> The IRS doesn't care what you do with post-tax money! There is no prohibition on doing stuff outside the country
No, the IRS absolutely does care what you do with your money abroad.
If you create a foreign bank account (anywhere) they literally require said foreign bank to send a report every year of your assets. And the bank always complies, because the US treasury can restrict its ability to transact in US dollars.
Also, as an American, having a foreign investment account is possibly the dumbest thing you can do. There’s extremely punitive taxes on foreign controlled investment accounts to the point it doesn’t make sense to hold any money abroad.
Your advice may have been true pre-2000s but it is no longer the case in a post-FATCA world.
Yes, foreign passive and controlled accounts can have punitive taxes on them in some circumstances
Yes, a report is sent by the bank
No, that has nothing to do with there being a problem or any liability for you. A report goes out to the IRS, so what. Was your main point to say "and therefore the IRS cares?" okay. It means nothing to them if there is no tax event.
No, the IRS absolutely does care what you do with your money abroad.
If you create a foreign bank account (anywhere) they literally require said foreign bank to send a report every year of your assets. And the bank always complies, because the US treasury can restrict its ability to transact in US dollars.
Also, as an American, having a foreign investment account is possibly the dumbest thing you can do. There’s extremely punitive taxes on foreign controlled investment accounts to the point it doesn’t make sense to hold any money abroad.
Your advice may have been true pre-2000s but it is no longer the case in a post-FATCA world.