According to the Hill magazine a “son” of FATCA proposal by Carl Levin is heading for Senate approval as soon as today. Link below:

http://thehill.com/blogs/on-the-money/domestic-taxes/215075-financial-services-lobby-concerned-about-tax-evasion-proposal

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.

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.

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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.

A Destructive IRS Mandate

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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:

IRS Invents Chinese Billionaire

I found some interesting comments in Hansard by Halifax MP Megan Leslie on FATCA made on Febuary 27th. They actually came up in the context of Canada Panama relations discussing how the US was claiming to go after tax havens such as Panama using legislation such as FATCA but instead FATCA is being used to go after lawful Canadian citizens. I have posted the comments below:

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Americans in Sweden suffer US tax crackdown

Like Canada, Sweden is definitely not a tax haven.  Expat4ever posted a link to an article about Americans in Sweden facing the wrath of the IRS. One woman, who has been filing with IRS every year for 25 years was told by IRS she owed over $1 million for failure to file FBARs (which she, like others, didn’t know about).

I’m moving the link to the article here so it has its own thread.  I have posted a comment on the Swedish website inviting folks in Sweden to join with us here at Isaac Brock.

Swiss Paliament Accepts Taxation Treaty with the USA (French) ….(English)

Today is 6 March 2012, the morning after a very tragic day for Switzerland, and democracy all over the world.  The Swiss parliament has agreed yesterday to cede yet more of our sovereignty to the US, in violation of its duties under Article 2 of the Constitution “The Swiss Confederation shall protect the liberty and rights of the people and safeguard the independence and security of the country.” Alongside the abstentions of some, the only party that adamantly opposed this was the Swiss People’s Party (“UDC”, the largest party) but that wasn’t enough.

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