WHERE:University of Toronto, St. Michael’s College, Carr Hall Room 405
100 St. Joseph Street – Toronto ON M5S 2C4 MAP
WHEN:SESSION ONE: 9:00 – 11:00 am Info Session
“2015- Solving U.S. Citizenship Problems-Have You Received a FATCA Letter?”
ADMISSION: $20 per individual or $40 for a family of up to 4 people
Payable in cash at the door, please (to cover costs).
WHEN: SESSION TWO: 12:00 – 6:00 pm Open Forum
“Have You and Your Family Been Harmed by U.S. Government Tax Policy?“
ADMISSION: FREE
WHO: John Richardson, B.A., LL.B, J.D.
Member of the Ontario Bar
SESSION ONE
“Have you received a FATCA letter or been warned of the consequences of being a U.S. person?”
Why am I getting letters from my bank all of a sudden?
The “FATCA Hunt” – the hunt for U.S. persons (whatever that is) began on July 1, 2014 which was “Canada Day.” Although both the definition of “U.S. person” and whether one meets the definition is not always clear, the search has begun. The level of FATCA awareness has begun. Some organizations are actively warning people that “U.S. Person-ness” matters. The purpose of the warning is presumably to encourage people to “come clean” and deal with their U.S. tax situations. In some cases, there is no particular warning – just a letter indicating that they are suspected to be a “U.S. person.” Often one must prove to the institution sending the letter that one is not a U.S. person.
What individuals are U.S. taxpayers? Who is a U.S. citizen?
There are individuals that the U.S. government would define as “U.S. citizens” who:
- do NOT agree that they are U.S. citizens because they have performed a “relinquishing act” under applicable U.S. laws;
- do NOT even know that they may be U.S. citizens because they have never lived in the United States
- are citizens and residents of countries that do NOT allow multiple citizenships
To put it another way: one’s status as a U.S. citizen is NOT always clear.
I have never heard of these requirements! What determines the income that must be reported to the IRS? What “Information Returns” are required to be reported to the IRS?
- FBAR (Now called FinCen 114)
- FATCA 8938 – Report of Specified Foreign Assets
- 5471 – Information return for Foreign Corporation
- 3520 – Information return for a “Foreign Trust”
- 3520A – related to the 3520
- 8621 – for CDN Mutual Funds
- 8965 – for exemption from ACA insurance
I am only a snowbird! Why does this affect me?
- Substantial Presence Test
- Form 8840 Closer Connection Exception Statement for Aliens
- Caution: Streamlined Programs & 35 day rule – Catch 22
What are the ways I can become compliant?
- Offshore Voluntary Disclosure Program – AKA “OVDP” – Not appropriate for the vast majority of people
- Streamlined Compliance – A pre-packaged way to “clean up” past compliance problems
- Obeying the law – filing amended tax returns outside the “IRS Created” programs
- Delinquent FBAR Submission Procedures
What costs are involved in renouncing U.S. citizenship?
- The costs of a total of 6 years (5 years prior to the year of renunciation plus the year of renunciation) of tax compliance and information returns
- The cost of any back taxes and penalties
- A $2350 administrative fee
- possibility of having to pay an “Exit Tax” (which can be the biggest problem)
SESSION TWO
We want you to send your stories and videos of harm done to you by CBT to us by February 14, 2015. These will be sent to WASHINGTON DC
Requests from other sites to unite all our efforts have prompted a renewed call for submissions to the Senate Finance Committee!
All “US Persons,” American citizens, Accidentals, Border Babies, LPRs
FROM ALL ACROSS THE GLOBE
Open Forum– “Have you and your Family been Harmed by US Government Tax Policy?”
This session will be a Forum, moderated by John, where we will discuss the reality of what we are experiencing as US Persons abroad. Everyone is encouraged to come and participate or just listen if you like. Those who wish will be invited to speak directly to the Senate Finance Committee. You will have the opportunity to appear on camera. You will have the opportunity to describe in detail how difficult it is to both comply with the U.S. laws governing U.S. citizens abroad and have any kind of life. You don’t need to have a memorized statement, John will “interview” you and it will be as if you were just conversing with someone. Our goal is to create a number of video testimonials. (For those who are fearful of revealing your identities arrangements will be made so that your faces are obscured.) Each video testimonial will be paired with a written statement. If you don’t want to appear on video or if you don’t want to come to Toronto, you can prepare your own video testimonial and forward it to us. If you don’t want to appear on video, we still want your written statements.
We must commit ourselves to the goal, of ensuring that the reality of “U.S. Citizenship Abroad” is understood in the legislative process. We must take the positive and affirmative steps of educating the Senate Finance Committee. Our goal is to guide the Committee to recommend “residence-based taxation” for DNA American citizens abroad.
We do not believe that that Congress is either malicious or vindictive. We do believe that they are ignorant and have been seduced by the “Myth of The American Abroad.” The opposite of the truth is NOT the lie. The opposite of the truth is the “Myth.” Therefore, we must dispel the myths. We can achieve this only if you are willing to share your story.
We can achieve this only if you can convey your pain, your fear, your terror, and how the policies of the U.S. Government have destroyed the lives of you and your families. They must understand that people are being forced to renounce their U.S. citizenship to protect themselves and their families from the tyranny of the U.S. government.
To put it simply: Congress must understand how the community of U.S. citizens abroad (the best ambassadors that America could ever have) is being destroyed. This is not about tax compliance. It’s not about accountants and lawyers. It’s not about academics. It’s not about partisan politics. It’s not about class warfare. It’s certainly not about tax evasion and offshore accounts. It’s not about a bunch of theoretical garbage. It’s about people.
It’s about people with real lives, who are trying to exercise their constitutional liberties to pursue happiness in the form they desire. Instead they are being forced to renounce (either formally or informally) their U.S. citizenship. It’s about the right of people to live normal lives. It’s about being able to “live as a U.S. citizen abroad”
Please do NOT assume that your contribution doesn’t matter! Your contribution does matter!
Everybody matters. Therefore everybody has an obligation to contribute! Don’t get me wrong. I don’t mean “equal contribution”. I do mean that I want you to do what you can! We need your story. There are (apparently) 7.6 million Americans abroad. That’s a population bigger than many U.S. states. The votes of Americans abroad are believed to have made George Bush president in 2000.
You can make a difference.
People will be on video ONLY is they want to be. You can attend anonymously and contribute to the discussion. Come one! Come all!
Please forward your contributions to nobledreamer16 at gmail dot com
I thought there might be a chance of enlightening the Senate Finance Committee on these issues which affect us all. Then I saw on Ms. Jeker’s blog, the following. I think probably all the readers here are well aware of his point of view. Sigh.
“The good news: Leaders of the Senate Finance Committee have formed five bipartisan working groups with the very laudable goal of analyzing the US tax code and developing policy recommendations for comprehensive tax reform. They all agree the tax code is far too complex and needs an overhaul. Sounds good so far….
The bad news: Unfortunately, Chuck Schumer (D-NY) is co-chairman of the International Tax committee. “
@Barbara, “For the life of me, I’m trying to think of a single instance anywhere in the world where any government introduced a tax (in this case, citizenship-based taxation, as well as FBARs and FATCA, which are related) which was ever, EVER repealed.”
The US introduced and repealed an inheritance tax a few times in the 19th century. It also repealed the income tax between 1895 and 1913 due to a Supreme Court decision. More recently, the limitation of the foreign tax credit in the alternative minimum tax (90%) was repealed in 2004.
The following countries used to practice CBT but abolished it: Mexico, Soviet Union, Bulgaria, Philippines, Vietnam, Myanmar. Last year, French citizens born and living in Monaco won a lawsuit excluding them from French CBT (France only applies CBT to its citizens in Monaco, and now only if they actually moved there).
The following countries used to have an inheritance tax but abolished it: India, Pakistan, Thailand, Australia, New Zealand, Canada, Mexico, Panama, Israel, Hong Kong, Singapore, Russia, Austria, Portugal, Sweden, Norway. Sweden also abolished its wealth tax. In the US, 30 states have abolished the estate tax.
Australia, Argentina and Brazil abolished a bank transaction tax.
@Barbara
What Shadow Raider wrote is correct.
And that is why we have to keep fighting! Even those who renounce have to keep fighting, if not, Chuck Schumer may just get his way banning people who renounce from ever seeing their relatives again. Schumer really is a cruel little bastard.
@Barbara,
You ask: “Does anyone seriously believe there is the slightest chance to change things?”
I happen to believe that there is in fact a chance that the SFC might be influenced in a positive way.
We ask that those who feel the same and are interested in this opportunity should send Tricia (nobledreamer16 at gmail dot com) a written submission (and video if possible) detailing the harm that has been caused to them by US tax policy. Those who can make it to the Feb 14 Toronto meeting can be videotaped right at the session. This can be done without disclosing your identity. All submissions will be forwarded to the appropriate working group of the SFC in Washington. Obviously, those who feel that this is a waste of time will not make any submission.
@qm, I know that you did not mean this, but having Senator Schumer as co-chair of one of the SFC working groups should not be a sufficient reason to give up and not make any submissions. Senator Schumer and his staffers need a lot of education and irrefutable arguments which we will provide.
@Barbara and @all;
At the very least, they cannot say they have not been told (though we do know that they also have been told before in various ways at various times, regularly by ACA, FAWCO, AARO and others).
From my point of view, this is to counter their ignorance and to the extent that their actions stem from ‘willful blindness’ (ex. http://iveybusinessjournal.com/topics/leadership/willful-blindness-when-a-leader-turns-a-blind-eye#.VM_WIsbipY0 ) then this also provides more robust evidence that establishes that they have been now and in the past, well and truly told – it is to be forever on the record the lengths to which we have gone in order to educate them and speak to their consciences (a form of ‘moral suasion’?).
I don’t know whether the organizers would agree with me about my interpretation of the purpose, or have anything to add.
@ badger
I agree with you, the more information we give them the more they cannot plead ignorance. Do we know who actually saw the information collected by the Democrats Abroad showing the damage being done? We know in Canada that most of the MPs probably did not see the 400 submissions made to plead the case against FATCA before the MPs voted our rights away. They need to understand the CBT, FBARs and FATCA are not about taxation (there are no benefits received), they have become punishment and control and as a developed country all of the US Adminstration should be hanging their heads in shame.
I didn’t know there were 400 submissions! I know that I called and emailed Kevin Shoom several times. Would that be considered a submission?
Bubblebustin
I may be mistaken in the number, I thought I had read that somewhere here.
@bubblebustin, perhaps the number comes from this post where Blaze mentions that via Access to Information she received >400 pages of submissions?
As described here:
http://maplesandbox.ca/2014/here-is-what-canadians-said-on-fatca-iga-the-cons-didnt-listen/
“.The Cons didn’t listen. In fact, they didn’t even receive the over 430 pages of submissions sent to Finance Canada.
In March, I made a request for those submissions to Finance Canada under Access to Information.
I asked if copies would be provided to MPs. The answer was no.
I asked what the purpose was of Finance asking for the submissions if our elected representatives would not see them before they voted. I did not receive a reply.
I asked for copies before my testimony at Finance Committee on May 13. That was denied.
I asked for copies before the MPs voted so I could forward it to them. That request was delayed.
I finally received over 400 pages of submissions almost three months after my request and on the very day (June 12) the House of Commons voted. I will let you decide for yourself if you think that delay was intentional or not. I know what I believe…..”
The links to the actual documents obtained via Access to Information are at the end of Blaze’s post.
@badger
Thanks that is probably where I remember the number from. Sorry for the mistake
@heartsick, understandable, and thanks for the timely reminder that the submissions to Finance Canada were of an impressive number (the majority against the FATCA IGA) – despite the Cons hiding the notice on an obscure Finance Canada page ( http://www.fin.gc.ca/treaties-conventions/notices/unitedstates-etatsunis-eng.asp ) that most Canadian citizens and residents would NEVER SEE! And to compound that, they were not shared with Parliamentarians or the Senate, AND Blaze had to make repeated requests and use Freedom of Information in order to obtain them – after significant delay. That is worth remembering! No transparency, no accountability, no democracy – which continues in everything FATCA – here in Canada, and in the US.
Thank you our resource person extraordinaire, badger, and of course Blaze for the wrangling you did to get access to the intimation. All of it brings back sour memories of the day we were betrayed.
@Queenston I like sinkhole as opposite of loophole.
Many in the US think there are tax loopholes for US persons living overseas. The reality is that as they must pay tax and different taxes to the countries in which they live, then comply and pay tax according to US law pretending that they live in the US. The US laws more often than not result in tax and compliance sinkholes for US persons living overseas without true representation or US government services in exchange for the tax for them or members of their communities.
@Queenston, I also like sinkhole. Thanks for the creativity.
One of Grasseley’s political connections is following my tweets and hopefully my blog.
RO has shown some really good lobbying and awareness sessions with some of the key players.
Some of the more informed legislators are taking notice.
Wickers, Enzi, Lee, Portman, Ron Johnson. Pittenger. Even McCain has been talked to.
These contacts need to be expanded and not discouraged.
Grassley should be next.
For those that remain citizens, in all of your contacts, mention that :
you have become a SINGLE ISSUE VOTER,
that you are looking for legislators to address your issues,
that you intend to cast your ballot upon those issues.
Mention that you are recruiting additional voters to register.
Mention that you are registered in a swing state.
Make your legislator support you!!
Don’t accept mushy answers from your legislator.
Call out those that are bashing expats
Force legislators to stand up for Americans.
Especially those that are spreading American DNA throughout the world
@William Tidwell
Get your grandson in Norway connected with Republicans Abroad Norway. They need to become active in expat issues. A is more important than R or D. O is most important over R.
Or, if he is a DA’er, then he should work within DA to make A be most important for D.
@Barbara
The U.S. has one of the most inert political systems in the world. It takes a lot of pushing to get any change and this issue hasn’t really exploded yet. It has only been since July that FATCA has been in effect. It is way too early to give up on this.
@FromtheWilderness
I see Schumer as more of a Frank Underwood: power hungry rather than evil, but definitely not to be trusted. From what I have read, one of the motivations of New York (and California) is to shift the federal tax burden off high incomes, since high-income earners live disproportionately around New York City. This makes sense: FATCA is a way of seeming to get at the naughty offshoring fatcats (which do exist and many UBS clients came from New York) while not having to increase the taxes on law-abiding high earners around New York city (who get wacked by really high state and city taxes). Then there is Wall Street, which benefits from all these rules that disadvantage foreign competition. I think Charles Schumer’s motto is basically ‘Don’t tax him, don’t tax me, tax that money that’s overseas’
To Barbara and all the other Barbaras out there: Saying your say and having a voice is absolutely worth it! The world will never change unless the “little guys” like us decide we’re “mad as hell and we’re not going to take it any more.” This is not just a blog filled with people talking to themselves; this is a *movement* that has gone from strength to strength since its inception at the end of 2011. We *will* succeed, but only if each and every one of us feels free to tell his/her story in whatever form makes them comfortable. I will be submitting a written statement unsigned. I urge you to participate … please. Our group submission to the Senate Finance Committee will be poorer without you.
please encourage the other organizations to follow your lead.
ACA, AARO, MapleSandbox, others.
Nonpartisan organizations. Partisan organizations.
Encourage wide participation through ALL avenues.
@publius, all
@Publius
I see Chuck Schumer as a megalomaniac who loves nothing more than to champion noble causes. If we could get him to see that the pursuit of Americans abroad is having a negative impact in the US’s greater war on offshore tax evasion (after all, Jim Bopp’s lawsuit is focussed on Americans abroad, but it’s success will benefit tax evaders living or hiding money in the US too), he may just champion our cause. It would go a long way if we could persuade him that not only will the expat community at large provide little in the way of tax revenue, but the reality of processing all those ‘nil’ tax returns would be a huge additional burden to the IRS when they should be concentrating on the real bad guys.
I know, after being virtually ignored by US for so long, the prospect of the expat community of being used as political pawns isn’t something we’re accustomed to, but it could become a reality soon.
get 10 of your friends to make submissions, and them to recruit 10 of their friends.
I just did some light “peppering” in the comments of the lead article on Chuck Schumer’s FB page. He doesn’t have anything on there about expats (can you imagine that?) and nothing about taxes, just local NY political stuff.
In any case, I am determined to make our voices heard one way or another, even if our “sign waving” and “yelling” from afar doesn’t get past Schumer’s staffers who update his FB page.
But then again, you never know, Schumer might just be vain enough to check his FB page to see what people are writing about him.
…and good on you, Walter! Thanks from a non-Facebooker.
@Publius
Frank Underwood has so far killed 2 people in cold blood. So, I’m not sure what you’re saying about Schumer 🙂