The United States is in serious financial trouble. In 2011, the Federal Government borrowed over 40 cents for every dollar it spent, and the Federal Reserve Bank bought 61% of all the debt that the United States Treasury issued. When the Federal Reserve buys the debt, it is called “quantitative easing”, which is a euphemism for creating money out thin air (not money printing--but the creation of electronic money). Eventually, that will lead to high inflation, which is already becoming painfully visible in the prices for food and gas.
Continue reading
Monthly Archives: April 2012
2012's Q1 has come to a close…What ARE those expatriation numbers?
It’s seems to take a couple of months for them to be published, but here’s the link to the Federal Register for those who would like to check periodically. Anyone care to make a guess what they would be? I say 850 Q1.
https://www.federalregister.gov/articles/search?conditions%5Bterm%5D=Section+6039G&commit=Go
Biden: Tax the world
Conversation between two ex-pats in Switzerland
A reader shared this with us in a comment. It deserves its own post. Cheers.
IRS Letter: "If we don't hear from you, we may have to increase the tax you owe or reduce your refund"
As I reported earlier, I sent my 2009 tax return to the IRS and this is the letter that I received back in duplicate. I suppose I just have to fill out the dates in the space provided on page one, send one copy of the form back, and that’s it. Not sure what to do. IRS speak (a.k.a. gobbledygook) is not always so clear.
Of course, it seems that they need my verification that I’ve lived in Canada in 2009, even though my accompanying letter indicated that I had become a Canadian citizen last year, and of course, my address is in Canada, whence I’ve filed at least ten years worth of returns. What gives?
US = Weak Data Protection!
This FATCA word just in from the Channel Islands on
Why in Jersey and Guernsey an FFI cannot lawfully transfer information to the US without that person’s permission …
Principle 8 provides that transfers are only permitted to countries that are deemed to have adequate protection of confidential information. US data protection law is much weaker than that of Jersey and the United States is not a country which is listed as one having adequate data protection – the de facto position in Jersey and Guernsey is therefore that an FFI can’t lawfully transfer information to the US without that person’s permission. Again, whilst client consent is an exception to this principle, compliance with another country’s laws is not. On the face of it, it will therefore be unlawful for a Jersey or Guernsey institution to transfer information pursuant to, or indeed register for, FATCA.
Rosie Stott – Jersey: The United States Foreign Account Tax Compliance Act (“FATCA”) – Implications For Financial Services Businesses In The Channel Islands – 4 April 2012
Domestic literacy levels make "corr" audits difficult and spur TAS to launch a pilot program using a “virtual service delivery” as another option
TAS is looking to use video conferencing in order to better facilitate examiners and taxpayers during the examination process and to reach “underserved” taxpayers. Highlights Tampa as an area where underserved taxpayers are concentrated, but no mention of the lonely expat. Get audited in the comfort of your own home, just make sure they can’t see your Lear jet through the window.
http://www.taxpayeradvocate.irs.gov/Blog/virtual-face-to-face-audits
World's Highest Corporate Tax Rate Hurts U.S. Economically
Under a simplified “territorial” system, governments would see gains that would offset most, if not all, short-term reductions to tax revenue. Moreover, the long-term gains caused by increased economic activity and decreased compliance costs would dwarf any immediate losses.
Russia forming government task force to look into FATCA deal
Major Russian business newspaper Kommersant reported in an article yesterday that the Russian government, egged on by Association of Russian Banks (of whom we’ve written previously), is looking into the possibility of signing an inter-governmental agreement for the exchange of bank account information, along the lines of the European deal announced in February. The journalist writes as if such a deal were a foregone conclusion, stating that the Russian government is not looking into “whether” but instead “how” to sell out their sovereignty to the IRS. I’ve translated the article below.
Take the Money and Run…for office.
I just listened to this great podcast on This American Life which ran on NPR stations this weekend.
It is called Take the Money and Run for Office.
I highly recommend it to you. Continue reading