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i Notice that so many of the comment letters (from FFI’s and ACA and others) to the proposed rulemakings and their hearings begin with very positive tone and make very minimal demands–such as increasing the 8938 threshholds from $100,000 to $200,000.
This resuts in results such as this from FinCen: “In response to the NPRM, FinCEN received a total of 42 timely filed comment letters from individuals, entities, and representatives of various groups and industries whose members are affected by FBAR requirements. The comments were generally supportive of the NPRM””
I also note that these insane policies are initiated by expensive new programs (HEROES, HIRE acts). Apparently, these programs need to be presented as revenue-neutral in a time where raising taxes is impossible (politically & economically). Therefore, the money is pickpocketed from the easiest political sources–“tax cheaters”, öne-percenters”, and the “rich guys who are leaving the country in order to pay their fair share” These are extremely popular themes and we are the recipients of this hot air. (It’s an effective old political technique–Hitler also used it to wipe out a particular group of one-percenters)
Note the cv of the USA ambassador to Sweden–it is very impressive. He has an extensive background in anti-corruption law. Simple decution shows that he is appointed for the number one goal of finding all of the US persons who have moved to Sweden in order to escape taxation.
http://sweden.usembassy.gov/ambassador.html
@Mark Twain
Impressive of course…yet does he even speak Swedish? The US Ambassadors to Belgium and Switzerland, from what I have seen, also are monolingual. Do other countries send ambassadors with only a knowledge of French or German to represent themselves in Japan or Saudi Arabia? At the very least you would think that they would have a pool of some diplomats who could speak French for my two examples above. Disgraceful.
@Shadow Raider, THANK YOU! We know that people like you exist, but we mostly hear from those who prefer to call us tax evading traitors. I’ve always felt that most Americans in the US would be appalled if they would only allow themselves to see beyond the stigma that the US government has created (intentionally and unintentionally) against us. Restrictions and impediments to being able to go out into the world strikes a blow at what Americans believe constitutes freedom. The best thing you could do is to support us among those you know in the US, representatives, and the media!
@Shadow Raider, Thank you, we appreciate all the help we can get…nice to have your support. We are definetly Not Tax Cheats!
Something strange has started happening with my incoming emails from this site today. Every time I post on a thread I get an email for every comment that somebody makes after. I want this to stop.
When you enter a new message the Notify me of follow-up comments via email button is already checked off as a default. How do I make it unchecked as the default?
Ok, I think I solved my problem by blocking all emails. Now the notify me thingie is unchecked.
sorry if the sarcasm wasn’t self-evident. (speaking non-native Swedish would be counterproductive). The only reason that Barry and his merry men would send a guy like that would be to flush out all the US-person tax evaders and to dole out penalties. The other reason is that Sweden is very motivated to be reciprocal–although the banks said they can’t directly comply, but they asked the government to cave in for them. Since Anders Breivik’s mother kept his accounts in USA the popular opinion will be similarly antagonistic. Expect a similar narc-ing reciprocity in the Nordic countries shortly.
http://www.risk.net/operational-risk-and…/nordic-banks-push-fatca-deal
This ambassador is the perfect lacky for getting the Swedish to fall into line for FATCA.
@shadowraider. This is a crosspost from “one more free”: This is unacceptable. Americans are being lied to. It’s criminal what this “journalist” is saying:
http://www.marketwatch.com/story/tax-dodgers-are-proudly-un-american-2012-05-04?link=MW_latest_news
@Mark Twain Breivik is Norwegian. I don’t understand the comment about his mother keeping accounts in the US? Was this sarcasm? Please explain what you mean!
Just found this blog tonight looking for answers. I was born and raised here but married a sweet US gal 20yrs ago. We have lived in Canada the whole time but with aging parents etc it was always our intention to move closer to her family. What a nightmare it is getting to be. Where to start.
Most are aware of the tax rules etc so we started filing returns for her quite a number of years ago to stay onside for her peace of mind.
Since Canada generally has a higher tax rate it was a minor formallity and we live near the border etc so we just did it. We have had some luck due to hardwork etc and managed to sell a business for stock in a public company. We were minority owners but still as many could atest it was nice. She had never bought any RRSP’s due to her low income and I had bought spousal to keep us “even” for income splitting etc. Being responsible and frugal. Well she sold a portion of her shares to capture the gain and used her accumulated RRSP room to minmize the tax. Good in Canada but the US does not recognize the “tax break” so we had to pay tax in the US on the whole shot.
I noticed this year we have US tax slips from her TFSA. My brokerage account sent me US tax slips.
We have used some of our proceeds to invest in two startup business’s in the US as that is where we planned to move(also before this hitting the fan). We are minor investors but still looking to use our accumulated knowledge. I found out a few days ago the one venture is a total loss but I cannot claim the loss here nor her on her Canadian tax and the other venture is looking OK but that If it is profitable before we leave the Canada(if we do now) we would be hit with 88% tax because neither system acknowledges the other and we would pay full rate for the type of partnership on both sides.
So I started making adjustments to our “plan” and thankfully she is the holder of the second venture and hopefully it is not profitable until we move(how absurd of a way to think).
I got her life insurance policy statement the other day and realized it has a “cash” dividend component that we never see. It just buys more insurance etc. Not even thinking of that I never reported it. Then thinking further you are supposed to report “gifts”. So if I put money in her account from mine to buy a car will she have to pay on the “gift” and be penalized on the “highest balance”??????
I have literally been sick the last few days after reading the fine print closer. I have thought of cashing out the policy and putting the cash on a credit card or something so it doesn’t show in the bank but ??????? Do I “ride it out” and “hope” or be upfront that I “forgot” about the cash value of the policy?
We are far from 1%ers but have done ok and worked hard and risked what we had to try to get ahead and now it all seems at risk.
Then to top it off reading through this I realized my Grandfather came from an orphanage stateside and I bet my elderly father is totally oblivious to what “could” happen although I know he would never comply or do anything to alert them. He is a patriotic Canadian to the core and will be PO’d when I tell him he could “technically” be caught up.
Sorry for the long post. So much more but I am sure you can see my dilema.
To top it off Canada does not make it easy to relocate but I am still looking into those details. Thanks for the blog.
@sicktothestomach. Welcome.
Sick Why tell your father? Let him be. He’s fine the way he is.
Gifts from you to your wife are not reportable. Gifts from her to you would be although there are yearly and annual exemptions . The current exemption may be as much as 5 million. Due to expire at the end of 2012.
I don’t know enough about life insurance to comment.
Sick – Glad you found your way to Brock. Glad you’re starting from the Canadian side. It sounds like you are enmeshed in one humongous ratnest of no-win saw-offs and mismatches. If you do decide to relocate to the US, at the least you may encounter less exit crap than the Canadian residents who are currently trying to cut loose from the US parasite. The costs of health care insurance on the other side must be a huge disincentive, unless you’ve got one of those privileged jobs lined up.
I have found this blog while looking for information that might help me decide to disclose my Canadian bank accounts. I have been living in Canada since l979 and have been a dual citizen for about 15 years. While I have not filed a US tax return every year, I have filed often. I have never had to pay US taxes except for the year in which I received an inheritance from a relative in the US. That year, I paid a good sized US tax bill (as well as Canadian) but I was not shocked about this. All of my working life has been in Canada and I have been putting money into RSP’s and investments etc. I have recently retired and thought I would be enjoying my first year in retirement but now this question of “do I or do I not disclose” my Canadian bank accounts to the IRS has been the cause of great concern. Since I have family in the US I do not want to renounce my US citizenship and for all of these years, I thought I was doing what was correct and filed my US tax return for most the time I have been living here. So, here I am..I have money in the bank, have reported earnings to the US on my 1040 form and could still be facing enormous penalties to the IRS if I don’t disclose personal financial information. All of the information I have read so far has been enlightening but I am still unsure as to what to do…FBAR or not? 8938 or not? I welcome your replies.
“myhomeCanada”
Since you know of your obligation, i think, i am not an attorney (not that they know any better), you should at the least comply from this day going forward
@myHomeCanadian
The form 8938 is a new requirement starting this filing year(June 15 2012) so there is not an issue there dealing with past years. I also believe if you file an extension you can hold off on this years form 8938 until the fall just like any other return.
The FBAR is up to you. Many are filing back ones many are not.
@myHomeCanadian
I will also note the Government of Canada will not collect “FBAR” penalties under any circumstances.
I was thinking of filing both the 8938 as well as the FBAR for this year. I hope that this does not open a “can of worms” and they will want me to file FBARs for past years. Any thoughts?
@myhomeCanada
I have several clients, resident in Canada, but U.S. citizens. Their decision (with the advice of different accountants) has been to file both 1040s and FBARs going forward. Two of these clients are not Canadian citizens but do plan on finally becoming Canadian. I do not think they wish to give up their U.S. citizenship. I have another client who is a dual Canadian/U.S. citizen. He has decided to try to ‘stay hidden’ at least for the present.
It is such a personal decision and I am sure if you read this site, you will realize that each of us has a different story and a different attitude. My own is that the U.S., the place of my birth, has let me down. I am disappointed in them and almost feel that I have been stripped of ‘who I am’. I am afraid I have come to resent America. And I am very sad that I feel the way I do.
I also feel saddened and so greatly disappointed in the US. From border guards that treat me like a traitor to this IRS situation, the US is driving more and more of us away. My husband who is Canadian born, feels as if I should stay hidden but I can’t live with this indecision year after year. So I am going to continue following this blog and getting as much input as I can so that I can feel satisfied with my decision.
@myhomecanada, no FBAR penalties if you can prove reasonable cause. But ignorance of the law is not considered reasonable cause.
@myhomecanada, Sorry that you are having to deal with this intrusion in your life.. It really is aggravating, scary and nerve wrecking experience. But you will get through it, don’t worry. My husband (Canadian) was the same, told me don’t do anything.
. He was totally against me filing. Oh Boy did we ever go around and around on the subject.. But finally I did file because I am just a nervous person, but I have to admit there are times that I wish I would not have got started. I am not yet a Canadian Citizen but have been in Canada for 35 years, now in the process of getting my Canadian Citizenship
. A Big mistake not taking Citizenship years ago.. I love Canada. I am so sad what the US has done to it’s Expats.. I am planning on Renouncing my US Citizenship when I become a Canadian.. I hate it has come to this.. I am so disappointed in the US!!
Have you been filing US tax returns for the past years? Are you having to pay any penalties?
I shouldn’t have to renounce my US citizenship. I haven’t done anything wrong. I only just learned of the FBAR and I hope that in my attempt to comply, I am not penalized. This is very frustrating as I am a law abiding person and have done what I thought I was supposed to do. I would like the IRS to show me the communications that inform me of the FBAR. If is wasn’t for a short blurb in the Zoomer magazine, I would never have known anything about this.