Category Archives: Issues regarding US persons abroad

English: http://www.bbc.co.uk/news/world-us-canada-18630837

Swiss French: http://www.rts.ch/info/monde/4105523-la-reforme-sante-d-obama-passe-la-rampe-de-la-cour-supreme.html

Here is the text of the SCOTUS ruling: http://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf

I don’t have much to say about this yet.  I would like to read through the ruling first. I think that universal health care coverage is a good idea (as long as there is some flexibility and freedom of choice, e.g. the Swiss system).  However I don’t think that Obamacare should have been introduced in the middle of a recession. FDR did something similar in the 30’s with the introduction of some social programs that homelanders still have access today, but the national debt wasn’t in the 30s what it is today.

As I said elsewhere at Isaac Brock Society, I seem to remember that the final Obamacare bill exempted USPs abroad from the insurance requirement.  I believe that insurance companies will no longer be able to discriminate on the basis of pre-existing conditions from (2014?), however I am not sure that this applies to USPs abroad who return (those that really want to after all Unca Sam has done to mess up our lives).

A reader posted a comment with this article:

Free Advice to My Schoolmate Barack Obama: Want to Grow Exports and Create More Jobs? Don’t Tax Americans Abroad

Dr. Saud Al-Ammari is Managing Partner, Saudi Arabia & Gulf Region, Blake, Cassels & Graydon LLP, Al Khobar, Kingdom of Saudi Arabia. He has experience in a wide variety of corporate and commercial matters inside and outside the Kingdom. He served for ten years as special counsel and later general attorney for Saudi Aramco. Dr. Saud participated as legal counsel and a member of the team negotiating the Kingom’s accession to the World Trade Organization and served as chairman of OPEC’s legal defense team.

Here is a salient point:

The unintended consequences of taxing expatriate Americans by the US Government is that fewer of them seek employment overseas, and even fewer are hired by global firms. With fewer proponents of American goods and services who can influence buying decisions, there are fewer exports made by domestic companies, and in turn, fewer jobs in America. Ultimately, the US Treasury collects less overall revenue and America has a less competitive economy.

Thus Dr. Al Ammari agrees 100% with Roger Conklin.

According to CNN (via Business Insider), the US government spent $3 million to inform the public about their eligibility for food stamps.  I once lamented that I didn’t know where in Toronto to sign up for US Federal Welfare, Unemployment Insurance or Food Stamps.  Now at least for Supplemental Nutrition Assistance Program (SNAP), there is a screening tool to see if I am even eligible.  So I thought, “Why not, if the US wants to give me free money?”  So I tried the screening tool.  But I was thwarted by the first drop down menu.  I couldn’t find Ontario.  Crap!

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“No Address, No Voter Registration. That is the Law!”
Kentucky Board of Elections

Sounds great for non-expats, I guess.  Officially, my address claims that I live in Lexington, Kentucky, inside of the Voter Registration Department, to be precise, since I don’t have any other US address that can be accepted for voting purposes. Come by early in the morning and you might get a glimpse of me brushing my teeth over a lost ballot or a misplaced voters registration application, it would seem. Yet, I actually live in Cheyenne, Wyoming, the mail carrier would say, but I am not allowed to officially live there because my address….

A mail forwarding address cannot be used for voter registration purposes.
Your Best Address

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TAS has released the 2013 Objectives Report to Congress. Issues specifically addressing us begin on p 21 and end on p 31.

Given we have just become aware of IRS’ new program for “low risk” filers, this report suggests TAS is having an effect on IRS policy.

I have omitted discussions and footnotes and just listed the major sections so we can begin to examine them.

[21] F.  TAS Will Continue Advocating for American Taxpayers Abroad Who Are Expressing Fear and Frustration about FBAR, FATCA and Other International Penalties …

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Barrie Mckenna has recast his article from yesterday to include the following information:  Flaherty pleased with IRS partial tax amnesty decision.

Here is my response:

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Some of you might remember that during the French presidential campaign both Sarkozy and Hollande were proposing some sort of expat tax – Sarkozy wanted to tax those who “left for tax reasons”, that ever flexible political catch phrase, whilst Hollande wanted to implement a 75% income tax rate on earnings above 1 million Euros – A sure way to send many wealthy French expats flying towards London and Switzerland.

Anyway, I came across an article about the recent parliamentarian elections that have taken place and about how, for the first time, French expats will be represented by 11 deputies representing overseas constitutencies.  Here is an article from the Guardian which has an interesting graphic of how they divided the electoral regions up and how many of the 2 million French expats live in each.

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Some of you are aware that I wrote to each of Canada’s MP’s expressing my concerns regarding FATCA. I’ve heard back from a few, but most importantly from my own MP, John Weston, a member of the Conservative Party and designated by Minister Flaherty to look into matters concerning US citizens in Canada. Many of us have been anxiously waiting for some indication of the stance our government will take on FATCA. I believe that we now have one:

Thank you for your letter.  I share your concerns about the IRS’s actions in pursuing Canadians who also have US Citizenship.

I have taken the initiative among Government Caucus members to consolidate information concerning this matter and have worked closely with the Honourable Jim Flaherty, our Minister of Finance, who has taken our concerns forward effectively.  Among other things, I arranged for prominent US tax attorney Mark Matthews to come to Ottawa on May 30, 2012 to brief Caucus members concerning these matters.  Mr. Matthews not only works with Canadians who have US tax problems but he also served previously as Deputy Commissioner at the IRS.

Concerning the Foreign Bank Account Regulations (“FBAR”) matter, the IRS issued a directive in December 2011, “reviewed or updated June 13, 2012”, that appeared to acknowledge these concerns.  You can find the IRS Directive [here].

However, as you will see in Minister Flaherty’s statements, which I have enclosed, you will see there is still considerable uncertainty.  I join the Minister in recommending that you take US tax advice before making decisions on how to proceed.

Foreign Account Tax Compliance Act (“FACTA”)

Concerning the FACTA matter,

• FATCA has far-reaching implications as it would turn Canadian banks into extensions of the IRS and would raise significant privacy concerns for Canadians
• Since the beginning of last year, we have raised serious concerns directly with the US
• We strongly believe this is unwarranted
• Canada is not a tax haven and we already have joint arrangements in place to prevent tax evasion
• We strongly believe rigidly imposing FATCA on our citizens and institutions would not accomplish anything except waste resources on all sides.
• While we’re pleased the US has taken note of concerns we’ve expressed on behalf of Canadians by delaying FATCA’s implementation until 2014, clearly this only a first step
• As such, we have and will continue to express our strong concerns relating to FATCA with the U.S. government
• We are actively seeking a solution both countries will find agreeable

I wish you success and peace in resolving how to deal with the IRS.  I will continue to work on your behalf and with Minister Flaherty to try to bring this situation to a more satisfactory conclusion for all Canadians.

I think we have cause for encouragement that the Canadian government will not just roll over. I also like how Mr Weston has the sensitivity to not refer to us as “duals”. If anyone would like me to post Minister Flaherty’s statements I will, but I believe many of us are already aware of their contents.