Forcing foreign financial institutions or governments to collect data on American citizens and transmit it to the IRS—at their own expense, yet—does not go over well in foreign capitals. It has already drawn the ire of Canada’s Finance Minister Jim Flaherty for requiring Canadian banks to become unpaid extensions of the IRS and jeopardizing Canadians’ privacy rights.
This is an article written by Abe Katsman for the Jerusalem Post. It deals with FATCA and, as we mentioned previously, a move is underway by the Republican party to repeal the law. This article is reprinted with permission of the author’ brother, Aaron Katsman, from his interesting and informative website, http://www.gpsinvestor.com. For more insightful political analysis check out Abe’s blog as well as Aaron’s website and book (see below).
The looming United States Foreign Account Tax Compliance Act (“FATCA”), intended to prevent tax cheating, is known as “the worst law you’ve never heard of.” But unfamiliar as the name is, the effect of the law is already all-too-familiar to Americans living in Israel. Law-abiding Americans facing U.S. reporting requirements of their Israeli financial accounts, or who have been denied banking or financial services due to American citizenship, have already felt its impact.
The law’s onerous provisions are scheduled to…
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