As reported on April 9th, Democrats Abroad Canada held its annual general meeting on March 25th in Toronto. The minutes provided a very brief mention about DA’s FBAR/FATCA task force. Today, a new communiqué was released detailing the task force’s recent and upcoming activities. We are now heading into lobbying season, it appears, with both DA and ACA poised to make their annual pilgrimages to D.C. to plead our case – particularly interesting in an election year.
Here’s the new message:
FBAR/FATCA Task Force Update
Dear Democrats Abroad member,
Democrats Abroad’s FBAR/FATCA Task Force has been working consistently to develop an effective strategy to alleviate the burdens placed by new and newly-enforced tax legislation on US citizens abroad. The specific legislation we are focusing on is FATCA and the FBAR.
The Foreign Accounts Tax Compliance Act (FATCA) requires U.S. taxpayers with specified foreign financial assets that exceed certain thresholds to report those assets to the IRS. In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
The Report of Foreign Bank and Financial Accounts (FBAR) must be submitted if you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account. FBAR legislation has been in place since the 1970’s but only recently has the IRS begun to enforce this ruling. The threshold is currently set at $10,000 and the penalties for not filing can be considerable.
We are fortunate in having well-placed contacts in strategic government positions, and have made some headway in our efforts. In point form; here is the latest update on our activities:
* We have been in regular contact with senior staff at both the IRS and the Treasury Department, who have been receptive to our concerns.
* We have developed a strong and sympathetic working relationship with members of the Senate Finance Committee responsible for the FATCA legislation.
* We have shared with our contacts at the IRS, Treasury and Senate individual stories illustrating the stress and challenges placed on ordinary overseas Americans. These stories appear to have made a significant impact.
* Our former DA International Secretary, Amanda Klekowski von Koppenfels, a scholar in the field of politics and demographics, has compiled a detailed stratification of Americans abroad, which clearly refutes any imputation of tax evasion as a general motive for living overseas. The statistical breakdown has been of great interest to the Senate Finance Committee, and may figure prominently as supporting material to our upcoming requests and submissions.
* We helped facilitate a letter from Carol Maloney, Chair of the Americans Abroad Caucus, to Treasury Secretary Geithner requesting congressional hearings. Secretary Geithner himself has acknowledged there are concerns with FATCA and we have recently learned that Treasury will host later this month a meeting of groups representing overseas Americans, including Democrats Abroad.
* We are reaching out to senators who have been major promoters of FATCA to bring to their notice that the anti-tax laundering legislation they introduced will have disastrous, unintended consequence for millions of law-abiding overseas Americans, as well as serious implications on foreign investment in the US.
* We are requesting inclusion in an IRS hearing on FATCA in Washington, DC on May 15.
* We are arranging a meeting with Taxpayer Advocate Nina Olsen Olson, whose 2011 report to Congress is highly critical of IRS handling of overseas tax filers.
* We are preparing resolutions to present to the DPCA Resolutions Committee at the May global meeting in Mexico. If passed, Democrats Abroad will then submit those resolutions to be considered for inclusion in the Democratic Party 2012 Platform.
We remind our members once again that Democrats Abroad and its FBAR/FATCA Task Force cannot and does not offer tax advice. All those facing problems or having specific questions are urged to seek professional tax and/or legal counsel.
Respectfully submitted to the DA Membership,
Your DPCA FBAR/FATCA Task Force,
Joe Green (Canada) Chair (demcan@sympatico.ca)
Stanley Grossman (UK), Maureen Harwood (Canada), Carmelan Polce (Australia), Maya Samara (Switzerland) and Joe Smallhoover (France)
What does concern me is the fact that at least three Massachusetts politicians Tierney, Richard Neal, and John Kerry have played roles in anti expat and anti Canada legislation. If this is the generally held view of the Massachusetts political establishment it is outrageous. Canada does a LOT for Massachusetts like supply it with most of their gasoline and Jet Fuel for Logan Airport. A huge chunk of their electricity comes from Hydro Quebec and it is a pretty big tourism destination for Canadians during the summer. In general Canada actually gives a shit about Massachusetts and New England which in general the rest of the United States doesn’t. I actually know I thing or two about the place through my business travels to the Bay State(To be honest I don’t go to Michigan that much if ever).
@Tim, hopefully some of them are anti-Canada enough to ask that citizenship be revoked for those also holding Canadian citizenship. I’m counting the days …
Okay, so about 6 people have been identified as possible targets for education and lobbying. Why not just hit all of them?
I always was a Democrat. Now it is becoming clear that being an American Abroad ir is impossible to remain one.
The government of Canada cannot be happy about U.S. citizens in Canada.The problem is that many of them are also Canadian.
Why not begin lobbying the Government of Canada to try to negotiate a one time reununciation for all U.S. citizens who are also Canadian. It could be some sort of simplified process without the exit tax.
@renounceuscitizenship, I think there has already been an effort underway to do just that. But so far no result from the US side.
Keep in mind Canadians that what we are discussing is very pertinent to all Americans Living Abroad who are thankful for your initiative creating this Society.
Of the four original cosponsors of the FATCA two of them were from Massachusetts John Kerry and Richard Neal. I actually have a few ideas about getting back at Massachusetts however, if ACA or Democrats Abroad can confirm that John Kerry(whom I suspect ACA might have some ties to more than other Senators) is being helpful on the issue I’ll hold off.
Notice every year Halifax and the province of Nova Scotia send a free Christmas tree to the city of Boston to be displayed on Boston Common(not that far away from John Kerry’s house on Louisburg Square). It would be an awful shame if grassroots efforts in Canada got Halifax not send a tree to Boston due to Senator’s Kerry’s policy views related to Canada. Ah ha ha ha
http://www.boston.com/yourtown/boston/beaconhill/gallery/boston_common_tree/
It gets worse Jean Shaheen of New Hampshire was a later co-sponsor. That’s it the Boston Common Christmas Tree is being taken “hostage”.
There were several additional co-sponsors in the House to including Peter Welch(the at large member representing all of Vermont) and Rose DeLaura of Connecticut.
@ renouncecitizenship, OMG, All…
Yes, give a one-time renunciation for ALL who want that in Canada (and other countries), including ALL Accidental Americans;
then US ensure, going forward, there is adequate continuing education about consequences of US citizenship, to all those who have perception of some value in obtaining or retaining US citizenship. If those persons concur they want to obtain or retain US citizenship, they are responsible for all consequences of same, including income taxes and loss of any financial privacy by reporting responsibility to the US. Stop the present entrapment, USA.
AMNESTY seems to have its own US definition as does US interpretation of their own as well as other Oaths of Citizenships around the world where it “appears” the former citizenship is being relinquished.
Also, the US definition of CITIZENSHIP, the US ‘massages’ any way it wants to:
http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=8554a3ac86aa3210VgnVCM100000b92ca60aRCRD&vgnextchannel=8554a3ac86aa3210VgnVCM100000b92ca60aRCRD
“Biological or Adopted Children Residing Outside the United States
Biological or adopted children who regularly reside outside of the United States MAY qualify for naturalization under section 322 of the Immigration and Nationality Act (INA), as amended by the Child Citizenship Act (CCA). In general, to be eligible for citizenship under section 322 of the INA, a child must meet the following requirements…”
@ Joe Smith
I just finished reading that entire article and all the comments. That Linda Beale is one hard-hearted woman for sure.
@ renounceuscitizenship
“Why not begin lobbying the Government of Canada to try to negotiate a one time renunciation for all U.S. citizens who are also Canadian. It could be some sort of simplified process without the exit tax.” — I like that idea but why negotiate with the USA? And why just a one time renunciation? Why can’t Canada simply make it the law of our land (providing 5 years residency has been established) that once a year Canadian/American citizens are allowed to do a “mass renunciation” of the USA, swearing their allegiance to Canada alone? I like the phrase “mass renunciation” so much I’ll say it again “mass renunciation”. And if it works in Canada we could be the example for other countries to follow suit. We are all subject to the laws of the land we are living on so I see no reason why Canada and other countries could not pass a “mass renunciation” law and I don’t think there would be much the USA could do except bluster and threaten. After the “mass renunciation”, the new Canadian only citizens would simply inform the USA that they can no longer maintain a tax connection with it because it would be a violation of Canadian law to do so. Well, I’m not a lawyer so maybe this is all pie in the sky but in my simple little brain it does seem doable and I like the idea of post “mass renunciation” parties.
Re a previous post about organizing a conference/event for publicity: (sorry, am lost in the threads to give proper attribution to the author of the idea – or related suggestions?@ renouncecitizenship?).
Wondering whether the ACA, Democrats abroad Canada and Republicans abroad Canada would agree to help organize a news conference or
event in order to publicize the legitimate concerns of those of us ‘abroad’. If it caught on after being done in Canada – it might spread to other countries.
Particularly highlighting the plight of the children actually born here in Canada (and underscore that is the case for all those in other countries too) that have inherited this unjust burden – through the citizenship of a US parent. Plus the ‘grandma’/grandpa/seniors-retirement-at-risk issue, and the small business/entrepreneur-at risk, the volunteer soccer mom soccer-team-charitable-treasurer-at-risk-of-FBAR fines issue, etc. If all three groups were involved, it could be non-partisan, which would increase the likilhood that the Dems might see fit to participate publicly. The Republicans couldn’t let the Dems participate without them, and it might be of interest to Canadian politicians to attend. Perhaps held in Toronto? (Not to be province centric, but it is the home of a US consulate, and no doubt has a big population of US expats) – Or alternatively – in BC – since the NDP caucus there has been active publicly on the issue?
Offering additional related activities – as someone said -(recalcitrantexpat?) would attract more interested expats, and educate those who don’t already know about the situation?
Just some brainstorming. Sorry if I left anyone out and didn’t give credit to anyone – I’m increasingly finding it hard to locate things I read on the various threads and posts……so abject apology wherever needed.
Should be of interest to fellow ‘Brockers’ that the number of hits has gone to: 410,307 hits – from 400,000. in just a few days – which could be interpreted as an encouraging sign of interest building momentum ? ….
“Since December 12, 2011
410,307 hits”
Make that MASS RENUNCIATION. Come on, let’s get this over with.
I see with re-reading, that it was indeed the proposal by renounceuscitizenship that I refer to above:I
April 15, 2012 at 11:20 am
“A couple of times I have suggested organizing a major live conference on these topics in Toronto (or somewhere else). Certainly with something like that we would have a better chance of getting the important Canadian media people to attend. We might also be able to get some exposure from foreigh media.
We could also attract people by including topical seminars on citizenship renunciations, etc.
A conference would also make it clear that we are a well organized, well educated and vocal group. It would be a learning experience.”
I think it is a very good idea – I don’t know how to do it, but I agree that we need to attract more publicity. The US tax session in Ottawa got good attendance. I haven’t seen any media followup about the nascent resistance in New Brunswick, but there were some professors involved in that one – and presumably they might be interested in joining in with this – and they might know possible speakers?
Here’s a link re the NB group: http://www.newbrunswickbeacon.ca/2011/12/03/americans-living-in-canada-beware-of-the-irs/
“…..Marie Cashion, a retired University of New Brunswick professor, is one of the organizers of the lobby group. She says this is a ridiculous amount of money to take from people when the U.S. failed to inform its citizens about this law.
“I feel betrayed and I’m personally concerned,” she said.
Cashion held a public meeting in Fredericton….”
Wondering how that is going out in NB?
How about in front of US Consulates on July 4 where we read our own Declaration of Independence?
Considering it is the 200th anniversary of the War of 1812, I think that would get the Canadian media’s attention–and maybe even some from the U.S.
Making a mass renunciation on that date would have definite impact.
People in other countries could do the same there.
@Tim…
We are going over the same ground a lot, and engaged in our own echo chamber of sorts. We do that I suppose, hoping new folks will venture onto our site and learn something useful no matter where they click into a thread.
I spend a fair amount of time trying to get journalist and news organizations to pay attention to the story, but that is not too fruitful with the popular culture stories naturally more riveting for the populace attention and the 24 hr cable cycle. Reality sets in at times, and you realize that our effort is as tough as convincing “real Americans” that the U.S is not so exceptional, or convincing “true believers” that their religious, political or philosophical convictions and certainty may not be so rock solid as they think.
Maybe I am wrong too, and listening to my own rhetoric which can be self re-enforcing and delusional if you aren’t careful. Maybe Citizenship taxation is a GREAT model. Don’t think so. I would like to hear a good argument why it is. I do envy my Kiwis friends who never have to give any of this a thought other than passing astonishment when you try to explain it.
Open to hear any ideas you have.
Don’t know where to put this, but might be some interesting info on these three Wikipedia links:
http://en.wikipedia.org/wiki/Category:American_emigrants_to_Canada
http://en.wikipedia.org/wiki/Canadian_American
http://en.wikipedia.org/wiki/Canadians_of_American_origin
How about go in front of US Embassies, set up a little stand that says “Uncle Sam is Broke” or F*CK F*TCA etc. dressed as the man himself. Alert local papers and TV and hopefully get some PR.
Message: Beware dual citizens, US citizens, green card holders, etc Uncle Sam wants to tax Americans Abroad – shame on him.
@blaze, how about we all go dressed as Sir Isaac Brock? I am thinking that might work. Or would July 1st be more suitable?
: )
@Badger: I actually had a photo taken a couple of weeks ago of me in an Isaac Brock uniform (complete with sword!). A friend’s husband does historical reenactments, so he lent me his War of 1812 costume, then took my photo.
I’m sure he would lend it to me again for a demonstration at US Consulate, but it would be way too hot for July. How did they stand it?!?
I really think the Declaration of Independence on July 4 (or July 1) would get the media out. I’ve already tried my hand at the 2012 Declaration version. Anyone who wants to revise further is welcome to do so. http://isaacbrocksociety.com/2012/02/24/2012-declaration-of-independence/
I think July 4 would have far more impact than July 1–especially if people from other countries join in. I think the media would love it..
I also rewrote the lyrics to that old Guess Who song American Woman. It is now American Taxman Stay Away From Me. Maybe we could get Randy Bachman and Burton Cummings to belt it out for us.
@Blaze. That’s precious, as American Woman has been an earworm for me for the last several months. Appreciate some other lyrics for a change!
@bubblebustin: Here are the revised lyrics. I posted them somewhere else a couple of months ago, but there have been a lot of new members since then. I would love to find someone to record this. I sent an e-mail to Randy Bachman, but I didn’t hear back.
Changes from the original are in caps. Like the Declaration of Independence, I was stunned at how only a few changes were needed to make it relevant to our situation.
Any musicians out there?
American TAXMAN, stay away from me
American TAXMAN, JUST let me be
Don’t come a hangin’ around my door
I don’t wanna see your face no more
I got more important things to do
Than spend my time MESSIN’ with you
Now TAXMAN, I said stay away
American TAXMAN, listen what I say-ay-ay-ay-ay-ay
American TAXMAN, get away from me
American TAXMAN, JUST let me be
Don’t come a knockin’ around my door
Don’t wanna see your shadow no more
YOU MAY THINK YOU can hypnotize
I SEE RIGHT THROUGH YOUR LIES
Now TAXMAN, I said get away
American TAXMAN, listen what I say-ay-ay-ay
Now TAXMAN, get away from me
American TAXMAN, JUST let me be
American TAXMAN, said get away
American TAXMAN, listen what I say
Don’t come a hangin’ around my door
Don’t wanna see your face no more
I don’t need your war machines
I don’t need your ghetto scenes
YOU MAY THINK YOU can hypnotize
I SEE RIGHT THROUGH YOUR LIES
Now TAXMAN, get away from me
American TAXMAN, JUST let me be
Go, gotta get away, gotta get away now go, go, go
I LEFT YOU LONG AGO
WHY ARE YOU NOW MY FOE?
Bye-bye Bye-bye Bye-bye Bye-bye
You’re no good for me
I’m no good for you
NOW GET AWAY-AY-AY-AY