I think we have a new Hall of Fame candidate. I had not heard Representative Reichert’s name mentioned before in connection with FATCA concerns, but this post caught my attention yesterday. I thought it merited a ‘call out’ rather than just a comment on another thread. I have alerted ACA that we have a sympathetic ally that we should reach out to.
In early October, Ways and Means member David Reichert, R-Wash, raised several issues and questions regarding FATCA implementation in a letter sent to IRS Commissioner Douglas Shulman. In the letter, Rep. Reichert appears to question the process and authority of the Executive branch to enter into intergovernmental agreements (IGAs) absent Congressional oversight:
Further, Rep. Reichert states that Congress must understand how the implications of these IGAs combined with FATCA could specifically impact the following:
US persons living abroad — the degree to which US persons, US companies and their foreign affiliates are increasingly unable to access normal financial services while living or working abroad, the disparate effect this may have on them in comparison with their compatriots at home, and the potential impact on US corporations’ ability to build export-led business caused by the potential difficulty in finding US persons prepared to accept the significant additional tax and personal financial burdens that a foreign posting to generate export sales may increasingly involve.
You can read the actual letter from his web site. BTW, notice his Issaquah Office which probably contains a lot of Microsoft employees! That tells me something. This might be a fertile area for FATCA discontent.
Update Oct 23. Here is the canned type of IRS response I would expect he will receive. It will contain these points, like the one Senator Rand Paul received.