Monthly Archives: January 2012
CanuckDoc responds to Finance Minister, Hon. Jim Flaherty's letter
Several people have received the same letter from Finance Minister Jim Flaherty. CanuckDoc has posted a reply.
US Treasury Aims To Lower FATCA Burdens
US Treasury Aims To Lower FATCA Burdens.
This article popped up in my Google news feed.
The first half is a rehash of what we already know, but the last six paragraphs shed a bit of light on how FATCA will proceed. Note the comments about a higher dollar threshold for reporting requirements and the possibility of having the FFIs report to the government which in turn would report to the IRS.
Now I have heard through a friend that works for a large investment firm here in Canada that at the moment they only plan to report customers that fall under the category of non-resident status in Canada. Don’t take this as gospel because as we all know the rules can change at any time. It’s not clear what other investment firms are doing, but banks are likely to follow a stricter set of rules.
Estate Planing — as US Persons living abroad, what should the instructions be (for us still connected in any way to the US)?
Below is a link to valuable planning advice for seniors (or, really, for anybody).
Just how should we update these instructions to include what we have to do if we are also a “US person” in another country?
What should we do to make sure that a disabled member of our family (including those who may eventually be affected by an unfortunate accident, dementias, etc.) is properly looked after from whatever our estates will be?
Can we satisfy the laws of the country we live in and the country we left, the USA? If so, what will be the extra expense, administration for a US person living abroad?
The OVDP Drudgery for Minnows
Just Me offers advice to newbies to the subject of FBAR compliance and OVDP considerations. To join or not to join. That is the question. This is a must read post.
A link to his Case Study of Communication with the IRS through the entire 851 day process is here.
Debt Limit raised: Open Thread
The US Federal Debt limit now stands at $16.394 trillion. Here is a video that explains how that works. Hat tip Zerohedge. Open thread means feel free to share anything on your mind.
My letter to the IRS
This is my letter to the IRS explaining why my 2009 tax return is late. I felt I owed an explanation, since they sent me a little while ago a letter demanding that I file my overdue return and send a questionnaire with my return. The questionnaire did not cover the bases. So I will send the following letter with it. What I want to see is if they will honour their agreement with Jim Flaherty, not to charge late charges.
Reply letter from Minister of Finance, Hon. Jim Flaherty
I am going to post the reply letter I received from the Finance Minister.
Although the content is encouraging, I sense that the Canadian Government believes our problem has been ‘solved’ by the December 13th IRS Fact Sheet, and the only other obstacle to deal with is FATCA.
Having said that, I give credit to the reply, and have faith that the Canadian Government is at least making an effort.
Collateral Damage?
Hmmm, is there more to it than just getting the USC’s? And now what happens to the USC’s who switched to Wegelin from UBS?
excerpts of interest:
To avoid risks of legal “contamination” from Wegelin’s problems in the U.S., where three of its Switzerland-based private bankers were this month indicted by the U.S. authorities, Raiffeisen is not buying any of the latter’s U.S.-related business.
In a complex deal, Wegelin, founded in 1741 and controlled by eight partners who have the risk of personal liability, has transferred all its non-U.S. activities to a formerly passive sub-brand, Notenstein Privatbank. The latter has in turn been sold to Raiffeisen, where it will form a standalone subsidiary.
Wegelin’s problems arose from the revelation that – like a handful of other Swiss banks – it had, from roughly 2008, taken the ill-judged step to welcome former U.S. offshore customers of UBS AG
Many such clients were desperate to establish a new Swiss banking relationship once UBS decided to close its Swiss-based offshore private banking operations for rich Americans after a legal battle with the U.S. authorities, which ended with a $780-million settlement and the disclosure of almost 5,000 U.S. client names.
http://www.theglobeandmail.com/report-on-business/international-news/european/article2317658.ece
IRS News Room – Do You See Anything Wrong Here?
Here is the link to the IRS News Room. I expect that within the next year, the U.S. will pass a law applicable to every country, making this (IRS News Room) the home page on every browser of the world. Not only is intended to be the “Latest News”, but it is intended to be the only news.
Here is the part that announces the December FS – the information to U.S. citizens and dual citizens living outside the United States:
Information for U.S. Citizens or Dual Citizens Residing Outside the U.S.
FS-2011-13, December 2011 – This fact sheet summarizes information about federal income tax return and FBAR filing requirements for duel citizens in Canada, the United Kingdon and other countries.
Do you see anything wrong with this? There are at least two mistakes. Do you think the use of the word “duel” is a Freudian slip?