Category Archives: ovdp

FATCA – FBAR – OVDP: Comparing inside looking out (Homelanders) to outside looking in

https://twitter.com/USCitizenAbroad/status/647391630773751808

This is really worth  a watch. By the way, the prevailing view is that the Homeland does NOT care about how FATCA affects Americans abroad.

 

 

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Nice collection of #FATCA #FBAR #Renouncecitizenship comments from @GlobeAndMail

Very nice collection of comments from StudentAdvocate including:

Our neighbour just got more dysfunctional

US dysfunction affects all Canadians. Due to US law the Foreign Account Tax Compliance Act (FATCA), the world’s banks and financial institutions are now agents of the US Treasury Department, and are on a witch-hunt for so-called US persons – basically anyone with a US place of birth. FATCA is one of the most arrogant and dysfunctional laws to ever pass Congress, and was passed as an add-on rider, with little debate or consideration for consequence. In Canada, the Harper Conservatives capitulated to the US law FATCA, and made history by making banking and financial discrimination against any Canadian with a US birthplace mandatory. Embedded in omnibus budget bill C31 was an an Intergovernmental Agreement (IGA) to embody the dysfunctional US law FATCA into Canadian law. This was largely covert and under-reported, the US demanded FATCA compliance and the Canadian government – at the behest of Canada’s banks – pushed it through, despite unanimous opposition from NDP, LIberal and Green Party. Now, the hunt is on for so-called US persons in Canada. All banks, financial institutions and insurers must search their customers records for indications of a US place of birth. They must ask all new customers if they have a US birthplace or similar connection. If found, the confidential bank records will be forwarded to the US IRS – via compliant poodles at CRA. The US considers the local and legal Canadian financial accounts of any Canadian with a tie of so-called US person-hood to be a potential undeclared and illicit “offshore account” – and the penalties are draconian. Because so many Canadians were either born in the US or immigrated from the US, the effect is profound. This may effect up to one million Canadians, many of whom have only a tenuous tie to the US (including border babies: Canadians incidentally born in the US due to happenstance or medical referral). Because the Canadian FATCA IGA in Bill C31 violates the Charter by making “place of birth” discrimination mandatory, it is being legally challenged. A small grassroots organization – The Alliance for Defense of Canadian Sovereignty – has raised almost $300,000 through crowdfunding and hired leading Constitutional advocate Joe Arvay to challenge this in court. All Canadians should oppose the shameful embedding of dysfunctional US law in Canadian law, because it has created a new class of 2nd class Canadians: any Canadian with a US place of birth now has significantly reduced financial

Possible benefits of the coming into U.S. tax compliance through the Streamlined program?

This post originally appeared at the Isaac Brock Society.

Updated November 3, 2014 – Readers are strongly encouraged to read the comments as well. One must remember that Streamlined and OVDP are programs which have been invented by the IRS. They are not found in the Internal Revenue Code. Consequently this post should be read in the context of the following comment to this post:

Commentary on the ‘clarifying rules’:

http://tax-expatriation.com/2014/10/14/irs-releases-clarifying-rules-for-u-s-citizens-living-outside-the-u-s-re-streamlined-filing-guidance/

“……..FAQs are all the rage these days with the IRS, as the government does not take the time or spend the resources to follow the Administrative Procedures Act or similar requirements which are required in order to issue binding rules and regulations. See a previous post regarding these requirements, specifically regarding those who renounce U.S. citizenship or abandon LPR status and have not complied with IRS Notice 2009-85. See,Does IRS Notice 2009-85 regarding expatriation have the “force of law”? Posted on April 14, 2014

Hence, these SFCP are not legally binding on the IRS and they can pick cases as they choose for audit, review and penalty assessment in any manner they think is consistent with the law. Sometimes they do it in a manner that is not consistent with the law.”………….

Americans abroad are getting special attention from the IRS

 

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Post your FATCA/FBAR/CBT article here (on this new blog)!

https://twitter.com/USCitizenAbroad/status/521235922084323328

Yes, please do! I completely support this initiative.

Welcome to a new blogger on FBAR, FATCA and the other ways that the U.S. violates the sovereignty of other countries through it’s uniquely oppressive taxation practices.

No wonder that the motto of Americans abroad is:

Renounce and Rejoice!

Post it Here: Why FBAR/fatca/cbt is All Wrong

If you are tired of the USA’s FBAR, Citizenship-Based Taxation (CBT), and FATCA—this is YOUR place.

If you want to make a post of your own, send in a comment with simple instructions.  Instead of approving your comment—I will copy paste it in to your own post.

Give your instructions as to whether you want to be anonymous, input a nom de plume, or want to put in your real name

We invite all affected by this nightmare—including those in the banks and governments who have to deal with this mess.

Many people don’t have their own blog site, and many people want to be together on one site.

Post it here.

I’ll do my best to timely put it up and send a twitter announcement!

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Why improving relations with #Americansabroad is difficult for the #IRS and USG

This is a comment on a post at the Isaac Brock Society.

@Badger

Here is a post that I did in February 2012 titled:

Canadian RRSPs and the OVDI Penalty Base

https://renounceuscitizenship.wordpress.com/2012/01/12/canadian-rrsps-and-the-ovdi-penalty-base/

You will note that it includes a comment from Ij

In any case, it is clear that that the “Shulman Reign of Terror” has caused irreparable damage to the relationship between the IRS and Americans abroad. As the Hodgen post demonstrates it is quite obvious that the IRS was using OVDI as nothing more than an “FBAR Fundraiser” and was in fact – once it became clear who was entering the OVDI program – quite deliberately and willfully extracting penalty revenue from its victims.

Although the original intent of OVDP/OVDI may have have been to allow “criminals” to legalize their illegal gains, it soon became clear that an entirely different group of people (law abiding Americans abroad) were entering the program. By entering OVDI, Americans abroad were allowing the IRS to confiscate a large portion of their legally earned and after tax gains! In other words, OVDI was designed to give a fantastic deal to criminals and to confiscate the lawfully earned assets of Americans abroad!

The IRS did NOTHING to discourage this! In fact, by NOT contradicting the claims of lawyers/accountants that a failure to enter OVDI was a “forbidden quiet disclosure“, the IRS encouraged Americans abroad to enter OVDI. This immoral and unethical treatment of American’s abroad sealed the deal. Shulman proudly proclaimed OVDI a success (notwithstanding the OVDI concerns raised by Taxpayer Advocate).

As Phil Hodgen commented (see the reference in the Badger comment above):

“Think about what the IRS is saying:

Ordinary Canadians must give the United States Treasury 25% of their pension savings because of a missing piece of 8.5 x 11 paper.”

Yes, this is exactly what was going on in 2011 and 2012. So incredible that NOBODY believed this when it was explained to them. Think about it. Your whole retirement savings subject to confiscation because you didn’t file a piece of paper that NOBODY would even imagine needed to be filed!

From that moment on, Americans abroad understood that they needed protection FROM the U.S. Government. There were are are only two ways to get that protection:

1. Stay underground and hide your “U.S.Ness”; or

2. Renounce/relinquish (at an increased cost, more people will take the first option).

(Don’t forget that that these problems were enabled and exacerbated by our friends “The Cross Border Professionals”. They regarded their “professional obligation” NOT as protecting the client but to enter people into OVDI. Instances have been reported of people entering OVDI who ceased to be U.S. citizens in the 70s. Think about it.)

The hatred and distrust of the IRS and the Obama administration is so extreme that anything the IRS does will remind everybody of the “FBAR Fundraiser” and OVDI. For example, I personally believe that the new 2014 Streamlined Compliance Program IS an IRS attempt to allow Americans abroad to come into the system “penalty free”. But the complexity of U.S. tax laws and PAST experience with the “Shulman Reign of Terror” means every proposal is interpreted in an atmosphere of distrust.

The fastest growing source of hatred of the United States of American is (and understandably so) Americans abroad.

It’s obvious that the only thing that makes sense is to:

Renounce and rejoice!

Judge: Curran should seek Presential pardon after adventures in #FBAR

Curran could have gotten as much as 37 months in prison. However, her counsel sought probation and the prosecution did not oppose it. At a Wednesday sentencing hearing in federal court in West Palm Beach, U.S. District Judge Kenneth Ryskamp gave her one year of probation and then immediately revoked it.

“This is really a tragic situation,” the judge said, urging Black to seek a presidential pardon on Curran’s behalf. “It seems to me the government should have used a little more discretion.”

Also representing Curran was attorney Nathan Hochman, who said the sentence was unique in his 25 years of prosecution and criminal defense practice.

“Judge Ryskamp’s sentencing is unprecedented in a number of respects: calling the government’s case against Mrs. Curran ‘tragic’ and ‘unfortunate,’ putting her on probation for effectively five seconds, urging Mrs. Curran to file a pardon application with the president, and telling the prosecutors they would be spiteful to oppose it,” he told the news agency.

The prosecution declined to comment.