Foreign Account Tax Compliance Act (FATCA) is here to stay and will start as planned, pledged Internal Revenue Service (IRS) Michael Danilack.
He rubbished reports from Taiwan that FATCA was not on track and said his finger was poised over the start button for July 1, 2014.
The rumour came from unnamed officials involved in negotiating an intergovernmental agreement between Taiwan and the US.
The source explained Taiwan was not rushing to sign the pact as they felt the start date would be delayed again, leaving them time to negotiate a better deal.
The FATCA start date has already shifted twice, but Danilack sternly announced that any talk of further delays because of in-house computer issues, problems negotiating intergovernmental agreements or the recent Republican resolution to push for repeal were speculation.
Rear guard action
“The Treasury has been explaining for weeks that FATCA will not face any more delays,” said Danilack.
He also suggested the start of FATCA was one of the key dates in the history of taxation, because the basis of reporting and collecting tax worldwide will change for good.
The Republican Party and a few anti-FATCA campaigners are fighting a desperate rear guard action to try to repeal the law.
However, many critics say the Republicans are grandstanding to try to raise much-needed campaign funds to fight mid-term elections from desperate foreign financial institutions who want to avoid FATCA.
The grounds for the resolution are thousands of Americans are choosing to give up their passports. Figures from the US government suggest around 3,000 Americans handed passports back last year – out of a population of around 313 million people.
The statistics do not report how many of these took action as a result of FATCA.
Warning to UK trusts
FATCA is a global tax law instituted by the US to force US taxpayers and foreign financial institutions to report any offshore bank accounts and investments worth more than $50,000.
Meanwhile, tax advisors in Britain have advised thousands of trusts to review their tax status under FATCA.
The Society of Trust and Estate Practitioners (STEP), the Law Society of England and Wales and the Institute of Chartered Accountants in England and Wales (ICAEW) argue believing only trusts with US connections or assets have to take note of FATCA is a mistake.
“All foreign trusts, foreign trustees and underlying foreign holding companies must determine their FATCA classification,’ says Warren Whitaker at US law firm Day Pitney. “Registration is complicated and replete with conditions and exceptions.”
Don’t fooled or conned by this IRS grunt Danilack. They will say anything to get you to dance to their tune. These IRS grunts cannot be trusted ever . They approach you with smiles, suits and ties but when given the chance will rape you beyond remorse. Grunts like Danklack have no balls and no spine . They do as they are told by the brass and that’s that. These people aren’t human. They are animals programmed and tunnel-visioned for prey. The best thing you can do is starve this animal by organizing your accounts to not fall under reporting threshold. The IRS naively thinks this whole Fatca deal is going to be a windfall. They have a surprise coming.
If you are an American overseas get smart and keep your hard earned funds that likely not a single penny was earned in the states and thus you righteously and morally should not pay US tax on regardless of what the US law states. Remember slavery and segregation were once legal as well
And thank God there were those who stood up to what was inherently wrong. Fatca is the same. It is wrong and to stand up to all its faults is the right thing to do.
The US is just morally wrong on this one.
Hear here!
This article mentions Danilacks finger was poised over he start button for Fatca. Better he keep that finger over his asshole as it will be more useful in that position.