In my last blog entry I described how a virtually unknown Treasury agency, the Financial Crimes Enforcement Network, has issued proposed regulations that would change the offshore investment reporting requirements for U.S. taxpayers. The rules are slated to become effective well before the June 30, 2010 filing deadline for Treasury Form TD F 90-22.1, the “foreign bank account reporting” form, or FBAR. That means they would apply retroactively to 2009.
Read more here:
Secret Treasury Agency Wants to RETROACTIVELY Expand Offshore Reporting Requirements [Part II]
Last week, the U.S. Treasury finally clarified exactly what it expects U.S. taxpayers to disclose about their offshore holdings. And—no surprise here—they want to know lots more about what you own offshore. Beginning last year , in 2009. And, if you fail to comply, you could face a $10,000 fine and even prison.
See the original post:
Secret Treasury Agency Wants to RETROACTIVELY Expand Offshore Reporting Requirements [Part I]
Yes, I know you think it belongs to you. But, Obama and his inside-the-beltway friends know better than you what to do with your money. And, after all, they really need it. You know, with a projected $1.6 trillion deficit and all that. On February 1, the Obamites released their financial fiasco for fiscal year 2011, otherwise known as the proposed federal budget. A key portion of the budget is the revenue proposals, contained in a document referred to as the Greenbook , because—surprise! —It’s printed with a green cover. If you suffer from insomnia, download the Greenbook from the Treasury Web site and spend a few hours looking it over. You’ll save on your Ambien prescription. And, you’ll gain fascinating insights into vital national priorities like the “Inland Waterways Trust Fund.” But I digress. The real point of the Greenbook is to outline how the Obamites’ plans on how they intend to forcibly extract money from you, a concept otherwise know as “taxation.” Think of it as sort of a root canal, but on your money, not your mouth. Since my consulting practice focuses on international tax, I spent a recent sleepless night reading up on the Treasury’s modest proposals to “Combat Under-Reporting of Income on Accounts and Entities in Offshore Jurisdictions.” Here’s a summary—in as plain English as I can muster—of their proposals. “Require Increased Reporting on Certain Foreign Accounts.” Basically, this would impose a 30% tax on many types of U.S-source income to foreign financial institutions (FFIs). The definition of a FFI is very broad, and includes “certain entities engaged primarily in the business of investing, reinvesting, or trading in securities, partnership interests, commodities, or any interests in the foregoing.” In any words, “hedge funds.” And that’s not all. The rules “would be designed so as not to disrupt ordinary and customary market transactions.” Well, of course! H.R.
Feds should focus on their own role in the financial crisis.
I just returned from a conference in San Antonio sponsored by the American Bar Association’s Section on Taxation. I attended this conference to learn more about plans the Department of Justice (DOJ) and the IRS have going forward in their anti-offshore vendetta, and how the financial institutions and nations affected by it are likely to react.
Imagine walking down the street to the corner store for a newspaper and being stopped by policeman. He demands to see an official government-issued photo ID. You don't have it with you. The policeman tells you you're subject to a fine, and takes you into custody until authorities can ascertain your identity. Is this a totalitarian nightmare of East Germany or the Soviet Union? No, this is everyday life in dozens of countries that have issued citizens national ID cards that must be carried at all times. Failing to present the card upon demand is an offense in many of these countries (e.g., the Netherlands). Once a system of universal identification is established, it's a short step to requiring people to have and carry ID cards. And at least in the United States, that's where an obscure law called the "Real ID Act" comes into play
There are a lot more former U.S. citizens than there once were. Americans fed up with paying tax—and their government—are voting with their feet. And they’re doing it in much greater numbers than ever before.
