes with borrowed bank money (and then later offer the banks to pay off 50k instead of the amount due). That just as an example, she probably still have social security retirement benefits, etc. which she will most likely lose, it just does not make much sense from a logical point of view. Unless it is about criminals with really nothing left.

 

[Nigital Domad]

daniels27 said:






Yes, and there is a reason for this, which you will find if you keep scrolling.



“Every man has property in his own person.”



In other words, it really does not make much sense to escape a 200k tax bill, if you have previously invested years into education, building credit, etc. It really does not make sense to not pay 200k taxes if you have a solid credit history in the US giving you access to 400k of credit on loans and credit cards. You could simply pay the taxes with borrowed bank money (and then later offer the banks to pay off 50k instead of the amount due). That just as an example, she probably still have social security retirement benefits, etc. which she will most likely lose, it just does not make much sense from a logical point of view. Unless it is about criminals with really nothing left.

Click to expand...

Agreed. But at this point it is also a moral issue for her-not just monetary. And if the US continues to decline (in her eyes) and she feels she cannot in good conscience support that government (or if it truly devolves into a more Fascist state) she wants to use this time to prepare to walk away forever.



Like I say before - I am not judging her. Just try to help where I can.

 

[daniels27]

Nigital Domad said:






Agreed. But at this point it is also a moral issue for her-not just monetary. And if the US continues to decline (in her eyes) and she feels she cannot in good conscience support that government (or if it truly devolves into a more Fascist state) she wants to use this time to prepare to walk away forever.

Click to expand...

Her breathing also causes big moral issues in terms of CO2 output. Still, she keeps breathing.











Nigital Domad said:






Like I say before - I am not judging her. Just try to help where I can.

Click to expand...

Yes, you should try to persuade her not to follow this route. It really unly makes sense for criminals but not for people with 5M net worth. Maybe in 1970, this was a cool plan. But not today. One day, she will pass by a country that has some agreement with the US and then, she will be detained for tax payment. And this will be the amount due now with 7% interest. I highly doubt that this can be in her long-term interest.



You can help her increase expenses for 2024 to lower the taxes due. The US is known for little auditing and many people were able to liquidate a prosperous US business, renounce US citizenship and get out. You can check the posts by this guy:






P





Post in thread 'Settling vs Nomading: Which Lifestyle Truly Wins?'



Jan 19, 2025









Offishore said:






I've personally spent a few years settling down and going to renew my passport soon, nomading is definitely where it's at, and if ur making bank tax-free then that's all the more even the better. I'm in the US btw and it's laws are changing for the worse as well as it's current taxation(s).

Click to expand...

Ditch the American passport free yourself from your country's shackles, get a passport from Antigua and see the world ,enjoy it ,keep more of your money .My actions in the last few years have been more influenced by Flag Theory and OCT.I love the offshore world ever since my first wife tried to...

• 
  providenceventurer
  

 

[diro]

I don't know if I would risk all the troubles, the US and the three letter agency can reach you worldwide if they want.

 

[W Fish]

diro said:






I don't know if I would risk all the troubles, the US and the three letter agency can reach you worldwide if they want.

Click to expand...

Sure they can. They can without walking away as well.

So the question is not if they can, it is not to give them reason to.

 

[daniels27]

W Fish said:






Sure they can. They can without walking away as well.

So the question is not if they can, it is not to give them reason to.

Click to expand...

Maybe, @W Fish can help her reduce the tax bill by spending more on marketing?

 

[diro]

Regardless of the circumstances, I would strongly recommend that any U.S. citizen who finds themselves in this situation seek help from a specialist in tax debt resolution.



There are plenty of professionals out there who focus specifically on dealing with the IRS, and they can provide advice based on experience from potentially thousands of clients they've helped throughout their careers.