Why Offshore & Expatriate Financial Advisers Don’t Want American Clients

It’s not a good time to be an American if you want advice about how to grow your wealth – even if you’re an American living abroad no one will give you financial advice!  The IRS is cracking down on tax evasion – and in so doing it is turning American citizens into pariahs in their own country and overseas.

We understand why the American authorities have launched an all out assault of taxation evasion in a bid to prevent it, bring all their citizens in line and in some small way shore up the American economy, but their incredibly heavy handed approach is the equivalent of using a sledge hammer to crack a nut.

It is because the American authorities are being so threatening in their pursuit of supposed lost revenue that offshore and expatriate financial advisers do not want American clients – it is just not worth the risk and the hassle.  You see, American tax authorities are now opening new offices around the world in a bid to streamline their investigations into taxation avoidance – and they are looking at who has advised Americans and who has assisted them in going offshore.  So it’s no wonder no one wants to touch American clients, after all, who wants to be the subject of an investigation.

Of course, there are always those who will say if you’re doing nothing wrong then you have nothing to worry about.  But in the UK, anyone can be subject to a tax audit – and the same goes in America.  So whether you’re doing something wrong or not, the thought for an adviser of having the IRS breathing down your neck is just not pleasant.  Universally the advisers and brokers, tax specialists and financial consultants who we speak to state categorically that they will not work with Americans onshore in the US or expatriate Americans living anywhere abroad.  There is not one exception…

The reason behind this stems from America prosecuting employees of the Swiss bank UBS for encouraging Americans to offshore their wealth.  We do not know the ins and outs of this incredibly high-profile and complex case of course.  But taking it at face value, and coupling it with the news that the IRS is opening satellite offices around the world to hunt for more American dollars offshore and to prosecute those who have helped Americans allegedly avoid taxation, it is of no surprise to anyone that expatriate financial advisers do not want to touch anyone from America.

No matter how legitimate an American’s desire is to utilise the many and varied savings and investment, banking and business options and alternatives offshore, advisers are just not willing to get involved in case they subsequently have to face investigation.  Going offshore even for an American is not illegal – what’s illegal is not reporting your activity – but again, no one we have spoken to is willing to risk their reputation and good professional standing on the IRS!

We’re quite sure that the IRS couldn’t care less that its citizens cannot get qualified and appropriate financial advice when they’re living away from home.  We’re quite sure that the IRS would prefer American citizens to remain in the dark about international financial options open to them.  And we’re quite sure that the IRS just wants all American money in American banks on American soil – damn tax competitiveness and damn liberty, democracy and freedom of choice when it comes to your money.  But at least if you’re an American reading this, you know why none of the advisers we work with or with whom we speak about developments in the offshore financial marketplace are willing to assist you.  It’s nothing personal, it’s just because you’re American!