Category Archives: Issues regarding US persons abroad

I just became aware of this: McBride #1 – Court Holds Government Must Prove FBAR Willful Penalty by a Preponderance (11/11/12).  I thought it might be interesting for all of you.

What I found most interesting was Townsend’s commentary:

Based on the detailed findings of fact, the Court first determined that the Government need prove willfulness only by a preponderance of the evidence rather than by clear and convincing evidence.  Since the Court’s recitation of facts was so damning, it is not clear that the Court would have reached a different conclusion even if the burden were clear and convincing.  Nevertheless, here is what the Court said about its holding on the preponderance of the evidence burden…

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There have been tremors and blips for years, from Texas to Alaska and all the way back to Vermont we have heard of possible seccession movements building up in the US.  In the aftermath of the US election some 20 different states’ residents have even submitted official petitions to the White House with this very goal in mind, and the Texas petition has garnered enough signatures that the White House must officially respond to it.

US election: Unhappy Americans ask to secede from US

Whether or not this will come to anything is anyone’s guess.  Coming from the EU, where seccession is a real issue (especially in Flanders, Scotland, Catalonia and now even Venice), I find it difficult to compare public mood in the US to that in Europe – I personally believe that there will be at least one new European state within the next five years.

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Please spread the word!!!

Perhaps communism isn’t so bad after all.

The Treasury Department has already concluded a bilateral agreement with the United Kingdom. Additional jurisdictions with which Treasury is in the process of finalizing an intergovernmental agreement and with which Treasury hopes to conclude negotiations by year end include: France, Germany, Italy, Spain, Japan, Switzerland, Canada, Denmark, Finland, Guernsey, Ireland, Isle of Man, Jersey, Mexico, the Netherlands, and Norway.

Jurisdictions with which Treasury is actively engaged in a dialogue towards concluding an intergovernmental agreement include: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Korea, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, and Sweden. Treasury expects to be able to conclude negotiations with several of these jurisdictions by year end.

The jurisdictions with which Treasury is working to explore options for intergovernmental engagement include: Bermuda, Brazil, the British Virgin Islands, Chile, the Czech Republic, Gibraltar, India, Lebanon, Luxembourg, Romania, Russia, Seychelles, Sint Maarten, Slovenia, and South Africa.

No China or Hong Kong

Brazil is a bit of a surprise that it on the list along with Russia.

From Jim Flaherty:

November 8, 2012

Thank you for your correspondence of July 26, 20 12 regarding U.S. government taxation policy, specifically the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA). Please excuse the delay in replying.

Rest assured, the Government of Canada shares many of these concerns and has expressed them directly to the U.S. government. While we all understand that Canada and the U.S. share many common values, including ensuring fair tax systems where everybody pays their share, we have concerns about the impact of FBAR and FATCA on Canadians.

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By Anthony Parent of IRS Medic (used with permission)

(Editor’s note:  I am troubled by the IRS approach of “bill first, ask questions later”.  I myself received an unfair tax bill, including late fines and interest, but the IRS finally reversed it.  Others are receiving what are extortionate fines and bills.  Petros)

OVDP Process glitch

November 1, 2012

In a unique type of cases, the IRS is sending out a slew of collection notices to taxpayers who paid 100% of all taxes, 100% of all interest, and 100% of all penalties. Why is this happening? To answer this, you need to know the normal way the IRS starts a collection case, and the rather extraordinary process of a recent IRS offshore amnesty program, known as OVDP.

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