US Treasury Response on Reciprocity/FATCA May Harm Expats and Exports

Just Me is a phenomenal source of information on Twitter (where he is known at @FATCA_Fallout).  In fact, in Best Links For Citizenship-Based Taxation/Renunciation/FUBAR on Victoria’s blog, she says this about Just Me:

One person can make a difference, especially when that person has the persistence of a pit bull.

I’m glad the pit bull is growling on our side.

Today, on Twitter, Just Me posted a link to Treasury Response on Reciprocity (editor’s note: this link requires a lexis nexis account) from Tax Times. Just Me tweeted:

Treasury doesn’t understand why reciprocity of FATCA is not the same for foreign Residents vs US Expats.

I don’t usually disagree with Just Me, but I do on this–a bit. I think Treasury understands quite well the difference. They just think United States of Arrogance has right to more invasive information than other countries.

Just Me also posted a link to an article from Global Connections on how FATCA May Harm Expats or US Exports.

This says:

The U.S. Internal Revenue Service’s determination to implement dizzying new rules to trace foreign bank accounts held but not declared by American citizens could have a profoundly chilling effect on American businesses looking to expand beyond the borders, experts say.

Is anyone listening?  The fact FATCA is not even mentioned on the campaign trail or in debates gives us the answer to that question.

 

 

 

 

8 thoughts on “US Treasury Response on Reciprocity/FATCA May Harm Expats and Exports

  1. Blaze Post author

    A few more articles are out today. Rather than give them their own thread, I will post links here.

    The first is Nigel Green’s blog (Thanks for the above piece, Outraged) He asks if FATCA goes too far. A few familiar names have posted comments on his blog. Others may want to do the same. To his credit, Nigel does seem to “get it” (or at least is trying to).
    http://www.nigel-green.com/blog/2012/10/23/fatca-a-stage-too-far/

    The Blaze (no relation to me!) reports renouncing citizenship and FATCA should have been debated by Obama and Romney last night.
    http://www.theblaze.com/stories/heres-a-major-issue-that-shouldve-been-addressed-during-the-foreign-policy-debate/

    Sovereign Man in Business Insider says Singapore Bank to Uncle Sam: Stick It Where The Sun Don’t Shine. Actually, I don’t think either the Singapore or Swedish bank did quite that, but they did report to US they will not be registering with US for one Dodd-Frank provision. Sovereign Man suggests this could be the beginning of a bigger trend on FATCA, etc. Let’s hope so! Canadian and other governments, where are you?!?
    http://www.businessinsider.com/singapore-bank-to-uncle-sam-stick-it-where-the-sun-dont-shine-2012-10

    Reply
  2. OutragedCanadian

    Nigel Green talks about a ‘sense of anxiety’. way too mild, IMHO, considering we hear words like panic, stress, sleeplessness, etc. However, he does reiterate some things most of us believe, such as the reporting of relinquishments & renunciations is under reported.

    Reply
  3. Blaze Post author

    Here’s an article tweeted by Noble Dreamer. FATCA: Imperial Overreach.

    http://www.piie.com/blogs/realtime/?p=2276

    This is from Peterson Institute for International Economics.

    Like others, it says much of what we have been saying, including “Imagine the US reaction if a foreign power—say China, Japan, or Russia—enacted legislation requiring US financial firms to report similar information on their citizens, and imposed a stiff penalty on US firms that failed to comply. One hopes that Congress and the Administration would scream to the rooftops.”

    It also makes some suggestions for delaying FATCA and negotiating agreements with other countries for two-way reporting on each other’s citizens. Unfortunately, this misses the point that no other countries, other than Eritreatax their citizens who live elsewhere. Are the authors confusing residents with citizens or do they really think all countries should tax citizens no matter where they live?

    It also doesn’t address the issue of those of us who have been citizens of other countries for years or decades and the demand that our banks report all our financial transactions to United States of Arrogance.

    It does suggest initially only high net worth households should be targeted, followed by random checks of other households. Again, leave those of us outside US out of your financial cesspool.

    Reply
  4. Blaze Post author

    Maybe one Congressman is finally beginning to understand. Credit again goes to our favourite pit bull (Just Me) for picking up this article from FSI Tax Posts and posting a link on Twitter.
    http://www.fsitaxposts.com/2012/10/19/rep-reichert-questions-irs-fatca-implementation/

    This provides part of Congressman David Reichart’s (R-Washington) letter, which says:

    “It is now clear that the implementation process of FATCA involves the IRS acting with an implied license to determine a new direction for global tax policy.”

    Congressman Reichart’s letter also addresses issue of US debt instruments, US persons abroad, foreign investment in US businesses companies and investment funds and cost benefit analysis.

    I have found Congressman Reichart’s own press release on this. https://reichert.house.gov/press-release/rep-reichert-demands-answers-fatca-implementation-irs-commissioner

    The press release provides a link to the actual letter in pdf. I will try to upload a link to the letter here.

    It doesn’t address all of our issues and it is just one person, but it may be a start. However, Just Me is predicting he will get the same non-response from IRS that others have gotten. Just Me is probably correct about that.

    Reply
  5. SwissPinoy

    It totally ignores Americans living abroad as if they don’t exist. Why was their no extensive consulting with Americans living abroad on the matter? I would think that Americans mean more to America than “foreign financial institutions”, but such doesn’t appear to be the case. How sad.

    Reply

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