Liberty and justice for all United States persons abroad

The Isaac Brock Society

1,012 thoughts on “FATCA Discussion Thread (Ask your questions) Part One”

  1. @John Brown.

    I have also posted links to the article and his Video at the Fact Finding Forum on 3 Linkedin FATCA Groups.  I tried to be the counterpoint to those that are selling FATCA compliance solutions!   

  3. and those poor Aussies.  They keep writing, as if they think Treasury really cares about their opinions of FATCA.  They just want things clarified, at bit, so they can be compliant little Financial Services. 

    The Financial Services Council (Australia), Securities Investment Trust & Consulting Association (Taiwan), and the Hong Kong Investment Funds Association have submitted a joint comment letter with respect to the proposed regulations issued under Chapter 4 (FATCA).

     

  4. BARRIE MCKENNA 

    Uncle Sam wants you – if you’re an American in Canada (or at least your tax)

    Everything Montana Senator Max Baucus touches seems to create work for lawyers and accountants.

    The Democratic chairman of the powerful U.S. Senate finance committee was the driving force behind several rounds of bitter Canada-U.S. lumber wars in the 1980s and 1990s. Armies of lawyers built their careers on that dispute.

    Mr. Baucus is also the author of a bill that’s about to make life very unsettling for Americans living in Canada and their financial institutions – the Foreign Account Tax Compliance Act (FATCA). The law, which takes effect in 2014, is the hammer behind a U.S. crackdown on offshore tax cheats.

  5. What Was the Most Tragic Policy Development of 2012?

    FATCA gets a mention by Dan Mitchel in this context.  Although he is putting DATCA, or the domestic lite version of FATCA first.  Although, he surely knows that FATCA begat DATCA. 

    2. Was it the lawless decision by the Internal Revenue Service to impose a horrible regulation that forces American banks to put foreign law above U.S. law? This was a very bad development in the battle for tax competition, financial privacy, and fiscal sovereignty. But in the grand scheme of things, it’s just another in a long line of policies (such as FATCA) designed to increase the power of governments to impose and enforce bad tax policy.

  6. FATCA: A new era of financial transparency

    The IRS’s powerful new tool chips away at bank secrecy.

    Not that regular readers here, need to hear what the FCC, (FATCA Compliance Complex) has to say about FATCA, as they are apologists and happy promoters of this “full employment act” for accountants and Lawyer. However, here is the most recent manifestation to start off the new year

    Since 2008, the U.S. government has been aggressively moving against U.S. taxpayers who have undeclared foreign accounts. Through a variety of mechanisms, the government has obtained information about U.S. account holders and their assets from jurisdictions previously thought nearly impenetrable. These recent developments portend the eventual erosion of traditional concepts of bank secrecy and increased transparency among nations regarding financial information.

    It then goes through an listing of requirements, which is a fairly good compilation of what the existing statues are related to income tax filing, FBARs and FATCA forms 8938, plus providing the provisions of FFI requirements.

    In a concession to opposition to FATCA, it mildly states the following, while again repeating the CW, that most international banks will comply.  They may not be wrong in this assessment, but time will tell.  Notice that they say the IRS has made “substantial Progress” in reaching agreements?  4 out of 50 in this author’s mind is substantial, I guess.  Let’s not bother with the count, shall we, and confuse the assertion with some facts?

    The international reaction to FATCA is mixed. Some argue that the legislation is, plain and simple, an act of U.S. imperialism. Other countries, however, are starting to look at FATCA as a model for their own tax enforcement, and, as noted above, the IRS has made substantial progress in reaching agreements with various countries on implementation.

    Some smaller banks are concluding that they would rather not invest in the United States than be subject to the compliance costs associated with FATCA implementation. Others are seeking to eliminate any U.S. accounts to the maximum extent possible. But it is expected that most banks worldwide will comply with FATCA rather than forgo investing in the United States.

    CONCLUSION

    FATCA is part of a broader enforcement effort undertaken by the U.S. government since 2008 against unreported foreign financial assets. Any noncompliant U.S. taxpayer who has yet to declare foreign accounts or other reportable assets should be mindful of these developments and aware of the increased global enforcement presence by the IRS, and particularly its Criminal Investigation Division, and the considerably improved cooperation among tax authorities worldwide.

    Gotcha replaced with GATCA!

    The IRS has had a long-standing voluntary disclosure policy aimed at providing a path for Americans who have not filed accurate or complete returns, or who have not filed at all, to come back into the system and avoid criminal prosecution. In January 2012, the IRS announced a third voluntary disclosure program that caps civil penalties that might be imposed for unreported non-U.S. assets, and in June, the IRS released information about a limited special program, beginning in September 2012, directed at U.S. taxpayers who have resided outside the United States, who have not complied with U.S. law, and who appear to present low compliance risks for the future.

    In light of FATCA and the otherwise increasing ability of the U.S. government to penetrate bank secrecy, noncompliant U.S. taxpayers should consider taking steps to come into compliance. Although there may be some financial pain associated with doing so, the ability to avoid criminal prosecution and substantial civil money sanctions in the now-enhanced enforcement environment is an important benefit to consider.

    Standard message:  You better take steps to Comply.

  8. Barbados Formulating FATCA Response

    The Central Bank of Barbados has confirmed that the territory has established a Working Group to negotiate an inter-governmental agreement (IGA) with the United States within the next six months to facilitate compliance with the Foreign Account Tax Compliance Act (FATCA).
    In its monthly newsletter, the Central Bank disclosed that it was engaged with the island’s promotional agency Invest Barbados, to develop a response to the US regulation, with input from the local financial services industry, and on the basis of discussions with other Caribbean nations’ policymakers.

  9. When will we meet to burn blue passports?

    Can it be done outside the embassies without getting shot at? 

    Possibly it is better to do in the city Squares—-some of us cannot travel to the Capitol cities where the consulates and embassies are.

    Wear your US person t-shirts—-bring your US flag with the hole cut out where US Citizens abroad used to be.

  10. @MarkTwain, re;

    “Wear your US person t-shirts—-bring your US flag with the hole cut out where US Citizens abroad used to be.”

    I like that image.

  12. the 6 Point yellow star has a nice touch.  US Person.

    A flag with a hole, and the hole (like a doughnut hole) with US Person abroad flying above, with a taped on a staff extension.

    On a weekend during January, in city Squares.  Spread by social media.

  18. FATCA Cliff: Tax Evasion Guilty Plea and Death for Oldest Swiss Bank http://onforb.es/137z16i @forbestaxblogs  It capitulated and pleaded guilty!

    With branches only in Switzerland, Wegelin claimed it was bound only by Swiss banking laws. Yet it capitulated and pleaded guilty. Even Wegelin’s plea and death knell leaves loose ends, though, including former executives Michael Berlinka, Urs Frei and Roger Keller who failed to appear in U.S. court and were labeled fugitives.

  20.  HMRC FATCA Guide Leaves Unanswered Questions

    Gaps in guidance

    HMRC acknowledges that there are still ‘gaps in the legislation and guidance’ and how firms will register for FATCA compliance and how they deliver data.

    There is also clarification over the term ‘similar business’ which could be defined as including solicitors and stockbrokers which means they may be unintentionally caught out by the new law.

    HMRC have now provided examples to illustrate what counts as significant and minor non-compliance.

    However, the report stresses that all UK businesses are expected to fulfil their legal obligations under the new law.

  21. The prognosticators for 2013 were present on Fareed Zacharia GPS today, one being Ian Bremmer of Eurasia Group. After learning about Asiagroup last year through Just Me, I wrote to them asking why they didn’t mention FATCA in their 2012 predictions, to which I received no response. Eurasiagroup is due to release their 2013 predictions tomorrow. Any bets FATCA won’t be mentioned?

    http://eurasiagroup.net

  23. Is It Still Possible To Get Out Of Dodge?

    “To sum up then, the reality is that the US does not wish its citizens to leave, and is making it extremely difficult for its citizens to leave. It is also doing everything possible to penalize its 6 million citizens that have left, and to drain them of any assets that they have accumulated overseas via a vast myriad of laws that simply cannot be fully complied with, and subsequent draconian taxes for failure to comply, wilfully or otherwise. They are making it extremely difficult for citizens to set up bank accounts overseas, so as to limit or eliminate the ability of its citizens to move assets overseas. Anyone considering “getting out of Dodge” needs to fully educate themselves on the laws and realities of the situation, and make plans well in advance of the time they hope to get out of Dodge. And they also must begin to face the reality that it may no longer be possible to exit the US. The US does not want its citizens to leave, wants those overseas to return (with their assets of course), and is bringing to bear its full political power in order to prevent it.”

    http://www.theburningplatform.com/?p=46858

  24. The get out of Dodge is one of the shorter descriptions///understandable enough to share with someone else

  25. @Bubblebustin…

    Two good finds.  Thanks for posting them.  I am especially interested in seeing blogging about the “get out of dodge” subject coming from a “progressive” view point.  More of that is what is needed, in my opinion.  

    The Israeli one, should stir up AIPAC.  I have wondered why they have been silent during this entire jihad that seems especially focused on Israel lately.  hummm

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