Category Archives: Issues regarding US persons abroad

Farley Mowat said this about #HarpersRecord & he was soooooo very accurate! #cdnpoli #HeaveSteve2015 #StopHarper pic.twitter.com/vHjn9gqjjH

— Michelle Mainwaring (@LuvLaffen) January 3, 2015

I just saw this Tweet and was reminded of a post I started on Nov 11 and
haven’t gotten around to writing. Perhaps it’s time to start thinking
about finishing it.
 

On April 5, I sent this tweet to every Conservative MP. A few answered.
I am sure they have forgotten by now.

@GeraldKeddy No Debate on #FATCA? http://t.co/gOoV0m3FTv Sneak This Bill Thru? U Will Pay at Polls-We R 1 million + families, friends

— U.S. Expat Canada (@USExpatCanada) April 5, 2014

But I haven’t.

 
As if there isn’t enough to do already {sigh}. However, come October, I believe we should show the CONs how much we appreciated their efforts on our behalf (NOT!). Certainly the support we received from the Greens, the NDP and certain LIBs have earned our votes.

Patrick Cain, of Global News compiled/produced a map based on the 2006 census which shows the concentration of US citizens in Southern Ontario. Given that the actions of the Conservatives puts every Canadian family with any American connection at risk, I don’t think it will be a “hard sell” to encourage expats to vote ABC this coming October. The map is here. Scroll down (after text); the map is under the two graphs.

What I am thinking is that anyone in southern Ontario could please take a look at the map and see what kind of numbers are in your area, to see if any specific effort might be considered. For example, this is what I would start with:

If I chose the 4 neighborhoods in Toronto with which I am very familiar, I could reach out to roughly 2000 Americans via posters at libraries, etc. If a few of us focused on this, we could reach more not only about voting but about FATCA and ADCS as well. Particularly if one of John Richardson’s Information Meetings is taking place in your city.

FSA: M6H
Percentage: 0.99%
Total population by immigrant status and place of birth – 20% sample data: 43860
United States of America: 435

FSA: M4T
Percentage: 2.99%
Total population by immigrant status and place of birth – 20% sample data: 9860
United States of America: 295

FSA: M6G
Percentage: 1.98%
Total population by immigrant status and place of birth – 20% sample data: 31060
United States of America: 615

FSA: M6P
Percentage: 1.39%
Total population by immigrant status and place of birth – 20% sample data: 36775
United States of America: 510

What does everyone think?

LM has proposed a separate thread for us to post our suggestions for anti-FATCA/CBT action in 2015.

Perhaps there could be a new IBS page on which we all can list our IBS/FATCA/ADCS new year’s resolutions as to what we WILL make an effort to accomplish. As part of that, maybe there could also be a review what has and has not been successful so that we (1) don’t keep spending our time/energy attempting approaches that end up just being a waste of time and (2) see what has worked and encourage more of that.

Along with helping to organize a John Richardson evening presentation (Hamilton, Ontario – March 26), one tack that I am starting to take is to connect with other US Expats around the world to let them know about IBS and, more importantly, ADCS and the only-currently-active-litigation-against-FATCA. This is being accomplished through joining EpatBlog (http://www.expat-blog.com) and starting conversations on forums as well as some messaging to specific active Expats there who have indicated their US origin. Is this “gentle spam”? Maybe, but we’ll see what expanded support can be garnered…..

As well, I continue to hand out my FATCA flyer to lots of people as I go through day to day life. For example, when my plane-boarding was delayed an hour just before Xmas, I handed these out to lots of folks at the airport; I quietly, respectfully walked around with a file folder boldly labeled “Are you a US Person or do you know anyone who is?” and anyone who looked up and seemed interested, I handed them a flier. Had a few good conversations…

Let’s follow LM’s lead and fill our “comments section” with more great ideas on which we can, and will, take action!

Cross-posted with permission

The “Alliance For the Defence of Canadian Sovereignty” is prosecuting the first “Anti-FATCA” lawsuit in the world. Republicans Overseas has indicated that they expect the “Made in America” “Anti-FATCA” lawsuit to be commenced in the first quarter of 2015. We eagerly await that development. Information on the Republicans Overseas lawsuit is at FATCALegalAction. The announcement from Republicans Overseas appeared on their Facebook site.

Republicans Overseas deserves our congratulations for an amazing “inaugural year”. They are off to a truly fabulous start. Much has been done and much remains to be done.

I attended a Continuing Education conference last month (yes, any lawyer helping Americans abroad is in permanent student mode). One of the speakers suggested that the only reason that FATCA existed was because of U.S. “extra-territorial taxation”. As you know the U.S.A. is the only country in the world that claims the right to:
 
1. Levy taxes on people who do NOT reside in the U.S.; and

2. Levy those taxes on income and property not associated with the U.S.
 
Furthermore, many of the requirements of U.S. “Extra-territorial taxation” are NOT related to tax.The fact that an “edict” is found in the Internal Revenue Code does NOT mean that it is related to tax. (Was the purpose of the “HIRE” Act related to FATCA?) I’m thinking of the penalty laden reporting requirements. I’m thinking of the difficulties in operating businesses. I’m thinking of the rules that make “investing” and “retirement planning” very difficult. I am also reminded of the “special rules” governing marriages between U.S. citizens and non-citizen (AKA “alien”) spouses. I’m thinking of expensive U.S. tax compliance costs (tax returns that can easily exceed 100 pages RESULTING IN ZERO TAX OWING) required under threat of terrifying penalties The truth is that what the U.S. calls “citizenship-based taxation” (the word “citizen” makes it sound like these requirements are moral and patriotic) is really a form of:
 

Intense Focus on Foreign Accounts – Beware the Whistleblower! https://t.co/RrJxDwySuH

— V. La Torre Jeker JD (@VLJeker) December 29, 2014

In addition to all the invasion of privacy we now experience directly via the NSA (phones, internet, email) and indirectly (FATCA, etc-anything with an intermediary involved), we can now count on our fellow family members, friends, co-workers and neighbors to see dollar signs when considering whether to turn us in to the IRS.

Mind you, most of us minnows will not meet the monetary standard for being turned in ($200,000 income per year or taxes, penalties, interest and other amounts in dispute exceed $2 million). However, an image of a much-disliked previous next-door neighbor deliciously phoning the IRS in order to get back at me brought memories of the tv-show The Prisoner as well as the oft-quoted Orwell novel 1984. In this episode, Number 2 is trying to extract “information” from Number 6 (Patrick McGoohan)

From Fear And Terror Caused by America:

What is required in order to obtain an award?

The law provides for two types of awards. If the taxes, penalties, interest and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay 15 percent to 30 percent of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000.

The IRS also has an award program for other whistleblowers – generally those who do not meet the dollar thresholds of $2 million in dispute or cases involving individual taxpayers with gross income of less than $200,000. The awards through this program are less, with a maximum award of 15 percent up to $10 million.

All whistleblower claims must be submitted under penalty of perjury.

Individuals must submit information on f211 application for Award for Original Information.

Would anyone with knowledge who did not turn in anyone be guilty of Form Crime?

Form 211’s would have to be completed in FATCAspeak or, if truly advanced, via Form Dreams.

Or perhaps, our salvation lies in being Whistleblowers ourselves? In case you need instruction, go here.Just imagine, we could meticulously figure out who among us would be the smallest possible victim, adding up the awards as we worked our way up the scale and in the end, fund the lawsuit against CBT!

Hat tip to US Taxation Abroad (@TaxationAbroad)

The huge write in effort to the Ways and Means and Senate created a marked result in Congress.

The American Chamber of Commerce is now looking for feedback. So why not oblige?

“If you could draft one New Year’s resolution for the 114th Congress, what would it be? ‪#‎WeTheVoters“

That opens up 2 opportunities: One opportunity is to tweet that resolution.

The other is on facebook.

https://www.facebook.com/uschamber?fref=nf

See the announcement on the Chamber of Commerce webpage

https://www.uschamber.com/blog/your-new-years-resolutions-114th-congress?utm_source=Facebook&utm_medium=Wallpost&utm_campaign=Status

Read how the Chamber of Commerce thinks. And make your response appropriately.   Think like Roger Conklin always had talked—that US global success is dependent upon the expat boots on the ground.

“So new year, new Congress… America voted for a new direction. But, unless voters hold lawmakers accountable, we run the risk of achieving the same old gridlock.

Let’s welcome our new representatives to Washington, DC by offering a list of suggested New Year’s resolutions. Be creative—share a photo of your storefront, take a video, have fun—remember lawmakers are humans; they love to hear from their constituents. Sometimes it just takes a compelling message to rise above the noise.

Messages from small business owners are particularly important—they hold enormous credibility for lawmakers. And it makes sense considering that small businesses are responsible for 66% of all net new jobs since the 1970s. We understand you’re busy. The good news is that you don’t have to travel all the way to DC to make your voice heard! That’s our job; we’re here to help.

122314_bl_resolution3.jpg

FacebookTweetPin It

United States Capital, with text overlay of hashtag #WeTheVoters

Share your suggestion, include the hashtag, and check out responses from others below!

 

 

If you could draft one New Year’s resolution for the 114th Congress, what would it be? 

Tax reform, regulatory relief, workforce development, increased access to global markets? You tell us! Share a resolution for your representatives on Twitter, Instagram, Facebook, or Vine, and include the following hashtag: #WeTheVoters.

As the world’s largest business federation, it’s our job to represent American businesses in our nation’s capital. We’ll be monitoring, retweeting, and sharing key messages that include the hashtag. Furthermore, we’ll be selecting a few of the very best messages and white-listing them for promotion during the State of The Union address. This is an opportunity to reach beyond your normal audience, and engage directly with lawmakers.

Let’s make 2015 the year of jobs, growth, and opportunity!

Share your New Year’s resolution for Congress, and don’t forget to include the hashtag! “

Any thoughts from the Brock community?

http://en.wikipedia.org/wiki/Guilty_Men

Guilty Men was a British polemical book written under the pseudonym “Cato” and published in July 1940. It attacked 15 public figures for their failed policies towards Germany and for their failure to equip the British armed forces adequately. It is the classic denunciation of appeasement, which it defined as the “deliberate surrender of small nations in the face of Hitler’s blatant bullying.”^[1]

The book’s slogan, “Let the guilty men retire,” was an attack on members of the National Government before Winston Churchill became prime minister in April 1940. Most were Conservatives, although some were National Liberals and one was Ramsay MacDonald, the late leader of the Labour Party. Several were current members of Churchill’s government. The book shaped popular thinking about appeasement for 20 years and effectively destroyed the reputation of ex-prime ministers Stanley Baldwin and Neville Chamberlain and contributed to the defeat of the Conservative Party in the 1945 general election. According to historian David Dutton, “its impact upon Chamberlain’s reputation, both among the general public and within the academic world, was profound indeed”

 

The U.S. Department of State (DOS) recently increased its renunciation fee from $450 to $2350 because DOS and the U.S. Congress hold in contempt any U.S. citizen who would renounce citizenship. One argument used is that the fee increase is necessary for national security.

The Alliance and our attorney, Jim Butera of Jones Walker, believe that the fee increase violates both the United States Administrative Practices Act and the Expatriation Act of 1868 and consequently filed a complaint (see below) with DOS.

Some of you also complained to DOS (thank you!) by responding to a request for comments on the fee increase at the Regulations.gov website. However DOS made the decision (after the submissions?) not to post any comments that were emailed to the government site. I enclose below some comments that one of Mr. Butera’s colleagues discovered for us on the website. I also show a submitted comment (from @EmBee) that will never be published, and a “response” from DOS.

My understanding is that U.S. courts prefer that, when there is a dispute, both sides attempt to resolve the dispute without going immediately to court action. That is what we have all done, by submitting our complaints and rationale why the fee increase is unreasonable and violates U.S. law.

During the next few months I expect either no response, or a negative response from DOS.

Assuming a negative response, the NEXT STEP would be to initiate litigation. There is zero possibility that any U.S. political party would litigate to make it “easier” for U.S. citizen-voters to renounce citizenship, so we would have to come up with the money ourselves.

The ballpark (don’t hold me to this) cost of getting to the first court would be about $50-$75k AND the odds do not appear to be in our favour that we would be successful. What is obvious to us may not be obvious to the courts — but there is some chance of success.

If there is any potential donor reading this, and willing to fund a very high risk venture aimed at freeing humans from unwanted U.S. citizenship, let me know.

THE COMMENTS CAN BE FOUND HERE:

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UPDATE: December 23, 2014

Stephen Kish says:

The Republicans may or may not introduce legislation to kill citizenship-based taxation during the next two years. Even if introduced, it is uncertain whether such legislation will be successfully passed into law.

An alternative approach is litigation. However, a lot of money will be required to sue in U.S. federal court with a citizenship-based taxation constitutional challenge.

The ballpark estimate I have received for the legal cost is about $200k.

If there are any potential donors who might consider funding a significant portion of the legal cost for such a court challenge please contact me at: http://www.adcs-adsc.ca/ContactADCS.html.

Stephen Kish
Chair, Alliance for the Defence of Canadian Sovereignty

Shadow Raider says in a recent comment:

@all, I want to believe that Republicans Overseas are being honest, but they are way too focused on FATCA. I can’t help thinking that they are doing this more for the banks and wealthy US residents with actual foreign bank accounts, and using Americans abroad as an excuse. But I wouldn’t be surprised if they are just misinformed and disorganized, as Republicans usually are. I’m not sure.

I’m still against FATCA even for US residents, because it’s disproportional, unilateral, ineffective and unnecessary. But to me CBT is worse. My main constitutional argument is based on discrimination, and I have also written one based on the general power to tax. The courts could easily rule against either one, but I think the discrimination argument is stronger.

Addition of very relevant USCitizenAbroad addition:

@Shadowraider

Excellent 14th amendment arguments. A long time ago I wrote a post on the issue of “citizenship classifications” and the 14th amendment. You will find the complete post here:

http://renounceuscitizenship.wordpress.com/2013/07/03/cook-v-tait-11-who-should-americansabroad-be-compared-to-for-tax-purposes-even-u-s-citizens-are-entitled-to-equal-protection-under-the-14th-amendment/

(This is part of the series of Cook v. Tait posts which are listed at the beginning of this post:

http://renounceuscitizenship.wordpress.com/2013/07/03/cook-v-tait-11-who-should-americansabroad-be-compared-to-for-tax-purposes-even-u-s-citizens-are-entitled-to-equal-protection-under-the-14th-amendment/

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