Due to slow progress in signing IGA’s. Will this happen. I say its 50/50. IRS/Treasury probably listens to SIFMA more than any other group because of its domestic US political influence. Its also very notable that SIFMA is pointing to a long list of very specific promises by made the IRS to the banking industry that have not been met on time at all. SIFMA is also basically predicting a huge mess come January 1 2014 if the IRS goes ahead at this point.
Will there be a change in the effective date. As I said its 50/50. The IRS might also feel this is a now or never moment.
Notice who is making that quote.. “said Treasury Deputy Assistant Secretary for International Tax Affairs Robert B. Stack”
I don’t know if you have been following this as closely as some of us, but he was the one that was trotted out for public testimony at the EU Parliament FATCA hearings. If you did not hear his comments or read them, you should read this post which will fill you in on the history…
I just posted this at Accounting today…
Notice who is being quoted… “said Treasury Deputy Assistant Secretary for International Tax Affairs Robert B. Stack”
I don’t know if you have been following this as closely as some of us, but he was the one that was trotted out for public testimony at recent EU Parliament FATCA hearings. If you did not hear his comments or read them, you should read listen to what he has to say about the Administration’s efforts to provide reciprocity for those they are coercing into signing IGAs. http://bit.ly/15b3jGp
Pay attention, these guys want a full blown domestic equivalent of FATCA imposed on domestic shores. IE, they want USFIs to do exactly what they are requiring of FFIs. A DATCA is coming, make no mistake about it, unless it is stopped by Congress. That is what is NOT mentioned when FATCA was passed, but it is blowing back on U.S. Shores. Treasury needs time to also get DATCA in place, and sneak it through Congress somehow. It is currently buried on page 202 of the FY14 Analytical Perspectives of the Obama Budget http://1.usa.gov/12YGdoG
I hope that the rest of the world forces the US to change the reciprocity clause in the IGAs so that IGAs can’t take effect until the US has passed a truly reciprocal DATCA. I keep thinking this is what some of the countries who “initialed” IGAs actually did. It seems like a stalemate where the IGAs can’t go into effect because the US hasn’t passed DATCA is the best outcome at the moment. Then, hopefully, FATCA can die a slow and agonising death.
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I don t think America can afford reciprocity. Period.
Just saw Zacharia’s GPS where he interviewed Treas. Sec Lew where Lew says that the USG needs to stop taking actions that “shoot themselves in the foot”. As we know, Lew was a recent recipient of a letter from Congressman Posey (R-FL) seeking to block the reciprocity element of FATCA.
@ Just Me
Thank you for bringing forward the link to the article mentioned in my comment above. Actually, I have been following fairly closely the development of the FATCA issues as the story unfolds and have had a close eye to any new NEWS related to FATCA and other related issues. I usually sit in the background and will on occasion make the rare contribution to the various conversations. I had not identified Robert Stack as the same individual who others spoke about hearing at the EU Parliament FATCA hearings. I had followed those when they unfolded but had not linked him to the article referred to above. Clearly, he continues to pedal the same misguided and misleading story. Unfortunately, it never ceases to astound me how rampant is the myopic vision of US politicians and public servants. When ever most of them open their mouths to address the FATCA issue, they truly sound “ignorant” because they have not done their research. Yet, as others have stated, maybe not so “ignorant” so much as “malevolent”.
It is great having you comment. I never know for sure how much a person has been following some of the arcane details the development of FATCA. Frankly, unless you are a WONK, you chances of knowing what FATCA is all about with it’s twists and turns is about is zero from the U.S. Media, and even on the technical blogs, it is mostly the minutia about “What you have to do” etc… Comply, Comply, Comply… 🙂
If I am repeating myself, and you have already seen this, I do apologize in advance but a couple other links for you…
One: the link that Tim posted here to the SIFMA story is a direct download, and frankly, because it is a PDF, a lot of comment blogs won’t allow it. If you want another reference, this is better..
Two: Also, I have been following the FATCA reciprocity story closely, and I don’t know if you read the history of DATCA which I recently chronicled here… I am trying to keep it updated as this story unfolds. It is useful reference when you want to make comment like I just did at Forbes…
So wonder how Jack is nursing the foot wound from the Posey letter…
Now where’s that great picture that a Brocker posted here, showing Uncle Sam shooting himself in the foot with FATCA?
@bubblebustin, this one?
Yes that one, thank you! Too bad there’s no way of posting it on his Facebook page, asking him if it’s what he was referring to in the Zacharia interview.
More FATCA implementation delays sought by SIFMA: