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A Letter from Monte Silver
Americans against the Repatriation/GILTI taxes – within striking distance of winning and you can help! And what to do with the October 15 filing deadline?
On August 1, 2018, the Treasury issued proposed regulations that interpret the Repatriation tax law – a 250 page very complicated document. I discovered that in issuing the document, Treasury seriously violated numerous Federal laws and procedures. This gives us tremendous leverage in negotiating for an exemption from the Repatriation & GILTI laws. It is not unreasonable to expect that this battle may be won by December 15, 2018. As you many have an October 15, 2018 filing deadline, I attach a relevant portion of an IRS publication stating that you may be able to extend the filing date until December 15, 2018. I suggest that you discuss this with your US CPA specialist to see if this applies to you.
What can you do to help win the battle? Easy! We need impacted Americans abroad and in the US to send in a few short paragraphs (as outlined below) – by October 7! See below for instructions. If you or people you know are impacted by these laws, lets take care of business!
The same text is available at www.americansabroadfortaxfairness.org
We are within reach. Lets do it.
- Do not include any identifying information about you or your business. Do not even say whether you live in the U.S. or abroad.
- You need to customize the letter where marked in red!!!
- Do not discuss anything but the Repatriation tax, and 962 if relevant for you.
- Submitting your comment: You can submit directly at www.regulations.gov/comment?D=IRS-2018-0019-0001. This Federal site does not require you to identify yourself.
- If you want to remain 100% anonymous, send the comment to me and I will submit it in an anonymous batch with others. To see other comments, including my own, click “Open Docket Folder” on the above link.
Subject: Comment on the proposed 965/962 rules
To the US Treasury:
I am a U.S. Person with an interest in a small business. As a result of the Repatriation tax, and now these Proposed Rules, 2018 has, and the foreseeable future will continue to be, a nightmare for me, my business and my family.
I am unable to understand the 250-page document at all. My comment is only limited to two issues:
(i)The 5-hour estimate you state that it will take me to comply with this proposed rule in totally unrealistic, and
(ii)The Repatriation tax and this proposed regulation have and will continue to devastate my small business.
Issue 1: Countless hours I have spent and still have to spend trying to deal with the Repatriation tax.
PUT YOUR OWN EXPERIENCE HERE. In one or two paragraphs, detail all the time you have had to spend on the Repatriation tax. Include everything, from initially reading about the tax and talking to friends, to contacting your US and non-CPA CPA, to doing more research on what the tax is and means to you, how to comply, contacting your Congresspeople to complain and demand action, , to gathering documents and tax information, to joining groups and forums to discuss this matter and learn what to do. If your current CPA is not sufficiently knowledgeable about this tax and you had to speak to other tax professionals and pay then, state that. Put an estimate as to the number of hours you have spent on the Repatriation tax and what you have no idea how many hours it will take for you to understand the comply with the 250 page proposed regulations
Issue 2: How the Repatriation tax has devastated my small business.
PUT YOUR OWN EXPERIENCE HERE. In one or two paragraphs, state things like:
- how the cost of compliance is so significant that it will threaten the existence of your business. The cost can be
- (i) money – paying tax professionals, taking money needed for the business out of the business to pay the tax.
- (ii) Time wasted on this and how that impacts your business. Add that this cost does not include the cost of future compliance for the proposed regulations which you cannot even begin to estimate
- how you are unable to compete with non-us businesses as they do not have to comply
- how you do not have the money needed to pay the tax and will need to take out loans, liquidate an asset, or take out pension money at a huge penalty
- Taking money out of the company to pay this tax is harmful to the growth of your business
- if you are making the 8-year payment plan or the 962 election, this rule will impact you for years to come
- you have no idea whether the proposed rules mean that you have to amend returns, which will double the cost of compliance and headache.
- as a result of the significant impact on business, you or others you know have debated whether to simply refuse to comply and become a tax evader
- Non-Americans do not want to co-found businesses or have you as an investor, given the headache of Repatriation/GILTI taxes involved.
Based on the above, I respectfully request that Americans with small businesses be exempt from the 965 tax.
“Treasury seriously violated numerous Federal laws…”
Well, sure, because the tax code is SOOOOOOOO complicated (how many tens of thousands of pages?) that no one – and I mean NO ONE – could possibly forsee what repercussions result from any tweaking here or there. Who is going to read through 70,000 pages of code to see how the tax reform fits in (or doesn’t fit in) in order to issue comprehensive AND comprehensible guidance for its application? No one, that’s who. It is simply too much for anyone to deal with anymore. Too intricate and overwhelming. Not even experts agree; ask ten CPAs the same question and get at least twenty different answers. Time to throw out the whole kit and caboodle and start fresh instead of putting on band-aids that create open wounds in other places. Geez…..
You’d think that the tax-hungry USA would have a tax code and collection agency that runs like clock-work to more efficiently finance all their empire spending. This out-dated, convoluted system is beneficial to no one, least of the federal government. It’s massively screwed up. Nevertheless, I wonder what federal laws were violated exactly.
Petlover: “Time to throw out the whole kit and caboodle and start fresh instead of putting on band-aids that create open wounds in other places.” I couldn’t agree more! Well said!
I support Monte Silver’s effort 100%. Hope it’s successful!!
Sorry I won’t be able to help in Congress next year. I got defeated in the primary.
@Tom Good effort.
Tom: My thanks as well for all you have tried to do for us!!
There’s an accountant in London who’s telling their clients that their client can’t take advantage of the 8 year payment plan if they extend beyond October 15!
New ‘GILTI’ tax is killing private enterprise, and it must be fixed
Douglas Holtz-Eakin and James Carter 09/17/18
Call to action: comment here: