Liberty and justice for all United States persons abroad

The Isaac Brock Society

Monthly Archives: January 2013

Tax Law Conference discusses FATCA

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Live webcast available.

http://new.livestream.com/pepperdinesol/lawreviewsymposium

Familar names attending:

Business/International Tax #2

Moderator:     Khrista McCarden (Pepperdine)

Papers:          Reuven Avi-Yonah (Michigan), Corporate and International Tax Reform: Proposals for the Second Obama Administration

Allison Christians (McGill), Putting the Reign Back in Sovereign: Advice for the Second Obama Administration

Susan Morse (UC-Hastings), The Transfer Pricing Regs Need a Good Edit

Commentary:  Robert Goulder (Tax Analysts)

http://taxprof.typepad.com/

I am not sure what time they will get to this last segment. Probably in the afternoon for those of you in the Eastern Time Zone

Treasury and IRS Issue Final Regulations to Combat Offshore Tax Evasion

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US Department of the Treasury News Release

Treasury and IRS Issue Final Regulations to Combat Offshore Tax Evasion
1/17/2013

NOTE:  This document is scheduled to be published in the Federal Register on 01/28/2013 and available online at http://federalregister.gov/a/2013-01025, and on FDsys.gov

Treasury Advances Efforts to Secure International Participation, Streamline Compliance, and Prepare for Implementation of the Foreign Account Tax Compliance Act

WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign accounts. The issuance of the final regulations marks a key step in establishing a common intergovernmental approach to combating tax evasion.

These regulations provide additional certainty for financial institutions and government counterparts by finalizing the step-by-step process for U.S. account identification, information reporting, and withholding requirements for foreign financial institutions (FFIs), other foreign entities, and U.S. withholding agents.

Continue reading →

American FATCA punishes law-abiding Canadians @ErichTheGreen

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The stories keep coming now, so while I have posted in several threads, thought I would headline it.

American FATCA punishes law-abiding Canadians

Last time the United States tried to rule us, we sent them packing.

Yet 200 years later, our government is about to surrender without a fight.

The assault comes under America’s new Foreign Account Tax Compliance Act (FATCA).

Aimed at those using foreign havens to dodge taxes, this law will punish law-abiding Canadian citizens and residents.

When I taught and paid tax in Korea, I notified Canada Revenue about my move and didn’t need to file or pay Canadian taxes while away.

But my American teaching colleagues faced a double burden, still paying U.S. taxes, even if they’d been away for years and weren’t planning to return any time soon.

Now they’re putting the squeeze on Canadians, too.

Eric can be followed on Twitter @ErichTheGreen

Who Says You Can Kill Americans, Mr. President?

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We all better watch out!

Who Says You Can Kill Americans, Mr. President?

PRESIDENT OBAMA has refused to tell Congress or the American people why he believes the Constitution gives, or fails to deny, him the authority to secretly target and kill American citizens who he suspects are involved in terrorist activities overseas. So far he has killed three that we know of.

“There really is a perfect storm gathering for Americans living outside the U.S.” @yahoonews

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@badger posted a comment about a YahooNews story with a slightly different approach to the same subject that Jamie Golombek wrote about in the Financial Post.   I thought I would pull it out for some wider visibility, as it only has 3 comments so far, and deserves a little attention.

The title is:

“New tax to fund Obamacare could leave American expats in Canada owing Uncle Sam”

The article begins:

What is the most feared government agency in the United States?  The FBI, the DEA, the CIA, deadly special-ops soldiers like Seal Team Six?

No, it’s the U.S. Internal Revenue Service (IRS), whose long arms stretch around the world and deep into the pockets of Americans living abroad.

Now a new law gives expats a fresh reason to hate the Yankee revenuers.

And Ends:

“There really is a perfect storm gathering for Americans living outside the U.S.,” said Peter Megoudis, a partner with Deloitte & Touche in Toronto.

There’s no easy answer to the problem. Even dual citizens who renounce their American citizenship have to prove they’re square with the IRS and wealthier citizens are subject to a hefty “exit tax.”

You can read the middle.

American Banker article claims that FATCA is in trouble

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Great catch by SwissPinoy that deserves its own post:

Foreign Banks Rejoice: Overreaching U.S. Tax Law in Trouble
http://www.americanbanker.com/bankthink/rejoice-fatca-overreaching-us-tax-law-in-trouble-1055877-1.html?pg=2

“The implementation of a new and ill-conceived tax act, which would damage the U.S. economy, adversely affect American firms that operate globally and negatively impact the seven million U.S. citizens who live overseas, appears to be floundering.”

After hearing from @Demsabroad, Here is @BarackObama

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The Obama “Fairy Tale”

@Demsabroad are grateful for the “privilege of being allowed the freedom to live outside the U.S”. 

Reagan pointed out that Freedom was never more than one generation away from extinction.

From the man whose policies will make freedom extinct within this generation:

But, of course “freedom to live our lives” does not include the freedom to be alive:

One response – suggest you get over there and build a record of responses:

 

 

 

Barrie McKenna carries water for IRS AGAIN!!!

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http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-expats-in-canada-face-new-obamacare-health-care-tax/article7372249/

 

This has to be one of McKenna’s poorer articles. Is he or the John Stackhouse getting kickbacks from the Big Four and FATCA Compliance Complex. For one thing the status of the Obamacare Tax is not certain as to how it regards the US Canada Tax Treaty. It will be some time before a conclusion on this issue can made. The issue with US overall tax rates going up is real for people who live in Alberta but not necessarily for those in Ontario or Quebec.

Phishing Alert. Trolling the Internet with FBAR Warnings for the Unsuspecting Americans Abroad

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On December 7th, Eric put up a post entitled FATCA: Facilitating Attacks by Terrorists on Citizens Abroad  In that post, he referenced an excellent article out of Lebanon highlighting what I call FATCAs FATAL FLAW – Security (note new link)

If you have not read it, it is MUST READ material for all that are concerned about this seriously overlooked aspect of one of the many unintended consequences of FATCA.

However, we don’t have to wait for FATCA to see how some are already taking advantage of the fear that is being perpetrated across the American abroad community surrounding the IRS offshore jihad.  Already the phishing expeditions have begun. You should be aware of them. Roger Conklin sent me this example that he just received via an unsolicited email from the IRS.  First tip off that this is phony is that the IRS NEVER uses email for communication with Taxpayers.

Below is an example of the email he received:  I have left most typos in place for illustrative purposes. Continue reading →