FATCA Woes

FATCA is a slow implementation.  Much like Obamacare, FATCA is off to a slow start.  If you remember, the idea is to collect taxes on money that has previously evaded taxes.  The operative word is, 'evaded'.  In the US tax system, evasion is a crime, avoidance is not.  The difference is that the latter uses the regulations and tax law itself to reduce taxes through various means.  Evasion ignores the law.  The US has indicated it expects to recover something like $87 billion over the next ten years.  Likely the loss of taxes on falling international trade (as a result of FATCA compliance difficulties) will more than offset any gain.  For a good take on things read this link:  International Tax Evasion Crackdown: Slow, Tricky, And Only First Step in ... - International Business Times

http://news.google.com Wed, 30 Oct 2013 18:17:40 GMT

InsideCounselInternational Tax Evasion Crackdown: Slow, Tricky, And Only First Step in ...International Business TimesAttempts to implement the 2010 Foreign Account Tax Compliance Act (FATCA) have repeatedly stalled, partly because the sweeping law r ...

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I'm hearing more and more stories of people renouncing their US citizenship because of the business difficulties caused by FATCA.

In my humble opinion, FATCA is bad law whose intended purposes cannot be realized without massive damage to international trade.  It needs to be repealed.

Filing taxes for free

Having recently received inquiries as to locating web sites that let you file income tax returns for free, I did a little research and this is what I've uncovered.  The IRS has a free filing option and you can get to it by clicking 'IRS Free Filing'.  There is another site you can investigate named FreeTaxUSA which may be of some help to you.  Be advised that all is not roses with this system as evidenced here: Pros & Cons of E-Filing Income Tax Return | The Classroom ...

http://classroom.synonym.com Fri, 20 Sep 2013 05:03:16 GMT

The Internal Revenue Service requires most income earners to file tax returns each year to make sure that it receives correct amount of tax. ... E-filing is a free service offered by the IRS, so you don't have to pay to submit your federal return.

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The bottom line with these services is that YOU have to know what you are doing.  If you do your homework and are careful, these could be excellent services for you.

If you are not confident, you could always contact me.....

Here it comes again!

The new year will be starting soon and with it the flurry of activity that means people are trying to minimize taxes.  The IRS has published new, inflation adjusted numbers and you can see the official publication here. The threshold minimums haven't changed for tax year 2013 to be filed in 2013, (see prior posting in www.pokingthedragon.com Dec. 18, 2012).  Here is a new posting for tax year 2014 to be filed in 2015, just FYI.

IRS Announces 2014 Tax Brackets, Standard Deduction Amounts And More - Forbes

http://news.google.com Fri, 01 Nov 2013 15:22:13 GMT

BloombergIRS Announces 2014 Tax Brackets, Standard Deduction Amounts And MoreForbesAll together, the IRS posted more than 40 updates. You can read more about them at Revenue Procedure 2013-35 (downloads as a pdf). And kudos to the folks at CCH, part ...

Remember that you need to make any adjustments BEFORE the end of December (with only a few exceptions).

Soft landing!