Liberty and justice for all United States persons abroad

The Isaac Brock Society

Media and Blog Articles – part 2 of 11 (Year 2015)

You can access all years at this link: Media and Blog Articles – Links for All Years

If clicking on a comment link brings you to the wrong comment, click here  to get on the most recent page of comments.(alternatively, to reach the most recent comment page, go to  the url in the bar at the top of your browser and delete everything after http://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments-part-2-of-2  )

Media and Blog Articles

EmBee suggested that it would be good if there was a thread for new articles, so that people would be aware of where to comment. So, I created this permanent page.  You could mention such articles in the comment stream for this page, or if I see one on another thread, I can copy the link to here. I’ll keep adding to the list, but not deleting, so we’ll end up having sort of a “bibliography” too.  [Note:  Some articles are not open for comments]

For more articles on FATCA, enter FATCA into Google then click on the link “more news for fatca” just below the most recent featured article.

Note also: JC suggests to see #FATCA on Twitter for latest breaking news. JC finds that is quite a good source and there even are some international articles that one may read using Google Translate.” Others may help certain tweets and articles remain in elevated position by retweeting them.

Be sure to read the comment stream for this thread — there are usually very recent articles mentioned there that are not yet on this list.

2015.01.01
Raising revenue off Caribbean backs, Bruce Zagaris, NationNews, Barbados.
On or about 2016.01.01
16 issues to make 2016 candy for the market, Westfield Times.
2015.12.31
Tax reporting norms: FinMin updates guidance note on compliance, K.R. Srivats, Hindu Business Line, India.
2015.12.30
Top Tax Blogs from 2015, Tax Connections. (Congratulations to John Richardson and Lynne Swanson who placed 2nd and 4th!)
Global dragnet puts pressure on tax evaders as year-end deadlines loom, Jeff Gray, Globe and Mail, Canada.
IRS Employee Whose Job Was Assisting Victims Of Identity Theft Charged in $1 Million Identity Theft Tax Fraud, Paul Caron, TaxProfBlog, US.
How America’s Wealthiest Are Saving Billions Through a Private Tax System, TruthDig.
RA Returns Home, TaxProTalk forum.
2015.12.29
For the Wealthiest, a Private Tax System That Saves Them Billions, Noam Scheiber and Patricia Cohen, New York Times, US.
IRS Stirs Up New Crisis With Non-Profits Over Social Security Numbers, Eric Pianin, The Fiscal Times.
DNC Must Heed Warning Bells From 2000, Bennet Kelley, Huffington Post, US.
2015.12.28
IRS Creates “International Practice Units” for their IRS Revenue Agents in International Tax Matters, Patrick Martin, Tax-Expatriation, US.
MF investors: Les than a4th comply with US tax law, Jayshree P. Upadhyay & Ashley Coutinho, Business Standard, India.
IRS service should improve after some saw their ‘worst tax season,” advocate says, Robert Schroeder, MarketWatch, US.

Articles from earlier in 2015 are at this link

 Articles from 2014 are at this link

Media and Blog Articles Open for Comment thread, Part 1 of 2, is at this link

Media and Blog Articles Open for Comment thread, Part 3 of 3, is at this link

1,837 thoughts on “Media and Blog Articles – part 2 of 11 (Year 2015)”

  3. @JC,
    Is it a sign of bad planning that the original plaintiffs didn’t have standing? I could ask the same of the Canadian plaintiffs. Their accounts were not going to be reported for example. Sounds like trivial errors (then again I am a moron on these issues) to be making in very expensive court cases.

  4. @ Neill
    I believe that Ginny and Gwen have standing, based on this wikipedia entry, but Joseph Arvay is more qualified to have evaluated their situation than I am so I’ll trust him on that. The second point states” “… has it been established that the plaintiff is directly affected by the legislation or if not does the plaintiff have a genuine interest in its validity?” You betcha, Ginny and Gwen have a genuine interest in Part 5 of Bill C-31.

    In Canadian administrative law, whether an individual has standing to bring an application for judicial review, or an appeal from the decision of a tribunal, is governed by the language of the particular statute under which the application or the appeal is brought. Some statutes provide for a narrow right of standing while others provide for a broader right of standing.[3]

    Frequently a litigant wishes to bring a civil action for a declaratory judgment against a public body or official. This is considered an aspect of administrative law, sometimes with a constitutional dimension, as when the litigant seeks to have legislation declared unconstitutional.
    Public interest standing

    The Supreme Court of Canada developed the concept of public interest standing in three constitutional cases commonly called “the Standing trilogy”: Thorson v. Canada (Attorney General),[4] Nova Scotia Board of Censors v. McNeil,[5] and Minister of Justice v. Borowski.[6] The trilogy was summarized as follows in Canadian Council of Churches v. Canada (Minister of Employment and Immigration):[7]

    It has been seen that when public interest standing is sought, consideration must be given to three aspects. First, is there a serious issue raised as to the invalidity of legislation in question? Second, has it been established that the plaintiff is directly affected by the legislation or if not does the plaintiff have a genuine interest in its validity? Third, is there another reasonable and effective way to bring the issue before the court?[8]

    Public-interest standing is also available in non-constitutional cases, as the Court found in Finlay v. Canada (Minister of Finance).[9]

  5. @Neil Standing. Probably better if a plaintiff was subject to FBAR excessive fine. I may only trust in high powered legal with track record infront of the SC.

  6. @JC, I was sad that old guy with the 150% fine didn’t go after them. He settled for lesser amount I guess. They probably won’t go overboard on the fines to limit their exposure to this. For me 27.5% of my foreign non-compliant accounts as a replacement for FBAR fines.

  7. We could use a 150% fine person from a US person overseas. Straight fine best. Could be from one of the “programs” like “streamlined”

  10. Bubblebustin says
    November 2, 2015 at 12:18 pm
    This tax expert would have us believe that accidentals don’t need to “claim” US citizenship in order to have it:

    http://blogs.angloinfo.com/us-tax/2015/11/01/3886/

    Highlights the difficulty in trying to prove a negative that doesn’t exist for those who are “entitled” to US citizenship through birth.

  11. Re: “This tax expert would have us believe that accidentals don’t need to “claim” US citizenship in order to have it: ”

    The tax expert is correct. No?

    “Accidentals” (the definition of which varies depending on who you ask) don’t have to “claim” US citizenship. They are US citizens from the day they are born. Many are aware of their US status, some may not be.

    But none are truly ‘American’ in any sense of the word (i.e. have never been a part of US society) – this is the “accidental” part.

  14. We all must keep in mind that the first thing to determine in any of our decisions is make sure / confirm one is indeed really a US citizen — even if that citizenship is to us NON-MEANINFUL AND WITHOUT OUR OR OUR CHILDREN’S CONSENT. Here was information I gave someone asking at ADCS-ADSC:

    Yes, unfortunately extra-territorial US FATCA law applies to you as the Canadian Conservative government signed an IGA with the US and implemented FATCA law in Canada with passing of omnibus Bill C-31 (2014).   You are the same as the two plaintiffs in the Canadian legal suit here at ADCS-ADSC.ca, also children born to Canadian parents in the US but who returned to Canada as young children and have never since lived in the US – their US citizenship is unmeaningful, US-deemed US citizens only because that is the US law: http://immigration.findlaw.com/citizenship/u-s-citizenship-through-parents-or-by-birth.html

    Generally speaking, a person can become a U.S. citizen in one of four ways. First, by being born in the United States or one of its territories. Second, if you were born to parents who are U.S. citizens, then you may be a U.S. citizen yourself. This process is called “acquisition” of citizenship. Third, you can be a citizen through the naturalization process, which generally involves applying for, and passing, a citizenship test. Lastly, you may be a citizen if one or both of your parents have been naturalized. This is called “derivation” of citizenship.

    It may come as a shock, but many people in the United States have already obtained their American citizenship without realizing it. These people sometimes can normally be grouped into three categories.

    First, there are people that are born in the United States, but have lived most of their lives outside of the U.S. Some of these people mistakenly believe that they may lose their citizenship and naturalization by living outside of the country for an extended period of time, but this is not true.

    Next, there are some who believe they are not citizens even though they have ancestors that were citizens of the United States. It may be that, even though an individual was born outside of the U.S., that person is a citizen if their parents or grandparents were U.S. citizens.

    Lastly, some minor children of naturalized U.S. citizens may mistakenly believe that they may not be U.S. citizens. However, when parents become naturalized citizens, their kids with green cards will also acquire American citizenship. This is true because children under the age of 18 cannot usually apply to become citizens through the naturalization process.

    Citizenship by Being Born in the United States

    In most situations, any child that is born in the United States or one of its territories will automatically receive American citizenship. However, children born to diplomats and other recognized government officials from foreign countries will not receive U.S. citizenship if born on American soil. You can learn more about this by looking through Title 8 of the U.S. Code.

    If you were born in the U.S., your U.S. citizenship will last your entire life unless you make an affirmative action to give it up, like filing an oath.

    Citizenship by Being Born to U.S. Citizens

    In a number of situations, if you were born to parents, at least one of whom was a U.S. citizen at the time of your birth, you automatically gained U.S. citizenship through the process of acquisition. It does not matter whether you were born on American soil or foreign. As well, if you have children, those children will also acquire U.S. citizenship through you at their birth.

    – See more at: http://immigration.findlaw.com/citizenship/u-s-citizenship-through-parents-or-by-birth.html#sthash.wVVCLX2e.dpuf

    Thus, you are, like Gwen and Ginny and many others, an *Accidental American* who was *born dual*, no action required by you.  You did not choose your parents nor did you choose where you were born.  You did not become a US citizen by your consent.  We find everything wrong with that especially when, also, the US taxes based on that citizenship, not on residence as the rest of the world does (except one other country, Eritrea).

    When you fully realize that absurdity, then you must research completely to determine the decision you want to make on what to do about your facts.  If I were you, I would wait on doing anything to start a process that may be both costly in dollars and very detrimental in stress of going through the process the US compliance industry says you must.  Read of the ADCS-ADSC Canadian Constitutional challenge now awaiting either a court date to proceed further or action by the new Canadian Liberal government’s Justin Trudeau who has been asked to reverse the damage already started with the first transfer of US Person in Canada financial information to the US IRS by Canada’s CRA on September 30, 2015. (See: http://isaacbrocksociety.ca/2015/10/25/adcs-adsc-asks-prime-minister-elect-trudeau-to-protect-canadians-resolve-lawsuit-and-repeal-fatca-iga/.)

    I hope after your research and thought, if it is your choice NOT to be deemed a US citizen, your decision might be to join us in this Canadian constitutional fight for justice by saying *I am not a US citizen; I am only and have always been only a Canadian citizen*.  There is increased strength through numbers and donations of affected persons and families.

    Your children would never have ACQUIRED automatic US citizenship as you have and I doubt, from what you’ve stated, they could.  These are the only ways your children, born to you in Canada, could *claim* a US citizenship: http://canada.usembassy.gov/consular_services/birth-abroad/do-you-qualify-to-pass-on-u.s.-citizenship-to-your-child

    Child born in wedlock to one U.S. citizen parent and one non U.S. citizen parent (on or after November 14, 1986)

    A child born outside of the United States to one U.S. citizen parent and one non-U.S. citizen parent may be entitled to citizenship providing the U.S. citizen parent had been physically present in the United States or one of its outlying possessions for five years, at least two years of which were after s/he reached the age of fourteen.

    Child born out of wedlock to a U.S. Citizen mother

    A child born outside of the United States and out of wedlock to a U.S. citizen mother may be entitled to U.S. citizenship providing the U.S. Citizen mother had been physically present in the United States for a continuous period of at least one year (365 days) at some time prior to the birth of the child. (NOTE: Periods spent overseas with the U.S. government/military or as a government/military dependent, are NOT considered as physical presence in the U.S. for transmission under this category.)

    See also: http://www.state.gov/documents/organization/86757.pdf

    7 FAM 1131.2 Prerequisites for Transmitting U.S. Citizenship (TL:CON-68; 04-01-1998) Since 1790, there have been two prerequisites for transmitting U.S. citizenship to children born abroad: (1) At least one natural parent must have been a U.S. citizen when the child was born. The only exception is for a posthumous child. (2) The U.S. citizen parent(s) must have resided or been physically present in the United States for the time required by the law in effect when the child was born.

    7 FAM 1132.9 1986, 1988, 1994, and 1997 Amendments of INA (CT:CON-204; 11-01-2007) a. The citizenship provisions of the INA have been amended by the following significant Public Laws: (1) The Immigration and Nationality Act Amendments of 1986 (Public Law 99- 653), effective November 14, 1986;. (2) The Immigration Technical Corrections Act of 1988 (Public Law 100-525), effective October 24, 1988; (3) The Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103-416), effective October 25, 1994; and, (4) Public Law 105-38 of August 8, 1997, which amended Section 102 of Public Law 103-416. b. The relevant parts of these statutes: (1) Reduced the amount of U.S. physical presence required to transmit citizenship to children born abroad; (2) Changed the procedures by which children born abroad out of wedlock to an American father can acquire citizenship; (3) Enabled children born abroad prior to May 24, 1934, to acquire U.S. citizenship through U.S. citizen mothers;

    ETC.

    (I’ll not bore anyone with giving once again what I have been advised regarding my son, born in Canada to two US parents — even though he cannot renounce an *acquired* US-deemed US citizenship because of *lack of requisite mental capacity* and a parent, a guardian or a trustee unable to act on such a person’s behalf. Surely, no one should be so entrapped into that absurdity.)

  15. @The Mom
    So does this mean the cat is finally out of the bag?
    Mexico and other South American countries have been trying to catch the drug lords for decades by finding where they put their ill-gotten gains and American bankers in Texas and Florida would never offer any information. Its just a crying shame. Oh, would it be that all the two-faced hypocrisy would finally reach the mainstream press and the minds and hearts of those who are fighting the battle for justice in this world.

  16. @Polly, cat out of the bag or not, here’s the deal. The media and US (government AND residents) will continue to portray us as fatcats that have left the US after sucking services and US people (through low taxes or credits) dry, absconding with our US-made billions.

  21. Confirming what we already know about US hypocrisy;

    ‘Tax haven: US ‘threatens’ global efforts to fight tax evasion, financial crimes’
    Published time: 3 Nov, 2015 01:45
    ……”……….America is now ranked third among the world’s most attractive “tax havens,” trailing only Switzerland and Hong Kong.

    The US has jumped from sixth place to third in the Financial Secrecy index, which is prepared by the Tax Justice Network (TJN) every two years. It is estimated that between $21 and $32 trillion worth of private financial wealth resides in so-called tax havens across the globe, where they are untaxed or lightly taxed.

    While TJN noted that “most countries’ secrecy scores have improved,” the United States is the “greatest” concern and is “more of a cause” for worry than any other individual country.

    “Our analysis also reveals that the United States is the jurisdiction of greatest concern, having made few concessions and posing serious threats to emerging transparency initiatives,” the TJN said in a press release.

    The United States is one of the few countries whose secrecy score has worsened since the previous survey in 2013.

    “The US stays a tax haven, and undermines global co-operation,” the TJN concluded. ….”……….
    https://www.rt.com/usa/320568-tax-evasion-usa-index/

  23. Charl, love your new terminology! Yes, why doesn’t the media discuss this — it is *new to most* as it has been too long ignored and controversial enough for Rachel Maddow to introduce. Sounds like a no brainer as a perfect subject re questions that haven’t already bee asked. Just why the media doesn’t kick the crap out of the subject is beyond me / us! Perhaps some quotes from the new Liberal government in Canada would be tasty.

    As well, she could refer to http://isaacbrocksociety.ca/2015/11/02/us-hypocrisy-at-its-finest-financial-secrecy-index-2015-results/.

  24. Good find, Neill – http://www.taxprotalk.com/forums/viewtopic.php?f=8&t=4776&sid=1fb42434460ba98b663d9759115bd787

    Taxpayer received $1,000,000 bequest from a foreign person but failed to report the receipt of gift on Form 3520. The taxpayer kept the funds in foreign accounts and reported properly the FBAR reports and paid all applicable income tax. The penalty for the late filing of Form 3520, which can be as high as $250,000, does not apply for reasonable cause. Usually there can be reasonable cause for erroneous specific advice of a professional. Is there authority that the lack of knowledge of a professional, when he knew applicable facts, can be considered “reasonable cause?”

    https://www.irs.gov/Businesses/Gifts-from-Foreign-Person

    Gifts from Foreign Person

    International Tax Gap Series

    December 2008

    December is a time when we think of gifts — both giving and receiving them. If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Form 3520 is an information return, not a tax return, because foreign gifts are not subject to income tax.  However, there are significant penalties for failure to file Form 3520 when it is required.

    General Rule:  Foreign Gifts
    In general, a foreign gift is money or other property received by a U.S. person from a foreign person that the recipient treats as a gift or bequest and excludes from gross income.  A “foreign person” is a nonresident alien individual or foreign corporation, partnership or estate.

    The IRS may re-characterize purported gifts from foreign partnerships or foreign corporations as items of income that must be included in gross income.  Additionally, gifts from foreign trusts are subject to different rules than gifts other foreign persons.

    A gift to a U.S. person does not include amounts paid for qualified tuition or medical payments made on behalf of the U.S. person.

    Reporting Requirements
    You must file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, if, during the current tax year, you treat the receipt of money or other property above certain amounts as a foreign gift or bequest.  Include on Form 3520:

    • Gifts or bequests valued at more than $100,000 from a nonresident alien individual or foreign estate (including foreign persons related to that nonresident alien individual or foreign estate);

    or

    • Gifts valued at more than $13,258 (adjusted annually for inflation) from foreign corporations or foreign partnerships (including foreign persons related to the foreign corporations or foreign partnerships).

    You must aggregate gifts received from related parties.  For example, if you receive $60,000 from nonresident alien A and $50,000 from nonresident alien B, and you know or have reason to know they are related, you must report the gifts because the total is more than $100,000.  Report them in Part IV of Form 3520.  Treat gifts from foreign trusts as trust distributions you report in Part III of Form 3520.

    File Form 3520 separately from your income tax return.  The due date for filing Form 3520 is the same as the due date for filing your annual income tax return, including extensions.  You file an annual Form 3520 for all reportable foreign gifts and bequests you receive during the taxable year.  See the Instructions for Form 3520 for additional information.

    Under a new law effective June 17, 2008, gifts from individuals who ceased to be a U.S. citizens or green card holders (lawful permanent residents) on or after June 17, 2008 may be subject to special rules.  Refer to the 2008 Instructions for Form 3520 for additional information.

    Where to File Form 3520
    Mail Form 3520 to the following address:
    Internal Revenue Service Center
    P.O. Box 409101
    Ogden, Utah 84409

    Penalties for Failure to File Form 3520
    You may be penalized if you do not file your Form 3520 on time or if it is incomplete or inaccurate.  Generally, the penalty is 5% of the amount of the foreign gift for each month for which the failure to report continues (not to exceed a total of 25%).

    References:

    Return to:
    The International Tax Gap Series

    I haven’t seen IRS page before; https://www.irs.gov/Businesses/The-International-Tax-Gap

    The International Tax Gap

    Find resources on this page pertaining to the international tax gap — the difference between the amount of tax that taxpayers should pay and the amount that is paid voluntarily and on time. The tax gap can also be thought of as the sum of non-compliance with the tax law.

    International Tax Gap Series

    Filing Extensions and Tax Return Preparation Assistance for Military Personnel Stationed Abroad or In a Combat Zone
    Self-Employment Tax for Businesses Abroad
    U.S. Citizens Performing Services in Foreign and International Airspace
    Departing Aliens and the Sailing Permit
    Reaching Out to Americans Abroad
    Taxation of Nonresident Aliens
    Foreign Housing Exclusion or Deduction
    Gifts from Foreign Persons
    Tax Treaties Can Affect Your Income Tax
    Taxation of International Pensions and Annuities
    U.S. Tax Withholding on Effectively Connected Income Allocable to Foreign Partners
    Foreign Trust Reporting Requirements
    Withholding of Tax on Dispositions of U.S. Real Property Interests
    Foreign Tax Credit
    Foreign Earned Income Exclusion
    Moving To or From a United States (U.S.) Territory/Possession
    U.S. Tax Withholding on Payments to Foreign Persons
    The Tax Gap and International Taxpayers – Filing Requirements

    The Tax Gap – News, facts, figures and a fact sheet series on the tax gap in general.

    Page Last Reviewed or Updated: 10-Mar-2015

  25. @calgary411,

    I use 3520 as an example in arguments with people. I’ll make a blanket crazy statement like ‘The U.S. has made a massive shift to putting tax traps into the system to steal money from people’.
    Any reasonable person will call me out on this and suggest that I am wearing a tin foil hat. I then roll out the details of form 3520. A form you file for a non-taxable event with a penalty between 20%-30% of the balance. You can see the worry build in peoples heads as they think about this.
    Note that you could also come clean on 3520 in OVDP so they really did want to take this money.
    People are left speechless at this if they think about it.

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