ACA just announced the passing away of its founder, Andy Sundberg
http://genevalunch.com/blog/2012/08/31/rip-andy-sundberg-geneva/
http://www.englishforum.ch/swiss-politics-news/155520-rip-andy-sundberg-geneva.html
http://overseasamericanacademy.net/andysundberg.html
I would like to express my heartfelt condolences to his family, friends, and colleagues. He has made extraordinary contributions to the cause of US persons abroad and he will be sorely missed.
Rest in Peace, Andy.
Over the past nine months, the Isaac Brock Society has built up an impressive collection of posts, many containing links to hard-to-find information buried in the nooks and crannies of the IRS website. Well, the IRS, in the process of their oh-so-helpful website redesign, just broke a bunch of those web page links. (Links to PDF forms and publications still seem to be okay, for now, though I wouldn’t be surprised if they broke those too later.) If you follow an old link, you’ll get the wonderfully-helpful message:
We have redesigned the IRS.gov website to make it easier and faster to find the information you need. If you have reached this page by selecting a bookmark that worked previously, it is likely the URL has changed. To navigate to the new redesigned IRS website click on the homepage link. You may also Search the site for specific information. Once you have arrived at the desired page, please update your bookmark.
What happened? Did they decide to disappear a bunch of inconvenient documents down the memory hole? Apparently not; they just moved it all around, which is almost as good: breaking thousands of links makes it harder and slower, not “easier and faster to find the information you need”. Even more strangely, some old links work — as if the IRS went through their website and picked a few random items to fix by hand, instead of bothering to figure out an automated solution to make sure all the old links remained working. Now those of us who have time and energy will have to go back and fix all of our old posts. Unfortunately there is no easy fix; you have to do it by hand. I give one example of how I did it below.
ON TIME — IRS releases details of new procedures for non-compliant taxpayers living abroad
This just arrived from Moodys Tax, with a link to the full text in the announcement.
Published on Friday, 31 August 2012 14:55Written by Roy A. Berg JD, LLM (US Tax) and James Gifford JD, LLM (US Tax)
As discussed in our June 28, 2012 blog, the Internal Revenue Service (“IRS”) previously announced new procedures that will enable non-resident US taxpayers who demonstrate “low compliance risk” to bring unfiled tax returns and related tax reporting obligations current and avoid potentially ruinous penalties. This afternoon the IRS released details regarding the new program for non-residents (such as Americans living in Canada) to get compliant with past tax obligations. We’ll have a more detailed analysis on Tuesday, but for now here are a few highlights:
- Persons qualifying for, submitting under the new “Streamlined Filing Procedure,” and presenting a low compliance risk will not have to pay penalties or face follow-up review by the IRS.
- To qualify, you must be a non-resident US taxpayer who has lived outside of the US since January 1, 2009 and has not filed a US return since.
- To participate, taxpayers must file three years of tax returns and information returns along with six years of “FBARs.” Tax and interest must be paid at the time of filing. A valid Taxpayer Identification Number or Social Security Number is required.
- The determination of compliance risk is based on a large number of factors and the answers to a special questionnaire required as part of the submission.
- Generally, amended returns will not be accepted in this program. Where they are, the amended returns will be considered “high risk” and subject to increased scrutiny.
- Retroactive relief for deferral on Canadian retirement plans is available.
- The Streamlined Filing Procedure does not protect against the risk of criminal prosecution.
The full text of today’s announcement is available HERE.
NOTE: Thank you, bubblebustin, for finding the link for this information on the revamped IRS website *. I am adjusting the Moodys link above (and HERE) to reach the new “IRS Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers”.
*EXPLANATION (compliments of ERIC!)
Further analysis: from “renounceuscitizenship”
I’ve read it and my conclusion only is ‘good luck on roping more in’. Those that do probably will have already been contemplating it and it suits them. It will likely scare newcomers to the issue. There may be deeper-digging ostriches until the reality of full FATCA implementation, if FATCA can’t be stopped or drastically changed. Now to look for the media reactions to this latest from the US IRS. I’m glad it is, this instance, a timely announcement!
Tsai Hong-tu of Taiwan’s Cathay Financial Holdings has brought up the issue of FATCA in the APEC (Asia-Pacific Economic Cooperation) Business Advisory Council, and suggested the establishment of a working group to formulate a response to the issue. It’s rather ambiguous exactly what Tsai’s goal is for his proposed multilateral FATCA discussions, but at least it’s more encouraging than the craven surrender by Taiwan’s Bankers Association.
Possibly of interest to the Canadians in the audience: ABAC is not just an Asia-focused organisation — its membership list includes representatives from a number of countries on the western eastern side of the Pacific Rim, including Chile, Mexico, Peru. and Canada (as well as the U.S. itself). And even though it ABAC is not a finance-specific organisation either, two out of Canada’s three representatives to ABAC are in the finance industry:
Maybe this will be a roadblock, or at minimum a speedbump, in the way of the U.S’ “divide-and-conquer” FATCA strategy. I translated a radio report about Tsai’s proposal after the jump. Continue reading
Bubblebustin posted the link to this RT video, mentioning Brandon Raub’s Canadian connexion (watch video). I have placed a picture which you have to click to go to the link to watch it. The lawyer for Brandon Raub, John Whitehead, makes the unusual claim that 20,000+ people disappear in manner of Brandon Raub from the state of Virginia every year, mainly veterans, in this same manner as Brandon Raub:
ZKB cancels the mortgages of Swiss citizens who live in the USA
By Bruno Schletti. Aktualisiert um 31.08.2012 08:38
Until recently, every customer had the right to have a Swiss bank account. Yet, the USA taught banks to fear this.
TagesAnzeiger
I can translate this later today if an interest exists, but don’t have time right now.
The following was reported yesterday in BankNewsCredit
Asian regulators express concern regarding overseas application of Dodd-Frank rules
Published on August 30, 2012 by Pat Dulnier
Asian regulators have requested that U.S. regulatory authorities review proposed derivatives rules to ensure that the new requirements do not conflict with those rules established by sovereign nations…
…“The impact from any resulting (likely significant) increase in compliance costs and the potential reduction in liquidity of [over-the-counter] derivatives markets should not be underestimated,” the groups said in the letter, according to Reuters.
The definition of a “U.S. person” by the Commodity Futures Trading Commission, which applies to any person or entity that will have an effect on American commerce, has elicited criticism and caused some unease in foreign markets that have trading relationships with the U.S.
Read more: BankNewsCredit
You have a computer with Microsoft Windows on it? You then are a US Person and banks may close your checking account or refuse to refinance your mortgage, since the act of purchasing Windows has an effect on American commerce. Maybe this sounds extreme, but America is not known for acting logically these days.
Not quite sure of the accuracy of this report, since it comes second-hand in what appears to be a letter to the editor, but this woman seems to be saying that a Swiss man she knows — an “accidental American” — went into the OVDI and then had his U.S. passport confiscated for some reason. From The Record–Searchlight of Redding, California:
We have Swiss friends, a couple, who lived in the United States in 1966 and 1967. He was a young engineer working here to get some experience in his field. While here, they had a baby boy who then of course was a U.S. citizen … He was recently informed that he now must start paying taxes and filing tax returns to the United States. Not knowing the U.S. tax code, he asked for help from the U.S. Embassy and was told that he needs to hire a lawyer for help. I imagine it has to be an American lawyer or one who understands the tax laws here. There will be cost to this service he has to pay. I assume the Internal Revenue Service wants to know about his “secret Swiss bank accounts”? Also, he has to produce bank information for the last six years. His U.S. passport was taken away.
I am thinking that people should be weary of “dropping babies on the U.S. soil” if they do not plan on staying here permanently.
Not sure what this means — perhaps he renounced, or perhaps someone in the bureaucracy nabbed his passport ultra vires. But whether or not she’s got some of the details about her friend’s son’s story muddled, her closing warning is a sound one. Good to see that at least one Homelander gets it. Sadly, many people in the comments section clearly don’t want to listen.
(Update: the editor apologizes for incorrectly posting a rough draft of this post; here is the corrected draft. Petros)
Guest post by Anthony E. Parent, Esq., Tax Attorney, founder of IRSmedic.com
Years ago, when I was a Finance major, during our studies we were subtly encouraged to worship the Federal Reserve. Then in law school, were we subtly encouraged to worship the genius behind Marbury v. Madison, 5 U.S. 137 (1803), the seminal case that establish judicial review for constitution propriety. And later, as a tax law student, we were encouraged to be in awe of the vast public policy considerations placed over the ever expanding 16th Amendment, the essential prerequisite to the the US Federal income tax.
But then time goes on. The theories and idealism of school fades away as the real world intrudes more and more each day into one’s affairs in private law practice. Things get to a point and idealism so vanquished, one will properly tell clients the uncomfortable truth: “the last place to expect justice is in a court of law.”
