FATCA will be less onerous for certain U.S. citizens living outside the U.S.

This is big news. Although it will exempt a small number of U.S. citizens living outside the United States. The vast majority will be burdened by this form. U.S. tax and information reporting compliance is almost impossible for the average person.

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2 thoughts on “FATCA will be less onerous for certain U.S. citizens living outside the U.S.

  1. Just Me

    Not really…. In my opinion…

    Robert Wood gets it wrong…

    Under the title:

    “IRS Exempts Many Expats From FACTA”

    Which is a bit misleading. The title was designed to attract attention. Mission accomplished, I suppose, but a better title would be:

    “IRS Exempts some Expats from one little provision of FACTA if you meet complicated technical threshold definitions.”

    He was referencing the IRS Release of Guidance on Foreign Financial Asset Reporting

    http://www.irs.gov/irs/article/0,,id=251216,00.html

    The thing that frustrates me about the way the IRS goes about dealing with these stupid Statutes that Congress passes, is by making them so damn complicated to the nth degree squared. You still have to spend about as much time and effort (LCUs) (maybe more) just reading the guidelines to see if you meet their all their technical definitions and thresholds, let alone do all the calculations necessary to determine your compliance requirements. It would probably take less time just to fill out the ridiculous form in the first place. If fact, that is what I probably will do just to make them have to do more work to process it even if I am not technically required to do so.

    GRRRRRR

    Further, this form 8938, is really nothing but another vehicle for the US government to extract new penalties for failure to file or failure to file correctly. The value of the form is otherwise worthless. It is doubling down of the ridiculous FBAR penalty regime.

    So now, if I miss estimate the value of my assets, exceed some limit either at year end, or a high amount mid year due to some market swing, or FX rate fluctuation, and / or if I am slightly over the new limits, and fail to file the form because I thought I was under, I will be subject to a new penalty. This is just so absurd I am beginning not to appreciate the comedy of it all anymore. Those living in the US with all their assets on the homeland, don’t have to file any similar information or state their assets just because they reside in that sacred land. So now we have two classes of citizens. How discriminatory is that? Because I choose to live elsewhere, I am enslaved with these newest requirements, and you living with Dorothy in Kansas with the Wizard of Oz are not! This is an empire running amuck. I am beginning to think Ron Paul looks more and more moderate and reasonable compared to the regulatory extremist running Congress and the IRS. Never thought I would have said that.

    Reply
    1. renounceuscitizenship Post author

      Thanks for your comment – agree with you on all counts. Do you think that there is any chance of FATCA either being repealed or being grossly watered down? The simple fact is that, unless you are extremely wealthy and can go through life with lawyers and accounts on your payroll, it is impossible to be a U.S. citizen.

      I can see a day that the first words out of the mouth of a newly born U.S. citizen would be:

      Where is my lawyer?

      These people running the U.S. are completely crazy and disconnected from reality.

      Reply

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