All posts in Taxes

An Insider on FATCA

by waybeyondthebeltway on February 5, 2012 in Americans Abroad, Taxes with No comments

The Issac Brock Society offers an insider’s take on the Foreign Account Tax Compliance Act (“FATCA”), written by a former IRS attorney with extensive knowledge and expertise about how the IRS works, and how tax legislation is enacted.

Interestingly, the author makes clear that the IRS does not make tax policy, emphasizing that: “Tax policy is determined by the Treasury Department and the White House who then fight it out with Congress who accepts what the Treasury Department wants, rejects it, or compromises on it.” Still, the IRS is engaged in part of the legislative process, more or less.

One of the best take-aways from the post is:

“No one in the US government was thinking of Canadian citizens who had little or no connection to the United States when FATCA was enacted.”

I’d add that its likely no policymakers were thinking of middle class Americans abroad at all, whether in Canada, Mexico, Iraq or Thailand. But with several million U.S. citizens working, serving and living abroad, shouldn’t someone in the U.S. government look out for our interests? It’s time to turn up the lobbying pressure.

The Foreign Account Tax Compliance Act (FATCA)

by waybeyondthebeltway on September 29, 2011 in Americans Abroad, General Interest, Taxes with No comments

In a move that could ultimately affect the ability of all Americans abroad to use basic banking services, beginning in 2014, foreign financial institutions will be required by the US government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of US citizens to the IRS. This law requires foreign financial institutions such as local banks, stock brokers, pension funds, insurance companies, etc. to report to all their clients who are “US persons” (citizens and green card holders whether living in the USA or abroad) directly to the IRS.

FATCA also requires US citizens who have foreign financial assets in excess of $50,000 to report those assets on a new Form 8938 to be filed with the 1040 tax return starting fiscal year 2011.

If you are an Americans abroad or know any Americans abroad, write to your Congressmen and encourage all of your American friends in the United States as well as those living abroad to join the massive write-in campaign lead by American Citizens Abroad. Click on the link for a model letter.

Middle class Americans abroad targeted by IRS

by waybeyondthebeltway on June 14, 2011 in Americans Abroad, Taxes with No comments

http://twitter.com/#!/peterdahlen/statuses/80511407409475584

Banking Access Issues Abroad? Let ACA Know

by waybeyondthebeltway on May 13, 2011 in Americans Abroad, Taxes with No comments

American Citizens Abroad (“ACA”) has been asked by the office of Rep. Carolyn Maloney, co-chair of the Americans Abroad Caucus and a member of  the House Committee on Financial Services, whether the banking access issue is solely a concern for civilians or whether there are examples of military families (or their dependents) or federal contractors who are finding their access to foreign or domestic banking services restricted.

If you serve in the military or are a federal contractor or employee and have had banking access issues abroad, or if you are aware of banking access issues among folks in these categories, or for military retirees abroad, please let ACA know as soon as possible.

ACA is preparing for hearings in Congress to discuss these problems. So if you have had banking and/or tax problems because of US government policies with regard to overseas Americans ACA wants to hear about it. You can submit your personal story online and specify the degree to which your personal details will be shared.

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