Legislation


FATCA chases money away

Thanks Randall for the email. http://mobile.bloomberg.com/news/2012-05-08/u-s-millionaires-told-go-away-as-tax-evasion-rule-looms.html Congress imagines itself to be the Borg. Resistance is futile. Submit and be assimilated. In fact America is declaring itself irrelevant. And the rest of the world agrees. Add to this the way it is being done — in a schoolyard bully style — and is it any wonder […]

Nonresidents’ U.S. bank interest earned to be reported to IRS

The IRS came out with their Regulations which tell banks that they must report interest earned by nonresidents.  Up to now, this was not done.  If a nonresident opened a bank account in the United States, the interest earned was not reported to the U.S. government. The bank interest itself is not taxable in the […]

Form 8938 can apply to nonresident aliens

Overview Even if you are a noncitizen of the United States, you may be required to report your worldwide financial assets to the Internal Revenue Service on Form 8938. If you spend too many days in the United States, you become a resident for income tax purposes.  You must pay U.S. income tax on your […]

FBARs and Delays in Detroit

I know I promised that I wouldn’t blog about FBARs anymore.  (This stuff chews up too many Life Credit Units, as Just Me calls them.)  But I wanted to share something with all of you that may help you make decisions. From a correspondent by email today: Just a quick update.  I called the FBAR […]

Form 8938 – new disclosure form

Form 8938 is out in draft form.  I hear the The instructions were published today on the IRS website but I looked for them and didn’t find them. When I find them I will let you know. Draft Instructions to Form 8938 (PDF) are now available, too. This form duplicates the information required on the […]

FATCA fallout continues

Our client is a resident and citizen of a European country. He has tenuous ties to the United States which we handle by making a treaty election to have him taxed as a resident of his home country rather than the USA. Guess what? His domestic bank in his home country has presented him with […]

HBSC Shrugged

Yes I know.  An indirect reference to Ayn Rand will offend a number of my readers.  Get over it. FATCA is having the expected impact.  (Expected, apparently, to everyone except Congress and the Department of Treasury). HSBC Private Bank — in its branches outside the United States — will no longer take U.S. clients.  This […]

ACA calls for FATCA repeal

Go support ACA.  They’re likely the only voice of sanity for ordinary American citizens living abroad when it comes to the IRS.  (Well, I know for a fact that there are some IRS employees who are immensely sane, and if they had any authority we’d be way better off.  But I digress.) FATCA is a […]

FATCA deadline extended for a year

The FATCA rules, due to be effective in 2013, have been put on hold for a year.  The IRS Commissioner said in a press release that this was done because the IRS wants to be nice to foreign banks which have serious problems in implementing the rules: “Today’s notice is a reflection of our serious […]

Swiss radio stories on FATCA’s impact

Here are a couple of stories from World Radio Switzerland about FATCA.  Funny how people outside 1111 Constitution Avenue can see the damaging side-effects of this law, but those bunkered inside those walls cannot. Here from last month you will hear the comments from a couple of politicians, as well an interview with Milan Patel, […]