Monthly Archives: January 2013

What a FATCA IGA “would” mean for non-compliant U.S. citizens abroad

Are you a U.S. citizen abroad?

If you are not a U.S. citizen (or other kind of U.S. person) you may have little to worry about. Panic is starting to set in. There were many U.S. citizens who became citizens of other countries. They may or may not have lost their U.S. citizenship. Even if at this moment you believe you are a U.S. citizen, I urge you to consider this issue.

If you are NOT a U.S. person there is no reason for you to read the rest of this post. But, if you are then:

It’s all about Cause, Reasonable Cause

The Good News – FATCA Is In Trouble

FATCA is in trouble – it appears to be stalled. Treasury was (at least it said) anticipating up to 50 IGAs by December 31, 2012. As of today, they have a total of four. That is a pathetic and pitiful number. To make matters worse, Treasury failed in its commitment to get regulations/information/direction to the foreign financial institutions by the December 31, 2012 date. (The word is that the release of the final FATCA rules is imminent. Update January 18: the IRS has finally released the final FATCA rules.)

At best FATCA is not going as smoothly as Treasury predicted. At worst FATCA is in serious trouble. As James Jatras preaches, it is a mistake to think that FATCA is inevitable. Furthermore, Canada (the Government and the banks) can put an end to FATCA by just saying no. Just Say No!

The Good News – We Are In A Pre-FATCA World For Non- Complaint U.S. Persons

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US taxation of Green Card Holders who reside outside the US

Comment on the taxation of Green Card holders who reside outside the U.S.:

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#FATCA and the end of human freedom

Most of the discussion of FATCA revolves the technical complexities, compliance costs and logistical impact on U.S. citizens abroad. FATCA is all those things but it is something far more important.

FATCA is an attack on human freedom everywhere! I have explored this in a previous post: FATCA: Freedom is only one generation away from extinction.

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Equality: Law prohibits both rich and poor from sleeping on park bench

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I recently saw the movie Les Miserables which is based on the great French historical novel. As it is described in Wikipedia:

The story begins in 1815 in Digne, as the peasant Jean Valjean, just released from 19 years’ imprisonment in the galleys—five for stealing bread for his starving sister and her family and fourteen more for numerous escape attempts—is turned away by innkeepers because his yellow passport marks him as a former convict. He sleeps on the street, angry and bitter.

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Does Cook v. Tait really mean that citizenship-based taxation is constitutional in all cases?

In December 2012 U.S. Judge Robert Bork diedHe  taught at Yale Law School. His students included Bill and Hilary Clinton. He was once the Solicitor General of the United States. He was a prolific writer and a forceful intellect. Even those who disagreed with him respected him.

President Reagan attempted to appoint Judge Bork to the Supreme Court of  the United States. The Senate did NOT approve his nomination. The Senate judiciary committee (chaired by Senator Kennedy) orchestrated attack after attack (not Senator Kennedy’s finest moment) on Judge Bork’s personal views. It was not pretty.

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