“The point is that Americans abroad face deep discrimination and handicaps in saving for the long-term and for retirement due to U.S. tax policies which limit their investment possibilities.”
This letter and response to it was published in the latest ACA (American Citizens Abroad) newsletter. It provides and insight into how FATCA, a law that only affects FFIs (foreign financial institutions), can have a direct personal effect on each and every individual EXPAT.
Dear ACA, I have been trying to keep myself updated on FATCA and how it can affect me, but until recently I thought that I only had to worry about tax compliance, that is, making sure my taxes were totally correct because my financial institutions would be reporting everything to the IRS anyway. I thought the problem of being denied financial services was a problem with other countries like Switzerland, and living in Scandinavia, that would not be a problem for me.
In the last months, however, I wanted to start saving in an Index fund for my infant son, and so I…
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U.S. Persons Abroad - Members of a Unique Tax, Form and Penalty Club 