IRS Delays Key FATCA Dates

Breaking News!  Reuters is reporting IRS Is Delaying Key FATCA Dates.

According to this, FIs now have until January 1, 2014 to have procedures in place for reporting.

I’m a bit confused. I thought it was already that FIs did not have to report until January 2014, but they must advice IRS by January 1, 2013 if they will comply. Can anyone clarify that for me?  Tim?

Also, FIs now are not required to withhold until 2017.  The longer this is pushed back the greater chance we have of fighting this.  As Flaherty said recently, delay is not enough.

 

28 thoughts on “IRS Delays Key FATCA Dates

  1. @Tim: “You can lead a man to Congress, but you can’t make him think.” (Milton Berle)

    What is your best prediction? Do you think they will slam on the brakes before they hurl themselves and the rest of the world over the financial cliff?

    It’s not exactly what I planned for relaxation, but I’ll check out the video over the weekend.

  2. Blaze,

    If you have some free time you should watch the movie Too Big to Fail that I linked to below on youtube.

    https://www.youtube.com/watch?v=swuaYDE3_tg

    Given my professional experience in Financial Service and Banking I can vouch for its accuracy. A lot of the key players in the movie are still in the US government. I suggest watching the movie from beggining to end but there are some good scenes you might find rather ironic at about 23 minutes, 35 minutes in, and 40 minutes in. Lesson I take from this movie(and myself and contacts of mine can vouch for its accuracy) is the so called geniuses at the US Treasury Department are not really that smart tend and only slam on the brakes a few second before they are about to go over the cliff.

  3. @Tim: Here are the tweets between Hoang Mai and me today:

    Blaze @LynneBlaze
    @hoangmai_npd @CanadaFan124 What about Cdn Sovereignty? How will ensure Canadian banking, privacy. human rights laws in #FATCA?

    Hoang Mai Hoang Mai @hoangmai_npd
    @LynneBlaze @CanadaFan124 we agree w/ and are trying to address these concerns w/ our US counterparts #FATCA

    Blaze @LynneBlaze
    hoangmai_npd @CanadaFan124 NDP must insist Cdn gov tell Cdn banks they must follow Cdn law & Cdn law won’t be changed for #FATCA.

    Tim, I share your concern NDP has now become far too diplomatic and far less “militant.” They should be pushing government to ensure Canadian laws are upheld in Canada instead of trying to work with US on FATCA.

    I also sent tweets to Justin Trudeau and Bob Rae. No response yet.

    I tweeted Jim Flaherty too. Considering Flaherty has only sent a total of three tweets announcing campaign events in April, 2011, I’m not optimistic he will reply–or even see my tweet. I’ll try tweeting Finance Canada and see if that gets a reply.

  4. Yes that was my friend. The impression I got was basically no change in position from the NDP and no new news. Hoang Mai is the actual NDP Revenue critic so I would say he represents the party additionally several other front bench NDP MP’s such as Don Davies and Megan Leslie have spoken out on FATCA. What is disappointing is Mai response was very Flaherty-like when I for one would have liked to see a little more oomph from the official opposition. The official opposition hence its name is their to oppose not govern. I don’t see the need for the NDP to be polite and diplomatic towards the US in the same way Flaherty has to.

  5. Here is an interesting video featuring the Co-Chairman of the Americans Abroad for Obama. Thanks again to Just Me for tweeting this. http://www.youtube.com/watch?v=u5foXDWnv18

    Discussion of FATCA begins at about 3 minutes into the video.

    Charles Adams calls FATCA a “colossal pain in the neck” that has caused non-US banks to treat US persons as “Typhoid Mary.”

    Mr. Adams is, however, optimistic that “vehement” concerns have been heard in Washington. He predicts delays will lead to “revisiting” FATCA and changes so FATCA will be more targeted.

    Mr. Adams also suggests it is not banks in Switzerland or Singapore who need fear FATCA, Try telling that to our friends in Switzerland who have already been threatened with closure of their accounts!

    Mr. Adams suggests US citizens trying to hide their money are far more likely to do it in places where they can easily “visit their money” from mainland US on weekends. Does that sound like Canada or Mexico to anyone else? I hope that’s not what he is implying because the Canada-US tax treaty has addressed that issue for 70 years.

  6. Running the numbers in a FATCA commentary:
    – The unsubstantiated revenue projection for FATCA is $800 million annually.
    – Based in its 2011 budget, the US Federal Government spends $435 million PER HOUR!
    – So FATCA covers less than 2 out of 8766 annual expenditure hours.

    Good ROI?

  7. @Tim: Do you know if Thomas Mulcair has made any statement on FATCA? Does anyone know what Justin Trudeau’s position is (he seems to be Liberal heir apparent)?

    Flaherty continues to be frustratingly quiet.

    I did a search for Hoang Mai and FATCA on twitter. Was your friend the one who asked about Canadian sovereignity and FATCA? Mr. Mai’s reply does not exactly instill confidence that NDP is taking a strong position on this.

    CanadaFan124 asked:
    @hoangmai_npd Any discussion of US “FATCA” legislation. Impact on Canadian Sovereignty.

    Here’s the reply:

    Hoang Mai Hoang Mai ?@hoangmai_npd
    @CanadaFan124 we have raised our reservations with FACTA to US legislators, things are not finalized yet.

    I’m going to do a follow up tweet and see what kind of response I get.

  8. A friend of mine got a twitter response earlier this evening from MP Hoang Mai. The position of the NDP on FATCA remains the same. I do have to admit some frustration that the NDP as an opposition party does not take advantage of that status to be perhaps a bit more militant that the government can be.

  9. Here were some comments from that trash blog post by TJN the same TJN Liberal MP Scott Brison, Liberal Senator Percy Downe, NDP MP Hoang Mai, NDP Leader Thomas Mulcair, and NDP MP Craig Scott were praising two nights ago as fighting for fairness:

    Anonymous:
    This is far and away the stupidest article I’ve read on FATCA since I first heard about it. I don’t know what point the author is trying to make, but he is horribly ill-informed about what sort of people will be affected most by this extremely dangerous legislation. Most of the six-million or so U.S. expats worldwide are NOT high rollers sitting at Tiki bars by the beach. No, most of us are just working class chumps trying to make an honest living and provide for our families – AND PAYING TAXES IN THE COUNTRIES WHERE WE LIVE. I live in Canada, which no one in their right mind has ever mistaken for a tax haven. I could go on, but what’s the point – the ignoramous that wrote this drivel clearly couldn’t be bothered to do a little bit of research the first time, so why should he start now?

    10:08 PM
    TJN said…
    Anonymous, what a charming style you have. The fact is that the US has to be able to stop criminal tax evasion by U.S. citizens. It is absolutely legitimate to do that. People will soon learn how to deal with it, doubtless modifications will be made to it along the way in line with the complexities of the real world. You should note that the European Commissioner is on your side, it seems. http://www.ft.com/cms/s/0/5ed9458e-1880-11e1-b16b-00144feabdc0.html

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