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 ...

Read more ...

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  It needs to be repealed.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.

Read more ...

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!

2013 update

This is a pretty good review of the current state of affairs.

US Citizens Working Abroad: Everything you should know about ...

http://blog.newgensoft.com Mon, 28 Oct 2013 07:02:45 GMT

There is nothing to be feared or be skeptical of, if you are a law abiding American without any malicious intention to evade taxes while working abroad. The Foreign Account Tax Compliant Act, better known as FATCA, passed ...

I would also like to point out that, if you have earned income exceeding the Foreign Earned Income Exclusion (FEIE) of $ 97,600 this year AND you have paid Chilean taxes on the excess amount as well, it's possible to use the tax paid on the excess (only) on the Form 1116 and take the foreign tax credit on the US taxes due for the excess amount.  The US imposes taxes on the amount exceeding the FEIE at the maximum marginal rate so it stands to reason that the tax paid to Chile, on just the excess (this can be calculated using table available at www.sii.cl or click here) can be used to offset the US tax due, if possible.  The proof is to calculate the tax amount on ALL of your earnings (A); then calculate the tax on only the $97,600 (B).  Subtract B from A and you have the tax due to the US.  Do the same with the Chilean tax tables and see if the Chilean taxes exceed the US taxes.  They probably will as Chile's uppermost tax rate is higher than the US uppermost rate.  If you need help, drop me a line.

FATCA woes!

FATCA is conquering the world!  Hitler would have been proud!  

Fortunately, there is considerable resistance to what amounts to subversion of the sovereignty of other countries.  Plus, do YOU want to have government agents snooping into your financial affairs...just 'because' you 'might' be doing something illegal?  Hmmmm?

Have a look at this entry on a Google Blog:

RepealFATCA.com Files Freedom of Information Act Request on ...

http://1389blog.com Fri, 11 Oct 2013 18:34:54 GMT

As noted previously, FATCA (the “Foreign Account Tax Compliance Act”) cannot succeed unless the U.S. Treasury Department is successful in coercing a sufficient number of countries into enforcing this foreign (i.e., U.S.) law ...

Originally from : http://1389blog.com/2013/10/11/repealfatca-com-files-freedom-of-information-act-request-on-intergovernmental-agreements/

http://www.repealfatca.com/

This is good information and Americans need to get busy and repeal FATCA.  To fail to do so will cause a lot of regret later!

The Great Con

This is only about taxes peripherally.  The IRS was created the same year as the Federal Reserve System and the secret tax of inflation started then.  Mike Maloney has created a video that greatly simplifies the explanation of what is going on and why it's important to you.  The IRS is mentioned in the video and why it exists to tax (rob) you of your hard earned money.  Please do yourself a favor and watch the video.  Click here.  Sometime, if you have time, go to my blog about currency and read some there, too.  After you have learned about the currency system, it will help you plan your future.

Best to you.

Obamacare

Well, the new so-called Affordable Care Act is being implemented with all the grace of an elephant ballet.  To say the system if woefully unprepared would be putting it mildly.  There are tremendous problems with the implementation, even recognized by avid fans of the act.  Well, we'll concentrate on how people living overseas are affected.  According to the official ACA web site:

“U.S. citizens living outside the U.S.

U.S. citizens living in a foreign country are not required to get health insurance coverage under the Affordable Care Act. If you’re uninsured and living abroad, you don’t have to pay the fee that other uninsured U.S. citizens may have to pay.
Generally, health insurance coverage in the Marketplace covers health care provided by doctors, hospitals, and medical services within the United States. If you’re living abroad, it’s important to know this before you consider buying Marketplace insurance.
Questions? Call 1-800-318-2596, 24 hours a day, 7 days a week. (TTY: 1-855-889-4325) “

 Of course, if you think I may be misinformed, click here to see for yourself.

If you live permanently overseas, chances are you'll never have to deal with this.  If you are on temporary assignment and will return someday, keep your eyes peeled as to the developments so you'll know how to handle things when you return.