Author Archives: calgary411

I have attempted to gather the comments on this subject, identified by comments from Neill, so they will be in one place for further discussion by those able to review:

Neill says
November 13, 2014 at 11:10 am

This has got to be worth digging into: http://finance.yahoo.com/news/brager-tax-law-group-obtains-182000920.html
FOIA request on OVDP dump. Not locked.

On OVDP dump. First document has great cartoons in it.

http://www.bragertaxlaw.com/files/lbI_doc_1.pdf

This is a powerpoint of the IRS bragging about them bowing UBS
**********
That first document clearly shows that it’s all a big joke inside the IRS. See that PowerPoint an the picture on page 78. It shows a massive chalk board filled with equations and diagrams. Caption says ‘Clearly this taxpayer qualifies for the 5% penalty’. Other pictures show taxpayers doing hurdles to get into these groups.
**********
We need a coordinated effort were we give a person a doc to skim through and we keep track of what’s been looked at. We will be ready this way for when there is a class action lawsuit. Maybe we find something to give to the press.
Bastards.

Tricia Moon says
November 14, 2014 at 9:36 am

Thanks for bringing this to my attention. I have not heard of it before. For those who want to start reading: http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html

No Word says
November 14, 2014 at 10:09 am

Can someone bring this treasure trove to the attention of Allison Christians. I think someone of her calibre is able to make sense of what has been released.

YES, I agree — would be good to have a legal eye looking if possible and Tricia has forwarded to Allison as requested.

Finally from badger, today: https://isaacbrocksociety.ca/2012/01/28/the-ovdi-drudgery-for-minnows/comment-page-23/#comment-4272818

From find by Neill and posted on another thread https://isaacbrocksociety.ca/media-and-blog-articles-open-for-comments/comment-page-73/#comment-4244472

See:
http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html
and entire list of documents obtained:
http://www.bragertaxlaw.com/previously-unreleased-irs-guidelines-for-fbar-audits.html

Importantly, as badger points out:

Note, this is just an FYI, not an endorsement of any kind or advertising the law firm who made the FOIA request and posted it on their site.

Review Previous Isaac Brock Society Post and Comments re Boris Johnson, Mayor of London

and then listen to this current interview of Mayor Johnson’s feelings about his own US citizenship (he renewed that US passport in 2012):

The Diane Rehm Show – Interview with Boris Johnson, November 13, 2014, which begs someone to contact him again regarding our existence and his possible assistance in the cause as he is one of them there “Accidentals” having apparently left the US when he was five years old. This will best be a job for someone who can get through the layers of bureaucracy to actually reach and communicate with Mr. Johnson.

It certainly would be significant to get the attention of someone like Commander Chris Hadfield. I wish you all the best in your attempt, JC. He became a hero to Canadians, someone for Canadian children to look up to. Will he recognize some of our Canadian children who are defined by the U.S. as having U.S. citizenship and all of the same U.S. tax compliance consequences he will have?

@Calgary411

Request for IBS Feature: Contact with Chris Hadfield

By Tuesday 18 Nov: I will attempt contact with Commander Chris Hadfield – very high profile Canadian with US personhood (snowbird rules). Hadfield has flown two space shuttle missions and served as commander of the International Space Station.

He also sang the Canadian anthem during the Toronto Maple Leafs and Montreal Canadiens game on 18 January 2014. He is famous for a rendition of David Bowie’s Space Oddity which he sang on the International Space Station and posted a popular video on YouTube, among many videos.

This may be subject of IBS commentary the message and the medium for such contact. He only has 1+ Million Twitter followers so I thought about contacting him there. Here are three Tweets that I thought of sending starting Tuesday (that might get modified tweaked depending on comments):

How best to appeal to him without scaring him away? Do we send him to just the home page of IBS?

@Cmdr_Hadfield Esteemed Canadian/US needed for mission: Ground Control to Uncle Sam. Re: unjust US taxes https://isaacbrocksociety.ca/ #FATCA

@Cmdr_Hadfield Esteemed Canadian/US needed to highlight unjust US tax laws applying to Canadians https://isaacbrocksociety.ca/ #FATCA

@Cmdr_Hadfield Canadians Ginny & Gwen need support to fight American Financial Imperialism/Savings Confiscation https://isaacbrocksociety.ca/ #FATCA

I also found out that he has his own website with potential for attempted e-mail contact: http://chrishadfield.ca/

Will Commander Hadfield have completed all necessary paperwork for his times in the USA http://en.wikipedia.org/wiki/Chris_Hadfield — Form 8840 http://www.irs.gov/pub/irs-pdf/f8840.pdf for his Closer Connection Exception Statement for Aliens? Canadians here hope so!

This new post very well illustrates a lot that is in John Richardson’s presentation posted HERE.

Despite the good works of those at this site and others, I remain gravely concerned. Yesterday I attempted to inform my colleagues at a school we teach at in Japan of the situation we are all in by telling them about the experiences of a friend of mine. I prefaced the “discussion” with an email compilation if this friend’s emails to me on the subject. Following these, I have added my email to him telling him of the reaction I received.

Before that, however, it may be best to let you know a little about who I am. I am an American citizen who has lived most of my adult life in Japan. My spouse and our toddler are Japanese. I became aware of this problem around two years ago when applying for a new passport. There were statements on the application that I knew to be illegal. Searching into that issue lead me to your website and, well, you’ve been there, you know the rest.

This is today’s summarization, asking for input, corrections, etc. from other readers here. He says “Tear it apart.”:

Here is a summary I came up with from memory. My notes are unavailable to me while on the trains and subways of Tokyo, when I have time post.

Tear it apart! Any inaccuracies correct. I need this as spot on as possible. Continue reading →

October 29th post at Janglo: Foreigners in Israel find themselves ensnared in U.S. tax crackdown,Full Story (Haaretz)

…He was asked to sign a declaration that the account and all the money in it had been reported to the tax authorities in his home country and he had paid everything that was due on it.

The man refused and then came the next surprise: The bank refused to let him withdraw his money. He explained that he didn’t speak Hebrew and wanted the declaration to be read and translated by a lawyer. He reminded the bankers that he was a client of long standing and had been told when he opened his account that he would not be asked questions like that. It was all to no avail.
…

Related (from another Brocker):

I remember reading a lawyer wrote that all the g7 wanted fatca type reporting…the u.s took the lead…the rest will follow..the Israel has fatca type arrangements with Europe…probably the igas crush everything related to privacy so it’s easier now.

Here is the fax of Bank Hapolaim, an Israeli bank, requiring Canadians and EU member residents and/or immigrants (or CFCs) from those locations sign away their rights similar to US citizens: Israeli Bank(s) Declaration — shall apply with respect to any existing Account and any future Account, if relevant

Yesterday I saw a “planning ahead” question relating to taking into account US citizenship of a prospective spouse before your marriage in a country outside the US (and perhaps even within the US if you as a couple or a family would ever plan to live in another country than the US). Due diligence is better before walking down the aisle than finding out about how you will be caught up in matters of US citizenship-based taxation afterwards. A couple planning a wedding will not find this at all romantic or may not think that it would matter, but they will one day be glad they planned ahead — whatever the decision about the actual marriage. Good financial planning is necessary to protect your assets going into a marriage, as well as those resulting from joining financial accounts with your US spouse-to be. That prompted me to remind persons of another important area in which to think and plan ahead:

We would not readily think about what happens as we or a family member age with an unfortunate mental incapacity caused by aging, by stroke or some accident that results in a brain injury. I have often considered how I could possibly cope with the complexity of U.S. tax compliance, to say nothing of the continued and increasing costs for help with that compliance year after year, if I had not renounced my U.S. citizenship.

From: 7 FAM 1290 MINORS, INCOMPETENTS , PRISONERS, PLEA BARGAINS, CULTS AND OTHER SPECIAL CIRCUMSTANCES (CT:CON – 4 49; 03 – 25 – 2013 ) (Office of Origin: CA/OCS/L)

U.S. Department of State Foreign Affairs Manual Volume 7 Consular Affairs
7 FAM 1290

(U)7 FAM 1293 MENTAL COMPETENCY
(CT:CON-407; 06-29-2012)

a. Because loss of U.S. nationality occurs only when a would-be renunciant or person signing a statement of voluntary relinquishment has the legal capacity to form the specific intent necessary to lose U.S. nationality, cases involving persons with established or possible mental incapacity require careful review. This includes mental disability, mental illness, developmental impairment, Alzheimer’s disease, and similar conditions. It may also include cases of substance abuse.

Continue reading →

There has been past discussion in comments at Brock regarding the U.S. Taxpayer Bill of Rights. Here is a post to bring together further discussion. JC says: “Of interest is 10. Right to a Fair and Just Tax System. This is highly subjective and is at odds of just following the law.”

From the IRS website: June 10, 2014: IRS Adopts “Taxpayer Bill of Rights;” 10 Provisions to be Highlighted on IRS.gov

The IRS released the Taxpayer Bill of Rights following extensive discussions with the Taxpayer Advocate Service, an independent office inside the IRS that represents the interests of U.S. taxpayers. Since 2007, adopting a Taxpayer Bill of Rights has been a goal of National Taxpayer Advocate Nina E. Olson, and it was listed as the Advocate’s top priority in her most recent Annual Report to Congress.

“Congress has passed multiple pieces of legislation with the title of ‘Taxpayer Bill of Rights,'” Olson said. “However, taxpayer surveys conducted by my office have found that most taxpayers do not believe they have rights before the IRS and even fewer can name their rights. I believe the list of core taxpayer rights the IRS is announcing today will help taxpayers better understand their rights in dealing with the tax system.”

1. The Right to Be Informed
Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

2. The Right to Quality Service
Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

3. The Right to Pay No More than the Correct Amount of Tax
Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

4. The Right to Challenge the IRS’s Position and Be Heard
Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.

5. The Right to Appeal an IRS Decision in an Independent Forum
Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.

6. The Right to Finality
Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.

7. The Right to Privacy
Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

8. The Right to Confidentiality
Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

9. The Right to Retain Representation
Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

10. The Right to a Fair and Just Tax System
Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

*********
Allison Christians has on her blog: Allison Christians, August 12, 2014: FBAR e-filing: violates Taxpayer Bill of Rights, challengeable under Haar.

The FinCEN experience also violates provision 10 in my view. Provision 10 says taxpayers have the “right to a fair and just tax system.” It is neither fair or just in my view to force individuals to register and transmit sensitive personal information on a website that is built for the sole purpose of detecting money laundering, terrorist financing, and other financial crimes, where no evidence exists that the individuals have perpetuated or are planning to perpetuate any such crimes. This process constitutes an intimidation tactic. If you don’t believe it, I invite you to visit the FinCEN website, register yourself, and file an FBAR form as a civics lesson.

I am not saying Treasury doesn’t need the information FBAR requires (though much or most of it is egregiously duplicative with IRS forms that non-resident US persons already have to file). But I am saying there is no way that Treasury needs to extract this information by making individuals register on a website that so clearly transmits the message: “you are a suspected criminal and we are watching you.”

Remember, we are talking about millions and millions of people who have “foreign” bank accounts because they live in foreign countries; most are citizens of those foreign countries where they live; and their banks are local to them. Congress treats these people as if they live in the United States, when they do not. But Congress does not similarly treat their local bank accounts as local (Congress should do so, and would fix many problems if they did, as I argued in a Tax Analysts column in 2012). This mismatch of fiction against fact does not make people money launderers or tax evaders. Many, many of these individuals are unjustly caught up in the US tax net because of the madness of citizenship taxation. Also: consider that the FBAR instructions even say that kids ought to fill out their own FBAR forms. Come on.

Switzerland Commits to Automatic Tax Information ExchangeFrom JDSUPRA Business Advisor, Tax Controversy Watch, October 10, 2014: FATCA Notebook: Former IRS Chief, Taxpayer Advocate, Criticize FATCA

Stephen Miller suggests the benefits of the new information reporting regime imposed by FATCA may not outweigh its costs;

and

Nina Olson says re FATCA consequences: “I don’t think we’ll know that for years. And by that point we’ll actually be a little too late to go, “Oops, my bad, we shouldn’t have done this,’ and then try to unwind it.”

*********

Also in the article:

Finally, Switzerland announced on October 8 that it would move toward automatic exchange of bank account information with other countries, including the EU and the United States. (See articles here and here.) If adopted, the earliest date for automatic exchange of data would be 2018 and the new reporting regime would require Switzerland to notify an account holder’s country of origin if a Swiss bank account is opened. Switzerland also announced that it would seek to negotiate a Model 1 Intergovernmental Agreement (IGA) with the United States to implement FATCA, to replace the Swiss-U.S. Model 2 IGA that was reached in February 2013.

With another article commented on by “Worldwide” on the Media thread: Switzerland Commits to Automatic Tax Information Exchange

I am making a post of this comment by Muzzled No More.

***************

Could I suggest that Brockers make comments at the following link.

http://www.regulations.gov/#!documentDetail;D=DOS_FRDOC_0001-2956

Comments on the fee-hikes for consular services are being accepted until Oct. 21.

I am unable to do so (still Muzzled in some regards) but if I could, my comment would be as follows:

“It is every American’s constitutional right to renounce his citizenship. As a right, renunciation of citizenship should be free of charge or, at worst, available at an extremely nominal fee, certainly no higher than the “user-pay” fee one would be charged for a passport. A $450 fee was bad enough. For many citizens, the new fee of $2350.00 has priced renunciation beyond their ability to pay. The $2350.00 fee effectively denies them their constitutional right to renounce.

“Renunciation of citizenship is a right guaranteed to all, not a privilege reserved for a few. As such, the US government *must* provide the necessary service at no or low cost. If a renunciation application actually costs the State Department $2350.00 then it is its responsibility to simplify its procedure thereby reducing those costs.

“Perhaps a lesson can be taken from the German government’s renunciation procedure. The application form is available online. The applicant fills out the form and mails it in with certified copies of a couple of documents. No fee. No in-person interviews. No fancy ceremonies. The renunciation is considered in effect when a certificate is received by the applicant. Simple. Efficient. Cost-effective. There is no need for the complexity with which the US State Department’s process is currently burdened.”

If anybody wants to submit that comment under their own moniker I’d be delighted!

*************

“ricard” notes:

At the site you mention one can submit a comment with complete anonymity. There is no requirement to give any name. I mention this in case anyone else has been put off from commenting by thinking it is necessary to give real identification. Take you chance.

I am inclined to feel trusting. I do not think they will be recording IP addresses and hunting down people whose comments they don’t like.

It surprises me that they are only showing 34 comments received.

How might this Supreme Court decision apply to Canada’s banks (and provincial financial institutions) with Bill C-31 legislation implementing the IGA that Canada signed with the US re FATCA?

Financial Post, Drew Hasselback, September 19, 2014: Supreme Court of Canada says provincial consumer protection laws apply to banks