Hot off the press from GAO – important because it illustrates how this issue is viewed in the Homeland: "Foreign Asset Reporting: Actions Needed to Enhance Compliance Efforts, Eliminate Overlapping Requirements, and Mitigate Burdens on U.S. Persons Abroad" https://t.co/T0k4HKll0j
— U.S. Citizen Abroad (@USCitizenAbroad) April 1, 2019
The above tweet links to the a report from the Government Accountability office. It is extensive but generally interesting. A quick perusal reveals no evidence that the Government views FATCA and foreign asset reporting as tools to enforce worldwide taxation on people who live outside the United States. Yet, that is the purpose of FATCA and foreign asset reporting in general.
The “Fast Facts” page includes:
How does the government prevent tax dodgers from hiding income in offshore accounts?
A 2010 law requires Americans and foreign banks to report more information to IRS about Americans’ foreign assets. Implementing the law, however, has raised some concerns.
For example, close to 75% of taxpayers reporting foreign assets to IRS also reported them separately to Treasury—indicating potential unnecessary duplication.
Also, some Americans living abroad can’t get services from foreign banks that find the law too burdensome.
Our recommendations to Congress, Treasury, and other agencies address challenges related to foreign asset reporting.
The 2010 Foreign Account Tax Compliance Act, known as FATCA, created new reporting requirements for taxpayers with specified foreign asset