Media and Blog Articles Open for Comments – Part 5 of 11 (Year 2018)

1,714 thoughts on “Media and Blog Articles Open for Comments – Part 5 of 11 (Year 2018)”

1. EmBee: “I do not like the Departure Certificate concept. Just let your people go, America. No hoops please. Some up and went ages ago and they don’t want to be enrolled in your system in order to be deemed to have departed it.”

   Oh GAWD! The Departure Certificate raises it’s ugly head again. I will read everything at the link and be fully informed on this before commenting further. Thanks for the alert!

2. I think that if the ACA plan were to be implemented, some USCs living outside the US would want to continue to be treated as US-tax-resident in order to have access to USC tax breaks.

   Other USCs would want to stop being treated as US-tax-resident; and if they are no longer treated as US-tax-resident they would become entitled to claim the tax treaty benefits which the saving clause bars USCs from claiming.

   Both groups need documentation to prove which set of benefits they’re entitled to claim; and both taxing authorities need to be able to require sight of the proof before allowing the benefit.

   So the RBT plan wouldn’t work without a carve-out, though the onerous terms attached to the Departure Certificate are presumably there purely to cater to the vindictive spirit of US tax policy.

3. EmBee: I’ve just finished reading all the material posted at the Purple Expat site that you posted in your comment. I agree with DA entirely that a switch away from CBT is THE answer that would make unnecessary the complicated list of exemptions that could otherwise be instituted under the present system. But I am unclear as to whether they are advocating a clean and complete switch with no strings attached.

   DA needs to make it crystal clear that under their suggested version of the plan there would be no fees, taxes, annual certifications of “non-residence”, or anything else that smacks of “life-control”. I demand nothing less than the complete freedom of movement – free of any fees beyond the cost of a passport and the normal costs of travel – which all other citizens of this world enjoy.

4. Tweet from Solomon Yue:

   #TTFI is in drafting stage. It goes 2 JCT 4 scoring next. Grover is hosting a lunch on 3/16/invited all expat orgs: AARO, ACA, RO, Accidental Americans, DA, & AmChams 2 talk abt it bipartisanly. I take a copy 2 Senate leadership. Then PPL here can debate its text & lobby MoC W&M

   https://twitter.com/SolomonYue/status/973280198366961664

5. “A TTFI bill if being drawn up. It goes to the Joint Committee on Taxation for scoring next… Next Solomon Yue takes a copy of the TTFI bill to the Senate leadership. Then people here (?) can debate its text and lobby M of C (?) and the Ways and Means Committee.”

   Who is sponsoring the bill in the House? Who is sponsoring the bill in the Senate? Where is here? What is M of C?

6. https://www.forbes.com/sites/kellyphillipserb/2018/03/13/irs-announces-end-to-offshore-voluntary-disclosure-program/#68c42e5277b3
   Mar 13, 2018
   ‘IRS Announces End To Offshore Voluntary Disclosure Program’

7. Quote from above;
   “…Despite the closure of ODVP, the Streamlined Filing Compliance Procedures (SFCP) will remain in place for taxpayers who might not have been aware of their filing obligations. About 65,000 additional taxpayers come into compliance under the SFCP. As with OVDP, the IRS has said it may end SFCP at some point….”

8. More on same topic;
   https://www.accountingtoday.com/news/irs-plans-to-end-offshore-voluntary-disclosure-program

   New readers who were thinking about compliance, IF that is really something you feel you need to do after cautious and thorough research and thought, do NOT let this announcement about OVDI/P deadlines and the usual forthcoming announcement from the compliance industrial complex and the IRS panic you into doing something rash.

   I am not posting these links to push people into the arms of the US Treasury.

   IF, big IF necessary,

   The article states that there are still options;
   ex.
   “….Other opportunities to come into compliance will remain in place for now, including the streamlined filing procedures and the delinquent return filing program for FBARs and other information returns. The standard voluntary disclosure program as set forth in the Internal Revenue Manual will also remain in effect. And the IRS announcement, which includes new FAQs on the termination of the program, suggests some other substitute may be forthcoming at the end of the current program.”….”

9. Tweet from Solomon Yue:

   SCOTUS justices will review RO arguments on standing & DOJ counter arguments then decide whether or not to accept our #FATCA case at their scheduled conference on 3/29/18. I am on my knees 2 pray for their acceptance of our case on behalf of all 9M expats so please join me!

   https://twitter.com/SolomonYue/status/973700770963968001

10. Thanks for that very interesting news, JC.

11. If I’ve understood correctly what I’ve read about the process of seeking certiorari, this means that Treasury is choosing not to oppose the case being considered for a certiorari ruling.

    The question is, do they want the court to get rid of FATCA for them or do they want the court to get rid of the case for them.

    They must feel pretty confident it’s going to go their way – whichever way that is.

12. IRS to end offshore voluntary disclosure program
    By William Byrnes March 14, 2018

    http://lawprofessors.typepad.com/intfinlaw/2018/03/irs-to-end-offshore-voluntary-disclosure-program.html

13. JC: Awaiting the Mar. 29 decision. Thanks for letting us know!

14. Democrats Abroad has provided us with a summary of their recent “door knock” campaign in Washington, DC. Remarkably, Congressman Holding’s office provided DA with a RBT proposal, which DA was made privy to. DA remarks that this development is the result of a culmination of efforts made by various expat groups, yet no other groups that I know of have released any more news on this. Have other groups requested a copy of the proposal, and what exactly is being done to carry this huge development forward?

    https://www.democratsabroad.org/210590/update_on_expat_tax_reform

15. Is it just me, or did Tax Connections shut down their comments? Could be a technical problem – site was pretty wonky – or they could be tired of the “non-compliance is a valid option too” commentary.

    This was interesting, though about a US resident with money stashed in Switzerland:

    https://www.taxconnections.com/taxblog/1st-taxpayer-victory-in-a-willful-fbar-penalty-case/

16. BB – “Democrats Abroad has provided us with a summary of their recent “door knock” campaign in Washington, DC. Remarkably, Congressman Holding’s office provided DA with a RBT proposal, which DA was made privy to. DA remarks that this development is the result of a culmination of efforts made by various expat groups, yet no other groups that I know of have released any more news on this. Have other groups requested a copy of the proposal, and what exactly is being done to carry this huge development forward?”

    From the DA link:

    In the office of Rep George Holding (R-NC) we received a short description of an RBT proposal hewn from discussions with a range of Americans abroad organisations. It needs development in order to generate support from, for example, those frightened by the prospect of inadequate anti- tax avoidance provisions. We learned this in subsequent discussions = Congressional reality check!
    So our work to persuade Congress that RBT is a justified policy shift that can be implemented responsibly has taken yet another step forward.

    Pardon my scepticism but it’s not clear, from that, who this short description was received from. From G. Holding’s office, or from another party presenting the description in the office? And perhaps George Holding (or his spokesperson) said it needed development in order to win congressional support.

    It would be great if George Holding’s office was actively working on the development of a RBT proposal based on feedback from a range of Americans abroad organisations. It does seem likely, though, that the AA organisations referred to would have been busting a gut to spread the word if they’d been involved in RBT discussions with Holding’s office.

    Other than ACA. They’re more reticent about their Washington contacts.

17. @plaxy

    From what I understand, it was generated by Holding’s office.

18. BB – Great news, then! Excellent!

19. Yes, but radio silence from organizations other than DA. I don’t think they know. I just had it confirmed by a member of DA that after listening to expat groups over time, Holding’s office has come up with a RBT proposal. I don’t think that his office sat down with other groups to devise something. That would explain why no one’s bursting at the seams (except me).

    We need a copy of the proposal.

20. Yes it would be very interesting indeed to see the proposal.

    If it was shown to DA, maybe it will also be shown to other groups. Terrific that it’s on Holding’s plate, at any rate.

21. Keith Redmond tweets:

    Excellent mtg w/Americans for Tax Reform. VERY fortunate 2 have @taxreform on our side! Present were @ACAVoice, @aaro, RO (@SolomonYue) & me as American Overseas Global Advocate + representing Accidental Americans. More optmistic than ever! I mean this sincerely! #FATCA #TTFI

    https://twitter.com/Keith__REDMOND/status/975195678904381440

22. We have us a TTFI lobbyist! lobbyist James Brandell. He was at the meeting Keith attended.

    Chief of Staff to Ways and Means Chairman Dave Camp for over a decade.

    He worked overseas for an international nonprofit, where he opened its Serbia office.

23. Presumably James Brandell would have played a leading rôle in the development of the Camp transition tax plan (2014).

    Mandatory toll charge on tax-deferred foreign earnings: A one-time transitional tax would be imposed on a US 10%-shareholder’s pro rata share of the foreign corporation’s post-1986 tax-deferred earnings, at the rate of either 8.75% (in the case of accumulated earnings held in cash, cash equivalents or certain other short-term assets) or 3.5% (in the case of accumulated earnings invested in property, plant and equipment). An affected US shareholder with a 10%-or-greater stake in a foreign corporation with a post-1986 accumulated deficit would be able to offset the deficit ratably against tax-deferred earnings of other foreign corporations. The US shareholder could elect to pay the transitional tax over a period of up to eight years. Of the $170.4 billion raised over 10 years by this proposal, $126.5 billion would be paid into the Highway Trust Fund.

    Anti-base-erosion provisions: The draft would impose current US tax (subject to foreign tax credits) on a CFC’s income exceeding 10% of the CFC’s adjusted basis in depreciable tangible property (excluding income and property related to commodities), if the effective foreign tax rate on such income was less than 15%. A US corporation would be able to deduct a percentage (55% for 2015, phasing down to 40% for 2019 and later years) of the foreign-sales portion of such CFC income and could also deduct the same percentage of the foreign-sales portion of the US corporation’s income exceeding its adjusted basis in depreciable tangible property. As a result, a 15% US tax rate would apply to foreign-sales income exceeding the normal return on investment in tangible business assets, whether the income was earned by a CFC or directly by a US corporation.

    http://www.ey.com/gl/en/services/tax/international-tax/alert–highlights-of-chairman-camp-s-tax-reform-discussion-draft

24. The IRS wants comments on form 8621:

    https://www.gpo.gov/fdsys/granule/FR-2018-03-19/2018-05515

    This is under the paperwork reduction act which is a total joke given the massive burden even the OMB estimates for this form.

25. JC: Thanks to you (and Keith!) for posting these rays of hope. Best of luck to our folks on the front lines!

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