Category Archives: Issues regarding US persons abroad

Another individual made the mistake of wanting to work in America.  Bad idea.

By Nick Greenizan – Peace Arch News
Published: May 03, 2013 8:00 AM

George wants to go home.

Home to his fiancée and her 14-year-old son in Blaine, Wash.; and home to all his possessions, currently packed and awaiting transfer to Ohio, where he and his new family were planning to move last month to start a new life.

Instead, for the better part of three weeks, home for the 45-year-old Ontario native –  who asked to be identified only by his first name – has been the backseat of his Acura TL, which he’s been living in with his dog since being denied re-entry into the United States on April 16, a day after the Boston Marathon bombings.

More

My favorite part of the article is the talk about the job title:

and told me they were not approving my TN visa, and that he didn’t really think I was a computer-systems analyst,” George explained. “He’d looked at my resumé and nowhere was that job title listed – it was always something similar, like application developer or software developer. But it’s all the same thing.”

It’s all the same.  Depending upon the situation or who I talk to, my job title could be computer-systems analyst, software analyst, application developer, software developer, software engineer, computer specialist, information technology, database administer, solutions architect, programmer, technical supporter, web developer, business information developer, etc.  The line between what one does and how it is called is not very clear and the more experience that one has working in other areas, the better.

By the way, last week on a week vacation, I drove 5 times into France, 5 times into Italy, once to Monaco and once to Switzerland with nothing but an expired Swiss id card which I used to check into the hotel and for a few other things.  Yet, nobody cared.  It’s not America.

Fugitive Fortunes Tracked in Canada is the big cover page headline in the May 2-8 print issue of Asian Pacific Post. Read the story online here:

 
http://www.asianpacificpost.com/article/5518-fugitive-fortunes-tracked-canada.html
 

Now Beijing in addition to signing an agreement to get at the fugitives, is working on plan with Ottawa to share the assets that Chinese fugitives illegally transferred to Canada.

Negotiations are in advanced stages and an agreement should be reached in the next few months, Canadian Ambassador Guy Saint-Jacques told China Daily.

 
If Canada gets a good cut from that asset pool, maybe it will feel better about writing off what the U.S. extracts from “US persons” who happen to reside in Canada? Or. Is next step to provide the U.S. access to its Canadian “fugitives” if the U.S. will go halvies?
 

Thanks to Tim for mentioning this news on the Elizabeth May thread:

Rand Paul Blamed for Blocking FATCA

Washington, D.C. (May 2, 2013)

By Michael Cohn

The research and advocacy organization Global Financial Integrity is urging Sen. Rand Paul, R-Ky., to allow the Senate to vote on agreements negotiated by the Treasury Department with Switzerland, Luxembourg, Hungary and other countries to implement the Foreign Account Tax Compliance Act, or FATCA, in an effort to ferret out tax evaders.

Senate rules allow any Senator to place a “hold” on legislation removing it from consideration, and Paul has placed holds on bills to implement every tax treaty negotiated since his election in 2010, according to GFI.

Read the rest

Here are links to some other related articles and previous posts:

US senator, lobby group in tax info disclosure pushback

Senator Paul stirs business ire over blocking of U.S. tax treaties (Businesses eager for treaties to win Senate approval)

Dear Mr. xxx,

Thank you for contacting me about the ongoing situation regarding the potential for Canadian citizens born in the United States to be pursued for US income tax by the IRS.

As you know, the situation is complicated and the legal status of Canadians born in the US, the threat of IRS action, and the possibility of real punitive action is still unclear. As a Canadian citizen born in the US, I can assure you that I share your concerns and am dedicated to defending the equality rights of all affected citizens.

I am dedicated to taking action on your behalf. I have sent correspondence to the Prime Minister on the issue. The government has taken the position I urged and is forcefully advocating that the US stop targeting law-abiding Canadians in pursuit of those US citizens hiding in the Cayman Islands.

In addition, I recently met with the US Ambassador to Canada, David Jacobson. He is also very much absorbed by the controversy. His main message to me was that I should share with my constituents his wish that we “stay calm.” He indicated to me that he understands the issues and is working closely with officials at all levels of government in the US and Canada to find a pragmatic solution to this problem.

You are not alone in this situation. Many are seeking a solution to the problem. I will keep you posted as I work to find a sensible approach. In the meantime, please keep me posted through my constituency office of any changes in your situation.

Sincerely,

Elizabeth May, O.C., M.P.
Member of Parliament for Saanich-Gulf Islands
Leader of the Green Party of Canada

As, rightly, suggested by badger for a dedicated post at Isaac Brock:

Jack Townsend’s OPTING OUT, Part 3

and latest comment,

anon5percent

Jack – Good news! I am an OVDI participant who asked to opt out into the Streamlined Program. I have been accepted into the Streamlined Program as a low risk for non-compliance. I have been issued Letter 5062 (acceptance into Streamlined Program) along with a 4549 (tax adjustments – no tax penalties, just interest) and my agent told me today that a Letter 3800 (FBAR Warning) will soon follow.

There is major news associated with this result. It is news that OVDI participants and many tax attorneys will want to know. The news is that the Streamlined Program policy is changing again. It is very much to the favor of OVDI participants. It seems that they are being given the chance to enter the Streamlined Program on the basis of the same years as new Streamlined Program participants. I am a prime example of that. I was a filer who amended returns in OVDI. I thought amending returns made me ineligible for the Streamlined Program. It no longer does. Even Letter 5062 says, “We’ve processed the returns or amended returns you submitted.”

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Die Auslandamerikaner sind erbost

Bernerzeitung – Jon Mettler – 30.04.2013 11:05

I attempted a quick translation of the the latest news.  Please excuse spelling mistakes or other errors:

Americans Abroad are Furious

The strengthened US tax laws are heavily burdening Americans in Switzerland.  They are reporting the serious consequences this is having on their jobs and family lives.  Now, this is inciting resistance.

The nerves of many Americans in Switzerland are on the edge.  The reason is the hardened move by the USA against tax cheats.  Two abbreviations are causing the hair of Americans living abroad, also called Expatriates or short Expats, to stand up: FATCA and FBAR.

FATCA and FBAR

The FATCA-law is the same as an automatic exchange of information (see box).  The FBAR-report demands from US citizens that they expose foreign accounts with more than 10000 dollars.  This includes business accounts with spouses of a different nationality.  Americans also have to report foreign bank connections for which they have signature access, even when they have no direct beneficiaries of these accounts.

What Fatca and FBAR actually cause, is seen with the following examples in Switzerland:  A private banker with a Swiss and US passport got fired by his employer.  The man is convinced that such is related to his US citizenship because he reported the accounts of his clients to the IRS over which he had signature access.  With such, he violated banking secrecy and Swiss laws.

Facing the divorce

An American who lives together in Switzerland with her Italian husband is going through a divorce.  Her husband is not willing to allow the US government see their shared banking connections.  She is also burdened with the uncertainty of having correctly declared her financial data in the past.  Now, she fears punishment from the US tax authorities on their joint account.

A third American reported that his bank account got cancelled.  He lives and works in Switzerland.  Yet, he needs a local bank account to pay his bills and mortgage.  Other expats feel restricted in their profession or fear returning to the US.

Those involved fear being openly named.  Too great is the fear of being targeted by the US tax authorities.  One exception is Edward Karr.  He is Co-president of Republicans Switzerland, president of American International Clubs in Geneva and financial adviser of his own company.  “This is how far we are now.  The US authorities are ensuring that simple Americans fear speaking openly with journalists”, said the 44 year old.  Karr also experienced the rigorous methods of the US-fiscus.  As the holder of a simple salary account by a large Swiss bank, he gets redirected to a special counter for US citizens whenever he wants something from the bank.

Karr is unhappy about the situation facing his fellow countrymen abroad.  He created a working group for Americans abroad which listens to the concerns of 20000 to 24000 estimated expats.  At the end of 2012, the working group led in Bern, Basel, Zürich, Genf, Lausanne and Lugano citizen meetings.  These so-called “Town hall meetings” were very emotional, reported some present.  US ambassador, Donald Beyer, was confronted with fear, anger, panic, uncertainty and feelings of betrayal.

Damaged national pride

Expats fail in understanding why their own nation practices general suspicion of tax evasion – while they view themselves as being good national representations. That continuously more dual citizens in Europe are abandoning the US pass, strongly targets the national pride of Americans abroad.

The working group further wrote a report on its recognitions and recommendations.  The most important demands are:  The USA needs to abolish citizenship-based taxation.  Instead, it needs to tax based on residency.  Furthermore, Americans living abroad need representation in Washington and an ombudsman service.

The working group wrote in September 2012 to every individual member of US congress in Washington, to raise their awareness of the miserable situation expats are in.  The reaction from the capital was limited.  “There were a few responses, written from the student workers in the parliament”, said Karr.  As a result, he changed his strategy.  The working group is now focusing on winning the favor of the the US economy.  US tax law has also made it increasingly irritating and burdensome for US corporations to employ Americans abroad.  Karrs calculation is simple:  politicians are more likely to be bent in the lobby-dominated Washington when they are pressured by US corporations and thereby exposed to money.  Karr also has high hopes in social networking on the internet.  His dream is to connect Americans abroad through Facebook and Twitter.  This would, in his view, also increase the pressure.  “The weapons lobby, NRA, has 4.5 million members and is one of the most influential groups in America.  There are around 7 million Expats.  If we work together then Washington won’t be able to ignore us”.

US Department of Justice News Release, April 30, 2013

Also, Globe and Mail: Justice Dept. targets U.S. accounts at CIBC’s Caribbean wing

It looks like US folks were opening a Wells Fargo account that would then be directed to one of CIBC’s offshore affiliates.

Could be very reasonable reasons for doing this. Perhaps not. All will be mixed in the same pot.

The Justice Department announced that late yesterday a federal court in San Francisco entered an order authorizing the Internal Revenue Service (IRS) to serve a John Doe summons seeking information about U.S. taxpayers who may hold offshore accounts at Canadian Imperial Bank of Commerce FirstCaribbean International Bank (FCIB). The order was signed by Senior District Judge Thelton E. Henderson. The IRS summons seeks records of FCIB’s United States correspondent account at Wells Fargo N.A., which will allow the IRS to identify U.S. taxpayers who hold or held interests in financial accounts at FCIB and other financial institutions that used FCIB’s Wells Fargo correspondent account.
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