Straight from the donkey’s mouth:
THE GOOD – The IRS announced on June 18 that the Streamlined Filing Compliance Procedures (in place since late 2012 to help delinquent filers become tax compliant) would from 1 July be even more streamlined for non-filers who wish to become compliant. In his statement, IRS Commissioner John Koskinen said, “We’re expanding the streamlined procedures to cover a much broader group of U.S. taxpayers we believe are out there who have failed to disclose their foreign accounts but who aren’t willfully evading their tax obligations. To encourage these taxpayers to come forward, we’re expanding the eligibility criteria, eliminating a cap on the amount of tax owed to qualify for the program, and doing away with a questionnaire that applicants were required to complete.” If you want to know more about the changes see the Special Report posted on the DA website.
THE BAD – Residence-based taxation will not replace citizenship-based taxation, no matter how hard other groups representing overseas Americans argue for it. Although it is baffling that the US is paired with Eritria as the only other citizen-based taxation regime, that’s where we are! And, FATCA will come to be – but read on to see what your DA FBAR/FATCA Task Force is working toward.
THE UGLY – A Senate controlled by the Republicans will NOT be able to repeal FATCA, no matter what they say. But a Republican Senate (and Republican House) can only make things worse for the nation and the world – and for us living and working around that world.
SO – What to do?
1. Vote in November. Please request and return your ballot so that we may keep the Senate in the hands of Democrats and perhaps even see Democrats take back the House. Go to www.votefromabroad.org!
2. If you haven’t already done so, please complete the DA FATCA Survey – and do it right away. The findings will strengthen our advocacy to Congressional committees (House Ways and Means, Senate Finance and the Joint Committee on Taxation) and to the regulators (IRS and Treasury) and persuade them FATCA needs to be reformed urgently.
Our position is that banking and other financial services provided to overseas Americans should be treated as local activities and therefore not subject to FATCA reporting. We are advocating that FATCA should be reformed to include an exemption for accounts in our countries of residence – a mechanism known as the same country exception. Read more about it on our website.
We have good reason to believe we will succeed. Your DA FBAR/FATCA Task Force, along with other overseas Americans groups, has already helped achieve the establishment of the initial Streamlined Financial Compliance Procedures, plus the enhancements announced last week, as well as helping to raise the FATCA reporting threshold for overseas Americans.
SO VOTE, COMPLETE THE SURVEY AND KEEP THE FAITH!
Democrats Abroad FBAR/FATCA Task Force
Joe Green – Canada
Stanley Grossman – UK
Maureen Harwood – Canada
Carmelan Polce (Chair) – Singapore
Joe Smallhoover – FranceContact us at any time with questions or comments on fatca@democratsabroad.org
WHAT?!?!?!?!!?!??!!!?!??!?!?!!?!?!?!?
I say BS.
The above-quoted bit reminds me of the smarmy “privilege of living abroad” cluelessness that DA issued a year or two ago. Have they learned nothing since? Hint, DA: There are good, decent hardworking people who are extremely pissed off about this stuff. Do NOT address in a studiously air-headed manner stuff that screws real people’s lives over.
PS — It’s “Eritrea,” not “Eritria.”
Republicans can only make the horror of what the Democrats brought upon us worse? That’s precious. I don’t see Democrats anywhere launching any lawsuits against the US government’s onslaught against US persons abroad.
1. Accidental Americans can’t vote! And 2. Why, other than pure partisan politics, do they think that a. The Reps “won’t be able to repeal FATCA no matter what they say” and b. Having the Dems remain in power would be better for overseas Americans when it’s the Dems who created this mess in the first place!? Talk about bandaid solutions.
Every political party has their core group that would rather die than vote against (or not for) their party. They didn’t even bring up the Bopp legal action specifically -which we should all take as encouraging news.
This is hilarious. Newcomers to this site should read:
http://isaacbrocksociety.ca/2012/12/19/democrats-abroad-are-like-the-stepford-wives/
and
http://isaacbrocksociety.ca/2012/07/07/the-best-thing-joe-green-and-democrats-abroad-could-do-is-encourage-all-democrats-to-vote-for-romney/
(which has some of the very best comments ever).
Anyway, you need to understand that that Democrats Abroad is an organization that exists for the sole purpose of furthering the interests of “The Party” abroad. Once you understand this principle, you can see their statements and behavior for the foolishness and stupidity that it is.
If Democrats Abroad were interested in changing the oppression of Americans Abroad (which they aren’t) then they would appreciate the efforts of all groups – including Republicans Overseas who oppose FATCA.
For good measure, I will add another post demonstrating the pathetic, moronic and disingenuous statements of these Democrats – attempting to divorce FATCA from the Democrats:
http://renounceuscitizenship.wordpress.com/2012/11/02/charles-adams-on-fatca/
Finally, this demonstrates the unhelpful partisan nature of politics in America. When it comes to FATCA:
This is not a Republican issue, this is not a Democrat issue, this is an American issue.
Democrats abroad should get with the program and stop making opposition to FATCA a partisan issue.
I guess the election campaign has begun. This is just vote fishing. When intelligent people are elected, they can change whatever they want. I say….what a load of crap.
And although I can’t, why would anyone vote in a US election from outside. Doesn’t this mean that you’ve now agreed that you are “benefitting” from this great citizenship so they can hold this against you if you go to relinquish later?
@PierreD, yes. Voting in a US election will disqualify you for relinqushment, thus forcing you to renounce. This results in a $450-500 fee, plus all the possible threats of posed by the Reed Amendment.
Anybody know a comedy group who could use some good material? I will certainly pass this on to all the Americans I know who can vote as the ultimate reason why they shouldn’t vote for this guy’s party. If it can be legislated in – it can be legislated out.
Those links do not bring me to that site. “Special report” brings me to the survey.
@Mark Twain
Sorry about that – I had to re-build all of the links manually and that one got messed-up. “Special Report” now links to the correct DA web page:
https://www.democratsabroad.org/group/fbarfatca/june-2014-fatca-delayed-new-program-delinquent-filers-announced
thanks for the work you put in
JFK put a stamp on CBT. JFK was a DEMOCRAT.
Jack Reed created the REED Amendment which gives the AG the right to prevent people who renounce US citizenship for taxation purposes from visiting the US. Jack Reed is a DEMOCRAT.
Carl Levin created and slipped FATCA into the HIRE Act. Carl Levin is a DEMOCRAT.
Charlie Rangel created and slipped the Exit Tax into the HEROEs Act. Charlie Rangel is a DEMOCRAT.
Chuck Schumer wants to strengthen the REED Amendment by reversing the burden of proof and making it retroactive. Chuck Schumer is a DEMOCRAT.
The Republicans also have a spotty record when it comes to abusing expats, but nowhere near as bad as the Democrats. And at least some of the Republicans, mainly the Tea Partiers, are trying to do something about it.
“politics makes strange bedfellows”
The representative from my hometown is a Democrat with a bad attitude towards overseas Americans. I won’t be waiting until November to vote against him. Some districts are so safe now, primary voting is all that matters. That’s where the real power is.
I took the survey but I left an awful lot blank b/c they were fishing for some very personal financial information that they have no more right to than the USG does.
DA is a tool that is in deep denial. They are interested in maintaining a status quo that never really existed in the first place.
I do see some incremental improvement in their position. They at least knew enough to address CBT up front, and they list it as a “Bad” thing. (Have they been getting an earful in the early returns on their questionnaire?)
Still a long way to go, however.
Both Political parties in the U.S. are on the same page when it comes to Taxation and BIG GOVERNMENT.
The Democrats want Democrat BIG GOVERNMENT and Republicans want Republican BIG GOVERNMENT. They were once one party and split up, but they should recombine because they are more alike than different. It is somewhat like the old Soviet Union. They had elections but there were only candidates who were Communists. Our candidates are both Socialist and the only change either one would want, is more Socialism.
I long for the days when Capital can find the place where it will reap the best return and nobody cares where it is but the capital owner, who is willing to take the risk of investment and not worry about his government jailing him because some politician has a socialist bent. Oh they make some other excuse that one law or another has been violated and they are right. With a tax code of 80,000 pages who would know when they are doing somethiing not fitting the convoluted code.
We freedom lovers want the FairTax, a sales tax on new goods purchased inside the U.S. and we want our expats to stay put and be ambassadors of good will instead of scared rabbitts.
The IRS cannot be reformed, it needs to be disbanded or have a wooden stake driven thru its heart and buried a low tide, by the sea shore where the tide ebbs and flows twice in twenty four hours. Trying to reform or even supervise them would be like herding cats. There will always be the stray who violated the rights of the citizens using regulations they write no matter what the law says and the law is not innocent.
We lost our rights when the Marxists got the constitution amended (16nth ) to allow a tax on income which the founding document prohibited and to stop the Senators from being appointed by the States Governors (17nth) making change of government so long and cumbersome that it borders on impossible. Another blow was when the Supreme court did away with the requirement that a person must be a property owner in order to vote.
We have reached the point where those who vote for a living has exceeded those who work for a living.
It is the official Republican Party position to REPEAL FATCA. While a Republican controlled House and Senate cannot necessarily repeal FATCA as Obama will veto, they CAN defund it. It is ABSURD for the Democratic Abroad to continue to vote for the Democrats who brought this nightmare on them. I support some of the Democratic liberal social policies like gay rights – but frankly, all of that is outweighed by the disaster of CBT and FATCA as created by the Democrats. I am hoping and (figuratively) praying for a Republican sweep in the fall.
Democrats Abroad have done some fine work advancing the case for Americans abroad. Thank you.
Re: While Republican House and Republican Senate may not over turn FATCA: how is it said they can not? If the Legislative Branch votes for FATCA repeal, would Obama veto this repeal? Then Democrats there is the wild card of a Republican President in two years. Let’s not forget repealing FATCA is in the Republican party platform.
One may think the Democrats are the party of compassion. Yet they are putting in these regulations and don’t seem to care about Americans abroad, many/most of whom are ordinary folk. Let’s not also forget the Democrat Affordable Care Act that will potentially make Americans living abroad pay the surcharge for this, cleverly engineered so that it gets around any tax treaty credit system for taxes.
In regards to the request to remove FATCA requirements for “local accounts,” I don’t see that as very realistic and it is off the mark. This is what the angle should be: eliminate/greatly reduce FIBAR penalties for local accounts, and go for exemptions from taxation for long time US persons resident abroad. The penalties and the double taxation are what represent U.S. government discrimination against U.S. citizens abroad. Individual rights under the U.S. constitution are not being applied in an even handed way across all Americans, no matter where they live. The U.S. is showing disrespect for the rights of nationals and their families of other countries, and disrespect for other governments pretending that that sovereign borders of America extend the globe.
There could be some remedy if the Canadian-U.S. tax treaty was modified to include exemptions. How best to go about this?
Why are liberals so mean spirited? They have the thousands of permenant government employees as their own army of workers at election time. They have the news media as acomplices. Together they are another branch of government, who by and large adhere to the Marxist Manifesto and deny it.
The best favor we could have would be to chop half the regulation, half the personel and half the budget. Not gonna do it is the leberal motto.
The IRS cannot be reformed. It would have a minoity role in government if the legislature would just pass the FairTax. Citizens could return to being law abiding, because nobody can even understand the code.
@JC- regarding your comments on Dems as the party of compassion-I totally agree with your assessment and would bolster it by saying: Dont forget it was CLINTON ADMINISTRATION that brought in the 1996 Reed Amendment (never enforced but still on the books).
and
check out the passport revocation thread here at IBS as the best way to keep recycling more anti expat legislation under hidden cover !!