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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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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.

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

  2. Thanks for the link, Just Me. I loved that it was pointed out:

    Taxgirl, after studying the IRS’ preliminary shutdown plan, reported that National Taxpayer Advocate Nina Olson and 44 of her employees would continue working. But in the IRS’ final shutdown plan, released Monday afternoon, not a single employee dedicated to protecting taxpayer rights was included in the 8,824 (out of workforce of 94,516 ) kept on the job.

    That unfortunate change was called to my attention by Olson herself, who emphasized she was “merely exercising my free speech rights as a citizen’’ and using her personal cell phone to do so. “I’m sitting at home with my two cats and my knitting,’’ she quipped. Olson wasn’t just being cute; it would be a violation the Antideficiency Act of 1884 for her to speak on her government issued Blackberry (she didn’t) or in her official capacity (she didn’t). A violation could get her fired, fined or thrown in jail.
    …

    Olson, for her part, is using her free time to write an appeal of her furlough. Among her arguments: that the 1998 Taxpayer Bill of Rights, which created her job and gave it some independence, creates a statutory authorization for what she does, outside of annual appropriations. “Congress created my office to make sure the tax collection activities went forward properly,” she says. “If we’re going to have tax collections (during the shutdown), we have to make sure the tax collections are legal.”

  3. Just Me, bubblebustin,

    or perhaps ‘US Person’ Canadian citizen and Canadian permanent resident karma?

  4. @ Just Me
    Healthcare.gov has has a severe case of necrotizing fasciitis canadiana. Our next victim is all servers serving the FATCA fiend. (insert a very wicked smiley smirk here)

  5. I learned a bit about how things work in India—-that it is quite typical for the head of family to set up trusts in the name of family members, in order to reduce the tax bill of the family head. Lots of innocent kids studing in USA get the load for daddy’s trust arrangement. Lots of experienced Indian origin lawyers in US defending a number of Indian folks.

  7. @badger
    Here’s an idea. For an “easy to comprehend” version of the FATCA regs, perhaps the US should hire Diane “brain fart” Francis to do that. What a great way to keep her gainfully employed! What a blessing to the FATCAnatics world! And, to do this, she has to go back to the US (if she isn’t already there). Quick, lock our border and keep her the hell out of Canada, when she leaves …

  8. … and, as she crosses the border, we can all stand on our side of the border and sing or broadcast The Guess Who’s “American Woman” at her. Damn, I wish I hadn’t already used that Youtube clip for that other thread I started, I could add it to the Francis-related thread …

    Boy, if that song was ever pre-destined for a specific person, it’s Diana Francis!

  10. Interesting blog post re FATCA;
    http://derrenjoseph.blogspot.ca/2013/10/the-truth-behind-fatca.html

    …”…Some critics argue that FATCA is about gathering information on the activities of its citizens. I’m not too sure about this seeing that the Bank for International Settlements already supplies US authorities with transaction information. I think it is exactly what it appears to be – an attempt by the US to encourage off shore money to come back on shore. …”

    …”…The real issue in my view is that the administration is dancing around the real target which are American companies as opposed to individuals. But any politician who has dreams of being re-elected dare not point out this obvious fact….”…

    …”…Recently, a number of multi-national corporations, including Apple, have elevated their tax status further, now calling themselves “stateless income” corporations with no discernible tax home or “residence.”…”…
    …”…So US politicians know that large American corporations are the real target but they dare not target them directly. As such, US individuals are forced to bear an onerous tax compliance burden. …”

  13. @Just Me

    “Others said the report was a good summary of the current state of play, but stressed caution. “I liked the information on options for non-compliant U.S. taxpayers. Although one does need to be mindful of not being seen as aiding such persons to avoid FATCA,” said Charles Kinsley, a partner at KPMG in Hong Kong.”

    I’d like to get a hold of that report to see what those options are, but can’t find the report by Stanley Foodman online. Also, this article is a good companion piece to:

    “SIFMA Supplemental Comments on the Final FATCA Regulations” found on:

    http://www.fsitaxposts.com/2013/10/08/sifma-supplemental-comments-final-fatca-regulations/

  15. Just wondering?

    Is a Payday Loan company in Canada or any other county considered by the US an FFI – foreign financial institution? I believe they interact with regular Canadian (and other “foreign”) banks in their many transactions, which likely serve some ‘US Persons.’

    Or, are those who by individual circumstances have to resort to payday loan companies krill, even smaller than minnows so these companies that serve them do not have to sign up as arms of the IRS?

  16. @bubblebustin

    I saw that on SIFMA post last night, and remember their previous warnings that came right before the delay.

    Also, as for the statement… “Although one does need to be mindful of not being seen as aiding such persons to avoid FATCA,” said Charles Kinsley, a partner at KPMG in Hong Kong.” I just want to laugh out oud. Hell these guys have whole business models around creating bullshit tax shelters, and FATCA will be no different. If there is money to be made in getting around the rules, they will create a whole department to exploit it.

  18. FFI’s get your cattle cars on the FATCA TRAC!

    “FATCA TRAC is a Tech Mahindra solution which enables data integration across multiple systems, case management and workflow features with robust filtering capability to cover complete FATCA requirement lifecycle – from FATCA checks and addition of new customer to ongoing monitoring, advanced investigation, withholding and full reporting…

    FATCA TRAC has been implemented in one of the leading banks of North America. Another leading bank in the Middle East has signed up for this solution and there is a pipeline of closures in Australia, North America and the Middle East.”

    Want to guess it’s a Canadian bank?

    – See more at: http://www.cio-asia.com/tech/industries/qa-addressing-the-myths-about-fatca/?page=2#sthash.Z5pxkXo6.dpuf

  22. FATCA complaint made to the UN:

    ….”…..However, the Bahamas prime minister Perry Christie has complained to the United Nations that larger nations are trying to impose tax reporting laws on smaller nations who rely on wealth management, banking and financial services for a large proportion of their annual earnings.
    Held to ransom

    It’s clear Christie is taking a swipe at FATCA and Britain – as the Caribbean sunshine islands of the Bahamas are a former British colony seized in the 18th century when piracy was a scourge of trade on the seas.

    In an address to the UN General Assembly, Christie protested nations like the Bahamas were being held to ransom by larger nations……”

    ,,,”Christie called on the UN to take over formulating global governance of the offshore financial sector.

    http://www.iexpats.com/offshore-haven-complains-un-tax-squeeze/#sthash.pK4kL1OC.dpuf…”
    – See more at: http://www.iexpats.com/offshore-haven-complains-un-tax-squeeze/#sthash.pK4kL1OC.dpuf

  23. @badger

    Will FATCA with all its flaws and implementation delays be allowed to give way to the OECD plan, therefore allowing the US to save face without being seen as completely abandoning its crusade against offshore tax evasion?

    “Currently, the Organisation of Economic Co-Operation and Development (OECD) is leading the charge against secret banking and wealth management.”

    – See more at: http://www.iexpats.com/offshore-haven-complains-un-tax-squeeze/#sthash.pK4kL1OC.NKbMNYvg.dpuf

  25. Just four days into the US Federal government shutdown, Reuters published this article on 4 October on how the shutdown was already impacting the implementation of FATCA:

    http://www.reuters.com/article/2013/10/04/usa-fiscal-tax-fatca-idUSL1N0HU0TS20131004

    Reading between the lines, the FATCA project office is offering up an excuse for why they will not be able to make the 1 July 2014 deadline (and why a further delay is inevitable).

    At the same time, the last two paragraphs indicate that IGAs are a cram-down exercise not involving real negotiations:
    “In some cases, this may mean the shutdown would not have much impact because Treasury officials are not involved, said one lawyer familiar with the negotiations, who spoke anonymously because the talks are ongoing.

    From the U.S. perspective, “it’s ‘take it or leave it’ for foreign governments,” he said of the IGA negotiations.”

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