Recent summit talks between the Finance Minister of Canada and the Commissioner of the IRS, to determine how to overcome incompatible tax systems, has resulted in a suggestion about how to revamp the United States and Canada tax treaty. The two parties propose to merge the Internal Revenue Service of the United States and the Canada Revenue Agency, on or before January 1, 2013. The proposal is subject to approval by Congress.
Category Archives: Issues regarding US persons abroad
ACA Writes Commissioner Shulman About Unfair IRS Treatment of Americans Overseas
There is a story out tonight on Yahoo News and other sources that ACA (American Citizens Abroad) has just sent a letter to Commissioner Shulman about his refusal to respond formally to Nina Olson’s TAD.
https://twitter.com/#!/FBAR_Compliant/status/178080469689176064
Senators cram multiple anti-expat amendments into "Surface Transportation Bill" (S. 1813)
The so-called “Surface Transportation Bill” is proving to be a remarkably “fruitful” platform for senators to use the amendment process to push through their pet legislation. Tim just posted about Carl Levin’s SA 1818, which gives Timmy Geithner the power to outlaw credit cards from countries that Carl Levin doesn’t like. Now, American Citizens Abroad, via an update on their Facebook page, tells us that Harry Reid snuck in something much more sinister: a provision allowing the Secretary of State to deny U.S. passport renewal to — or revoke the existing passport of — anyone with outstanding tax debts over a certain threshold. Continue reading
Your Citizenship Personality
Over the past half-year, tens of thousands of words have swirled around the current situation of extraterritorial citizens of the United States.
In all that flood of comment, one piece stands out for treatment of an important but little-considered facet. Early on, financial planner (fee-for-service) David Christianson squarely addressed the topic of personality in Long arm of American tax law. It is good to see that his perceptive take at Winnipeg Free Press still remains available, just a click away.
Update: Son of FATCA proposal approved by Senate on voice vote
According to the Hill magazine a “son” of FATCA proposal by Carl Levin is heading for Senate approval as soon as today. Link below:
Key features:
Credit and Debit cards issues by non-FATCA compliant banks such as Canadian credit unions will not be accepted in the US anymore.
Update: Son of FATCA proposal attached by to Highway Bill by voice vote. Will try to provide more details. Absolute Disgrace.
Further Update: The amendment is so new it doesn’t even show up on the Senate website yet. Bill still far from final Senate approval. I should note that while I am not an expert on US politics I seem to have heard some place that the main sponsor of the Highway Bill California Senator Barbara Boxer earlier had indicated she was opposed to any non transportation related amendments being made to this bill. The US Senate won’t be in session until Monday so we should now more about what actually passed by then. I do feel though that for those of you still involved in US politics and American Citizens Abroad this might be a good opportunity to make a stand. Given the large number of expats from California this might be a very good opportunity to put some pressure on California Senator Barbara Boxer.
A different kind of disclosure path for expats?
Just retweeted this courtesy of Terry Ritchie.
US Citizens in Canada – Status of Penalty Forgiveness
Monday, March 05, 2012 by Kevyn Nightingale
I have written previously about Americans in Canada who are delinquent in filing their US tax returns and Foreign Bank Account Reports.What We Already Know
On December 1, 2011, David Jacobson, the US Ambassador to Canada suggested that the IRS may provide these people with some relief from the over-the-top penalties that can apply. The IRS issued a fact sheet on December 8, but that sheet basically reiterated the Service’s longstanding position. The IRS will evaluate each filing to determine whether the taxpayer has “reasonable cause” for filing late. There are no specifics about relief from penalties, so there is no certainty whether penalties will apply. Each taxpayer is dependent on the vagaries of the particular IRS agent assigned to her case.
Continue reading
Taxing your primary dwelling: Another reason that United States Expats must relinquish their American citizenship
A few weeks ago, I mentioned that the Fifth Amendment is supposed to protect Americans from the the Federal government confiscating their property without due process. Yet the capital gains tax is exactly that: a seizure tax which actually impoverishes Americans. The Cato Institute has done an excellent video explaining why capital gains taxes is theft, pure and simple:
A Destructive IRS Mandate
OMG made a fabulous find in Miami Herald about the “destructive” impact of requiring US banks to report on assets held by citizens of other countries.
IRS Invents Chinese Billionaire
I thought only kids had imaginary friends. Well, it turns out IRS makes them up too. Theirs is a shadowy recluse billionaire in China who might buy a piece of art on the black market.
IRS estimated value of this piece of art (which can’t be legally bought or sold because it contains a stuffed eagle’s head!) is $65 million! Here’s the story from Forbes:
Canadian Federally Funded Media Carries IRS Water: CBC scaring Canadians (UPDATED)
IRS cracking down on U.S. expat taxpayers: Steep penalties for Americans who don’t comply with U.S. tax laws (Updated: CBC has corrected the article)
We should call for an apology from reporters from our own government funded media who fail to point out the specific protections that the Canadian government has offered: (1) Never to collect taxes for the United States from a Canadian citizen. (2) Never to collect an FBAR fine from anyone ever. Why does Jon Hembrey of CBC News fail to point out these protections in his article? Instead, this is what we get: