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Roger’s Rules

Weaponizing the Acronyms that Rule Us

July 17th, 2013 - 6:17 am

How does despotism come to a modern democracy? Tocqueville thought it was by means of the regulatory state, which “extends its arms over society as a whole.”

[I]t covers its surface with a network of small, complicated, painstaking, uniform rules through which the most original minds and the most vigorous souls cannot clear a way to surpass the crowd; . . . it does not tyrannize, it hinders, compromises, enervates, extinguishes, dazes, and finally reduces each nation to being nothing more than a herd of timid and industrious animals of which the government is the shepherd.

Exactly how would you go about doing this?  Ask the acronyms, starting with the NSA and IRS (and let’s not forget the EPA). The NSA hoovers up information about everyone everywhere because you just don’t know who might turn out to be a security threat. (And given our government’s penchant for criminalizing behavior that only yesterday was considered innocent, the category “security threat” just grows and grows and grows.) The IRS, as we continue to learn, is only incidentally in the business of collecting taxes. At bottom it is a weaponized bureaucracy, deployed to intimidate, silence, and punish individuals and enterprises deemed to be at odds with the ruling nomenklatura in Washington.

IRS: that’s “Internal Revenue Service.”  I think they may have to change their name soon: maybe “URS,” for “Universal Revenue Service,” for like many bureaucracies, the IRS just grows and grows and grows. A disturbing article by Colleen Graffy in The Wall Street Journal shows how the IRS, emboldened by new legislation, has set its sights, and its intrusive, bureaucratic paws, on foreign domiciled Americans.  The legislation is called FATCA (don’t you just love it?), the “Foreign Tax Compliance Act.” It is, as Ms. Graffy points out, a law of “breathtaking scope.”  Imagine this scenario:

You were born in California, moved to New York for education or work, fell in love, married and had children. Even though you have faithfully paid taxes in New York and haven’t lived in California for 25 years, suppose California law required that you also file your taxes there because you were born there. Though you may never have held a bank account in California, you must report all of your financial holdings to the State of California. Are you a signatory on your spouse’s account? Then you must declare his bank accounts too. Your children, now adults, have never been west of the Mississippi but they too must file their taxes in both California and New York and report any bank accounts they or their spouses may have because they are considered Californians by virtue of one parent’s birthplace.

Or let’s say you are one of the 6 million U.S. citizens living abroad. You may own no property, you may receive no income from the U.S., yet still you face fines if you do not file in the U.S.

Comments are closed.

Top Rated Comments   
Like I said, '... just enough to be dangerous'.

Lucky you, the banks won't be reporting YOUR bank accounts, since your passport does not have a US birthplace.
38 weeks ago
38 weeks ago Link To Comment
@PiedPiper2,

You know just enough to be dangerous. If you are going to comment so much on a subject maatter, your really should spend the time to research it first.

People such as bubblebustin have been living the nightmare of FATCA and the USA's unique to the world policy of citizenship based taxation to the extent that she/he is an expert on the subject matter. Unless you have been there, you will likely never know as much about the reality as she/he does. Stop acting as though you do.

If I recall my childhood fables correctly, the children who followed the pied piper never came back.
38 weeks ago
38 weeks ago Link To Comment
This is actually capital controls masquerading as a tax program. With FATCA, the US government has a good idea of where your are assets are and how much they are worth. And, the beauty of it all is you cannot plead the 5th It is the IRS after all.
38 weeks ago
38 weeks ago Link To Comment
All Comments   (105)
All Comments   (105)
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Wow, some very interesting comments.

I have to say, piedpiper, that I am utterly baffled as to why you would insist on chasing down and punishing a bunch of "losers" to get them to file. Generally speaking, "losers" aren't very successful and shaking them down is pretty futile. I'm pretty sure that the end result of such an attempt will be bigger government and higher taxes for people in the US homeland. Just how much does it cost to process tax returns and FBARS and what's the benefit to the US if the tax returns don't yield enough revenue to offset the costs. I suppose there might be some emotional satisfaction in that for some but are US taxpayers really ready to foot the bill for 800 new international IRS agents?

Here's what we know. There are roughly 6 million US citizens living outside the US. Only a small percentage of them file tax returns and even fewer file FBARS. In business when HQ gives an order and the vast majority of the subsidiaries do not comply, the first place we look is whether or not the message got through and was understood. Then we chastise or fire the people at HQ who had that responsibility and screwed it up. We do not fire the people in the subsidiaries - we fix it by resending and then following up to make sure that everyone understands what is required. Seems simple enough and frankly would be far more cost effective than wild-eyed guesses about the target - those "losers" and their "millions."
38 weeks ago
38 weeks ago Link To Comment
Flophouse: It's funny how readers will interpret what you (I) wrote and make wild assumptions. For example, I never once said or intimated or "insist on chasing down (losers) and punishing them to get to file". I never even came close to saying that. In fact, I totally agree with you that this would be a losing proposition. Such an action would be difficult, expensive and ultimately futile.

As I said in my very first posting here.....FATCA is not after this small fry. They're after the big guys pushing drug money (and similar) around and hiding it. That's why I have no problem with it. It's not going to affect me one single iota.
38 weeks ago
38 weeks ago Link To Comment
Great interview that provides valuable insight into FATCA, citizenship based taxation and OVDI from Willard (Bill) Yates, who recently retired from the Office of Associate Chief Counsel (International), Internal Revenue Service after 31 years of service:

"Citizen-based taxation (CBT) and RBT are two separate issues. What Congress has to realize is that the current citizenship-based taxation creates a serious competitive disadvantage for the United States and that if FATCA remains, CBT for Americans living and working abroad has to go. Otherwise, having a US passport overseas is simply too much of a liability to keep. Over 80% of Americans abroad are long-term overseas residents, married to foreigners, working abroad. Many have dual nationality – some even born with it. Why should they have to continue to double file, double pay when all of their governmental services come from the country where they reside? CBT does great harm to the US because it prevents US corporations from sending Americans abroad to represent US interests. More freedom of movement of US citizens would enhance US competitiveness around the World."

For the entire interview: http://blogs.angloinfo.com/us-tax/2013/07/22/residence-based-taxation-interview-with-bill-yates-former-attorney-office-of-associate-chief-counsel-international-irs-2/
38 weeks ago
38 weeks ago Link To Comment
I guess, from everything I have read, you don't believe that FATCA will have any unintended consequences or any collateral damage. I hope you are right, but fear you are wrong. They could assure that was so by simply exempting Americans living abroad, and write the rules for just resident Homelanders, but they don't and won't.

IF the good intentions of the the mission was just directed to the BIG Guys, as you say, we already know that KYC and AML rules haven't stopped them. Neither has the WAR on Drugs, so why do you think rounding up all Americans Big and Small via FATCA regulations and reporting them will make this any different?

Do you know how complicated FATCA is with its 544 pages of regulations? Have you read any of the IGAs and their annexes which include all those exemptions, deemed compliant categories and numerous loopholes? The BIG GUYs you think they are trying to get, will, with their clever attorneys, drive their Mac Trucks right through the regs as they always do. The rest of us will suffer the inconveniences, consequences, and penalties that accrue to the benignly non compliant, be it the minnows living abroad, or new immigrants to America who are finding out that the U.S. is NOT such a welcoming place after all. They didn't know they were joining a Tax, Form, Penalty and Surveillance Club when they signed up.

Then too, U.S financial Institutions (USFIs) will have a little surprise in store for them when they have a domestic FATCA imposed on them by our FATCAnatics in Treasury. They need it as a way to provide reciprocity for their IGAs as a little sugar to help the bitter medicine go down, but that is another story. As awareness that DATCA is blowing back on homeland shores, stay tuned, as they say. You are going to hear some squealing.

The problem with FATCA is like every ideologically generated legislation or misguided unilateral action by Government. It always ends up in a mess.

Personally, I have really come to hate Ideologues, be they the NeoCons of the Right or the FATCAnatics of the left, that go off on these stupid GREAT BIG COMPLICATED PRE_EMPTIVE MISSIONS with such "certainty" of the justice of their cause, all the while leaving all kinds of victims and destruction in their wake. Spare me their religious fervour!

They NEVER learn that simple actions can have more profound affect on human behaviour for a lot less cost and economic damage then these gigantic programs they create which require an army of solders, or accountants, auditors and new IRS agents to impose on everyone one else guilty or not!

Bottom line, if you loved the Iraqi war, and think that was a great success, then you will love the unilateral pre-emption of FATCA.

This is not a physical war this time, but rather a financial and economic war, and instead of precision drones, or targeted enforcement action, these FATCAnatics are carpet bombing the world with their ill conceived plans. You can sit there and think this will not impact you "one single iota" if you want, but you are being very naive in my opinion.

One final and important point, if you love NSA spying, you are going to love FATCA data collection, because once NSA gets its hands on it, (and they will either via hacking, or just sharing from the IRS) they will have EVERYTHING for their Global Total Information Network. If you think that is a good idea, then just sit back and celebrate their success.

And... if you like the idea of third party handlers of your personal account data being hacked, and think that America's ID fraud problem going global is a great export, than just wait until they get their global GATCA created. You are really going to love it!

Hope you don't live in some dodgy Middle East or African country where terrorist and hackers would like nothing better than to have all Americans rounded up and reported on via very leaky conduits back to the International Revenue Service. Makes their job so much easier.

Think of all those Nigerians who won't have to send you emails any longer with their great deals if you will just send them your account number so they can deposit a Prince's money in it. They will just go to work for the FATCA Compliance Complex and have direct access to more financial data then they could ever dream possible! The American Dream will have arrived as a gift from our dear FATCAnatics!

And for all this FATCA effort, guess what? Tax evasion will NOT be ended or solved! The financial reward to the U.S. Treasury will be but a pittance compared to the global economic damage it will cause, and the compliance costs that we all will bear. But never mind, go on thinking it won't hurt you 'one single iota'. As I said in the beginning, I hope you right, but fear you are VERY wrong!
38 weeks ago
38 weeks ago Link To Comment
In the real world, it is the little fish who are being denied financial accounts, while those with $2+ million can open an account anywhere. It is also the little fish who are hurt the most with increased fees needed to cover FATCA costs. For the big fish, such is a drop in the bucket. So, basically, you are harming yourself for the benefit of those whom you oppose.
38 weeks ago
38 weeks ago Link To Comment
@PiedPiper2
Maybe you didn't see my question. Again, the Committee on Ways and Means is considering the US move to resident based taxation as a part of tax reform. Would you support this?
38 weeks ago
38 weeks ago Link To Comment
No, I didn't see your question. I have no problem with "resident based taxation".

(This would be similar to "state" taxation - you are taxed based on where you are currently living and claim residency, not on which state you were born.)

"State" taxation is an entirely different and complicated issue for US citizens living abroad. It's complicated because you're dealing with 50 different sets of taxation laws :) I've personally had trouble with a couple of states...California and AZ to be precise. (but then, they didn't know at first who they were dealing with, heh heh).

If you think the US IRS is meddlesome and "dangerous", wait until a state comes after you for what it considers its "due".

Most states have a hard time understanding that you can be a US citizen without necessarily being a "resident" of a specific state. Some will simply deny that it is possible to be in such a state of "statelessness".

In any case, a US citizen is also well advised to seek reliable information of "giving up state residency" if he's going to be overseas for many years. At some point, his children will want to go to university....and if daddy's given up state residency, they'll have to pay "out of state" tuition.....and so on.....
I've known several cases where the wage earner did not pay US taxes (legally) but paid "state" taxes deliberately precisely because of the favorable treatment his progeny would be subject to in the future.
38 weeks ago
38 weeks ago Link To Comment
So, an individual who lived in a state for decades and paid state taxes will be treated as an alien if they become unemployed end up paying taxes in another nation where they found work, unless they volunteer to be double-taxed? One would think that the US could become less hostile towards its citizens than that.
38 weeks ago
38 weeks ago Link To Comment
Good article and some very interesting comments. I'm a US citizen and I've lived nearly 20 years abroad. I am compliant and pay my US taxes but I'm fighting this tooth and nail. This is not going to end well for American abroad or people in the homeland. A couple of remarks:

Asking a professional - good advice and I was saying the same thing until I actually tried to help someone in my host country find one. She's retired and the cheapest professional I could find here starts at 300 Euros an hour. She can't afford that and she's not the only one. For those who think that FATCA and citizenship-based taxation are good ideas could you help us find some international tax lawyers willing to take on these cases pro bono?

All US citizens must file tax returns wherever they live - you know it, I know but I'd say most Americans abroad still don't know it. I meet new arrivals from the States all the time and they are blissfully unaware. Some simply don't believe me. One contact I had in Mexico tried to tell some of the folks he knows and was told that he was spouting conspiracy theories. Clearly there is a major communication issue here. What I would like to see and I ask the FATCA/CBT supporters to join with me is a campaign by State, Treasury and the IRS to inform people. This could be done with something as simple as a small note slipped into a US passport (renewal or new) saying that if you plan on living abroad please be aware that there are FBARs and tax returns to file. Another idea would be an official website that clearly lays out these obligations.

This idea is not new and has been proposed before BUT they don't want to do it. Why? It seems a no-brainer - if homelanders wants Americans abroad to be compliant, seems logical to make sure they get the message. I don't have a definitive answer but I was told that some people in the US gov are concerned that if citizenship-based taxation and FATCA become common knowledge then there will be many more renunciations and fewer people seeking to become US citizens. That is probably true but that's a terrible reason and looks an awful lot like a trap. So, let's all push for some kind of information campaign that reaches the widest possible audience of people impacted.
38 weeks ago
38 weeks ago Link To Comment
@Flophouse: Here are some comments on your posting:

1. I am unable to refer you to any professional attorney as you ask. An answer would have to be "country specific" to begin with. In other words, what I might say if you were living in Japan could be different if you were living in Germany.

2. I don't think the situation requires an "international tax lawyer". The situation simply isn't that complex or involved. A good accountant could easily do in a pinch. I certainly wouldn't seek an American tax lawyer living in your overseas country - someone back in the US can assist you just as well.

Finally, I really don't see what the problem is here. I can't see that FATCA etc. is going to change the situation of your average US citizens living overseas (like me) IN THE LEAST. It's ALWAYS been true that all US citizens must file a tax return yearly whether they live overseas or live in the US. FATCA isn't changing that. It's ALWAYS been true that if you have an overseas bank account which contains minimum $10,000 at any time during the tax year, you're required to report that within your tax return. FATCA isn't going to change that. So where's the beef?

FATCA is going after people that are HIDING money overseas with the purpose and intention of not paying taxes on this money. It's simply intensifying laws already in the books. For you and me, this is really irrelevent.
38 weeks ago
38 weeks ago Link To Comment
@Flophouse (2) (Addendum)....As far as your final paragraph above:

1. I disagree. Most US citizens living abroad (whether working or retired) are very well aware of IRS filing requirements. Newbies may be unaware but if they remain overseas for more than a year or two, they quickly learn about these requirements, simply by osmosis if nothing else.

In the cases where they do not file (I've known people that haven't filed in 25 years), it's not that they don't know....it's that they don't WANT to file. "I'm never going back to the US, so why should I do this?" is what they usually say.

I would say that 99% of people who "will never return to the US" eventually *do indeed* return to the US, for any one of myriad reasons. That's when the problems begin. Once it's time for SS and Medicare to come into play, you'd be surprised at the number of returnees.

Finally, lemme say this:

The VAST majority of US citizens who live overseas because of work or retirement are 1st class professional losers who haven't been able to adjust, for one reason or another, to life in the US. Sorry, but it's true. They have been shunned by their fellow citizens all their lives and live on the margins and fringes of society. Most of them are incredibly self-centered with fantastic (and risible) egos and dreams of self-worth. Places like Bangkok are crawling with them.

Enough said.


38 weeks ago
38 weeks ago Link To Comment
Actually, people live and work abroad for various reasons, such as marriage, travel, working in low-paying jobs, etc. You are incorrectly lumping them all into the same bucket, but doing so is nothing other than being racist.
38 weeks ago
38 weeks ago Link To Comment
Some have suggested a "Property of USA" tattoo at birth.
38 weeks ago
38 weeks ago Link To Comment
I'll ask my 'spouse' to check. Maybe I already have one, but can't see it.
38 weeks ago
38 weeks ago Link To Comment
@PiedPiper2,

You know just enough to be dangerous. If you are going to comment so much on a subject maatter, your really should spend the time to research it first.

People such as bubblebustin have been living the nightmare of FATCA and the USA's unique to the world policy of citizenship based taxation to the extent that she/he is an expert on the subject matter. Unless you have been there, you will likely never know as much about the reality as she/he does. Stop acting as though you do.

If I recall my childhood fables correctly, the children who followed the pied piper never came back.
38 weeks ago
38 weeks ago Link To Comment
For the record - and if you will read what I wrote to bubblebustin - you will notice that I strongly advised him/her to seek professional advice on these issues precisely because they are very tricky.

For the other record, I have been working overseas for the last 50 years so I assure you I know a great deal about "taxes" as they relate to overseas US workers (altho I'm not a "professional). Not only that, but me and my siblings were born overseas to a US national and claim my US citizenship through him, so I also know a good deal about this subject (altho again, I'm not a professional who would be up to date on these matters).

Bottom line: I do have something to say on these issues since they have formed part and parcel of my own experience (altho again, I'm not a professional). In view of this, I suggest you get off your high horse and save your contemptuous and arrogant demeanor for use with your spouse at home.
38 weeks ago
38 weeks ago Link To Comment
@PiedPiper2
The Committee on Ways and Means is considering the US move to resident based taxation as a part of tax reform. Would you support this?
38 weeks ago
38 weeks ago Link To Comment
Why must you resort tos ad hominem attack? It does nothing for your position and adds nothing to the debate.
38 weeks ago
38 weeks ago Link To Comment
On the contrary, it sets the record straight. Debate? There is no debate.
38 weeks ago
38 weeks ago Link To Comment
Ad hominems demonstrate that one lost the debate, since one cannot prove a point without attacking people.
38 weeks ago
38 weeks ago Link To Comment
What makes you think bubblebustin has not already sought professional advice?

And what makes you think I have a spouse...lol?
38 weeks ago
38 weeks ago Link To Comment
He told me so. If you don't have a "spouse", I can totally understand why.
38 weeks ago
38 weeks ago Link To Comment
Bubblebustin is a woman who has involved professionals in her struggles with US citizenship based taxation. If you want to know more about HER legal battle, go check her out at issacbrocksociety.ca.
38 weeks ago
38 weeks ago Link To Comment
There you go again, mindlessly attacking people due to the inability to prove a point
38 weeks ago
38 weeks ago Link To Comment
Like I said, '... just enough to be dangerous'.

Lucky you, the banks won't be reporting YOUR bank accounts, since your passport does not have a US birthplace.
38 weeks ago
38 weeks ago Link To Comment
Wrong again. My passport is a US passport so the banks will be reporting my accounts. They go by "citizenship", not place of birth. Just blabbing away just to hear yourself talk.
38 weeks ago
38 weeks ago Link To Comment
Well, if you were not born in the USA, I presume you have citizenship of the country you were born in, and possibly a passport from your country of birth. In any event, you do not need to show your US passport to your bank. All they want to see is your BIRTHPLACE, which will be on your birth certificate or your non-US passport if you have one. Those of us caught up in the FATCA nightmare would love to trade places with you. My Canadian passport shows USA as my birthplace.

It would be nice if you could have a little empathy for those of us caught up in the nightmare of our lives. I was born in the USA decades ago to Canadian parents. My parents divorced when I was a baby and I returned to Canada with my mother where I have lived ever since. I have never been to school or worked in the USA, and have only seen my father a handful of times. Now, I find out I am in big trouble because I have never filed US tax returns or FBARS. All my Canadian accounts held where I live are 'foreign' and subject to huge penalties because I did not tell USA about them. This is a big shock and will be expensive to straighten out should I deicde to 'come clean' - tax cheat that I am and all.
38 weeks ago
38 weeks ago Link To Comment
Wrong again. The country where I was born does not recognize "dual citizenship". In addition, it considers a child born to non-citizens as a citizen of the parents' nationality. So unlike the US, the fact that I was born in that foreign country doesn't automatically make me its citizen. In other words, I was never a citizen of the country where I was born. I was a US citizen at birth by default. As far as the USA, I was a "US citizen born abroad". I never "became" a US citizen...I was ALWAYS a US citizen.....the second I popped out. (However, due to constitutional "wording", I can never become POTUS. This is being contested, however.)

As far as your Canadian/US situation, I can't say anything since it's beyond my experience and knowledge. However, as I said before (somewhere), being a "dual citizen", seems to me, obligates you to adhere to the laws of both countries.

I don't think you can say "Well, I'm a Canadian citizen so that absolves me from any US obligations I may have as a US citizen." Seems to me the only way to get around that is to RENOUNCE your US citizenship and become a purely Canadian citizen.

However, WHITEKAT, I don't think you have to go that far. Here, just off the top of my head (again, remember, I'm not a professional so I'm no way giving you "legal" advice), are a few things to consider in your situation:

1. The US and even the IRS are not the monsters they're usually made out to be. In the past, the IRS has been extraordinarily lenient with regard these type of questions....they give you years to fix the situation.

2. There is, for example, a statue of limitations that comes into play. You'd have to get precise details on this from a pro, but it's not like they're going to go back 20 years to penalize you (if it ever comes to that).

3. The US has a "tax treat" with most "civilized" countries, of which Canada, I'm sure is one. That means that if you pay taxes for wages earned in a foreign country, you do not have to pay taxes to the US. The US will not "double tax" you. So, in your case, you may NEVER have been liable for US taxes since you've been paying Canadian taxes all along.

Again, I caution you that I'm talking off the top of my head and am not rendering legal advice. You really must seek the assistance of a tax professional to get precise and up to date information as it pertains in your case.



38 weeks ago
38 weeks ago Link To Comment
It must be hard for you, to be so much more clever than most other people. And, it must be very frustrating when no matter how much you talk (or write), they still don't get your point!

Thanks for your advice on my personal situation, however I already have sought legal and tax accounting advice, and have come to the conclusion that I am screwed if FATCA continues on as planned.

However, I am happy for you that FATCA doesn't negatively affect you at all.
38 weeks ago
38 weeks ago Link To Comment
While the US does have tax treaties, the tax treaties contain a clausal which enables the US to double-tax non-earned income and earned income exceeding the FEIE.
38 weeks ago
38 weeks ago Link To Comment
Actually I may not have a choice to 'come clean' or not since my own bank is preparing to rat me out regardless what I do.

And yes, I have a spouse (you were right about that one) and you should feel sorry for him, not because he is not married to a wonderful person but because he is married to a 'US person'. All our joint bank accounts (which is ALL our bank accounts) will be reported to the IRS by our bank. He is the major bread winner, and not happy that his accounts will be reported on to a foreign country.
38 weeks ago
38 weeks ago Link To Comment
Read up on FATCA. Birth place is used by FATCA as a means of determining US indica.
38 weeks ago
38 weeks ago Link To Comment
US Courts Approve Indefinite Detention and Torture By Stephen Lendman Global Research, July 19, 2013

http://www.globalresearch.ca/us-courts-approve-indefinite-detention-and-torture/5343269
38 weeks ago
38 weeks ago Link To Comment
@paid piper
US citizens living abroad ALWAYS have to file US taxes, really. You mean my grandson born in Canada who's a US citizen through his father has to file a US tax return on his part-time job where he lives in Canada?
38 weeks ago
38 weeks ago Link To Comment
PS to bubblebustin: Please do check with a professional, but there's also something about "claiming" US citizenship. The only time US citizenship is "automatic" is is you're born on US soil. If your father was a US citizen and you were born overseas, you can CLAIM US citizenship through your father, but it is not automatically conferred upon you.....you actually have to file some papers to claim your US citizenship. Until you do, you're only a POTENTIAL US citizen. Please check with a pro.....I'm not one and these are tricky issues....plus.......laws and regulations are changing all the time so what was true last week may not be true next week.....only a professional lawyer would know for sure.
38 weeks ago
38 weeks ago Link To Comment
Is there any documentation which supports this theory? Many individuals could use such documentation when banks accuse them of having US indica.
38 weeks ago
38 weeks ago Link To Comment
The short answer to your question is YES. The long answer is also YES. I strongly suggest he get professional advice on this, as it is a very tricky issue. You can also read the following:

http://www.usimmigrationsupport.org/americans-with-dual-citizenship.html

The bad news is not over: As a US citizen, he is also subject to US military service. There's no draft now....but there could be in the future.

Bottom line: the fact that your grandson has dual citizenship with CA and US, does not exempt him from US laws (or CA laws either, I guess). Again, he should really check all this out with a professional.....a lawyer who specializes in these matters.
38 weeks ago
38 weeks ago Link To Comment
You want for a kid with a tiny income to spend all of their earnings on a lawyer simply because of US policy?
38 weeks ago
38 weeks ago Link To Comment
This is a quiz: Under what circumstance would a US citizen be exempt from having to file US taxes? C'mon now...I'm not meaning to nit-pick but you did say ALWAYS.
38 weeks ago
38 weeks ago Link To Comment
A quiz? Ha ha....sure , I'll play along with you on this one. A US citizen would not have to file a US income tax return under (at least) the following circumstances:

1. He had no reportable income. You can live overseas, for example, and just watch the sunsets. If you're not working and have no salary and you have no other reportable income (interest, dividends, capital gains etc), you don't have to file. This is true whether you live in the US or overseas.

2. You work and you get an income, but it is so low that you don't have to file a return. This would generally apply to part time workers and the like. I don't know off hand what the income threshold is, but it's around $5000. If you make less than that, you don't have to file (altho it's always good to file anyway because you might have a REFUND coming back which you can only get if you file).

The next category is an example of someone who HAS TO file, but never does:

3. You're an out and out crook, live overseas making all kinds of money and have no intention whatsoever of reporting this to anybody. OR You're a drug lord or are the head of several prostitute rings and make most of your money "under the table" (there is no paperwork or very little). You also have no intention of filing a return because your work is illicit to begin with and you'd go to prison for what you do.

Did I pass the test?
38 weeks ago
38 weeks ago Link To Comment
Individuals who live and work overseas pay taxes to their local jurisdiction, while not all of them make "all kinds of money".
38 weeks ago
38 weeks ago Link To Comment
We don't really need a new acronym for the IRS. It is already becoming known as the "International" Revenue Service.

FATCA has been the worst law most Americans have never hear about, and I appreciate you focusing on this WSJ article by Ms Graffy.

What you may not know, is that FATCA is coming home to U.S. Shores, and the unintended consequences of this will be the imposition of the same rules on U.S. Financial Institutions (USFIs) as is being thrust onto the hundreds of thousands of Foreign Financial Institutions. (FFIs) You can call this DATCA for domestic!

The mechanism for this, is via what are called FATCA IGAs or intergovernmental agreements, where Treasury is promising reciprocity to all the governments in the world as a carrot to over come the unilateral coercive actions of FATCA.

Will Congress stand up and say no to this? Well, FATCA, like ObamaCare regs has just been delayed again, so there is still time for them to wake up to what they have done.

Please read and support the recent letter Representative Bill Posey sent to Secretary Jack Lew calling for a FATCA moratorium and ending FATCA IGAs. There is a real education in the letter for those of you that know nothing about FATCA.

Here is a link to the recent story at Accounting Today. Too Bad the WSJ didn't headline it.

http://bit.ly/10EX8tu



38 weeks ago
38 weeks ago Link To Comment
It sort of reminds of that line from "Hotel California" -

"You can check out anytime you like, but you can never leave."

They won't have to seal the borders to keep us in the country. We simply won't be able to afford to leave.
38 weeks ago
38 weeks ago Link To Comment
The Militarization of Domestic Law Enforcement: Pentagon Unilaterally Grants Itself Authority Over ‘Civil Disturbances’ By Global Research News Global Research, May 15, 2013

http://www.globalresearch.ca/the-militarization-of-domestic-law-enforcement-pentagon-unilaterally-grants-itself-authority-over-civil-disturbances/5335110
38 weeks ago
38 weeks ago Link To Comment
Here are my acryonyms:

IRS: International Robbery Society

FATCA: Foreign Attack To Control All

USA: United States of Arrogance
38 weeks ago
38 weeks ago Link To Comment
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