‘Accidental Americans’ Face Big Tax Bills
He left America at the age of seven, has never earned a penny there, but might owe the U.S. government $6,000 in taxes.
Meet Elad Shahar, who was born in 1969 to Israeli parents in New York when his father was posted there for work.
Anybody born on U.S. soil -- or to one American parent anywhere in the world -- is automatically a U.S. citizen, and therefore must file and pay taxes no matter where they live or work.
Shahar, like other "accidental Americans," was shocked to discover recently that he was on the hook for back taxes, and may have to pay fines.
"[I am] incredibly frustrated and in disbelief," he told CNNMoney. "It takes time to realize that yeah, this is what is actually happening."
Editor’s Note: There are literally millions of people in a similar situation, they are known as “accidental Americans.” And their lives are being turned upside down from FATCA. We recently interviewed an accidental American, and the shocking story can be found here.