http://platform.twitter.com/widgets/hub.1324331373.html
CanadianAtHeart post on the Expat Blog:
Please check the latest report from the IRS regarding the reopening of the OVDI. The memo is also on the IRS website. Not sure what it means that they are putting everyone in this program that came forward after the last one closed. New increased penalties, etc. Please read. IRS Offshore Programs Produce $4.4 Billion To Date for Nation?s Taxpayers; Offshore Voluntary Disclosure Program Reopens
The guy must be on drugs 😛
That is NOT an amnesty. It is the same old circus that we just went through. My .02.
I hate the wording of that so much, I really don’t think someone who has an account where they live, in a foreign country, is a tax cheat.
Ha… Can’t imagine there are lots of people lined up for that one after the last fiasco…. I guess the plan is to gradually raise the penalties in an unpredictable way, so people will be frightened into joining OVDI out of fear of the unknown. You never know when the penalties will rise and/or the number of years increase. One tiny glimmer of hope though…
“The IRS recognizes that its success in offshore enforcement and in the disclosure programs has raised awareness related to tax filing obligations. This includes awareness by dual citizens and others who may be delinquent in filing, but owe no U.S. tax. The IRS is currently developing procedures by which these taxpayers may come into compliance with U.S. tax law.
Could it be that they are aware of us and thinking of making something more appropriate for us? It seems to concede that currently there is not an appropriate procedure for such people, (who might (gasp!) actually have foreign accounts but not be “tax cheats”) One can only hope….. But I’m still starting the renouncing process.
Well this is a disaster. It seems like more of the bait a switch that they did before. First they announce rules that make them appear to be receptive towards people who didn’t know about the law and want to comply and now they go back to the old agenda.
Either they were upset with the growing number of renunciations or they had this planned all along. What point is there in coming forward now?
Canada and the world need to stand up to this robbery of their citizens and legal residents. Any tax money that is sent to the U.S. is money that is leaving their economies. It is a tax on the productivity of another nation and not a tax on U.S. citizens as the U.S. would like to portray it. The U.S. has done nothing to contribute to the productivity of the nations in which these citizens reside. It is individual productivity which forms the basis of a nation’s excess taxable wealth.
Yes, and I fell for it, having filed 4 years of tax returns/FUBARS in mid-December in anticipation of renouncing. My stomach is back to being clenched and all my recent sense of calm is completely undone. Thanks goodness only 11 days til last meeting for renounciation.
This is just spite. Now they want 8 years as opposed to the previous six. It is nothing more than an outright money grab. They know that anyone who comes forward will be caught in under these new rules, but now they have added two more years of revenue into their coffers. They have set the bar so high that many people won’t be able to meet it which means that they will stay outside of the program.
The man is malevolent and needs to lose his job.
Fiscal terrorism at its finest!
@CanuckDoc.. don’t count on it. They obviously show that they don’t want to play fair and they label all of us as tax “cheats”. This behavior is just beyond words for me. IMO, it them that are treading a fine line begal legality and illegality.
After seeing behavior like this, why would anyone want to keep citizenship from there?
As in the article posted this morning, I hope there DOES come a day when there are group/mass renunciations.
Perhaps though this could be a blessing in disguise if it results in enough backlash to get it all repealed
You have eternal optimism, but in the meantime have Plan B to protect yourself.
Here we go again, with a lot of the press (133 at my last count) applying the broad brush and characterizing this as Tax Cheats , and calling anything short of jail, an amnesty. Guess I know what I will be doing tonight. Emailing or commenting on as many as I can. Grrrrr. In the meantime, between rain windows, I am oiling the deck!
Again, this makes me wonder if I should even bother filing the six (eight now?) years of back taxes since I’m currently under the radar. I wouldn’t be required to file FBARs, so what to do…?
“The IRS recognizes that its success in offshore enforcement and in the disclosure programs has raised awareness related to tax filing obligations. This includes awareness by dual citizens and others who may be delinquent in filing, but owe no U.S. tax. The IRS is currently developing procedures by which these taxpayers may come into compliance with U.S. tax law. The IRS is also committed to educating all taxpayers so that they understand their U.S. tax responsibilities.”
This sounds like they are planning to fine people who owe no taxes. “…procedures by which these taxpayers may come into compliance…” – how about they just file their back returns like the delinquent filers IN the US? And where is the IRS going to get the manpower to tackle all that as well?
They just don’t get it. They really just don’t get it.
Moodys LLP take:
http://www.moodystax.com/blog/33-us-taxation-services/180-irs-promises-new-procedure-for-taxpayers-who-havent-filed-but-owe-no-tax-indefinitely-extends-offshore-voluntary-disclosure-ovdi-program.html
…
Under the procedure announced today, the maximum penalty is increased to 27.5% of the taxpayer’s foreign assets, but the reduced 5% penalty remains unchanged. However, the IRS states that the rules of the procedure could change at any time:
“For example, the IRS may increase penalties in the program for all or some taxpayers or defined classes of taxpayers – or decide to end the program entirely at any point.”
While this is welcome news for those who missed the deadlines imposed by the 2011 OVDI, it fails to address the many ambiguities and uncertainties that persist in the program. In particular:
•Are registered accounts (Canadian RRSPs, RIFs, RESPs and the like) to be included in the penalty calculation?
•Are Canadian spousal RRSPs included in the penalty calculation?
•Are we able to reduce the penalty base for gains, withdrawal penalties, and taxes?
•Will we be able to make a “reasonable cause” argument for a late election to defer tax in an RRSP?
Finally, while the OVDI made clear that the taxpayer could not argue “reasonable cause” for abatement of penalties within the program, will this preclusion continue under the new initiative?
…
I think it is time for Isaac Brock’s first press release. I think it should tell Canadians (and others for that matter): Under no circumstance should you enter the 2012 OVDI. Anyone else of that opinion after reading renounce’s post today?
See: http://isaacbrocksociety.com/2012/01/09/taxpayer-advocate-vs-the-irs-its-a-question-of-trust/
Yes Petros, it is time. Do you have enough contacts etc, to send it to?
I think it is too risky as it stands. Unanswered questions
and, for the last go-round:
“…The IRS assumed that anybody entering the program was a criminal and was admitting to being a criminal. Once entering the program a taxpayer was presumed to have acted “willfully”. (For those people OVDI was a pretty good deal.) Note that this focuses on the use of foreign entities to avoid or evade tax into compliance.
It is quite obvious that only criminals had any incentive to enter OVDI. For everybody else, it was a question of: Yes, I want to be in compliance. But, I can’t use OVDI…”
The Globe and Mail nor the Financial Post have anything on this yet. A press release is be in order now or very soon to media, CBC, CTV, etc., etc.
You folks are my hands and feet.
… and much of renounce’s post is good to include — it all boils down to “how can we TRUST?”
Calgary: even more so, it is an explicit rejection of the TAS TAD (that was sick, putting two government abbreviations together like that). He has basically flipped off Nina Olson. This Douglas Shulman is an arrogant SOB.
Not counting on anything. Not even expecting it. Just noticing they have left open the possibility, which is more than they said before. But, as i said, I’m continuing the process which I expect to lead to renouncing unless something surprising came up. And given the track record at the moment even if they came up with what looked like a good offer, I don’t think I’d trust it. If I had reason to believe they were heading to eliminate citizenship based taxation in the next year or two, I might hang on. But I have no interest in continuing to file FBAR’s 8938’s, etc, being unable to have a joint account, or a TFSA, and all the rest of it, even with some sort of penalty free amnesty, should they decide on that.
Take to heart my post on dominant nationality. Consider what it means for duals.
This says “Send one Email to most major media outlets with one little button click.”
http://www.canlaw.com/media/media.htm and http://www.canlaw.com/media/emailed.htm
http://www.montrealmuslimnews.net/canadianmedia.htm (Major Canadian, American, Alternative and International Media)
http://news.gc.ca/web/media-eng.do
Shulman brags that 4.4 billion was collect from the OVDP. To get some perspective, the US Federal Government took just ten hours to spend it:
http://realdealpolitics.com/blog/federal-government-spending-faster-than-speed-of-light/