Monthly Archives: November 2014

My eyes have seen the years – Roger Conklin: “United States has replaced Cuba as the nation with Exit Tax”

With the passing of Roger Conklin, the world has lost a decent man. He was also a relentless advocate for ALL Americans and for the United States as a whole. He influenced many posts on this blog. For many years, Roger was involved with “American CItizens Abroad“. Roger posted numerous comments on online articles. He generously educated others with his numerous emails. He was a true American Patriot who was a keen observer of the “aging of America”. What follows is an email that he composed during the last few years of his life. This email is a “wake up call” and a true gift to those who care about the future of America.

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USA should NOT “Talk The Freedom Talk” unless it “Walks The Freedom Walk”

The above tweet references the following article that appeared on the ADCS Sovereignty Facebook page.

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Part I: How the IRS “Non-Filer Program” Affects USCs and LPRs Residing Outside the U.S.

https://twitter.com/USCitizenAbroad/status/535905398487019520

Most recently in August of this year, the IRS has articulated its position for U.S. citizens and lawful permanent residents residing outside the U.S. in a document titled – “New Filing Compliance Procedures for Non-Resident U.S. Taxpayers“

Tax-Expatriation

U.S. citizens who have spent most all of their lives outside the U.S. are often times shocked to learn about the scope of the U.S. citizenship based taxation system.  In recent years, due to the aggressive pursuit of the IRS and Tax Division of the Department of Justice, there has become a keen focus on assets and accounts located outside the U.S.

Most recently in August of this year, the IRS has articulated its position for U.S. citizens and lawful permanent residents residing outside the U.S. in a document titled – “New Filing Compliance Procedures for Non-Resident U.S. Taxpayers

For a brief chronology of the actions taken by the IRS and DOJ and the U.S. Congress in the offshore world during the last few years see, How Congressional Hearings (Particularly In the Senate) Drive IRS and Justice Department Behavior

See, also IRS Audit Techniques – Expatriation, How the IRS…

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Now That The ‘Koala Kuddles’ Are Over, Here’s What The G20 Agreed On Beneficial Ownership

Read this post in the present. Learn what the future holds (or not) for the next generation.

SOME CLARIFICATION FROM IRS ON THE STREAMLINED FILING COMPLIANCE PROCEDURES.AND DEINQUENT INTERNATIONAL INFORMATION RETURN SUBMISSIONS.

https://twitter.com/USCitizenAbroad/status/531306210499506176

The IRS acting director of International Business Compliance also emphasized at the ALI program that under the delinquent foreign form submission procedures reasonable cause explanations will be viewed very positively where all foreign income has been reported.

The Tax Wars Blog

The IRS has updated its Streamlined Filing Compliance Procedures and Delinquent International Information Return pages (October 9, 2014) and issued Frequently Asked Questions with regard to each.

The FAQs for U.S. Taxpayers residing in the U.S. clarify that:

  1. The 5% penalty for non-willful submissions does not apply to accounts over which the taxpayer had only signature authority but no financial interest.
  2. The penalty base includes only unreported assets that would have been reported on an FBAR or Form 8938. Thus, real estate, even with unreported income, is not included.
  3. Assets not reported on Form 8938 because they were reported on a delinquent Form 3520 or Form 5471 for the same year are included in the penalty base whereas assets reported in a timely filed Form 3520 or Form 5471 are not included in the base.
  4. Stock in a foreign corporation is included in the penalty base unless it is a…

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Part II: U.S. Citizens Residing Outside the U.S. Probably Have Some Solace Re: Acquittals of Foreign Bank Employees

https://twitter.com/USCitizenAbroad/status/530375573646737408

“The U.S. tax law is exactly the same for a non-resident USC versus a U.S. resident USC; however, explaining this difference to a jury in a criminal trial will be difficult for prosecutors.”

Tax-Expatriation

Monday’s post on http://tax-expatriation.com/ – the day the Florida District Court jury acquitted the UBS banker, explained the background of what has been a significant prong of the U.S. international tax enforcement efforts by the IRS and Department of Justice.  That prong has focused upon non-resident individuals and in the case of the Mizrahi banker, a U.S. based employee of an Israeli bank.

See,  Part I: U.S. Citizens Residing Outside the U.S. Probably Have Some Solace Acquittals Today and Friday of Swiss and Israel Bankers

To date, the Tax Division of the Department of Justice (“DOJ”) has brought multiple criminal tax indictments against these type of non-resident individuals; focusing on so-called “enablers”.  See Offshore Charges / Convictions Spreadsheet (4/30/14) on Jack Townsend’s Federal Tax Crimes Blog

Indeed, the UBS banker Mr. Raoul Weil was a fugitive from the U.S. justice system for several years, until he was arrested while in…

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RCMP reveals details of its $92-million plan to erect a 700-kilometre surveillance fence along the Canada-U.S. border

Conrad Black: The Republicans have given the Obama Democrats a well deserved thrashing

“Corruption of offices and institutions has scraped the bottom of America’s profound experience in this area, with the Internal “Revenue Service and the prosecution service unleashed on partisan enemies and acting in brazen contempt of Congress when called to account by it.”

More on FATCA Driven IRS Forms, specifically including IRS Form W-8BEN-E

https://twitter.com/USCitizenAbroad/status/530009926132068353

“Importantly, none of these forms are in other key languages such as Spanish, French, Mandarin, Cantonese, Portuguese, etc. Imagine the daunting nature of completing these complex forms just in English when English is your first language, let alone completing them when you speak little to no English.”
The IRS will export English around the world. Those who teach “LegalEnglish” should take note. You can become the “Priests of FATCA”. ”
FATCA: A small step for man and a big step for Man/FATCAkind”

Tax-Expatriation

The lives of United States Citizens and Lawful Permanent Residents living outside the U.S. has necessarily become more complicated due to FATCA.  1998 Treasury Report - Factors Limiting Collection p2

Previous posts discussed unintended consequences of FATCA.  See, Part 2 – Unintended Consequences of FATCA – for USCs and LPRs Living Outside the U.S.

Also, see, Part 1- Unintended Consequences of FATCA – for USCs and LPRs Living Outside the U.S.

One of the most significant unintended consequence, is that the U.S. federal government (the IRS, the Treasury Department, or 1998 Treasury Report - Factors Limiting Collection p3Congress) never initially even contemplated USCs and LPRs living overseas.  In other words, the group targeted were U.S. resident individuals who were evading taxes through foreign financial institutions.  I say this, based upon extensive conversations I have had with ex-government officials and some government officials who were involved in the original policy discussions.

Also, see FATCA Driven – New IRS Forms W-8BEN versus W-8BEN-E versus W-9 (etc. etc.) for…

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