By DOUGLAS GOLDSTEIN 03/14/2013 23:19 – Jpost.com
The US government should also waive FATCA’s reporting requirements for foreign financial institutions.
With the enactment of the 2010 HIRE Act, Congress aimed to increase employment and increase its revenues by going after foreign accounts owned by Americans.
Unfortunately, the legislation doesn’t draw a distinction between honest Americans living and working abroad, and those citizens who are indeed hiding tax revenues from the American government. The legislation, Foreign Account Tax Compliance Act (FATCA), requires that individuals report their accounts held overseas and that foreign financial institutions report to the IRS about their American clients.
FATCA burdens American individuals and businesses overseas, as well as the foreign banks that wish to service them.
The billion dollar question is whether the burden of FATCA will outweigh its benefits.
The potential for losses are great on both the individual and institutional side.