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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”

  4. Just a general comment on the banking situation in the wake of FATCA here in Germany. Previously (> 1 year ago) it seemed no banks had heard of FATCA and I knew of only a couple of banks which had restrictions against accepting USPs as customers. Now I see that more and more banks are no longer accepting USPs and are weeding them out in the online applications to open an account. Some banks are also asking about US green cards. I also noticed that a bank or two of which I am a customer no longer accepts USPs, so they probably would have thrown me out by now if I hadn’t renounced.

  7. @Just Me,
    this seems like a very interesting point that the NYSBA is making in its FATCA recommendations on the link that you posted http://www.fsitaxposts.com/2014/01/08/nysba-recommendations-fatca-final-regulations/#comment-405 :
    “………..We believe the U.S. government should be viewed as possessing currently the authority to issue regulations as to how U.S. Financial Institutions must report information about their accountholders who are resident in Model 1A IGA countries. Unless a statute is enacted in the near term to provide guidance regarding such reporting, Treasury and the IRS should issue regulations to address this topic. Such regulations will need to cover topics including whether any U.S. Financial Institutions are exempted or subject to only limited requirements; what diligence must be performed on existing accounts, and what process should be followed to obtain information when opening new accounts; what format U.S. Financial Institutions should use for their annual reporting of the relevant information; what periodic review or audit procedures should be followed; and whether the U.S. government will indemnify U.S. Financial Institutions for any breach of relevant confidentiality requirements that occurs when the U.S. government provides information to IGA partner countries’ governments……”

    If I understand correctly, this is part of what would be under dispute by the Texas and Florida banking associations. http://www.reuters.com/article/2013/11/12/us-usa-bank-fatca-idUSBRE9AB18K20131112 http://www.plainsite.org/dockets/index.html?id=2424673

    The Current concerns post here http://www.currentconcerns.ch/index.php?id=2594 mentions “Six US bankers associations have filed suits against the Internal Revenue Service (IRS).” But doesn’t name which have filed. Other than Texas and Florida, who are the others?

  9. Jamaica provides us with a taste of what a FATCA IGA may bring:
    http://www.jamaicaobserver.com/business/FATCA-and-bank-secrecy-laws_15748644
    ….”The Jamaican and US governments are negotiating with a view to entering into such an IGA. The Government of Jamaica is creating a framework whereby Jamaican FIs complying with FATCA would be shielded from bank privacy laws and the Jamaican authorities would be responsible for collecting information from Jamaican FIs and providing that information to the relevant US agencies.

    The Revenue Administration Act (“RAA”) which creates the office of the Commissioner General (the “Commissioner”) and provides for the administration and collection of revenue has been substantially amended to facilitate the exchange of information in accordance with the Organization for Economic Cooperation and Development’s standards of effective exchange of information. These amendments will facilitate FATCA reporting by the Jamaican government. They also extend the Commissioner’s powers to seek information relevant to bank customers’ Jamaican tax liability.”

    “Formerly, the definition of “taxpayer” under the RAA was limited to a person liable to tax in Jamaica. The definition has been broadened to include any person who “is of relevance to a treaty partner in respect of an international tax agreement.”……. “The US tax legislation seems to have catalyzed the creation of newer and broader powers for Jamaican tax authorities. “

  11. @Just Me

    Is Convey totally oblivious to US taxpayers living abroad, down to the fact that the threshold for reporting 8938’s is $200K for non-residents?

  12. An oldie but a goodie, which is still up on the Whitehouse.gov site

    TO the Honourable Barack Hussein Obama II, of the United States of America, President, FROM Rudolf
    Augustus Roger George, by the Grace of God, Duke of Grand Fenwick, Count of Illyria, Margrave of Ruthonia, GREETINGS! ….

    We take this opportunity of reminding you that the greenback (which your Mr Lincoln introduced to pay for a war against Mr Jefferson Davis) hath sadly become not worth a Continental, as you hath fought your more recent wars. In these circumstances We deplore the implied insult done to Our ancestress the late Empress Maria Theresa, whose thaler was respected and from which the word “dollar” originates. We therefore request you cease to call your United States currency the “dollar” and rename it officially as
    the “greenback” to avoid further offence to the memory of the late Empress…..

    http://1.usa.gov/1d87w4t

  18. previous link was an error thanks bubblebustin
    http://samuelclemmons.wordpress.com/2014/01/08/discussion-about-fatca-implementation/

    update: “There’s a lot of noise in the system on US citizens & FATCA, & RBT, but it’s outside our scope”
    says ex -Treasury jock

    Just a few shorthand noted items from a speech given by a former treasury official at that JCL conference where Jatras debated in a previous link given. The speech was worth a listen—better to listen to that while washing dishes than to listen to Rush Limbaugh.

  19. Taxpayer Advocate ‏@YourVoiceAtIRS 18m
    LIVE NOW! The National Taxpayer Advocate released her 2013 Annual Report to Congress this morning. http://ow.ly/sq7jo

    I think there are some experts here that usually dig into this!

  20. @Mark Twain

    Well, both OVDP and FATCA are listed as two of the ‘most serious problems’. Again. There’s a sort of ‘groundhog day’ feel to all of this.

  23. As noted on another thread by (?), the long awaited (by me at least) Taxpayer Advocate’s report to Congress for 2013 is out. Check out the FATCA discussions, problems for ‘International Taxpayers’ and the OVD/Streamlined programs http://www.taxpayeradvocate.irs.gov/2013-Annual-Report/Most-Serious-Problems/ .

    FATCA section includes quote from letter by Murray Rankin – Shadow Cabinet, NDP detailing position and concerns re protecting individuals and taxpayers residing in Canada (not only those deemed US citizens in Canada or duals). Letter excerpt link given in footnote – from Maple Sandbox.

    Thank you thank you Nina Olson!
    She soldiers on even as she notes that the IRS has not implemented or addressed concerns detailed in previous reports – the only one holding their feet to the fire – despite resources and authority limited by the IRs, as well as their opposition and lack of voluntary collaboration with the TAS.

  25. I have been reading the TAS report but have found nothing encouraging there yet. Nina might as well go looking for another job and then ask her boss, Koskinen, to turn off the lights permanently in the TAS office. I really don’t care at this point how much the IRS “improves” its services or how much it re-writes its ridiculous regulations. It has become one of many evil agents of an evil empire. I am only looking towards the Canadian government to protect its citizens. After all, it’s essentially our nation’s wealth which would flow to the US Treasury thanks to those FATCA penalties. It’s our nation’s FATCA attacked residents who will increase the number of people on social assistance and create a further drain on our economy.

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