Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/18/2013 (2 years ago)

Catholic Online (www.catholic.org)

Ridiculous rule sure to alienate many

Want to irritate people to the point where they want to leave the United States and live abroad? Voila! The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

The Foreign Account Tax Compliance Act, or FATCA is forcing millions of Americans living abroad to reconsider their U.S. citizenship.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

7/18/2013 (2 years ago)

Published in U.S.

Keywords: FATCA, taxes, citizenship, Wall Street Journal


LOS ANGELES, CA (Catholic Online) - Attorney Colleen Graffy makes her displeasure clear in the latest issue of the Wall Street Journal.

"To appreciate [FATCA's] breathtaking scope along with America's unique "citizen-based" tax practices, imagine this: You were born in California, moved to New York for education or work, fell in love, married and had children.

"Even though you have faithfully paid taxes in New York and haven't lived in California for 25 years, suppose California law required that you also file your taxes there because you were born there. Though you may never have held a bank account in California, you must report all of your financial holdings to the State of California. Are you a signatory on your spouse's account?

"Then you must declare his bank accounts too. Your children, now adults, have never been west of the Mississippi but they too must file their taxes in both California and New York and report any bank accounts they or their spouses may have because they are considered Californians by virtue of one parent's birthplace," Graffy writes.

With six million U.S. citizens living around the globe, many are unaware about these requirements. They still face fines, penalties and interest for not complying/ This holds true even if these expats owe no U.S. taxes, own no U.S. property, have no U.S. bank account and haven't lived there in years . if ever.

"A particularly alarming aspect of FATCA is that it seeks to co-opt foreign banks as long-arm enforcement agencies of the Internal Revenue Service-even when it might contravene that country's own privacy or data-protection laws. If financial institutions don't report U.S. citizens holding accounts with them, these institutions face a 30% withholding tax on securities transactions that originate in the U.S." Graffy writes.

Henceforth, it is simply easier and more attractive for Americans abroad to simply renounce their U.S. citizenship. "Given this threat, why allow an American, or even suspected American, to bank with you? The reporting costs, and the consequences of a mistake, are too onerous."

The scenario, Graffy says, now living and working in London, is grim. "Foreign financial institutions trying to avoid these new requirements have two alternatives: to drop American clients, or don't invest in the U.S. Neither scenario benefits America."

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More U.S.

Captain James Cook wreckage discovered! Watch

Image of Legendary British explorer Captain James Cook's vessel is believed to have been discovered (John Webber).

By Kenya Sinclair (CALIFORNIA NETWORK)

Captain James Cook was a famous British explorer who commanded the HMS Endeavour from 1768 to 1771. Since it was intentionally sunk, its whereabouts fell into question - until now? LOS ANGELES, CA (Catholic Online) - According to CNN, researchers from  the Rhode ... continue reading


You won't believe why this ICONIC WWII image is being investigated! Watch

Image of Two amateur historians raised questions concerning a service member in the image (Corbis).

By Kenya Sinclair (CALIFORNIA NETWORK)

Two amateur historians believe one of the men in the iconic Mount Suribachi image was misidentified, prompting a Marine Corp investigation. LOS ANGELES, CA (Catholic Online) - The image, taken by the Associated Press' Joe Rosenthal, reveals the struggle six servicemen ... continue reading


Puerto Rico drowns in debt - What is the U.S. going to do about it? Watch

Image of Puerto Rico missed its first nearly $400 million bond payment (YouTube).

By Kenya Sinclair (CALIFORNIA NETWORK)

U.S. territory Puerto Rico defaulted its first payment of nearly $400 million - so what is the territory going to do? LOS ANGELES, CA (Catholic Online) - Puerto Rico has suffered a recession for the past decade, resulting in the government borrowing money from foreign ... continue reading


ISIS kills U.S. Navy SEAL in violent attack Watch

Image of ISIS breaks Peshmerga lins to kill U.S. Navy SEAL (navysealsmuseum).

By Kenya Sinclair (CALIFORNIA NETWORK)

A U.S. Navy SEAL was killed in the line of duty when ISIS forces pushed their way through a Kurdish Peshmerga line. LOS ANGELES, CA (Catholic Online) - "It is a combat death, of course. And a very sad loss," U.S. Secretary of Defense Ash Carter said during an official ... continue reading


'It was an escape:' father of Scientology founder tells all Watch

Image of Ron Miscavige, the father of Scientology leader David Miscavige, opens up (20/20)

By Kenya Sinclair (CALIFORNIA NETWORK)

Ron and Becky Miscavige escaped the California Scientology compound known as the "Gold Base" and have stepped forward to share their story. LOS ANGELES, CA (Catholic Online) - Scientology is a quiet religion shrouded in secrets - many of which are believed to be ... continue reading


'Clown-in-Chief' Obama makes skit about retirement, but here's why we're not laughing Watch

Image of Obama thinks he's a comedian, but some matters are too serious to joke about.

By David Drudge (CALIFORNIA NETWORK)

President Obama, in an act of self-depreciating humor, has made a SNL-style spoof about his retirement. While amusing at moments, we can't decide if the video is good, because to make it he had to take time away from issuing executive orders, or bad, because it must ... continue reading


CIA under fire for 'live tweeting' dramatic Bin Laden raid on 5 year anniversary Watch

Image of Though some patriots were pleased to see the tweets, several compared the CIA to ISIS and their propaganda videos.

By Kenya Sinclair (CALIFORNIA NETWORK)

The CIA celebrated the 5-year anniversary of Osama bin Ladin's death by posting "live tweets" of the raid that killed him. LOS ANGELES, CA (Catholic Online) - For those who don't have a Twitter account, the CIA posted a timeline of the raid on their website.The tweets ... continue reading


Athanasius, Defender of the Incarnation: Defend the Faith! Watch

Image of St. Athanasius, Bishop and Doctor of the Incarnation

By Deacon Keith Fournier

The Bishop and Doctor of the Church whom we honor today in the Roman Catholic Liturgical Calendar was called the Defender of the Incarnation. This title summarizes a life given over to defending the central Christian claim - about who Jesus is and who we can be - ... continue reading


No Phony Truces in the Battle to Block Most Anti-Life, Liberal Court in a Generation

Image of The United States Supreme Court

By J. Kenneth Blackwell

While much of our attention is on the Presidential race, the looming battle over a Supreme Court nomination merits no less attention.  The battle lines are clear in this nomination and the future of the Court and our Constitutional principles are at ... continue reading


Fr Frank Pavone - Amoris Laetitia: Pope Francis' Encouraging Roadmap for Families Watch

Image of Fr Frank Pavone, National Director, Priests for Life

By Fr. Frank Pavone, National Director, Priests for Life

Amoris Laetitia is a timely and loving exhortation for families towards genuine charity that begins within the nuclear family. It can be described as a new road-map for a culture that has taken a sad and tragic detour. The Joy of Love recognizes women's ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Daily Readings for Wednesday, May 04, 2016
  • 'Our warriors are everywhere': ISIS uses CHILDREN to threaten Europe
  • Captain James Cook wreckage discovered!
  • St. Florian: Saint of the Day for Wednesday, May 04, 2016
  • Your Daily Inspirational Meme: I fear no evil!
  • St. Matthew HD Video
  • Daily Reading for Thursday, May 5th, 2016 HD Video

Daily Readings

Reading 1, Acts 17:15, 22--18:1
15 Paul's escort took him as far as Athens, and went back with ... Read More

Psalm, Psalms 148:1-2, 11-12, 13, 14
1 Alleluia! Praise Yahweh from the heavens, praise him in the ... Read More

Gospel, John 16:12-15
12 I still have many things to say to you but they would be too much for ... Read More

Saint of the Day

Saint of the Day for May 4th, 2016 Image

St. Florian
May 4: The St. Florian commemorated in the Roman ... Read More