Monthly Archives: December 2011

Must Read – First IRS attacks U.S. citizens living abroad – Now attacks Californians

Robert Wood explains the “John Doe” summons here:

This is an excellent article written by Daniel Mitchell of the Cato Institute.

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Update on the IRS FS for U.S. citizens and dual citizens living outside the United States – No additional relief for Canadians

The world as of December 18, 2011

This is the third post about the treatment by the IRS of U.S. citizens and dual citizens living in Canada.

The first post was written on December 2, 2011. It reported on Barrie McKenna’s article in the Globe and Mail and Ambassador Jacobson’s statement (which was really a continuation of his remarks on October 18, 2011 in Ottawa). The focus was on the possible waiver of tax and FBAR penalties for U.S. citizens living outside the United States.

The second post was written on December 9, 2011. It reported on the information in the IRS Fact Sheet for U.S. Citizens and dual citizens living outside the U.S.

This third post – December 18, 2011 is providing an update to the first two posts. I will consider additional information that has become known this week. Continue reading

The true value and purpose of an FBAR

Came across this comment:

Anonymous said…
“The data on a FBAR is utterly useless to any sensible law enforcement official and/or any known regulatory agency. In contrast, the ABSENCE of a FBAR or better yet: a demonstrably willful failure to file it – is of enormous potential value to the US Treasury because it allows the opportunity to extort wealth from and/or otherwise coerce its citizens.”

This comment neatly sums up FBAR in a nutshell. The only FBAR form of value is the one that is not filed.

I’d go further, and suggest that filed FBARS are actually worse than useless because there is a cost to processing them. The cost drain of this pointless busywork is likely to worsen considerably in future as the IRS begins to pull in hundreds of thousands of new ordinary 1040 returns from overseas, all of which have a big fat zero dollars owing on the bottom of them because of the FEIE and/or tax treaties.

There are plans to mandate electronic only FBARs from next year. I predict something similar soon for *all* US tax returns filed by overseas filers, and perhaps domestic also, as the IRS struggles to contain ballooning processing costs, with little to no additional revenue, caused by their recent jihads.”

The FBAR has created a new class of historian called the FBAR Historian.

 

 

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.

The Best Investment in U.S. Defense is to Repeal FATCA

Who are the police protecting and from what?

“What do the recent G20 discussions and the IRS’ enforcement of foreign asset reporting have in common and why should “dual nationals” be concerned?”

From: Fear Factors: Dual Nationals and the IRS

A recent G20 summit was held in Toronto, Canada. The internet is a great thing – gives you instant access to the newspapers in any part of the world. As a result I was able to read both the local commentary and international commentary. The local (Toronto) newspapers were marveling at the extent and cost  of the security offered to these “great leaders”. A friend commented to me that:

 “If they were such great leaders, then they wouldn’t need that kind of security.”

That was an astute comment – I felt sorry for the Canadian taxpayers who were bearing the cost of a “photo op”  for their government. Furthermore, the violation of the civil liberties (if there are any) of Canadians was enormous.

It occurs to  me that there is a lesson in this for the U.S. government. On September 11, 2001 Osama Bin Laden destroyed the United States of America. It is true that he killed  5,000 people (and I not trivializing this).  Bin Laden set into motion a chain of events, which resulted in the U.S., taking the initiative to  destroy itself.  The U.S.  destroyed itself financially and the U.S.  destroyed itself morally. The country is no longer recognizable.

Continue reading

Ron Paul Iowa Debate December 11, 2011

Win, lose or draw, Ron Paul is the most important candidate in the run for the Presidency. The reason is as follows:

Recent events have made it clear that the U.S. has abandoned its historical and constitutional roots that were premised on freedom and democracy. The U.S. that was described by Margaret Thatcher, as “that great citadel of freedom and democracy“, no longer exists. Ron Paul is the only candidate for President who believes in the values embodied in the U.S. constitution. “To be clear” (as Obama would say), the U.S. revolution  was fought over these values. World War II was fought to preserve these values. And under the “leadership” of Barack Obama, the U.S. has turned its back on these values.

The 2012 campaign is one where candidates are talking about the economy, jobs, immigration, education, etc. But, it is the way that these issues are being discussed that is most interesting. As real as these things are, they are not the main issue. The main issue is whether the U.S. is going to once again that great citadel of freedom and justice, or whether it will continue to undermine those liberties that previous generations died for.

Ron Paul is the only candidate is talking about the issue that matters most. Enjoy watching this video! Watching it actually made me feel better  about the United States.

Hats off to Congressman Ron Paul – and thanks to him for framing the issues in this important debate!