Liberty and justice for all United States persons abroad

The Isaac Brock Society

Media and Blog Articles – Part 1 of 11 (to 26 May 2015)

You can access all years at this link:

http://isaacbrocksociety.ca/media-and-blog-articles-links-for-all-years/

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.

26 May 2015:  This thread is now closed.  It continues at Media and Blog Articles Open for Comment, Part 2 of 2.

2015.05.26

New Survey finds US expat voting could impact 2016 Presidential Election, Greenback Expat Tax Services, NASDAQ GlobeNewswire.

This congressional committee wants to hear all your FOIA gripes, Colby Itkowitz, Washington Post, US.

The black money recovery skills of IT department are nothing to write home about, Vivek Kaul, The Daily Reckoning.

2015.05.25

The Intersection of US Federal Tax Law with Collection of International Information- – Including Other  Federal Agencies, Patrick W. Martin, TaxExpatriaation, US.

2015.05.23

America the not so brave:  America has led the global assault on tax dodgers and their enablers.  But the reality still lags behind the rhetoric, The Economist, UK.

Cash Banned from Chase Safe Deposit Boxes, Matt Chilliak, Live and Invest News.

2015.05.22

US Steuergesetz hat unerwartete globale Konsequenzen, Colleen Graffy, Geopolitical Information Service.  Also at Consequences of US widening net to catch tax dodgers, Colleen Graffy, World Review.

The horse may have bolted … but, Angelo Venardos, Asia Asset Management.

Important Correction:  Passports Required to Enter and Leave US — but SSNs May be Optional, Patrick W. Martin, Tax Expatriation, US.

2015.05.21

Americans working abroad face unexpected financial issues, Sarah O’Brien, NBC, US.

Senate tax reform groups get more time, Bernie Becker, The Hill, US.

2015.05.20

Malaysia will defer FATCA reporting, FSI Tax Posts.

America’s Self-Inflicted Wound, Moises Naim, The Atlantic, US.

Janice Mays:  The Tax Guru Who Guides House Democrats, Alex Brown, National Journal, US.

Sen. Rand Paul Launches Filibuster in Protest of Patriot Act Renewal, C-SPAN, US.

Articles from earlier in 2015 are at this link

Articles from 2014 are at this link

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

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

3,971 thoughts on “Media and Blog Articles – Part 1 of 11 (to 26 May 2015)”

  1. Taxpayer advocate mentions the raw deal earlier OVDP victims had (me):

    http://www.taxpayeradvocate.irs.gov/2014-Annual-Report/full-2014-annual-report-to-congress/

    Offshore Voluntary Disclosure (OVD) Program Inequities. The report describes the evolution of the OVD program and the disproportionate penalties it says were often imposed, particularly with respect to unrepresented taxpayers. The IRS changed the streamlined program in 2014 in ways that allow many taxpayers to pay lower penalties. However, the new rules do not allow taxpayers who already had entered into closing agreements with the IRS at higher penalty rates to amend those agreements. Therefore, taxpayers who are the most deserving of leniency because they were the first to acknowledge they had failed to comply with foreign account reporting requirements ultimately are paying substantially greater penalties than taxpayers who waited until later to acknowledge their noncompliance. Among other things, the report recommends that the IRS revisit this decision.

  2. The TAS section of OVDP is very reasonable. What they propose could ease the burden of a lot of people (new balance limits indexed to inflation). Changing the closed agreements isn’t going to happen given what we know from the OVDP doc dump. They wanted the money and drove people with uncertainty (that did exist) to accept the deal.

  3. @Publius

    One of the most stressful periods during the OVDI opt-out process for us was when the IRS agent assigned to our case asked us what the source of funds were on our FBARs over the 11 years of FBARs he had in his possession. Imagine the prospect of having to go through each line of every bank statement for every bank account for that period of time! He had all the statements and Canadian tax returns there, why not go through each of them himself and get back to us with any questions he has about individual transactions? What he was asking of us was monumental in light of the fact that any omission could be viewed as willful tax evasion! Thankfully our accountant was fairly fed up at this point and basically said that there’s nothing here that the average family wouldn’t have as income sources (inheritance, insurance payouts, refunds, etc) and that other clients in similar circumstances have long since transitioned to Streamlined. His response? He said that he wished that he too could bill by the hour like they do! Fortunately he was satisfied that there was nothing more to see here (seriously, why would we enter OVDI and report a capital gain on the sale of a home in Canada if we were trying to hide something???)

  4. Thanks for the link, Neill. This should be a post.

    Two areas (so far) to review for importance to US expats are the sections on Taxpayer Rights and Legislative Recommendation #6 (that you’ve identified), FOREIGN ACCOUNT REPORTING: Legislative Recommendations to Reduce the Burden of Filing a Report of Foreign Bank and Financial Accounts (FBAR) and Improve the Civil Penalty Structure.

  6. Nina Olson is our angel at the IRS, but she’s still trying to make citizenship based taxation work and forever pleading for more funds to do so, when the most prudent thing to do would be to dump it and go to RBT.

  7. @ Bubble I have just posted this on the Taxpayer Advocacy Panel FB page. (it is still in moderation. It will be interesting if it does NOT clear.) Maybe I’ll try and find Nina Olsen’s email addy also. I have a new bug in my nagging bonnet in search of finding an able body to re-litigate Cook. (Still haven’t given up on DeBlis). Yesterday he said it would be awesome to try an appeal of an archaic law. I don’t know if he was being facetious or is actually interested. We shall see.

    Time to Revisit Cook v. Tait

    In 1924 the US Supreme Court decided, in their ruling on Cook v. Tait, that the US government has the right to tax non-resident US citizens. In the nearly one hundred years that have passed since this ruling, the world has changed such that it would be unrecognizable to the judges of 1924. Therefore it would seem timely to revisit their decision.

    The Supreme Court has the ability to overrule itself when an earlier case is reviewed and deemed no longer applicable because of changing social and political situations. The more time that has passed, the more likely a decision may be overturned. I would think a century is sufficient time.

    The benefits rationale upon which Cook v. Tait was based was controversial at the time and remains so today. At that time, the court believed non-resident US citizens still had civil, political and social rights. A discussion of these rights as viewed in 1924 can be read in Michael Deblis’s informative paper: “Is the justifiction for the United States system of worldwide taxation a hoax?”

    In 2015 the arguments from the Cook v. Tait decision are no longer applicable.

  8. @Charl

    Don’t get too excited…. they will do with the report what they have done before… totally ignore it… From the last couple of years… things that Ms Olsen suggested has always been ignored… its like she is allowed to write a report so the gov’t can make believe they have fair tax practices for all but in reality.. they are like… what report… taxpayer advocate… if u can get their help… maybe able to help… but from what I understand… they are not a huge office & can only do so much for the taxpayer… which I am sorry to say

  9. Charl,

    good for you and thanks for posting on Facebook Taxpayer Advocacy Panel page — I’ve also posted at FATCA Tracker. https://www.taxconnections.com/community/FATCA-Tracker/10008#876

    Correct spelling of of the last name for this fine woman who has tirelessly advocated for us is Nina OLSON.

    This might be the best and official means of corresponding on our issues (that affect more than one person):

    http://www.irs.gov/Advocate

    Systemic Advocacy Management System (SAMS)
    Know of a tax problem that affects more than one taxpayer?

    You can help the Taxpayer Advocate Service tackle the “big-picture” problems in the IRS or the tax law by reporting them to us. These systemic issues:

    Always affect multiple taxpayers;
    Don’t apply to just one taxpayer (but if you personally have an unresolved IRS problem, TAS may be able to help);
    Involve IRS systems, policies, and procedures;
    Involve protecting taxpayer rights, reducing burden, ensuring fair treatment, or providing essential taxpayer services.

    How can I report one of these issues?

    Use the button below to submit your issue on our Systemic Advocacy Management System
    (SAMS). SAMS is a database of issues and information reported by IRS employees and the public. (If you’re an IRS employee, please use the internal version of SAMS on the IRS intranet).

    You’ll be asked to describe the issue briefly and provide your name, telephone number and email address. Do not include any personal taxpayer information like your social security number. You are limited to 2,000 characters to describe your issue.

    The information entered is transmitted over a non-secure channel. The input of your name and contact information is strictly voluntary and will not be stored, shared, sold or used for any purpose except as may be required by law. We require your email address in order to reply to your submission or clarify the issue.

    To submit an issue, please press the button below. Each submission will be reviewed, researched and shared for appropriate advocacy actions. You will only be contacted regarding this submission if we need clarification of the issue or need additional examples; and when we have determined how we will use the information provided in our advocacy efforts. Thank you for your submission and reporting the potential systemic issue via the SAMS program.

  10. Who knows- if the IRS were trustworthy, helpful, had integrity, and the money owed had any basis in reality – maybe many people would have kept their citizenship? It is absolutely hair-raising and I would even call it terrifying when one reads that people are paying 8 times what they would have owed in taxes, and how draconic and totally extortionist the penalties are. How CAN one trust such a flagrantly high-handed and tyrannical agency who treats citizens with such contempt? When will people realise that government is FOR the people, and not against them? This is just all so appalling I could cry.

  11. Received by email this morning: http://www.globes.co.il/en/article-treasury-proposes-criminal-penalties-for-fatca-non-compliance-1000942546 (This is noted, as well, in http://isaacbrocksociety.ca/fatca-and-israel/.)

    [Israeli] Treasury wants prison for FATCA non-compliance
    The Ministry of Finance wants to levy fines and up to seven years imprisonment on financial institutions and their employees who fail to comply with the US Foreign Account Tax Compliance Act (FATCA). Sources inform ”Globes” that the ministry has drawn up an amendment to the Income Tax Code to implement the tax information sharing agreement with the US.
    “Globes” has obtained a copy of the draft bill, which proposes that institutions which do not comply with the reporting requirements about their customers will be considered as criminal offenders and will be penalized accordingly. The bill proposes levying fines against banks, insurance companies and investment houses that not provide the necessary reports about their American customers and declarations that the assets managed have been reported to the Internal Revenue Service (IRS). The bill also proposes up to one year in jail.
    …
    However, legal sources are critical of the pending legislation. “The bill far exceeds the FATCA rules, and in practice requires Israeli banks to gather information about all their foreign resident customers with accounts at a bank in Israel,” Gideon Bar-Zakkai, former Tax Authority deputy general for legislation told “Globes”. “The bill seeks to relay on OECD requirements for exchanging information, but anyone who examines its demands might be startled by the over-obedience in the bill, under which Israel is asked to do far more than asked.”
    “The way the bill is written now in effect proposes not just giving authority to the seeker of information, but apparently sets sweeping and binding provisions for gathering and delivery of information, against harsh sanctions,” he adds, and warns, “Economically, Israel is liable to be hit hard by this measure, because we rely on Jewish capital from the world being invested here, and it might be withdrawn.”

  12. @Polly

    Nothing the US has done has been fair… There was an article about a man who was in his 80’s… had an account out of the US… because of his last name… I am sure that money was saved during & after the war… alot of people did that… my family did… he never bothered to bring the money to the US like some of the elders in my family… to ensure its safe keeping & they had no clue how to bring the amount into the US without it look like they were money laundering which would open another can of worms… the IRS wipe out the account with fines… by the time they were done… he owed double the amount that was in the account…. he is located in Florida.. it was all over the net… I would understand fining for the interest… but the whole dang thing & then some… lets call it what it is… legal extortion & terrorist moves… I am hoping the new swift like system put together by China & Russia really dings the US… its time they get knocked down a few pegs… past due really

  14. @US_foreign_person
    Yes- I am sure quite a few foreign accounts were due to the holocaust. In essence- jews back then learned that they could not trust their own governments, so they hid money from them with good cause. It is actually the reason why Switzerland created bank secrecy (I think it was 1934)- so the intention was actually good in the beginning.

  16. Seems Michael DeSombre tweeted that at the RNC Winter meeting they have just passed a resolution objecting to the OECD’s transparency initiative. I would bet the farm the US could quite readily oppose GATCA and press on with FATCA and see absolutely no hypocrisy in this. What does a world look like under those conditions? It seems, as so many have been bullied into FATCA the world would accept this. I wonder if the RNC will even bring up FATCA at the meeting.

  18. FATCA was originally designed to NOT be reciprocal. Like the old QI system, the US wanted to deal directly with banks and not go through the banks’ governments in order to avoid demands for reciprocity for information sharing.

    The Dems appear to have been okay with reciprocity, but the Reps clearly are not. I suspect it is mainly due to the US banks in Florida and Texas which allegedly hold very large sums of deposits from non-resident Latinos. There are probably other reasons as well, but one thing is for sure, the US will balk at reciprocity.

  19. @From the Wilderness, “I suspect it is mainly due to the US banks in Florida and Texas which allegedly hold very large sums of deposits from non-resident Latinos.”

    And those USA banks are sucking up tax revenue that should be paid in poor Central American countries!!

  21. @Bubblebustin,

    One hand doesn’t know what the other is doing. They clearly want snowbirds to come down and spend their money. They could file some form if they knew about it. So the IRS is going to go after them on some omission like this to drive away the very people they want? More tricks, traps and confiscation.

  23. If FATCA is really just about paving the way for GATCA, and if the powers that be, really want FATCA (and GATCA), then if they were smart they would never have included non-resident ‘US persons’ in the FATCA hunt since we are the ones who are standing in the way of FATCA, and ultimately GATCA. Dumb asses.

  25. @WhiteKat good point, go “get them”, and hopefully you are back from holiday.

    I don’t think US Treasury cares for GATCA. GATCA means that they might have to do some work giving information to other countries; while they just prefer a system where the exchange is information submitted to the “exchange” by other countries about US persons – in exchange for not being shut out of the SWIFT global money transfer system with 30% withholding penalties.

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