“The “Same Country” Exemption, sometimes referred to as “Safe Harbor” Rule, is the product of collaborative work among several groups representing Americans abroad. A detailed description was prepared by ACA and draws upon ideas and work of the other groups – which ACA greatly acknowledges. ACA is solely responsible for its content. This paper (attached) was drafted by Charles M. Bruce, Legal Counsel, ACA. Questions and comments are invited”
An individual residing in a foreign country could elect, but would not have to elect, to have an account treated as a “Same Country” Account by providing an election to the relevant FFI (such as, the individual’s bank) and attaching a copy to his or her regular Form 1040 or Form 1040NR. The FFI would then be relieved from the requirement to treat the account in question as a US account and to process and report information with respect to it.9
The “same country” exemption would not affect in any way the requirement to file a Form 1040 or 1040NR. Nor would the “same country” exemption affect in any way negate the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
An American taxpayer subject to the Form 8938 filing requirements, who had elected to have one or more accounts treated as a same country account by filing the above-mentioned election, could omit the account(s) from his or her Form 8938. The account would not count for purposes of determining whether or not one of the reporting thresholds, set forth in the Instructions to the Form, are met. IF AN INDIVIDUAL ONLY OWNED ACCOUNTS AS TO WHICH HE OR SHE HAD MADE A “SAME COUNTRY” ELECTION, THERE WOULD BE NO REQUIREMENT TO FILE THE FORM 8938
Can anyone make an estimate of the percentage of USP’s who will make it through the series of fiery hoops ACA proposes to put in the way of SCE?
That’s “of”, not “if” USP’s. My fat fingers.
Second only to your *Please, let’s all cut the crap, shall we?* comment at The Economist, Deckard.
Keep on saying it just like you say it!!!!
Thanks for your compliment. I’ve also posted the same comment to ACA’s Facebook page. We’ll see how long it stays there…
I posted the following to ACA’s Facebook site. Whether it stays posted or not I don’t care really. But it is, I think, the truth. I don’t join forums and won’t be defending my opinion, but this is what I think.
Tax reform is going nowhere. I think the best advice to any overseas-and-never-going-back dual-national American with no income, assets or family in the USA is to join the millions of compatriots who threw away their passports and challenged their “real” country of nationality to support them. And certainly not to sign any tax treaty or extradition treaty that would grant the kind of exorbitant extraterritorial jurisdiction that used to exist in China and Egypt, among other places. Sorry to be a realist, but frankly nobody in the USA cares about their “apostates” (as I saw it referred to in another forum) who deny “permanent allegiance” to the USA. I have seen too many Americans abroad of limited means who have — together with innocent non-American family members — been impoverished by double taxation, draconian penalties for innocent errors and general greed on the part of Congress and the Treasury.
Oh you ever-loving pipe dreaming fools. US.gov will surely take their damn sweet time when it comes
to ever doing anything adjusting FATCA. It will take an earthquake to ever get the morons in Congress
to raise a little finger on anything that provides income. Dream on.
Best hope is republican led effort to take FATCA to the Supreme Court. That has excellent chance of providing the best relief – complete repeal. FATCA is a disgrace. Its benefit does not nearly come even close to its cost and trouble. Too bad our intellectuals in Washington don’t realize this
Not all of us are virgins to the concept that Congress is broken and FATCA needs to be stopped in the courts. At least they can agree on something though:
For Canadians, the entire show on Comedy Network:
Why in the world would the US govt go for a same country exception, or a safe harbour rule? The reason for the FBAR is to catch income not taxed in our home country. Without FBAR, I could sell my home or win a lottery and the IRS is none the wiser because that income does not appear on my tax return. That said, I’ll take what I can get for now.
SCE gets you absolutely nothing. The attitude that you will take what you can get is self defeating but it is exactly what the U.S. and all those who support C.B.T, is counting on. SCE is CBT reheated and is classic double speak. Don’t accept anything less than R.B.T.
From the ACA’s latest publication:
“The “same country” exemption would not affect in any way the requirement to file a Form 1040 or 1040NR.
Nor would the “same country” exemption affect in any way the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).”
Under SCE the ONLY benefit they are going after is keeping bank accounts open. (Which the banks have not been consulted on nor expressed an opinion on as to this being a relief of their burdens thus keeping accounts open). It is just rubbish to make you THINK they are doing something.
Not having figured out this twitter “thing”, (Only read, don’t post) maybe those here that are savvy can join in this event and give the ACA a Deckard; *Please, let’s all cut the crap, shall we?* talking to.
Join us on Thursday, May 7th at 4pm CET/10am EST for our next Twitter Chat – #ACAChat
Our topic: Same Country Exemption for FATCA reporting
We are looking to learn more from Americans living outside the US as to what their issues and concerns are on current topics. Join us on Twitter, the first Thursday of each month, at 4pm CET/10am EST for our monthly chats, follow #ACAChat.