Mr Lewis’s assertion that all American’s who renounce are rich fatca-ts has got me wondering just how many non-resident US persons who neglect file do so because they can’t afford to pay an accountant to do it. Those of us required to file include seniors on fixed incomes, young people just starting out in life, the disabled, single parents, etc. I would think that the numbers could be as high as the hundreds of thousands if you consider everyone who should be filing. There was a time in my life as a single parent even if I had known about my obligation to file US income tax I would have been hard pressed to spend my Canadian child tax credit on filing US taxes.
It used to be that Canadians were more of a curiosity to Americans than anything else, but as the US loses ground and Canada manages to keep afloat, we may see more of this if only on a more subtle level. Those in US tourism know what’s at stake here, but as the average person there flounders it will be harder for those people to see the forest for the trees.
Some of you may be aware that I have been talking to John Weston re matters affecting US persons resident in Canada. He’s been designated the federal government’s go-to man on these issues and has used my circumstances as his exhibit in a letter he wrote to Minister Flaherty. I wrote to him yesterday complaining about the deafening silence from our government on FATCA (other than by the official opposition party), FATCA as it affects my children, updating him on our OVDI submission, and asking him if he can give me more information on his earlier suggestion that we may be able to have the capital gains tax on the sale of our home in Canada eliminated through Article 25 of the tax treaty. I received a response from his office today. It’s the usual short and sweet, but some of you may be interested in following up with Mr Weston because of the following:
“Pls thank (Bubblebustin) for the letter; advise her we have passed her concerns to the Minister and sought a response; and that I have personally invited a top US tax attorney, the former Dep. Commissioner of the IRS to Ottawa”
Public hearings on FATCA are taking place in Washington on May 15?
Nigel Johnston has made a real comprehensive assessment of what it will take to implement FATCA, obviously something Congress didn’t bother with. When delving more deeply into its workings, there are more questions than answers and a growing frustration with the lack of guidance the US is providing for such a huge undertaking. Do we need any more proof how misguided and irresponsible FATCA is, especially with the current time constraints? I read elsewhere that to do a good job would take five to seven years, and the US wants commitment by 2013! Those 30% withholdings probably look pretty appetizing right now as they are almost within grasp.
It’s seems to take a couple of months for them to be published, but here’s the link to the Federal Register for those who would like to check periodically. Anyone care to make a guess what they would be? I say 850 Q1.
TAS is looking to use video conferencing in order to better facilitate examiners and taxpayers during the examination process and to reach “underserved” taxpayers. Highlights Tampa as an area where underserved taxpayers are concentrated, but no mention of the lonely expat. Get audited in the comfort of your own home, just make sure they can’t see your Lear jet through the window.
Guilty by association, even when the association is allegedly created by the government itself: