Posted on 01/25/2015 11:05:39 AM PST by ATOMIC_PUNK
The IRS has unveiled a secure web application, the International Data Exchange Service (IDES), for cross-border data sharing. IDES will allow Foreign Financial Institutions (FFIs) and tax authorities from other countries to transmit financial data on U.S. taxpayers’ accounts, via an encrypted pathway, to the IRS.
The tool is part of the IRS’s effort to track U.S. taxpayer income globally. It is intended to assist FFIs and foreign tax authorities in their compliance with the U.S. Foreign Account Tax Compliance Act (FATCA). The act requires that financial institutions send to the IRS financial information of American account holders or face a hefty 30 percent withholding penalty on all transfers that pass through the U.S. With such steep fines, FFIs and their respective countries across the globe have agreed to comply with FATCA and submit account holder information, regardless of conflicts with their local laws. According to the IRS website, some 112 countries have signed intergovernmental agreements with the U.S., or otherwise reached agreements to comply, and more than 145,000 financial institutions have registered through the FATCA registration system.
(Excerpt) Read more at jdsupra.com ...
This is one of the reasons you can’t get a bank account overseas if you are a US Citizen
112 countries have signed this BS.
Someone should post a list of countries that have NOT submitted.
This is a reason so many people are giving up their US citizenship.
Democrat bill from 2009.
And according to wiki;
“France, Germany, Italy, Spain, and the United Kingdom announced in 2012 they consented to cooperate with the U.S. on FATCA implementation, as did Switzerland, Japan and South Africa.
The deputy director general of legal affairs of the People’s Bank of China, the central bank of the People’s Republic of China, Liu Xiangmin said “China’s banking and tax laws and regulations do not allow Chinese financial institutions to comply with FATCA directly.” The U.S. Department of the Treasury suspended negotiations with Russia in March 2014. Russia, while not ruling out an agreement, requires full reciprocity and abandonment of US extraterritoriality before signing an IGA.”
So far it seems you can still be safe from this in Paraguay, Argentina, China, and Russia. Also most of Africa. Pointless there but still.
The IRS is an organization of many many splintered groups under many assistant and regional directorships.
As part of their yearly budget exercise they put in for ‘developing tools’ and justify such with embellished statistical estimates of increased tax revenue via base broadening, enhanced enforcement, etc.
But their goals are self-defeating leading to more and more budget requests for ‘tool development’. It’s a vicious cycle and it is an embarrassment.
This latest IRS scheme will again fail because most of the US Citizens abroad with undisclosed banking accounts are dual citizens. At one time they took advantage of American citizenship to gain visaless entry to other nations and also the protection and security afforded US Citizens. But then they discovered the insanity of the US tax code.
As a result dual citizens open a foreign bank account using their non-US Passport and they are not obligated to disclose that they hold a US Passport also.
Or they renounce US citizenship like one of the founders of Facebook did.
A retail consumption tax ends the insanity of the IRS attempting to look under everyone’s skirt or over everyone’s shoulder. This approach is innovatively and brilliantly described in the legislation of HR 25.
https://www.govtrack.us/congress/bills/113/hr25/text
who says you cant?
It is widely reported by many people, and by many sources, that they are encountering difficulty and outright refusals to handle American accounts.
Let China, Russia and India compete with that kind of power...
Some how Lois Lerner’s emails are in Botswana!
BOTSWANA!!
Who knew?
FATCA(T) should be ended immediately. If Americans wish to avoid the intrusiveness, voyeurism, oppression, etc. of the US government, they should be able to do so just by leaving, for however long.
Not being able to leave the US government behind is the closest thing to slavery. They think they *own* us. It is like being stalked by an insane person.
"Mr. Obama, Tear Down This Wall."
Beware the IDES of March
(or April if you file at the last minute)
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