UPDATE: The initial story by Ralph Z. Hallow, chief political writer at The Washington Times, has been revised and greatly expanded at the same previous link:
http://www.washingtontimes.com/news/2015/jun/24/sen-rand-paul-sue-irs-us-treasury/
This is stop-the-presses news: Rand Paul has joined forces with Jim Bopp, Solomon Yue and Republicans Overseas and will be one of seven plaintiffs in the upcoming lawsuit against the IRS and the US Treasury Department. The suit will be filed by a new composite organization called Republicans Overseas Action.
Some crucial highlights:
Sen. Rand Paul to sue IRS, U.S. Treasury
Rand Paul is poised to become the first major presidential candidate in memory to sue the government he seeks to lead as president.
The Kentucky senator will take legal action against the U.S. Treasury and the Internal Revenue Service for what he says is the denial of his constitutional right to vote on more than 100 tax-information treaties that the Obama administration unilaterally negotiated with foreign governments, The Washington Times has learned.
In what the suit says is a violation of Article II, Section 2 of the Constitution, President Obama has not consulted the U.S. Senate about the treaties nor given the Senate an opportunity to approve or disapprove of the treaties. The administration calls them “intergovernmental agreements.” They require foreign banks to gather and share private financial information about millions of Americans living and working outside the U.S. — information they would not have to disclose to the U.S. government if they lived and worked in the U.S.
The treaties or agreements are the enforcement mechanisms of the Obama administration’s Foreign Account Tax Compliance Act (FATCA), enacted by a Democratic-controlled Congress in 2010.
The act is despised by many of the estimated 8.7 million Americans living overseas, a record number of whom have — with great anger and reluctance, according to those who have spoken to the foreign and U.S. press — renounced their U.S. citizenship rather than attempt to comply with FATCA.
Mr. Paul, a Republican who announced his presidential bid in early April, will join six other plaintiffs in the suit that a new organization called “Republicans Overseas Action” expects to file in a southern Ohio federal district court the week of June 29. The court’s Republican makeup is considered at least open to the constitutional arguments that the plaintiffs lay out.
The other plaintiffs in the suit Mr. Paul has joined say they have been denied banking and financial services in the foreign countries where they live and work. The foreign banks don’t want to be burdened with the expense and paperwork to comply with FATCA and therefore simply refuse to accept Americans as clients.
The Republican National Committee and the recently formed Republican Overseas Action aim to get as many of those Americans living or working outside their country to register in one or another of the swing states that decide the presidency in close elections. Republicans Overseas Action is paying for the lawsuit Mr. Paul has joined as plaintiff.
The driving force behind the suit is a longtime conservative activist on the Republican National Committee, Solomon Yue of Oregon.
“The best way to defend 8.7 million overseas Americans’ right to privacy and constitutional protections is to cripple the IRS, FATCA and enforcement tools through legal action on constitutional grounds all the way to the U.S. Supreme Court,” said Mr. Yue, founder and vice chairman of Republicans Overseas Action Inc
For reference, here was our initial coverage today:
A very significant announcement from Rand Paul today, as reported by The Washington Times:
Sen. Rand Paul to sue IRS, U.S. Treasury
Kentucky Sen. Rand Paul will sue the U.S. Treasury and the Internal Revenue Service for denying his constitutional right to vote on treaties that the Obama administration unilaterally negotiated with dozens of foreign governments, The Washington Times has learned.
The treaties, which the administration calls “intergovernmental agreements,” require foreign banks to gather and share private financial information about millions of Americans living and working outside the U.S. – information they would not have to disclose to the U.S. government if they lived and worked in the U.S.
Photo credit: Associated Press
@Jefferson
You might want to look up “Amtshilfe” versus “Rechtshilfe”.
And as far as I have heard, Switzerland doesn’t punish or evict for crimes like tax evasion because it isn’t punished in Switzerland itself.
But generally speaking, knowing what the policies are for each country in terms of collection and such is important to know for any individual involved in this mess.
FATCA is a one ended contract. They MUST send a minimum amount of information. They CAN send anything they want. They can send their entire customer list if they want.
https://fatcalegalaction.com/
The site is back up now but I don’t detect any changes. For instance, their donation thermometer is right where it started.
And speaking of fines and penalties…my lawyer thinks that we should have filled out the Be-10. I know someone on Brock said that US expats don’t need to…only US residents, but my lawyer disagrees. Anyone have the correct answer to this one? The penalty is pretty big for this one too!! I’m becoming hysterical. Every time I turn around there is yet another form to fill out and a huge penalty flying across the ocean coming towards us. I can’t stand it anymore!
Japan T: “I do not care one way or the other about FATCA, whether it stands or not, it is the EFFECTS of this stupid law that I am concerned with. The effects will remain even after the law is repealed. Once my citizenship is paired with my financial data, then I am a easily discoverable target.”
That’s exactly why our fight will not be over until CBT itself is in the sewer.
https://www.bea.gov/surveys/pdf/be10/BE-10%20Instructions.pdf
“The publication in the Federal Register of the final rule implementing this survey is considered legal notice to U.S. business enterprises of their obligation to report.”
Beware of word games. It says “business enterprises” but it means everyone. Corporations are people too, and people are corporations too, even if they don’t incorporate.
“If the U.S. person had no foreign affiliates during its 2014 fiscal year, it must file a “BE-10 Claim for Not Filing”; no other forms in the survey are required.”
Somewhere around 300,000,000 homelanders have no foreign affiliates. They have been informed by publication in the Federal Register that they must file a “BE-10 Claim for Not Filing.” Around 300,000,000 homelanders are going to get penalized for wilfully (remember, they were informed by publication in the Federal Register) failing to file “BE-10 Claim for Not Filing”.
And they’re going to blame us.
@Muzzled No More
Japan T: “I do not care one way or the other about FATCA, whether it stands or not, it is the EFFECTS of this stupid law that I am concerned with. The effects will remain even after the law is repealed. Once my citizenship is paired with my financial data, then I am a easily discoverable target.”
That’s exactly why our fight will not be over until CBT itself is in the sewer.
Yep.
Somewhere around 300,000,000 homelanders have no foreign affiliates. They have been informed by publication in the Federal Register that they must file a “BE-10 Claim for Not Filing.” Around 300,000,000 homelanders are going to get penalized for wilfully (remember, they were informed by publication in the Federal Register) failing to file “BE-10 Claim for Not Filing”.
It should be crystal clear now that the purpose is to complel compliance to noncompliable rules and regulations for the sole purpose of raising revenue from the fines imposed on the noncompliant….who are naughty in the regimes sight.
https://www.youtube.com/watch?v=iGm82YeabWU may help explain some things. I understand NONE of it. Let someone explain it in layman’s terms so you and others and all of us can break it down, understand and not become too stressed out. Deep breaths, 2terrified2sleep.
@2terrified2sleep
Is your lawyer a CPA? If he is a lawyer only… its your life he is screwing… u need to be referred to an accountant by the lawyer so u can be covered under client/lawyer priviledge… don’t assume a lawyer will know better but the lawyer only sees a $… not a person whose life is on the line… he will file forms that may not even pertain to u…. filing more does not make it better but it will make more money for him
Example… a Cardiologist parent diagnosis a child that was hurt at a hockey game… foot issue/bleeding… he said everything was fine… it wasn’t… he jammed his foot that required surgery…. Ortho said maybe he should go to the Cardiologist’s office & diagnosis his patients by looking at them & telling them they are fine… even though he wasn’t a cardiologist… I believe the cardiologist that my kid was fine until I had to take him to the emergency room because the bleeding wouldn’t stop & he had to have surgery right away
Same logic for the lawyer… he may say he is an expert… he may not be at all…. if he makes a mistake… ohh… well… no biggie… they take your money not his…. Will he give u a refund on what u paid him if he makes a mistake… Not trying to be mean but I have become very wary of these so called experts…
Take a deep breath…. stop & think… do not rush any of this… a mistake made can haunt u forever…
That can’t possibly mean what it seems to mean. Everyone is supposed to either file a BE-10, or else file a form saying they are not filing a BE-10, under pain of $25,000 fine? That would be even worse than the not-signing-up-for-ACA-because-ineligible form for tax returns (which has only a $600 fine).
There has got to be some misunderstanding.
@ foo
I hope you are right, but after FBAR it is not so hard to believe, is it?
Foo you are on the right track. Watching their introductory video, 2 things are stated although not exactly crystal clear. Firstly, ‘All US companies that own…foreign affiliates…..are surveyed. Seems reasonably clear if you aren’t part owner of a foreign affiliate ,you don’t file and secondly US person notified by BEA about the need to file…..but had no affiliates…..file the claim for not filing
If you weren’t part owner, and they don’t contact you, you don”t need to file.
I cannot fathom a guess about an ex-pat who owns a business in his own country. I’m not a lawyer.
@2terrified
http://taxpol.blogspot.ca/2015/05/gotcha-yet-another-obscure-asset.html
https://www.bea.gov/surveys/pdf/be10/BE-10%20Instructions.pdf
@2terrified2sleep
What’s the Scoop? Form BE-10 Reporting of Foreign Assets or Real Estate
http://blogs.angloinfo.com/us-tax/2015/06/08/whats-the-scoop-form-be-10-reporting-of-foreign-assets-or-real-estate/
Form BE-10 in the land of the free
http://hodgen.com/form-be-10-in-the-land-of-the-free/
Meh. I’m not filing that piece of shit. They could make the fine $250,000, or even $2.5 million. They can’t squeeze blood from a stone, so what else can they do? Ruin my credit over there?
@mjh
As near as I can tell, my fine would be a minimum of $300,000, five bank accounts at $10,000ea X six years. Whoohoo!! That’s just a littles less than what I earned this past decade. Like you said, they can not squeeze blood from a stone. However, that may not stop them for trying.
@ notamused: Thank you for posting Phil Hodgen’s blog post about the BE-10 form: I loved this quote from the very end:
“I have a friend — a Canadian lawyer. He semi-jokingly said to me one day, “Your national anthem says you are the ‘Land of the Free’. Tell me one facet of your life that is not regulated by your government.”
Just found this at Accounting Today. Was unable to find a link that I could copy so here is the info. Pricey but may be of use to someone.
Foreign Account Tax Compliance Act Answer Book 2015
by Matthew D Lee
Copyright: 2015
$295.
Product Details
ISBN Number: 9781402424250
Page Count: 784
Number of Volumes: 1
@foo
From Phil Hodgen via the link provided above by Not Amused.
Every man, woman, child, corporation, partnership, trust, dog, goldfish, and parrot living in the United States must file. OK. That’s a slight exaggeration.
You must file a form if:
You are a “U.S. person”” who has an investment in a “foreign affiliate”. 15 CFR §801.8(b)(1). (This means BE-10A through BE-10D).
You are a “U.S. person” who does not have an investment in a “foreign affiliate”. 15 CFR §801.8(b)(2). (This means you file Form BE-10 to say you are not filing anything).
Read literally, every single individual living in the U.S. and every single entity — corporation, partnership, LLC, or otherwise, must respond. If it has a foreign affiliate, then it must file Form BE-10A, B, C, or D. If it does not have a foreign affiliate, then it must file Form BE-10 Claim for Not Filing.
@Muzzlednomore
Loved that- but the scary thing is that America wants to regulate the WHOLE world. And nobody is doing much to stop them. I cringe every time I read somewhere that the american court has decided…..whatever…..and it is like it is taken as a global decision.
@Polly
Another scary aspect is this, if homelanders put up with it they will have no sympathy for us. Infact, may support even more agressive actions towards us. Misery loves company.
@Polly
“….but the scary thing is that America wants to regulate the WHOLE world. And nobody is doing much to stop them.”
When it involves the matter of the USA regulating its US persons wherever they may be in the world, like chattel, why would any other nation intervene?
Better to not be a US person at all. Best to never have been a US person in the first place.
GUYS- I AM NOT EVEN TALKING ABOUT US- I MEAN THAT AMERICA WANTS EVERYBODY- FOREIGN NATIONS- TO BEND TO THEIR WILL.
@Polly … TRUE !
Polly, I believe that you were asking elsewhere in the Blog whether Black people are affected …. the answer is absolutely YES ! Predominantly Black countries like Jamaica with large diaspora in (or formerly in) the US are in serious trouble … as many of these Jamaica / US Citizens or Green Card Holders DO sign on accounts owned by elderly relatives still residing in Jamaica (standard cultural practice to deal with sickness, feebleness and so on). I am quite sure that these accounts have not been reported on FBARs nor family properties reported on BE-10s etc. There is going to be a financial bloodbath that will rob other countries like Jamaica blind.