3 ms·
Unfortunately, this is the fantasy but it's not the reality for some Americans. USA is a very complex country where blanket statements like this can be so far f
by gnulinux 3y ago
Unfortunately, this is the fantasy but it's not the reality for some Americans. USA is a very complex country where blanket statements like this can be so far from the truth for some that you'd be surprised. Tax education in our country is next to 0 but our taxes are extremely complicated. Many Americans have non-USA ties (even some Americans who lived in the USA their entire lives can have family members outside the country, but definitely Nth generation immigrants and recent immigrants) and what you said is not true if non-USA finances (bank accounts, inheritance, income etc) are involved. It is possible to make a tiny honest mistake and have to face huge $$$ penalty consequences. Such as FBAR, Form 8938, Form 3520 to name a few, these are things almost no American knows but if your grandpa from Mexico dies and you don't report his property in Form 3520 you may be billed up to $100k penalty. Sure, if this was an honest mistake they'll waive this penalty but not always and certainly not without a tax lawyer fighting for you. Now you need to hire a CPA and a tax lawyer and this is not cheap.
I personally find it misleading to undersell how high stakes taxes are in the US. Sure for 95% of the people if you make a tiny honest mistake nothing will happen, but it's not like a small error in your taxes can't cause a huge ordeal. I tell my friends, taxes are an extremely high stakes deal and you need to understand what's happening on those papers and IRS website. I'll tell my kids the same once they're of age to understand.