FATCA Discussion Thread (Ask your questions) Part Two
Please ask your questions here about FATCA.
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NB: This discussion is a continuation of an older discussion that became too large for our software to handle well. See FATCA Discussion Thread (Ask your questions) for earlier discussion.
@Hdxlch, yes there is. Anyone who has signatory rights on any business account will have to report those accounts as if they were his own. Whether that’s just actual business bank accounts, i.e. CFO who signs cheques, etc, or would include internal departmental budgets I’m not sure. Better get him to check asap.
The Heritage Foundation has weighed in on FATCA.
http://www.heritage.org/research/reports/2014/06/fatca-hurts-law-abiding-americans-living-abroad
@bubblebustin, good analogy re the closing agreements. Who would have said no to the IRS? Just like they railroaded people in the ‘voluntary’ programs into signing agreements to keep SOLs alive – for returns, AND for FBARs, while keeping them in limbo. If the form states in ominous terms that the filer is reminded that they promised to cooperate, at the same time stating that signing is ‘voluntary’, what would the average person do? They would sign, since examiner and agent discretion was so important to the final determination, whether they thought it was right or not. It might not even be legal, but who would have the knowledge and funds to fight it from afar? The agents just want to clear their allotments and get their cases resolved – whatever that takes.
Minnows and others who were not willful still had to face mounting legal and accounting costs over the protracted process. Some would have signed just because they couldn’t afford any more mounting professional fees (very interesting that in the period after Fall 2011, at least one US tax law professional who came to Canada increased his fees exponentially in short order, and Canadian crossborder tax practices suddenly opened new locations – plus ones in the US).And others could not endure any more IRS torment, uncertainty and the stress of not knowing whether you would be completely obliterated, or just severely maimed.
It is certain that people would have signed under coercion and duress. And the analysis of the results show that those with lower assets and without representation paid the most in terms of the ratio of penalties to actual tax owed, and to the size of the accounts. And that isn’t including those with accountants and other ‘professionals’ who were incompetent and made costly errors which negatively impacted the filer, and forced them to have the filings redone, or gave them an incorrect picture of their liabilities.
@NTL, thats an important article from Heritage and it should garner publicity. Can we link to it on a side bar?
@Not that Lisa…
Cleverly, they use @Demsabroad references in their article. But even at that, the Liberals will dismiss anything a Conservative Think Tank says…
…..who have closed their Swiss Bank accounts prior to 12/31/13 — will indeed dodge the disclosure bullet under FATCA and the Implementing Agreement……
http://www.federaltaxcrimes.blogspot.ch/2014/06/reminder-category-2-banks-will-serve-up.html#more
Is this correct ????
I thought that under FATCA the disclosure period for accounts (>$50K) goes back from 7/2014 to at least 2012 (including those that were closed during that time period)
@George – maybe one of the site administrators could do it? Yes, it is important because the Heritage Foundation is a major, well respected, conservative think tank. I hope Solomon Yue at Republicans Abroad is aware of this article. It might help to booster his platform within the party.
@Just Me – I also thought it was clever and not taken out of context at all.
Failing to file is extraditable. It my not have been done.
page 2
https://www.oas.org/juridico/mla/en/traites/en_traites_can-usa-ext1991.pdf
page 682
http://digitalcommons.lmu.edu/cgi/viewcontent.cgi?article=1553&context=ilr
A interesting development to note…
Changes in the IGA… see what has been deleted unilaterally…
Does this mean the US has decided it doesn’t want to participate in #OECD’s #GATCA after all. It is #FATCA or nothing http://bit.ly/1n8BmHb
Humm..
@Just Me, well of course they don’t. The US banks are beginning to realise how much it will cost THEM to become compliant like the rest of the world has had to do and they don’t like it. And the US isn’t really interested in makin sure other countries find their tax evaders, it’s only interested in US ones.
@Just Me….. @Moderators..
That find deserves front page to show the hypocrisy.
Brockers in Canada, you need to notify your allies in Parliament of this!!!
http://www.youtube.com/watch?v=7I_45RhEEsg&feature=youtu.be
in Russian.
Theme of the program: “Does Russia need the law FATCA?». Away economist, teacher of the Russian Academy of National Economy and Public Administration under the President of Russia Vladislav Ginko, financial ombudsmenm Pavel Medvedev,
political analyst Fyodor Shelov-Kovediaev, Head
It seems to be important enough to have 5 people talking about it for 44 minutes on TV
@ George.I think this is significant, but will look for any knowledgeable journalist that might know something. I am sure at least 100 are calling Robert Stack right now asking for an explanation . Not
Not sure where to post this, but yesterday I got a safety deposit box for my new CLN. I was sitting with the RBC bank employee, and she said “Let me just check to see what identification we have on file for you”. I was prepared for a FATCA conversation, but she said that when I opened my account in the late 1980’s I had used a credit card and my SIN card. She asked for another piece of ID, and I gave her my drivers license. That was it.
@ mykitty
Might I suggest you get a couple of notarized copies made…
I did at $10 apiece (X3)..so that I only carry the notarized copy when travelling (original in safety deposit box)
I would keep one in the fridge/freezer so that someone can access it should you lose the copy while travelling (ie, theft..) and forward fax copies… Also had an extra copy made to give my daughter for Estate purposes and should she need it to squelch any questions in future…
For What it is worth…
@Benedict Arnold be me
Thank you for all of your very practical advice. I actually got 5 certified copies yesterday. I LOVE the fridge/freezer idea.
I also intend to get a gazillion copies made when the time comes. One thing that I’ve been wondering about is how valid is it to have a Canadian notary notarizing a US document.
Seems to me this may fly in Canada, but suppose I move to Tahiti and want to open a bank account there. Will it be accepted?
Also, what about crossing the border with it? In theory, your renunciation should pop up on the border agent’s computer terminal. But suppose it doesn’t (computer system down, etc), and you have to haul out your CLN copy. Will the agent be happy with what you give him/her?
Any opinions?
@ tdott
It is just a flammable destructible piece of paper with a seemingly impressive symbol on it…
The power lies in belief…
No different than a US Dollar bill… 🙂
In the end…nothing protects you from an “unwilling to believe” individual blocking your entrance or exit…
CLN = DUMBO’s feather 😉
https://au.news.yahoo.com/a/24181578/nzs-independence-not-for-sale-says-internet-party/
NZ’s independence not for sale, says Internet Party
The Trans-Pacific Partnership Agreement, Five Eyes intelligence sharing and the American Foreign Account Tax Compliance Act have put New Zealand’s sovereignty and independence at risk and must be immediately reviewed, says the Internet Party.
Further to the dangers of being a USperson living abroad who will be identified, and have their personal and financial information put on bank and local tax agency lists under FATCA – just being a US dual in some countries is becoming more dangerous. So, does the US State Department think that demanding that foreign governments and banks compile lists of all USpersons with accounts is really a good idea?:
“…..Russian President Vladimir Putin signed a controversial law this week making it a criminal offense to fail to report dual citizenship. It’s a bid to keep track of potential foreign agents. Russian citizens who also hold a U.S. passport or one from another country have 60 days to notify the Federal Migration Service of their status or face a fine of nearly $6,000….”….
http://www.usatoday.com/story/news/world/2014/06/06/putin-foreigners-russia/10003575/
This has appeared on the website of a bank in Australia:
What is the Foreign Account Tax Compliance Act (FATCA)?
Australian and US laws in accordance with the reporting provisions, commonly known as the Foreign Account Tax Compliance Act (FATCA), requires all Financial Institutions to identify and report customers who may be US residents for taxation purposes to the Australian Taxation Office.
This will require Bank of Melbourne to identify, and we may be required to report, certain US customers and investors to regulators.
If you are US citizen or resident for taxation purposes, you must notify us when you open a new account or investment, by calling 1300 667 156 (9am – 5pm AEST, Monday to Friday).
This applies to:
Personal customers who are US citizens or residents for taxation purposes
Business customers where either the entity or its controlling person(s) are US citizens or residents for taxation purposes
More information about FATCA can be obtained from the Australian Taxation Office or the US Internal Revenue Service.
If you are a US citizen or tax resident you need to notify us by calling 1300 667 156 (9am – 5pm AEST, Monday to Friday).
@Ellendownunder.
That is interesting. You call us, and we won’t call you? 🙂
I see your Prime Minister, Tony Abbott is getting good press… LOL
http://youtu.be/c3IaKVmkXuk
@Just Me
You have made my day! It looks like Abbott is going to be a one term (or less) PM. Hopefully the Australian Treasurer will go down with him.