By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The Abaco Chamber of Commerce is aiming to take the lead in informing residents with dual US citizenships about their obligations to the Internal Revenue Service (IRS) under the Foreign Account Tax Compliance Act (FATCA).
Dennis Lightbourne, president of the Abaco Chamber of Commerce, noted during the recent Abaco Business Outlook that there were many Abaconians with dual citizenship, particularly those with significant business interests.
And they face being caught in the FATCA net as the Bahamas moves towards a Model I agreement to IRS reporting.
“Many persons go to Nassau and Grand Bahama, but many people go to the United States to have their children, especially if they have family or friends there,” Mr Lightbourne said. “Some people do realise they have a US passport, and they boast that they can freely travel back and forth.
“They don’t realise that they have responsibilities to two countries. Many of them learn eventually by the time they hit their 18th birthday they do need to file federal income tax returns with the US Government. I’m not a tax man, but I believe there is an exemption on a certain amount of one’s income if it is earned outside of the country of dual citizens in this position.”
Mr Lightbourne added: “For the vast majority of people, it’s not a problem. What happens, though, is when people go over the threshold they are subject to taxes. What was more eye-opening to me is that we have many people who are dual citizens, they own a business or a significant share of a business, and suddenly 100 per cent of that business is opened up to the IRS.
“A number of people here have found themselves in that position. That is why we are trying to get get some folks here by the end of the year to conduct some workshops just to educate people. I see the Chamber as being a facilitator to allow people here who may have a need to talk to the professionals.”
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