Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/18/2013 (1 year 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 (1 year 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More U.S.

Disastrous, horrific high school prank ends with 100 seniors banned from graduation Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

One hundred senior high school students from Sequoyah High School in Madisonville, Tennessee were banned from graduation for misconduct after their involvement in a "trashy" prank at their school. The horrible prank, caught on camera, also resulted in the school ... continue reading


Nevada drought dramatically raises wildfire dangers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

On Nevada's fourth year of extreme drought, the state awaits the hot, dry, and long summer that will bring the risk of wildfires. According to the U.S. Drought Monitor, three of the five Great Basin states, which are Utah, Oregon and Nevada, are in 99 percent drought ... continue reading


A Christian Woman's Cry and Promise: I Will Not Be Dissuaded Watch

Image of Do not misunderstand me. This is not arrogant boasting or a finger-wagging -I told you so! I don't say this to you, the culture, out of spite or snickering glee, but with a heavy heart that longs to see such a dismal future averted. Yet I know that even if the darkness closing in on us is not lifted, then the Church will suffer through it, be purified by it, and will be there, still standing, when souls come in need of healing and hope again. God is not mocked, and He is not dead.

By Jennifer Hartline

I am sad for my country, and for the world. I grieve for the immorality that has become so commonplace and celebrated. I grieve for the family -- father, mother, and children -- as I watch it crumble and be slowly erased from our collective understanding. I ... continue reading


Know your rights, ACLU declares as 'Black Spring Has Begun' Watch

Image of State's Attorney Marilyn Mosby speaking live across the world, announced criminal charges against the officers in the death of 25-year-old Grey.

By Catholic Online (NEWS CONSORTIUM)

After the great tragedy of widespread rioting in Baltimore following the death of young black man Freddie Gray while in police custody, there is hope. The six police officers suspected in his death - three white and three black, now immediately face homicide ... continue reading


Chinese, Indian immigrants in United States taking away lead set by Mexico Watch

Image of Mexico and China in 2012 had been tied for top-sending country, with Mexico at 125,000 and China at 124,000.

By Catholic Online (NEWS CONSORTIUM)

In spite of its next-door proximity to the United States, Mexico has lost the lead in send immigrants to the United States. Both China and India have increasingly been sending immigrants to American shores to work and live. LOS ANGELES, CA (Catholic Online) - ... continue reading


Former terror suspect among two gunmen shot, killed by police at Texas anti-Islam event Watch

Image of Thirty-year-old Elton Simpson, along with his 34-year-old roommate Nadir Soofi, above, were shot dead by police at an anti-Islamist art contest near Dallas, Texas Sunday night.

By Catholic Online (NEWS CONSORTIUM)

Thirty-year-old Elton Simpson, along with his 34-year-old roommate Nadir Soofi was shot dead by police at an anti-Islamist art contest near Dallas, Texas Sunday night. Both men were shot dead by police after they fired upon an unarmed security guard in the ... continue reading


Obamacare, State Sovereignty, and the Heckler's Veto at the Supreme Court

Image of An artist rendering of the Justices of the United States Supreme Court. Cameras are not allowed during arguments.

By Edwin Meese III & J. Kenneth Blackwell

Refusing to give effect to Congress's law would usher in an era where courts routinely let presidents rewrite statutes whenever the words Congress adopts does not produce outcomes the president likes. It will permanently cede legislative power to the executive ... continue reading


Fr. Peter M. J. Stravinskas on What it Means to be a Crusader Today

Image of Atonement Academy, the Parish School of Our Lady of the Atonement Parish Church in San Antonio, Texas.

By Fr. Peter M. J. Stravinskas, Ph.D., S.T.D.

When Pope Urban II called for the First Crusade in 1095, he envisioned it as a defensive action, designed to liberate the Holy Land from the Muslims and to protect the lives of Christians living there and of pilgrims going there.  It is interesting that what ... continue reading


Vast majority of Americans fear further racial unrest come the summer months Watch

Image of Asked to choose between two possible explanations for recent events, 60 percent of blacks said they reflected

By Catholic Online (NEWS CONSORTIUM)

According to a poll, a vast majority of Americans fear further racial unrest come the long, hot summer months. A whopping 96 percent of those surveyed feel that there will be further demonstrations and rioting later this year. LOS ANGELES, CA (Catholic Online) ... continue reading


New study pinpoints most 'racist' areas in America -- and it's not where you think it is Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

New research suggests that areas in the northern part of the United States have higher mortality rates for black Americans and the people were found to be more racist. Researchers from the University of Maryland, found that areas with more people Google searching the ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Acts 15:1-6
1 Then some men came down from Judaea and taught the ... Read More

Psalm, Psalms 122:1-2, 3-4, 4-5
1 [Song of Ascents Of David] I rejoiced that they ... Read More

Gospel, John 15:1-8
1 I am the true vine, and my Father is the ... Read More

Saint of the Day

Saint of the Day for May 6th, 2015 Image

Bl. Edward Jones
May 6: Blessed Edward Jones and Anthony Middleton, Martyrs Edward Jones ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter