cross-posted from isaacbrocksociety.ca
— U.S. Citizen Abroad (@USCitizenAbroad) January 4, 2017
You can read it at the Americans Citizens Abroad site.
In denying the request for SCE, the Treasury Department’s final FATCA regulations focused solely on the risk of US tax avoidance. “The Treasury Department and the IRS have also decided that the risk of U.S. tax avoidance by a U.S. taxpayer holding an account with an FFI exists regardless of whether the U.S. taxpayer holds an account in his or her foreign country of residence or another foreign country.” The regulations say nothing about the problem of lock-out. They fix only on the unquantified and un-weighted risk that what must be a relatively small population of US taxpayers residing in a foreign country and banking at their local bank might evade US tax. The regulations do not say whether, and, if so, to what extent, Treasury Department took into consideration the widely-admitted fact that FATCA continues to put the community of 8 million Americans overseas at risk of lock-out from access to financial accounts needed for the management of basic living expenses (paying bills, paying rent, receiving paychecks).
The problem of foreign financial account lock-out exists, and it has been proven that the FATCA rules are one of the root causes. The Congressional Americans Abroad Caucus, the National Taxpayer Advocate, and ACA, as well as other overseas organizations, have testified to the existence of the problem and have asked for redress by the adoption of SCE. ACA believes that Treasury Department either missed the point or failed reasonably to balance the considerations.
No, the administration of Barack Obama did NOT miss the point. The point is a simple one:
— U.S. Citizen Abroad (@USCitizenAbroad) February 11, 2015
Unfortunately it’s the proponents of the FATCA Same Country Exemption Proposal who are missing the point!
It’s simple: “All Roads Lead To Renunciation”.
Renounce and rejoice!
A Little More About Treasury’s Disallowment of SCE https://t.co/tgKV1JLSg4
— Citizenship Taxation (@CitizenshipTax) January 5, 2017
— Patricia Moon (@nobledreamer16) January 5, 2017
Great article on this here Brock gets a mention (and link to earlier one)
‘Final indignity’ Among the places expats turned to vent their anger on Wednesday, as the news about the Same Country Exemption came out, was the Isaac Brock Society website, where a regular blogger who goes by the name USCitizenAbroad referred to the decision as the “final indignity perpetrated by…Barack Obama”. The Isaac Brock Society is a Canadian website that was founded in 2011 by a number of Canadian-Americans who were fed up with the way FATCA and other relatively new US laws aimed at curtailing tax evasion were costing them money and causing them problems. President Obama had signed FATCA into law in March, 2010, in the wake of the global financial crisis.