Here is something different for those of you struggling with the tough decisions regarding U.S citizenship. Should you renounce or not? Should you become tax compliance with FBAR and FATCA, or not? It is a major decision in your life, and tonight, I am going to ask you to consider this:
Author Archives: Just Me
FATCA Intergovernmental Agreement (IGA) Exposed as Bad Deal for ‘Partner’ Countries: by James Jatras
– U.S. Treasury official concedes promise of “reciprocity” falls short
– ‘IGAs’ no protection for firms, subject to cancellation by U.S. at will
– ABA: “no indication or evidence suggesting that the Treasury conducted the required due diligence for entering into such an automatic exchange” with Mexico
Darth Vader: I am altering the deal. Pray I don’t alter it any further.
Lando Calrissian: [to himself] This deal is getting worse all the time!
– from Star Wars: Episode V – The Empire Strikes Back (1980)
American FATCA punishes law-abiding Canadians @ErichTheGreen
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
“There really is a perfect storm gathering for Americans living outside the U.S.” @yahoonews
@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.
@Demsabroad is out with a memo on FATCA
A memo from Demsabroad is posted on the Ask your FATCA Question thread. It is copied here for broader distribution.
Phishing Alert. Trolling the Internet with FBAR Warnings for the Unsuspecting Americans Abroad
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
Havoc Wreaked By FATCA Spreads – Anyone in the Homeland U.S. Media Paying Attention?
Thought we needed another catchy headline that would be automatically tweeted LOL
This from Center of Freedom and Prosperity by Andrew Quinlan
As the rest of the world is forced to deal with imperialist US tax policy, Americans and the US economy are continuing to suffer the consequences. We’ve already written about how FATCA is causing Americans being dropped from banks in Switzerland, Taiwanese banks reducing their American holdings, and even how some are fighting back. Now we’ve received reports that Thai banks are limiting services to US persons, which the news has confirmed:
Nina Olson releases the 2012 National Tax Advocate Report to Congress.
From the Press Release:
National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Tax Reform, IRS Funding and Identity Theft
WASHINGTON — National Taxpayer Advocate Nina E. Olson today released her 2012 annual report to Congress, identifying the need for tax reform as the overriding priority in tax administration. The Advocate also expressed concern that the Internal Revenue Service is not adequately funded to serve taxpayers and collect tax, and identified ways in which this chronic under-funding harms taxpayers and the public fisc. She also found that the IRS is not doing enough to assist victims of tax-related identity theft and return preparer fraud.
NUMBER ONE Problem: The most serious problem facing taxpayers — and the IRS — is the COMPEXITY of the Internal Revenue Code (the “tax code”).
Yes, we all know that, but of special interest to many readers here is item number 8.
Update from @Lisa. Thank you.
Havens Are Turning Hellish For Tax Avoiders, says NPR…
Don’t have time for much analysis or commentary on this article, but thought I would put it up quickly after Tim alerted me to it. Quick read tells me they sure have bought into the rhetoric of the FATCAnatics at Treasury. Have a read and make some educating comment as you wish to the NPR audience. A lot of misstatements of facts, like Switzerland, the world’s largest tax haven, Not a mention of who the real Tax Haven is, THE USA! Nothing about the unintended consequences or collateral damage.
Message: Congress Clamps Down, you better comply!
by SCOTT NEUMAN
January 08, 2013 1:26 PM
In 2010, Congress passed the Foreign Account Tax Compliance Act, or FATCA, that calls for overseas banks to begin full disclosure of U.S. account holders beginning next year. All along, Washington has been pursuing new bilateral treaties to share tax information.
“Countries are almost universally agreeing to exchange tax information,” says Shay, who like Brown is a former high-ranking Treasury official.
“The signal seems to be that it doesn’t matter where you move your money, we can still get you,” he says. “This signal is being heard not just in Switzerland, but in the Caribbean and the Far East.”
White House Petition to Replace Citizenship taxation with a Residency Based System
There has been a new petition launched on the White House Web site with this proposal:
WE PETITION THE OBAMA ADMINISTRATION TO:
Change US tax law from citizenship based law to residence based law.
The above link to this petition was alerted to me by Bertpug on Shadow Raider’s thread about rewriting of the Internal Revenue Code.
ACA is announcing the petition on its website and in its news update and probably on its FACEBOOK.
I thought we should headline it here, so it has more visibility. It is a long road to 25,000 signatures requiring an Obama Administration response. Realistically it will have absolutely no resonance or support with Homelanders and the newsertainment media. It certainly should be more impactful and important than the petition to deport Piers Morgan. However, sadly, we know it will not, unless enough Americans abroad raise their heads from the sand and do something!
Yesterday morning around this time, it only 271 signatures. This morning it has gone to 377. Only 24,623 to go!
