A new tax law set to go into effect this summer has some Korean Americans who still have financialties to the motherland contemplating whether or not living in the United States is worth it.
The Foreign Account Tax Compliance Act (FATCA) requires South Korean financial institutions to report to the I.R.S. any U.S. citizens or green card holders with a Korean bank account totaling more than $50,000.
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Penalties for not reporting can be steep, with some fines up to half the amount of money in overseas accounts, according to the Korea Times. It is uncertain how much the I.R.S. will tax offshore accounts for those in full compliance.
Some Korean Americans were furious at the new law, which will take effect in July.
“I have money in Korea that has nothing to do with the U.S. This is money that I made before movinghere and now the IRS wants to tax that?’’ Connecticut resident Cha Hae-nam, 62, told the Korea Times. “That has to be the most ridiculous thing I’ve heard.’”
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The new law, which affects many foreign countries, not just Korea, was designed to prevent tax evasion by people with offshore accounts, particularly in Switzerland.
Older Korean Americans were also rethinking their wish to stay in the States.
“Being old, it’s already tough enough to live in the U.S. Hospitals, customer service and just everyday living in general is so much easier in Korea,’’ Park Bong-joo, 58, told the Korea Times. ”This new law is definitely adding to the reason for me to go back to my home country.’’
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