This is a presentation I gave in Oslo in April, 2012. It covers the basic tax and financial reporting requirements for Americans living and working abroad.

1. Americans abroad: Taxes &
Rising Global Financial
Accountability
A presentation for the Fireside Forum,
American Women’s Club of Oslo,Norway
April 23, 2012
JUNE EDVENSON, AMERICAN ATTORNEY
EDVENSON CONSULTING

2. Rising Global Financial Accountability
 Problem
 Individuals and companies try to reduce their tax
burden at a time when governments need the funds
for necessary services, infrastructure and investment.
 Needs
 A ’level playing field’ for global financial accountability
 Greater transparency of transactions across borders
 Regulations that reduce the risk of advantage-seeking
behaviors

3. Rising Global Financial Accountability
Goals
To share the burden of taxation
For the benefit of the public
For use for public and social causes.
Directions
To reduce bribery and corruption
Brought about by lack of transparency
In financial transactions
Of all types and stripes.

4. Financial Accountability in the News
a few recent examples . . .
1. Swiss banks and UBS case
2. SWIFT system and Iranian trade sanctions
3. Greece, internal fraud and corruption
4. Italy, internal fraud and corruption
5. Multi-lateral pressures for internal control,
transparency and accountability

5. Accountability & Americans abroad
 Impact
 Americans must report their foreign income and taxes (and
U.S. Income) to the U.S. Internal Revenue Service (IRS)
 More recent requirements include sharing information on the
balance in foreign bank accounts & foreign securities
 Effects vary in different countries
 In Norway, our high tax rate means we usually would not owe
tax to the U.S. after reporting.
Ex: In France, their lower tax
rate affects Americans who
may owe tax to the U.S.

6. American Reactions
 Anger: Why me?
 Confusion: What must I do? Am I in trouble?
 Resentment: I shouldn’t owe the U.S; I don’t live
there.
 Other Responses:
 Ex: Renunciation of U.S. citizenship
 Ex: Advice by the Taxpayer Advocate Service
 Lobbying
 Options (2): Comply or revoke your citizenship

7. American Filing Requirements
 IRS Personal Income Tax Forms
 American citizenship
 Dual citizenship would not affect the duty to file
 American citizenship requires one to file with the IRS
 If a person is behind, file the 3 prior years plus the current year
 Minimum income that requires filing personal income forms:
 Single:
(2011): Under 65, $9,500; over 65: $10,950
 Married filing separately (2011): $3,700
 (Convert 2011 NOK to dollars by dividing by 5.6022)
Resources:
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

8. Bank Information Filing Requirements
 FBAR – Report of Foreign Bank and Financial
Accounts
 Form TDF 90-22.1: http://www.irs.gov/pub/irs-
pdf/f90221.pdf
 Form 8938 – Statement of Specified Foreign
Financial Assets
 http://www.irs.gov/pub/irs-pdf/f8938.pdf
 http://www.irs.gov/pub/irs-pdf/i8938.pdf

9. FBAR Process and Goals
 Who must file?
 You send this to Dept. of Treasury if you have the equivalent of at
least a total of $10,000 in a foreign bank account that year. This
includes control or rights to access that account. It also includes
options, funds, annuities, securities and insurances.
 What information must one file?
 For each account:
 The name and address of your bank/security/other financial
institution
 The account number and name(s) on the account
 The highest balance in the account in the given year

10. Form 8938 Process and Goals
 Who must file?
 You only file it if (1) you have to file an income tax return for that
year, even if your foreign assets meet the minimum amount to be
reported on the form, and (2) your assets total are over the
amount at end of year: For 2011: $200,000 single or married
filing separate, and $400,000 married filing jointly.
 What information must one file?
 This goes with your income tax return to the IRS. It includes:
 For each account:
 The name and address of your bank/security/other financial
institution
 The account number and name(s) on the account
 The balance ’range’ in the account in the given year

11. Two Americans with foreign assets
 The slacker, an example:  The honest hard-worker:
 Lives in Miami  Lives & works in Norway
 Makes money in the U.S.  Pays large income taxes
he can send abroad to Norway
 Sends it to a Cayman  Reports to the IRS
Islands bank.  Does not owe tax to the
 Does not declare it in the U.S.
U.S. for tax

12. Looking to the future
 Positive Consequences  Unavoidable Results
 Larger tax collections  Americans overseas
from persons who should experience a seemingly
pay tax unfair reporting burden:
 Less avoidance of tax  Difficult forms
liability among ex-pats  Scary deadlines
 Creates a model for other  Lack of ease to understand
nations to follow  Forces those with no
 Begins to level the playing resulting payment
field and close gaps in obligation to produce
accountability caused by time-consuming reports to
national borders the U.S. government

13. Making the right decision
 Ethics in a shrinking world
 Cosmopolitanism – making the world better for all.
 Justice and re-distribution of wealth
 Works to reduce financial market burdens on the poor
 Globalization means a more equitable distribution of wealth.
 The role of personal responsibility
 Consequentialism: What is the result?
 ’Doing the right thing’: Following the law.
 Virtue ethics: Being a ’good’ person.