November 22, 2014
Boris Johnson
Mayor of London
Greater London Authority
City Hall
The Queen’s Walk
London SE1 2AA
Dear Mr. Johnson:
RE: IRS
Yes, Boris Johnson I know just how you feel.
But the article is incorrect about the amount for the cut off and you would owe a lot more than just the capital gains on your house. Fines and exit fees could amount to hefty penalties for failure to file income reports when you, like a lot of of us, didn’t know about these until recently. Because the IRS never informed anyone or published their regulations in any way that the public would see.
The USA is the only country in the WORLD that taxes by citizenship, rather than residence. They need $$$ to fund their deficit and they are now going after every person in every country that they consider American. Like you, many people who lived in the USA for a few years or more who had no choice where they were born, never have considered themselves US citizens. You are a British citizen clearly. You have no ties to the USA. I know that feeling too.
However, to date there are only two people in the world, my co- plaintiff and I who are taking on this issue (in our true home country Canada, as full Canadian citizens, in our courts) because Canada entered into an agreement with the USA which turns over our banking information via our CRA. Just as the UK has done by entering into a similar intergovernmental agreement. As you are now finding out. I am not saying that to toot my own horn. I am saying it so that you might consider another option.
You might consider launching your own legal protest in the UK on behalf of people there like you, that the USA deems to be tax invaders. I bet that might be an interesting political launching pad for you, considering the USA went to war with the UK over off shore taxing in the first place. As in the ‘real’ Tea Party Revolution. I assume you well know your history? And that you see the irony?
And you have political cache that I don’t.
It’s not easy and it sure is expensive. But principles and access to justice are very important things to stand up for, in my opinion. Your mentor, Mr. Churchill would no doubt be proud of you if you did.
All the best, Boris.
Ginny Hillis,
Windsor Ontario, Canada
[Plaintiff in Canadian FATCA IGA lawsuit against Government of Canada]
Tag Archives: IRS
FATCA Scams Already Starting
This is no surprise to us. The FATCA scams have begun.
IRS Warns of FATCA Phishing Scams in multiple countries and continets.
This clearly has thye potential for financial or identity theft, fraud or even worse. We can only imagine what groups like ISIs or Al Quaeda would do if they were able to get their hands on the financial and personal data od people born in the United States.
This is one more reason why we must ensure Canadian banks should not be allowed to ferret out “U.S. persons” for CRA and the IRS. Please donate to http://adcs-adsc.ca/
Legality of US IGA's Analyzed – and Debunked
It’s well worth reading some of the more recent posts and articles, to keep an eye on what is happening in the US regarding FATCA – as we’ve learned to our dismay, that what happens down there will ultimately affect what happens up here.
Forbes has published a piece by James George Jatras, in which he says.
“The trouble is, FATCA doesn’t authorize Treasury to make these agreements with foreign governments, nor are IGAs treaties that will be submitted to the Senate for advice and consent.”
Forbes: Unauthorized FATCA ‘Intergovernmental Agreements’ Are Part Of Obama’s Executive Overreach
Jack Townsend, on his blog ‘Federal Tax Crimes’, posted the letter responding to a US congressman question on whether the IRS/Treasury Dept can legally enter into these agreements with other countries.
http://federaltaxcrimes.blogspot.ca/2014/07/irs-letter-to-congressman-defending-its.html
And, finally, Allison Christian’s post analyzing the legality:
http://taxpol.blogspot.com.au/2014/07/irs-claims-statutory-authority-for.html
Although Ms. Christian’s post is speaking to the legality, it’s very readable and should make the signer of that letter, Alastair M. Fitzpayne. hang his head in shame for not undertaking the proper legal research. (That’s the charitable version, others think it was simply an out and out lie).
She says,
“Instead of citing non-existent statutory authority that is easily refuted by simple reading, Treasury should own what it is doing outright.”
Every day I am thankful we have such prominent, knowledgeable and well respected people shining the spotlight on FATCA and the IGAs.
2014 IRS Survey of Individuals Living Abroad – Maple Sandbox has it
As previously reported by the IRS, and several other sites, the IRS sent a survey to about 4,000 individuals ‘living abroad’, “regardless of whether or not you have filed a U.S. federal income tax return while living abroad.” This is being done through an independent survey firm, ICF.
(Updated)We have been requested to provide a specific link to the survey:
The IRS did it last year as well, and the 2012 survey results are available:
According to the Taxpayers Advocate Service 2013 Annual Report to Congress,
“The IRS has also contracted with an independent consultant to survey 4,000 individuals residing abroad who the IRS believes have U.S. filing requirement and did not file a return. The survey, to be conducted by mail and online, will “focus on why some individuals living abroad do not file a tax return, their awareness of certain tax provisions and forms specific to International Taxpayers, and how the IRS can encourage voluntary compliance among this population.”
There is a lot to consider in this survey, and its ramifications, and much that I suspect people will find, at the least, questionable. Section 4E has 11 multiple choice questions around CBT, filing returns, etc. Section 4H is asking for ‘thoughts’ on what the IRS has done well, or how the IRS can “improve in communicating whether income earned outside the US is subject to US federal taxes”.
I am very, very curious to read the comments that this survey will generate!
The ICF link is: https://www.icfmtvweb1.com/irs_nonfiler/authenticate.asp
(A password is required to access the survey).
Personally, I’m very interested to know if anyone who has never filed a U.S. tax return, and who thinks they should be filing, actually fills out the survey.
US Chamber of Commerce joins TAS in dumping on FATCA
In other very encouraging news today, yesterday the US Chamber of Commerce (a rather prestigious and heavy-hitting US institution) published the article linked below criticizing FATCA and suggesting that FATCA may be the next Obamacare-rollout-like catastrophe about to hit what is increasingly seen as an incompetent Democratic administration in Washington.
https://www.uschamber.com/blog/next-obamacare-fatca-roll-out-flounders
So, in one day, we have both the US Chamber of Commerce and the US Taxpayer Advocate report to Congress finally echoing many of the objections we, the NDP, in fairness Jim Flaherty himself, ACA, and others too numerous to mention, have been raising about FATCA for the past couple of years.
Metaphors spring to my mind. Like, “the emperor has no clothes and the crowd is starting to notice.” Like, “gee that onrushing freight train seems to be losing all its wheels and teetering on the edge of a very deep cliff.”
Unless our Finance Minister has taken leave of his senses, which I think extremely unlikely, I no longer think we’ll see a Canada-US IGA any time soon, if ever. With heavy-hitters like these in the US saying “wait a minute, what the hell are you doing and why?” why should Canada or any other country leap into an IGA with the US to sign onto something that seems to look like might actually get derailed or gutted PDQ.
Remember that previous US ambassador to Canada who, back in the Fall of 2011, advised everyone to “sit tight?” That’s starting to look like supremely good advice for many so-called US persons, especially “accidental” (I prefer “inadvertent” or “unwilling”) so-called Americans living in Canada (the parallels to Ted Cruz aka “border babies”). Let’s just wait and see how this train wreck is going to unfold now.
If I were one of that handful of countries that leapt into bed with the IRS via an IGA, or an FFI that has spent hundreds of millions of dollars on compliance mechanisms, I think I’d start to feel a bit foolish (and very hard-done-by) right about now. And if I were a compliance maven with visions of fat fees from terrified offshore alleged Americans dancing in his/her head, I think I’d see those visions turning to mush.
We don’t want to count our chickens before they’re hatched, but maybe it’s time to take a deep breath, ignore the Chicken Littles in the compliance industry, “sit tight” and watch with fascination what seems more and more like a FATCA train wreck.
Nice news for a wintery Friday, anyway. Happy New Year, everyone.
Cruzing in Reverse
Canadian immigration lawyers have said U.S. Ted Cruz should be able to renounce Canadian citizenship “lickety-split” if there are no security or mental health issues.
A letter/article from Lynne Swanson (aka Blaze) to Senator Cruz asks him what’s taking so long to shake his embarrassing Canadian citizenship. Cruzing In Reverse also tells Senator Cruz how different the situation is for “accidental American” Canadians who simply (like him) want to shake free from their country of “technical” citizenship.
Continue reading Cruzing in Reverse
Interview with Victoria and Daniel on Stateless Man Radio
Victoria Ferauge in France and Daniel Kuutel in Switzerland were interviewed today on Stateless Man radio show.
I haven’t yet figured out how to listen to it. I’m posting it here so people who are better technical wizards than I am may be able to hear it.
Victoria also posted Talking FATCA With The Stateless Man at Flophouse.
American Taxman Stay Away From Me
I did it! Many of you know I rewrote the lyrics to American Woman to be American Taxman Stay Away From Me.
When I couldn’t find anyone to record it, I did it myself with the help of a couple of friends (non-Americans who refused to appear on camera).
I can’t sing and I didn’t want to insult the music of Burton Cumming and Randy Bachman, so I merely spoke the words.
I am not a myth!
Beanie Babies, Hyatt Heiress and IRS
Beanie Babies are now “US persons.” Uncle Sam is mad at Beanie Babies. Good old Sam has grabbed $53.6 million in FBAR penalties for $885,000 in taxes owed.
In IRS vs. Beanie Babies, Beanie Babies creator Ty Warner agreed to pay $53.6 million in restitution for his Swiss bank account of $94 million.
I do not support offshore tax evasion, but does this seem extreme to anyone else? Maybe it’s just a drop in the bucket when your net worth is $2.6 billion, but Ty could still face prison time.
Here’s what the U.S. Attorney said:
“Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report. Such conduct invites federal prosecution.”
On the other hand, Hyatt Hotel heiress Penny Pritzker Understated Income by $80 million in income to IRS due to an “inadvertent clerical error.” Penny’s punishment? She was appointed Secretary of Commerce.
Here’s what a White House senior adviser said:
“I think she’ll be extremely effective in leading trade missions around the world and helping U.S. companies develop those contacts that will lead to contracts back here in America.”
Hmmm.
We Are Not Tax Cheats
Here is an article We Are Not Tax Cheats from the Financial Post by Lynne Swanson (aka Blaze). (The editor added Dual and American to the headline, but everything else seems to be exactly as I wrote it)
This article says:
If China, Russia, Mexico, Iran or Eritrea were demanding Canadian banks and other financial institutions submit private financial information on Canadian citizens and residents to those countries, there would be outrage.
If Canadian banks were spending millions of dollars preparing to develop systems to report information on Canadian citizens and residents to those countries, there would be outrage.
If the Canadian government were “actively seeking a solution that both countries will find agreeable,” there would be outrage.
If Canadian media were calling Canadian citizens and residents born in those countries “tax cheats,” and advising them to “come clean,” there would be outrage.
Yet, up to one million Canadians of American origin have lived that nightmare for two years with no resolution.
It also says:
The government refuses to tell us if it will sign away our rights.
And:
We need Canada’s Finance Minister Jim Flaherty to insist that Canadian banks follow Canadian laws. We need Minister Flaherty to reassure Canadian citizens and residents that Canadian laws will not be changed for a foreign nation.
Most importantly, we need our elected officials to tell the United States that Canadian laws are made in Ottawa, not in Washington. We must not allow the United States to FATCA Canada.
We deserve no less than Canadians born in China, Russia, Mexico, Iran, Eritrea or elsewhere.