RE: fatca

New Bank, Tax Regulations
Affect Some Ex-Pats Here
    A new tax law affecting some Americans with overseas bank accountswill become effective [url=x-apple-data-detectors://18]July 1[/url] unless Congress once again delays the date.
     FATCA, the Foreign Account Tax Compliance Act, was passed by Congress in 2010.  It has been modified and implementation has been delayed several times.
     The law is designed to capture lost tax revenue when wealthy Americans living in the U.S. use tax law loopholes to move large amounts of money into offshore banks/investment accounts thereby avoiding taxes on earned interest and/or capital gains.  Unexpectedly, some American ex-pats here with much smaller accounts, have been caught in the complex law.  Some banks, acting to avoid penalties outlined in the law, are reviewing accounts held by Americans -- ex-pats and others -- and are reporting the findings to the IRS.  Some are even peremptorily closing accounts, causing confusion and anger in the ex-pat community.
      The international board of Democrats Abroad has been working with U.S. officials to further amend the law and eliminate the problem for ex-pats.
      In another communication within the next two weeks, we will have an up-to-date report on the organization's efforts, exactly who is affected, and what effective action ex-pats can take to protect themselves and their bank accounts here.
      In the meantime, the best advice is for anyone concerned to write to their respective representatives in Congress. 


This message is paid for by the Democratic Party Committee Abroad


Maybe other political groups can take up this issue with their Reps.

A lot of lies (not saying you are) and exaggeration is going on about this. The main problem is the banks are being told they are responsible for collecting the tax and if they don't the government will punish the banks. Well for folks like us who don't owe any taxes I can't imagine the bank not wanting to tax us when we take money out of our IRA. How would they know we don't owe any taxes? So the banks as much as it is nice to kick them and they deserve it are being put in a very bad position. I told my bank if they took the money out after I told them I don't owe any taxes that I would class action lawsuit. That did catch the attention of the bankers and I got a letter from a VP that said he understood but they are in a very bad position and they are lobbying for changes. Why should I have my money tied up when I don't owe because of the behavior of others? The honest get screwed again.

Z

FATCA was passed because the government is desperate for money--our money. They are using tax evasion, drugs (fill in whatever you want) as an excuse to gain more access and control to people's money. They will never have enough. They want to take and control everything.

So glad we do not discuss politics on this forum. Fastfox reminds me of how tedious it is.

Some positive news for Canadians. The Supreme Court has ruled that your email address is private and authorities will have to get a warrant to access your online activities. No more "trolling" for them. PM/King Stevie is probably gnashing his teeth. Shucks.

If you discuss FACTA you discuss politics.  This new stuff is very important to expats so the discussion should be held. FACTA is a money grab as Fox said. I will have the government borrow my money even when I don't owe due to the way it is written even with notification to bank that I don't owe taxes. I think it would be called stealing in the real world and than I have to say please, than pay money to get my money back that they shouldn't have taken anyhoo. Think of it as if the government told you that you had to claim zero deductions on your paycheck even if you normally claim four. Free loan and so far I can't see a way around it unless my bank listens to me and we know that is not going to happen at BOA laugh out loud.

Z

borderreiver wrote:Some positive news for Canadians. The Supreme Court has ruled that your email address is private and authorities will have to get a warrant to access your online activities. No more "trolling" for them. PM/King Stevie is probably gnashing his teeth. Shucks.

That is great news!  But the way around this is to send all the signals to the US, have us spy and filter on the info and than give the filtered info to the Canadian government. No broken laws.  Where did I learn this?  From the US. Google or Wiki  Echelon.  Oh yea Canada is a member of this group.  Bet they won't stop but we won't know.

Z

Wecome to the real world, My husband ´s withholding are 10% wether he owes money or not and mine 30% wether I owe money or not because I am not a US citizen.
You get it back with you file but I get it back 18mnth later because the forms I need to have to file come in later..I have learned to withdraw money in December to minimize the amount of time the government has my money. It is stealing but what can we do about it,?

brigitte wrote:Wecome to the real world, My husband ´s withholding are 10% wether he owes money or not and mine 30% wether I owe money or not because I am not a US citizen.
You get it back with you file but I get it back 18mnth later because the forms I need to have to file come in  later..I have learned to withdraw money in December to minimize the amount of time the government has my money. It is stealing but what can we do about it,?

For US cit. folks fight it!!! Believe me the banks are fighting it also. I get nothing taken out of my withdrawls from my IRA currently. I will probably have to deal with this like you when I go perm. visa if I am honest.

Z

Why when you go perm visa and not temporal? You have a US address for tax purposes? Wefought it and it makes no differene the bank doesnot want to be responsable if you do not pay taxes, this has been going on for2 or 3 years.
We file jointly as non residents...