Category Archives: Issues regarding US persons abroad

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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December 19, 2014 — “Money @ Omaha.com”: IRS chief supports simplifying tax system, says it’s ‘beyond the pale of making any sense’

“This system is really beyond the pale of making any sense,” Koskinen said on a conference call with reporters, held in front of a gathering of tax preparation groups to help people choose good tax preparers and avoid scams and fraudsters.

He said fewer people will get answers to tax questions via telephone because of the budget cutbacks. The agency’s $11 billion budget is down $1.2 billion from 2010, including a $346 million cut this year. For the first time, taxpayers will be required to report whether they have health insurance, and some will have to calculate new refunds or payments based on their insurance.

Koskinen has a law degree from Yale University, studied in Cambridge, England, was CEO of a management consulting business and has headed the IRS for the past year.

“I wouldn’t think about trying to fill out my tax return, and I don’t have a very complicated tax situation,” he said.

Although changing the tax code is up to Congress, he said, his office is ready with information and technical assistance for lawmakers who want to simplify the system.

From back in 2010 came this in “The Hill” on January 11, 2010: IRS commissioner doesn’t file his own taxes:

IRS Commissioner Douglas Shulman does not file his own taxes in part because he believes the tax code is complex.

During an interview on C-SPAN’s “Newsmakers” program that aired on Sunday, Shulman said he uses a tax preparer for his own returns.

“I’ve used one for years. I find it convenient. I find the tax code complex so I use a preparer,” Shulman said.

Pressed on how he would make the tax code simpler, Shulman responded, “I don’t write the tax laws. Congress writes the tax laws so that’s a whole different discussion.”

…

Later in the C-SPAN interview, Shulman downplayed his use of a tax preparer, saying he has used one for 10 years. He noted that he and President Barack Obama are proponents of simplifying the tax code.

Here’s some advice for whoever is responsible for the continuing absurdities: “Tax Foundation” on December 17, 2014: The IRS’s Long Reach Doesn’t Just Apply to Corporations — The IRS’s global reach also extends to personal income as well.

The trend of inversions and renounced citizenships is alarming. It speaks to a simple principle of economics, is membership worth the price? Americans abroad and corporate executives are resoundingly saying no and opting out.

For the most part, the drop in demand for American membership has been missed by the U.S. Congress, but in the recent report on tax reform from the Republican staff of the U.S. Senate Committee on Finance, they suggest moving away from a worldwide income tax system to a residence based system, matching other OECD countries. This has given many expatriates cause for hope.

Tax burdens should be tied to the public services a tax payer uses. Paying one’s “fair share” only makes sense if one is using a fair share. American citizens abroad don’t use American public services and thus should not be responsible for the provision of those services.

Maybe it is time we admit that the IRS is truly over-reaching.

Is Nina Olson, National Taxpayer Advocate, as well being heard? When will her next Report to Congress be released? Her last one, National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Taxpayer Bill of Rights and IRS Funding was on January 9, 2014.

Neill says:

My expat question has been accepted by WSJ.

Bubblebustin comments:

@Neill

That’s great news. When it’s published, do you mind posting it on this other tread also for easy reference?

https://isaacbrocksociety.ca/brockers-making-news/

They’re really hot to trot to tell our stories at WSJ Expat, aren’t they? Maybe some of the journalists we’ve been talking to there were listening when we said we needed a voice in the media. They need our support in return. I don’t believe that the WSJ Expat has been advertised on Brock. Would one of our moderators mind making a new post of it?

http://blogs.wsj.com/expat/

You can follow them on Twitter and friend them on Facebook too.

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From some of the prior related commentary:

Vote (Do you think the U.S. needs to rethink its taxation rules for nonresident U.S. citizens?) and comment on this new “Ask An Expert” “EXPAT” article:
Wall Street Journal, December 16, 2014: U.S. Expats Find Hope in Senate Finance Tax Reform Proposal

AND: Wall Street Journal, December 16, 2014, Jonathan Lachowitz EXPAT Opinion: Senate Proposal Could Aid ‘Marginalized’ U.S. Expats

About Expat

Expat is The Wall Street Journal’s hub for expatriates and global nomads – spanning the globe in expat hotspots like London, Paris, Hong Kong, Beijing, Sydney and many more.

Here you’ll find stories about expat living – housing, education, healthcare and more – expat jobs and managing your finances abroad. Whether you’re an expat in Dubai or Delhi, Sao Paulo or Singapore, Tokyo or Tel Aviv we’ll bring you stories the world over.

Share your expat stories with us at expat@wsj.com.

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This seems to be a class action suit, based in Delaware, against FATCA.

http://armstrongeconomics.com/2014/12/16/class-action-lawsuit-forming-against-fatca/

Martin Armstrong may be brilliant. He also spent seven years in prison for contempt of court relating to security fraud charges, only released in 2011. Delaware of course is a notorious tax haven. Do we want to approach him, be associated with him? Maybe, maybe not. Such an association could confirm our enemies in their opinion that we are tax evaders.

OR…is he just forwarding contacts to the lawsuit already underway in DC?