This just out on the Wall Street Journal Blog, by Christopher Chung.
The U.S. Internal Revenue Service is brandishing a “very big stick,” and it’s called the Foreign Account Tax Compliance Act.
But the government isn’t looking to hit foreign funds and institutions to bring in tax revenue. “[The IRS] would say, ‘We would be thrilled if we didn’t collect a dime under FATCA,” Laurie Hatten-Boyd, a principal at KPMG, said. “They view this as an information gathering regime, not a withholding regime.”
Note: No mention of impacts on Minnow Americans abroad, or immigrants new to America.