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FATCA Discussion Thread (Ask your questions) Part Two

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Please ask your questions here about FATCA.

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3,498 thoughts on “FATCA Discussion Thread (Ask your questions) Part Two”

  2. @MeedaFleester…

    Yes, pre UBS, I have to assume they have honored treaty specific request but not anything as generally broad as John Doe, which says to me, they really did not try as much as they could have before they decided that the only way to end tax evasion was a global FATCA roundup.

    @MarkTwain…

    Roger, bless his heart, posted a comment on that NYTs article..

    “The untold story is that Americans living abroad are also denied bank accounts because the live and work abroad. They cannot even open nor have a local bank account in the country where they live; without which they cannot survive.

    FATCA, a law attached to the HIRE law enacted in 2010 was sponsored by Sen. Carl Levin (D,MI). It obligates every bank in the 209 foreign jurisdictions of the world to provide detailed annual reports to the IRS on ALL their accounts held by ” US persons, imposing severe non-compliance penalties. The objective? To prevent all US citizens from “hiding” funds abroad to evade US taxes

    So now foreign banks won’t touch a US citizen with a 10-foot pole. FATCA obligates violation of the bank privacy laws of every country on earth, which foreign banks refuse to do. So today the US citizen living and working abroad has two choices: return to the US , leaving your foreign spouse and family behind, or renounce your US citizenship. Renunciations are up by a factor of 8 in just four years. No cost-benefit study was ever performed but the estimate of the Joint Tax Commission is that it will generate less than $1 billion/year. But it will cost foreign banks some $20 billion to determine the citizenship of their account holders and set up and implement reporting, plus the annual compilation and submittal costs. The risks of identity theft are incalculable.”

  3. You have to wonder how many banks have their hands in the many check cashing services where customers are charged 10% of the check’s amount.

  4. Pingback: The Isaac Brock Society

  7. “make repeated willful failure to file tax a failure”

    “impose a penalty on failure to file electronically”

    “index all penalties to inflation”

    “expand information reporting”

  11. More from the dark star Obarfalot. This is likely what Baucus has been working on with Reid.

    page 20
    penalizing companies for locating in low tax areas. BUSINESS

    BAD page 26, paying fair share, cannot foreign deduct income more than the 28% amount. income, retirement, health applies

    p209 exmpt foreign pension funds from FIRPTA
    http://www.irs.gov/Individuals/International-Taxpayers/FIRPTA-Withholding
    (hope it doesn’t hit US persons owning property back in USA)

    DANGEROUS
    P214 BOTTOM
    foreign tax credit on a pooling basis

    top p 215
    transibles, intransibles transfered offshore (possibly moving the company assets out of USA, or is it personal?)

    DANGEROUS- modify tax rules for dual taxpayers — BIG NUMBERS

    life insurance & financial institutions

    improve investigative disclosure statute
    p212 top

    extend math error authority (see footnote)
    p212 top

    “make repeated willful failure to file tax a felony”
    p 211 bottom
    “impose a penalty on failure to file electronically”
    somewhere
    “index all penalties to inflation”
    212 middle
    “expand information reporting”
    p210 bottom

    http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/budget.pdf

    It all looks pretty evil to me.

  13. This one might help. I don’t know it it will be retroactive. It has some pretty scewed amendments tied to it. It is also doomed to die in the Senate.

    The Congressional Review Act (CRA)[1] was enacted in 1996 to create “a mechanism for Congress to review and disapprove Federal agencies’ rules through an expedited legislative process.”[2] Under the CRA, a rule can be prevented from taking effect if a joint resolution of disapproval is passed by both houses and signed by the President. However, since the CRA was enacted, it has been used only once to successfully prevent a rule from taking effect.[3] From its enactment until May of 2008, only 47 joint resolutions of disapproval had been introduced in Congress pursuant to the CRA, while Federal agencies had promulgated 47,540 major and non-major rules during the same period.[4]

    Since the CRA was enacted, Congress has continued working to strengthen its oversight of administrative rulemaking. As early as the 104th Congress, proposals emerged to alter the CRA to require congressional approval of administrative rulemaking before regulations could become effective.[5] The need for enhanced oversight of Federal rulemaking has become even more apparent during the Obama Administration.

    http://www.gop.gov/bill/113/1/hr367

    Key Messaging
    •Congress has delegated an excessive amount of its constitutional lawmaking authority to Federal agencies.
    •This has created a lack of accountability, allowing agencies to issue rules that are costly, complex, and ineffective.
    •Federal agencies issue dozens of major regulations each year that are estimated to have an impact on the economy of more than $100 million each. The cost of complying with these regulations stifles economic growth and hurts job creation.
    •The REINS Act would restore congressional accountability by requiring Congress and the President to approve major rules before they can be enforced against the American people.
    •It would improve the regulatory process by making Members of Congress accountable to their constituents for the regulations that go into effect, and would prevent unnecessary regulations.

  14. @MarkTwain

    Here are a few other specific ones directed at the IRS that Robert Wood mentioned today.

    Hate The IRS? You’ll Love These Laws

    In short, this isn’t your parents’ IRS

    STOP IRS Act, H.R.2565
    The Stop Playing on Citizen’s Cash Act, H.R.2769.
    Government Spending Accountability Act of 2013, H.R.313.
    Government Customer Service Improvement Act of 2013, H.R.1660.
    The Taxpayer Bill of Rights Act of 2013, H.R.2768.

  15. Govt Customer Service Act: what for? Customer satisfaction with the IRS is at an all time high?

  18. @Medea Fleecestealer

    This could definitely be the results of the combined consequences of all the AML, KYC, FATCA, Sons of FATCA, GATCA plans and other regulations that are being heaped onto the FFI community to “stop offshore evasion and money laundering”. Wouldn’t surprise me a bit. TBTF Banks now create these software programs to find everything that seems to be outside the bounds of the regs, and even the diplomatic missions are not exempted, yet! HSBC could just be making a point!

    Here you might enjoy this one…

    Ranch House Near Reno is a Thriving Tax Haven, and It’s Not Alone

    Here is where the media is starting to lay the grounds for public acceptances of DATCA, imho Reporting on the Biggest Tax Haven of all.

    Notice Carl Levin’s newest Legislation to impose essentially the DATCA requirements on disclosing beneficial ownership.. (Note… I need to read the text, but need to see if this will be the vehicle for DATCA reciprocity).

    http://1.usa.gov/19FU4CQ

    Then this…

    FATCA: IRS = International Revenue Service

    I think these guys have been reading us! 🙂

    Taxation in general has become more like membership dues rather than the common notion of “paying for basic services that everyone uses”.

    Then here is another article out of Thailand…

    The Facts on Fatca

    Lots to read this Sunday morning, but I am off to meet Victoria and Bubblebustin at Fairhaven today. Should be fun.

  19. “HSBC bank has reportedly asked more than 40 diplomatic missions to close their accounts as part of a programme to reduce business risks.”

    Medea Fleecestealer’s link is a hoot!

  21. @Just Me, ha, some good ones there. The US really have to decide if they want to fight tax evasion, especially the homeland kind, or not. And for Nevada’s information, most other countries manage quite well by listing who the directors/owners of a company are. Companies House in the UK has all business registrations and you can view the basic info online without payment.

    US, put up or shut up. Sort out your own homeland problem before you come chasing hard working US citizens abroad.

  22. @Medea Fleecestealer

    What is going to be interesting to watch is how the Senators of Nevada and Delaware and the House Congressional Delegation deals with these initiatives by Uncle Carl, and of course the Administrations plans for full domestic FATCA reciprocity. Looks like their own party has them targeted! 🙂

    I am enjoying watching the reciprocity blow back on these Dems.

    Here are the Senator web sites and twitter accounts

    Delaware
    Thomas R. Carper (D) @SenatorCarper
    Christopher A. Coons (D) @SenCoonsOffice

    Nevada
    Dean Heller @SenDeanHeller
    Harry Reid (D) @SenatorReid

  24. Nope, Indian Americans aren’t Native Americans. But then I doubt many foreigners who send money back to other countries are prepared because they won’t know anything about FATCA until their banks tell them probably.

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