Tag Archives: FBAR and RRSPs

FATCA and FBAR make U.S. born children virtually unadoptable for non-U.S parents

I’ll have to admit I had not thought of this. Although it is clear that FATCA and FBAR have combined to make non-U.S. citizens reluctant to have any kind of financial relationship  with a U.S. citizen,  a new problem has surfaced. In hindsight this is perfectly obvious. A British Columbia adoption agency  is disseminating information which explains what happens if a U.S. citizen is adopted. The agency states that:

“Whether your child lives in Canada as an American citizen, or unless and until they eventually renounce their American citizenship, they must file tax returns every year (if they have income), and if they have any qualifying financial accounts must file FBARs every year.” Continue reading

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Possible waiver of U.S. tax and FBAR penalties for U.S. citizens residing abroad

Subject to the "unknown unknowns"

Thanks to Barrie McKenna of the Globe and Mail for this article and to his support on this important issue during this most difficult time for U.S. citizens residing in Canada and the rest of the world. Thanks also to Finance Minister Flaherty and the MPs who have supported Canada/U.S. dual citizens during this time.

On December 7, 2011 the IRS posted a Fact Sheet providing information about this issue. I have written some commentary about the Fact Sheet here.

I recently predicted that the IRS treatment of U.S. expats would become a diplomatic issue for the U.S. The December 2011 announcement by Ambassador Jacobson, concerning the IRS and U.S. expats,  suggests that this is true. Continue reading

OVDI Collateral Damage – U.S. Expats

Now that the September 9, 2011 deadline has passed people actually have the chance to think. It is  understood that OVDI was primarily aimed at U.S. taxpayers who were using offshore bank accounts to hide money – and evade U.S. income tax. Even the name “Offshore Voluntary Disclosure Initiative” is telling. Two points: Continue reading

OVDI Collateral Damage The Story Must Be Told

Those of you reading this blog are familiar with my conviction that the U.S. has completely abandoned its historical and constitutional roots. Let me be more precise. It is the Government of the United States that is the problem. The country is run by one of two private clubs – I am referring to the Democrat and the Republican parties.  America’s first president George Washington – feared and opposed political parties. In any case, I want to make a specific point: The country and the political process is for the people – not for the politicians, not the IRS, not the political parties, not the mainstream media. November 12, 2011 was the annual celebration of a day for our veterans of armed conflict. During World War II, the allied powers went to war to protect their freedom and liberty from the axis powers. Freedom and liberty is NOT the natural order of the universe. Continue reading

Globe and Mail – Americans in Canada driven to divorce

Link to Article:

Americans in Canada driven to divorce from their country

This is a desperate time to be a U.S. expat. An “ignorant and arrogant” U.S. Congress (to use the language of American Citizens Abroad) along with Carl Levin, Barack Obama, Timothy Geithner and Douglass Shulman are destroying the lives of American citizens who happen to live outside the United States. It is difficult to describe the state of sheer terror that U.S. expats are living under. The bottom line is that the U.S. is threatening monetary penalties which, if implemented, will force U.S. expats to liquidate their assets (homes, RRSPs, etc.) and pay the IRS. U.S. citizenship is such a liability that there will be a number of marriages (which are already on shaky ground) that will end because the non U.S. spouse will not want to be reported to the IRS. Would you want to be married to somebody if it meant that all of your financial information would go to the IRS? To understand the exact reasons and the how this came about, I encourage you to read other parts of this blog. But, the “bottom line” is what it is. Continue reading

The psychic, financial and life costs of complying with the Internal Revenue Code

Click here to read comments about this video.

This video suggests that the compliance cost of filing taxes is $1000 per person per year. As an expat, you need to file all of the other forms. Your financial cost will be much more. But, don’t fort the stress and anxiety. What about the problem of even finding a tax professional who can do this?

In the beginning, the U.S.A. was a nation of laws. Now it is a nation of forms!

The question is simple: do you want to spend your time paying people to help you fill out forms or do you want a life?

U.S. Citizenship – It’s time for it to go!

Tax havens and the public good

Note that I do not condone violation of the law. Furthermore, U.S. expats have reason to keep their money outside the U.S. (they have to live). Hence, these thoughts are really directed to U.S. taxpayers who are resident in the U.S. and keep their money outside the U.S.

FATCA is motivated largely by an attempt to make it hard for U.S. taxpayers to keep their money in foreign countries. But, why would any U.S. resident (expats are a different issue) want to keep their money outside the United States?

There is only one answer: tax rates in other countries are less. The United States taxes corporations (at least in theory) at one of the highest rates in the world. The easiest way to end the use of the so called “tax havens” would be to lower U.S. tax rates. At lower tax rates, U.S. tax payers would have:

1. No incentive to leave their money outside the United States; and

2. Every incentive to to avoid the bureaucratic costs of keeping their money outside the U.S.

It’s simple:

The United States should just lower tax rates – let that money come home!

History has demonstrated that when tax rates are lowered, governments take in more tax revenues. But, this if of course too logical for the Levins, Obamas, and Geithners of the world to understand.

Don’t follow through with FATCA – the Berlin wall of the financial system.