If you're making income in America, you owe US tax taxes.
If you are a permanent resident of the United States, you owe US taxes.
Whether the IRS is using mafia tactics or not, what you are describing is tax evasion. There are legal ways to minimize your tax burden, but this is horrible advise.
> U.S. law also states that a child born outside of the U.S to a U.S. citizen parent who previously spent sufficient time in the U.S. is a U.S. citizen at birth, regardless of whether the child also has the citizenship of the country of birth or another citizenship. U.S. citizens married to fellow U.S. citizens can transmit U.S. citizenship to their children if either parent has ever had a residence in the United States (without any minimum time limitation on how long they held that residence.) However, for U.S. citizens married to non-U.S. citizens, the required period of residence is longer; under the Nationality Act of 1940 and the Immigration and Nationality Act of 1952, the required period of residence was set to ten years, five of which had to be after the age of 14. The Immigration and Nationality Act Amendments of 1986 reduced this to five years, two of which had to be after the age of 14.
So you're automatically a citizen if you're born in the USA, if both of your parents are citizens (and at least one has resided in the USA), or if either of your parents is a citizen and lived in the USA for 5 years (2 of which after the age of 14).
Also, at least from a tax perspective, if you plan on remaining a US citizen, you might benefit from getting SSNs for your kids so you can claim the child tax credit and stimulus payments for 2021.
And if they don't want to be citizens, renouncing citizenship in the 6 months immediately after they turn 18 can avoid tax complications.
After trying to get citizenship without leaving the country for about a year, I went to the post office and applied for a passport again, with every document that could possibly be relevant. The post office person looked through my pile of documents, declared my mother's passport good enough, stuffed it in the envelope, and a passport came in the mail for me. I think you may have explained to me how that worked out.
https://www.cbc.ca/news/politics/fatca-tax-deal-forces-canad...
In the case of the US, they have the capacity to make legitimate threats against me regardless of where I live, with zero defense provided by my sovereign nation. So what's the right move?
> if you don't disclose your US citizenship to foreign banks then that information is not going to make its way back to the IRS
I would not assume this to be true. Certainly not without researching into any specific case more.
Ergo, they can't call Interpol to get you for not filing.
(correct me if you're a tax accountant, but I'm 99.999% positive on that first statement and 80% confident on the second)
Now, chances are they don't find out, or if they do you can play innocent and pay a fine. Personally, if I were in this situation I would either file, renounce, or never set foot on US soil.
People who renounce their American citizenship do so with the funds to overcome this or because they’re committed to living somewhere else.