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. More news from Keith posted on Facebook:

   I along with Solomon explained to everyone why Accidental Americans MUST BE INCLUDED in the TTFI bill at Grover’s lunch last Friday. The current TTFI draft has a three year US tax compliance requirement. Accidental Americans could not meet that requirement hence one of the two reasons that the TTFI text is delayed.

   We don’t want to push for speed at the expense of Accidental Americans as they have not even been acknowledged for way too long. Congressman Holding’s office and the House Ways & Means Committee are looking for solutions to the Accidental American issue.

   Additionally, Congressman Brady’s tax policy advisor has now realised the serious problem with Accidental Americans as he has enquired how many in this population. It was explained that this population is growing exponentially and I gave an example of just French citizens who are Accidental Americans which is in the tens of thousands. We stated that the global number is in the millions.

   https://www.facebook.com/groups/AmericanExpatriates/permalink/957604027739003/

2. “Congressman Holding’s office and the House Ways & Means Committee are looking for solutions to the Accidental American issue.”

   I can suggest a couple.

   1. Regulations making it clear that a person who hasn’t lived or worked in the US as an adult is not a US citizen until/ unless they register a claim.

   2. Changes to FATCA due diligence so that birthplace is not treated as an indicium of USness – a logical follow-up to (1)

3. Plus – let the kids visit their grandma for gods sake without forcing their parents to get them a US passport.

4. JC & Plaxy: I’m being selfish here but I’d also like an exemption for people who were sucked into getting a US passport when they were told by officials that they needed one or wouldn’t be allowed in next time. Some of us who did this have family down there and would like to feel safe to visit once again without fear that the visit will lead to losing our life savings. A three-year compliance TTFI is of no help to me.

5. MuzzledNoMore – yes everyone who has been bullied or fast-talked into buying a US passport for themselves or their children should be able to hand the thing back and get a refund.

6. Solomon Yue tweets preamble of TTFI bill.

   Congressman Holding is drafting a #TTFI bill. See attached preamble. Once it is introduced, I will get you the bill title & #.

   https://twitter.com/SolomonYue/status/976260000174653440

7. Is this the same as the plan the Democrats Abroad mentioned? (linked to in the post at http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comment-part-5-of-5/comment-page-13/#comment-8170790)

8. @ JC
   Oh, oh — the words “qualified non-resident taxpayers” makes me wonder what are the hoops involved in becoming “qualified”. Guess we’ll have to wait and see what Rep. Holding has in mind.

9. Embee – my thoughts also. I do wonder if Holding’s plan will turn out to be quite similar to ACA’s plan. According to ACA, the IRS adopted their “Comprehensive Compliance” proposal, renaming it Streamlined. (https://www.americansabroad.org/news/irs-ending-the-overseas-voluntary-disclosure-program-ovdp/) Will Holding now adopt their ready-made RBT proposal, renaming it to make it seem a different plan? They seem to be very buddy-buddy. (https://www.americansabroad.org/news/congressman-george-holding-rnc-receive-aca-benjamin-franklin-award/)

   “Guess we’ll have to wait and see what Rep. Holding has in mind.”

   Yep. Trailing has clearly begun so perhaps we won’t have long to wait.

10. Good news. Yet in the words of MNM: “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.” I’m skeptical of TTFI, but if the outcome is the same…

    If a fix is to come, I really hope it is simple and easy. When you no longer reside in the US, you are no longer expected to file tax returns or FBARs. In 3 words: residency based taxation. No taxation of non-residents. The issues homelanders may have with this might be:

    – avoiding US taxes going forward. There is an easy answer: if a person is in the US more than 50% of one year, they may be considered a tax resident.
    – avoiding US capital gains. Suggested answer: capital gains above $1 million remain taxable in the US for 2 years after leaving US tax residency.
    – avoiding tax on US-based income: Same rules as US-based income for any foreigner who lives abroad, whatever those rules may be.

    Anyway the good news is that there are champions in both parties, meaning that whatever the 2018 midterm outcome things still have a chance of being made right.

11. Sounds like good news, but what about FBAR?

12. FBAR comes under Financial Crimes or something. Not about taxation, so in theory a RBT bill wouldn’t seem likely to affect it.

    In practice, though, FBAR filing might plummet again, if the 1040 became optional and took its annoyin foreign-accounts tickbox with it.

13. I’m fairly certain that this proposal is the same as what Holding’s office gave DA. It’s not ACA’s plan, but it may have some components of it.

    Remember ACA’s proposal wasn’t really a proposal, but more of a thought experiment. And it’s really CBT with carveouts as some have opined.

14. I’m not sure what this ultimately means right off, but from our friends at Tax Connections…
    Under the title “IRS Releases Draft FATCA Certification Questions For Individuals, International Taxpayers, Small Business And Self Employed And Large Business And International Corporations”

    https://www.taxconnections.com/taxblog/irs-releases-draft-fatca-certification-questions-for-individuals-international-taxpayers-small-business-and-self-employed-and-large-business-and-international-corporations/?

15. More on the TTFI proposal. John Richardson interviewed:

    http://www.internationalinvestment.net/products/tax/american-expat-groups-turn-heat-us-lawmakers-tax/

16. The Federation of American Womens Clubs Overseas (FAWCO) describes its policy regarding CBT:

    We encourage Overseas Americans to plan their international financial lives and maintain compliant status with US regulations.
    https://www.fawco.org/us-issues/u-s-tax-banking

    They have refused to endorse any of the ongoing campaigns to end CBT or FATCA. I’m almost tempted to join the organization just so I can raise a stink.

17. Barbara: seems pretty typical, and understandable, from the point of view of homelanders planning to live abroad temporarily, and planning to go back to US-based lives. I wonder if a fraction of these people ask themselves if people who come live in the US must also file returns in their countries of origin.

18. Regarding FAWCO – it sounds like a bunch of housewives. Sorry. But it just doesn’t sound like women wo do any financial planning. or have signatories duties in firms- stuff like that. I might be wrong, but this is what it sounds like.

19. As far as we know, does this risen-again TTFI proposal still include the bonkers parts that require complete renegotiation of all of the US’s tax treaties, and which shove punishing tax rises onto — and so massively discourage investments by — non-resident aliens who invest into the US from outside?

    The original TTFI had these clauses, back when the TCJA was being hammered out. But I have not seen any detailed updates to tell whether the latest version still includes them, or whether they have been justifiably exorcised.

20. Watcher – RO refers to the Holding outline as “TTFI”. DA refers to it as “RBT”. The opening paragraph, as posted by RO, calls it both. (Assuming that what Holding’s office has reportedly shown DA is in fact the same as what they’ve reportedly shown RO.)

    Looks like we’ll have to wait (possibly for a long time) to see what materializes.

    Personally I doubt if it will reflect much if anything from the original TTFI proposal, because as I understand it, that proposal would conflict with TCJA provisions such as GILTI and the transition tax. ICBW.

21. JC –

    The current TTFI draft has a three year US tax compliance requirement. Accidental Americans could not meet that requirement

    It’s not just “Accidental Americans.”

    No one could meet such a requirement other than the small minority of US citizens outside the US who currently comply and have complied for the past three years.

    All other CLNless US-born would have to go through the palaver of back-filing (regardless of how old they were when left the US and regardless of their lack of US connections), in order to be let off FATCA reportable-account status.

22. For dual citizens without US financial ties (the usual) I don’t really see the advantage of this TTFI proposal over straight-up non-compliance, except if it somehow means they get a piece of paper than makes them non-toxic in the eyes of their banks, in those countries where FATCA is enough of a problem that they’d be denied services on account of US birthplace.

    But for someone like me, in Canada, where the banks don’t know about my US citizenship, what exactly would I gain in exchange for putting myself on the radar by filing three years’ worth of moderately fictitious owe-zero 1040s?

23. Nononymous – “for someone like me, in Canada, where the banks don’t know about my US citizenship, what exactly would I gain in exchange for putting myself on the radar by filing three years’ worth of moderately fictitious owe-zero 1040s?”

    Nothing. Or, in the “Departure Certificate” version, probably a loss of $2350.

24. re FAWCO’s “We encourage Overseas Americans to plan their international financial lives and maintain compliant status with US regulations.”

    Just what we need, more Stepford Wives……

25. Comment on ACA website:

    https://www.americansabroad.org/news/rbt-its-happening-now/

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