Abroad in America

PFICs Explained for Expats in America

In this episode of Abroad in America, host Jimmy Miller, founder of Baobab Wealth Abroad, tackles one of the most confusing and punishing corners of the U.S. tax code for expats: PFICs (Passive Foreign Investment Companies). What might have been perfectly normal investments back home—mutual funds, ETFs, investment trusts, even some retirement accounts—can suddenly become some of the most complex and harshly taxed assets once you’re a U.S. tax resident.Jimmy breaks down what a PFIC actually is in IRS terms and what it looks like in real life, why the U.S. cares so much about foreign investment companies, and how rules that were designed to stop tax evasion end up hitting ordinary expats with legacy portfolios from home. He then walks you through how PFICs are reported, why Form 8621 has such a fearsome reputation, and what happens if you’ve owned these investments for years without knowing any of this.You’ll also hear how PFICs fit into the bigger picture of worldwide taxation—that once you become a U.S. tax resident, the IRS wants to know about income and investments from anywhere on the planet. As always, Jimmy balances clarity with reassurance: yes, PFICs are complicated and sometimes expensive to fix, but there are options, and you’re not the first expat to discover this late.In this episode, you’ll hear:What a PFIC (Passive Foreign Investment Company) is in IRS language and what it really means for expats in practiceCommon investments that may be treated as PFICs, including foreign mutual funds, ETFs, investment trusts, and some foreign retirement accountsWhy the U.S. created PFIC rules in the first place and how anti–tax evasion laws ended up impacting everyday expatsHow worldwide income and asset reporting works once you become a U.S. tax residentWhy PFICs are taxed so harshly and why Form 8621 is one of the most dreaded forms in cross-border taxThe three main PFIC reporting methods: the default “excess distribution” regime, the QEF election, and the mark-to-market electionHow failing to report PFICs can trigger other penalties, interest, and never-closing statute of limitations issues on your tax returnWhy most expats who discover PFIC issues late are not treated like tax evaders—and why addressing the problem early makes it easier and cheaperPFICs are one of the biggest curveballs the U.S. tax system throws at expats, turning normal foreign investments into something that needs specialist attention. But with the right knowledge and support, they’re a problem you can understand and manage—not a reason to panic or give up on life in America.If you found this episode helpful, share it with another expat who still holds investments back home and may have never heard the term PFIC before.In the next episode, Jimmy lightens things up by taking a playful look at American culture—why Americans can seem loud, enthusiastic, and supersized—and what makes life here so uniquely fascinating for expats.Until then: stay informed, stay compliant, and keep exploring. Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn

Your Foreign Accounts and the US Rules You Can't Ignore

https://baobabwealth.com/foreigners-in-america/In this episode of Abroad in America, host Jimmy Miller, founder of Baobab Wealth Abroad, tackles one of the most misunderstood, ignored, and frankly feared parts of being a foreign national working in the United States: the FBAR (Foreign Bank Account Report).Jimmy breaks down what FBAR actually is, who has to file it, and why it exists—all in plain English, without the scare tactics. If you're an expat in the U.S. with bank accounts, investments, or pensions back home, this may be the most important episode you listen to all year.You’ll learn how that seemingly harmless checking account you opened at 18, the joint account you share with your parents, or the savings account you keep just to pay grandma’s bills can all add up to FBAR reporting requirements—even if you never earn a cent of interest.Jimmy also explains why the U.S. doesn’t just care about what you earn here, but about your worldwide accounts and income once you’re considered a “U.S. person” for tax purposes, and how global reporting rules mean those foreign accounts are anything but invisible.In this episode, you’ll hear:What the FBAR (FinCEN Form 114) actually is and how it differs from your regular tax returnThe $10,000 rule: when your combined foreign account balances trigger a filing requirement—even for just one dayWho is considered a “U.S. person” for tax purposes (citizens, green card holders, and expats who meet the substantial presence test)The kinds of accounts that do count for FBAR reporting—checking, savings, investments, some foreign pensions, and even joint or signature-only accountsWhat doesn’t count, like credit cards, loans, and U.S. accounts held at foreign branchesHow and where you file the FBAR, key deadlines, and why most people treat October 15th as the practical cutoffThe difference between non-willful and willful penalties, and why voluntary correction can make a big differenceA simple, reassuring perspective: this isn’t about punishing everyday expats—it’s about global compliance, and it’s manageable once you know the rulesJimmy closes the episode with a reminder that being global comes with responsibilities, but you don’t have to navigate them alone. Understanding FBAR turns it from a scary acronym into just another part of “adulting” in America—right up there with figuring out health insurance and why the milk tastes different.If you found this helpful, share it with a fellow expat, coworker, or friend who has financial ties back home and might not know about FBAR yet.In the next episode, Jimmy dives into another major reporting issue for expats: your investments and retirement accounts back home, and how the IRS views many of them as PFICs (Passive Foreign Investment Companies)—a topic that can be just as confusing and frustrating as FBAR, but just as important to understand.Until then: stay curious, stay compliant, and keep exploring. Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn

The Comeback

https://baobabwealth.com/foreigners-in-america/In this re-introduction episode, host Jimmy Miller, founder of Baobab Wealth Abroad, pulls back the curtain on why the podcast went quiet after just five episodes—and why now is exactly the right time to bring it back.Jimmy shares how “life got lifey” with work, travel, family, Covid, and global chaos all competing for attention, and how the show was never forgotten—just paused. Even while the feed sat still, listeners kept reaching out, asking if the podcast would return. This episode is his answer: yes.You’ll hear how the original vision of the show—helping expats and foreign nationals navigate life, money, and culture in the U.S.—has stayed the same, even as Jimmy’s world has evolved. His practice has expanded, his German wife has joined the firm, and Teresa has come on board as head of operations from Tampa, giving Baobab Wealth Abroad an even stronger foundation to serve clients living between countries.This short episode is designed as a reset and a welcome mat. It sets the stage for new episodes focused on the financial planning issues expats face in America and the real stories of people who’ve crossed borders and built new lives here. It’s also a reflection on what it means to return to a project, a place, or a version of yourself you thought you’d left behind.In this episode, you’ll hear:Why the podcast originally went silent after the first five episodesHow Baobab Wealth Abroad and Jimmy’s team have grown since thenThe renewed focus on financial education for expats and foreign nationals in the U.S.A thoughtful take on coming back to a passion or project after time awayA preview of the next full episode on FBAR and reporting foreign bank accounts while living in AmericaIf you’re living, working, or exploring in the U.S. as an expat—or you’re curious about what that life looks like—this relaunch is for you.Stay ConnectedIf you have a story, question, or experience you’d like Jimmy to feature in a future episode, send it in—he’d love to bring your voice into the conversation.Follow, subscribe, and share the show with anyone navigating life abroad in America. And as Jimmy says: stay curious, stay open, and keep exploring. Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn

Insight From a Former Expat Living in America with Florian Fiedler

Former expat living in America Florian Fiedler describes his experience while working in the US. Get some great insight he discusses what took him to America, how he managed to cope with being in a completely new environment, and some of the financial concerns he faced. Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn

The 3 Tax Buckets

Financial planner, author, and speaker Jimmy Miller describes how the 3 tax buckets work, gives an overview of the benefits of each, and reveals which one is useful for foreign nationals in many cases.  Visit Baobab Wealth Abroad Buy a copy of Jimmy's book, Divorce the IRS Download our guide for foreign nationals in the US Follow us on Facebook Subscribe to us on YouTube Connect with us on LinkedIn