Here’s a report from Geneva Lunch published today: IRS Targeted American Citizens Overseas: IRS Systematically Targeted Overseas Americans
American Citizens Abroad (ACA) has provided evidence “of the arbitrary and questionable IRS (US tax office) management of the Overseas Voluntary Disclosure Programs” (OVDP) to members of three US Congressional committees working together to investigate IRS abuses, ACA said Tuesday 4 June.
The Geneva-based international group says that the 2009 OVDP in particular was “extremely prejudicial to Americans living overseas who sought to become compliant with their taxes due to errors or omissions under the OVDP. Believing they could come back into the system by simply filing the appropriate paperwork and paying any outstanding tax burden, these individuals were later told they would be hit with a standard penalty of 20% of the highest value of their bank accounts over a five-year period.”
Jackie Bugnion calls it entrapment to hit people with ruinous penalties.
“There is no question that the IRS targeted Americans living overseas,” says ACA Director Jackie Bugnion. “By luring them into the OVDP in a form of entrapment then hitting them with ruinous penalties based on the overseas assets, instead of using the discretion which was within IRS purview for benign actors, the IRS treated ordinary, hard-working Americans like criminals. Most of the unreported accounts were pension funds and basic financial accounts used for living expenses and were not being used to hide assets.”
So, does anyone think this will get the same kind of media and Congressional attention that Tea Party is currently getting?
Since 2010 when I learned by chance about FBARS my life has been hell. I have spent a lot of money and time trying to do the right thing. Afraid of any move that will wipe out my life savings. Terrible.
@Thisisme: Are you in Canada? Are you a Canadian citizen?
Have you filed FBARs? Are you aware Canada Revenue Agency and Finance Minister Jim Flaherty have said Canada will not collect any penalties for IRS for Canadian citizens and residents. They will also not collect any tax liability for IRS on Canadian citizens if the tax liability arose at the time the person was a Canadian citizen (even if the person was also a US citizen.)
IRS also has no jurisdiction in Canadian courts.
@Blaze and Thatisme
I still wonder about how “protected” we are here. I am finishing my last forms/filings and honestly, I do wonder if there is something they have in mind regarding confiscation of assets. With the advent of Canada signing an IGA, I worry that we may have a false sense of security here. 8938, all of it………