IRS Goes Global

As Just Me predicted months ago, IRS Goes Global.

The author asks if this is Clark Kent to Superman. No, it’s actually more Lex Luthor out to dominate the world and the universe.

Interestingly, the article asks Who Is A US Taxpayer and gives this answer:

Under the US Internal Revenue Code, individuals may be deemed US taxpayers if any of the following descriptions fit: A US passport holder ;Green Card holder;Individual who spends 183 days in the US in one year; or 122 days a year for three consecutive years.

I’m happy with that definition.  It leaves out huge groups: Anyone born in US or anyone born to a parent who was born in US.

As IRS Goes Global, more countries are hopping on board the FATCA train. Denmark and US Have Signed IGA.  Here is the actual Agreement Between US and Denmark.

I would be surprised if many Danes living in Denmark have income in US banks. But, I suspect many banks in southern states are hopping mad that US and Mexico Have Signed IGA.  I have not been able to find a copy of the actual agreement, but what does the following in the article mean?

An IGA “does not contain any exemption from FATCA, but, instead, a model for information sharing is offered based on existing bilateral tax treaties and allowing FFIs to report the necessary information to their respective governments rather than to the Internal Revenue Service.”

And, while I don’t agree with this, finally someone cheering on FATCA Negotiations promotes FATCA for what it is:

It has been established to prevent US citizens living abroad from avoiding the payment of taxation due on their foreign financial assets and offshore accounts. With US National Debt approaching $16.3 trillion at the time of writing, the recently re-elected President Barack Obama will be keen to get national finances under some semblance of control. Clearly, generating revenue from the 5.5 million Americans living abroad who do not file tax returns should be one of his priorities.

All along we’re been told FATCA is after the fat cat Americans living in US and the rest of us are just caught up in that snare.  But, this says any American living outside US is the target. I’m not sure what person or organization is the author of this, but it is from fatcaregulations.com blog.

 

 

 

 

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