THIS IS A TRUE STORY, and I felt that I needed to pass this story on to you because it happened to ME. This is not some Fox News conspiracy theory or some right wing nut job and it scares the hell out of me, and I am glad I no longer reside in the USA. In 1991 I left Southern California and moved to San Antonio Texas, relocating my electronics company. I paid my final tax bill to California and closed my corporation and all my bank accounts. I stayed in Texas for 4 years and then moved to Boca Raton, and then 7 years later made my permanent relocation to Costa Rica. I have lived here now for 11 years. Three months ago I received a letter in the mail from the State of California. BALANCE DUE NOTICE. According to them I never paid one of my 1991 taxes ($421.00) and with 22 years of Penalties and interest I now owed them $3,004.51 !!!! TWENTY TWO YEARS later they send me a tax bill. Now I am positive I closed that corporation and positive I paid all my taxes, because if I didn’t they would have immediately sent me a bill in 1992.
I picked up the phone and called my old US accountant in California. Of course he didn’t have the record anymore that was over 2 decades ago. But he assured me that the statute of limitations for taxes in California was 10 years and that there was no way they could collect, but told me to call them and discuss. I sat on hold for an hour before finally reaching this woman. I politely told her that I thought it was insane that they sent me this bill and that there was no way they could be right. She basically told me where I could go, in a government polite way, and informed me that she didn’t care, it wasn’t her problem and that they would file a lien against me if I didn’t pay the bill. There was a procedure to argue it, if I wanted, and other than that I was out of luck.I called my accountant back and asked what my options were. He said that it would cost me more money to hire him to fight it than I owed and I should just call and make a payment plan. Give them $100 a month for 3 years, suck it up, and know that it is BS but hopefully some crack smoking welfare recipient drug dealer will get some food stamps out of the deal. I was livid but was just going to “eat it” and move on.
Last week I get a letter from my Wells Fargo Bank in Florida. IN FLORIDA people!!!! They received a notice from California ORDER TO WITHHOLD INCOME case number blah blah blah, file number so and so, under law number such and such, Revenue and Tax Code XYZ, demanding the $3,000. Guess what??? They paid it. They just PAID IT. They didn’t call me, they didn’t email me, and they didn’t even ASK ME: Heh Michael, do you have any proof that this shouldn’t be paid? Have you filed a complaint? NOTHING, they just paid it and deducted it from my USA bank account and sent me a letter. THIS IS A FACT; I AM NOT MAKING THIS UP. Remember, my bank is in the State of Florida, this is a bill from 22 years ago in CALIFORNIA!!! We all know what happened: the State of California is broke and they need to find money. They KNOW that no one will fight this stuff because they have no records from 22 years ago. And I bet they have done this to hundreds if not thousands of people, just like me.
People, you need to wake up. The US government is going to start doing the same thing. We are broke. We have spent the next 3 generations of money and we can never get it under control. I am not here to preach politics to you; you are all very intelligent and can see where the country is headed. When, not IF, but WHEN the United States defaults, it is going to be drastic. And they will be searching, begging for money to bail themselves out. Where is it going to come from? YOU and people just like YOU. People who have worked hard their entire life, played by the rules and figured out how to save money and acquire wealth. They are going to tax it, take it, freeze it or demand that you give it to them in one way or another. Currently there is over $15 TRILLION in IRAs and 401ks in the USA. With the National Debt at record highs, I think in the near future the government will force the managers of these funds to take your money and invest it in US treasuries and bonds to help pay off this debt. These Investments that are basically USELESS and you will see a good chunk of your entire net worth, GONE. Overnight. But there are other options for you. Many people do not realize that you can use your 401k or IRA and buy an investment property in Costa Rica.
I am a firm believer, and I have told this to many of you: you NEED to get some if not ALL of your money OUT of the United States of America before it is too late. It is imperative that you take control of your future NOW while you still have the opportunity. But I am Canadian, some of you say, how does this affect me? A lot of Canada’s wealth is based on the US stock exchange and our purchases of their resources, so when it goes, so does Canada. And Canada already has some of the highest taxes on the earth.
If you would like to discuss some of these options, I am always here. We have seen record amounts of money moving to Costa Rica the last few years, and it has gone into overdrive since the reelection. People are waking up, I hope you do too. I am living proof that you have no control if your money is in a bank or a USA controlled asset. Don’t leave your money sitting there, bring it to paradise.