The Chicago Tribune reports: IRS not fully ready for law against offshore tax evasion: watchdog
One of the signs of a bad regulatory law is the inability of a government bureaucracy to implement it. The IRS apparently suffers from inadequate resources. Whereas Obama signed FATCA into law in 2010, the IRS is not ready to handle load nearly four years later:
Between 200,000 and 400,000 foreign banks, investment funds and insurers companies are expected to register with the IRS to comply with the law, TIGTA said.
This would be hilarious if the consequences of FATCA weren’t already so sad. Still, I experience great Schadenfreude over the farcical incompetence of the IRS.
This is an illustration of the hubris of United States which forces on all the world a system that they themselves can’t handle. Reality and satire stand together.
When US Ambassador Jacobson said “sit tight” what he probably meant is (I paraphrase), “FATCA won’t be implemented for years because of IRS incompetence. So just sit tight and nothing will happen for a long, long time. In fact, the IRS will never catch up with you if you procrastinate.” Excellent advice if you ask me.
On the other hand, it might be good to get down to a US Consulate and get yourself free, for you will want to avoid the rush that will happen post-FATCA implementation.
By the way, The Renunciation Guide is back online.