2 Responses to When the economy breaks a leg, shoot it

  1. Cafreeb says:

    “Shooting jaywalkers” is a very apt description of what is going on here. FBAR is even worse with seriously draconian, brutish penalties on those who didn’t even owe any taxes! In some cases threatening to ruin meager retirement funds not even earned by an American citizen. I cannot imagine the Canadian government letting this go on when it affects it’s own citizens. The finance minister is right about FATCA but, they need to fight FBAR too since FBAR also discloses information about people’s private finances who are not even Americans at all. If FBAR continues it should not apply to every account any American has signing rights on but, only to EARNED income of that person. Any sensible person could see this is the only fair way to do it. However we ARE talking about the IRS and the Treasury Dept. It’s ridiculous that a Tax Cheat himself is putting in this slave like penalty on people. Tim Geithner is quite an ironic choice to be calling anyone a “tax cheat” This entire debacle is corrupt from top to bottom.

    • Expat in CA says:

      I agree completely, of course. I think that signing authority should not make a bank account open to IRS inspection. That much is self-evident. Joint accounts are a little more tricky since the entire point of FBAR/FATCA is to catch people who are not reporting all of their income.

      The only solution I can see is to make a distinction between US residents funnelling money out of the country (in which case, we may legitimately ask why, especially if that money is going to countries that have traditionally been “tax havens”), and US citizens who are resident abroad. The same rules should not be applied to both because expats have a very legitimate reason to have “offshore accounts.” Therefore, the only thing that makes sense is to drop FBAR and tax reporting requirements entirely for non-US residents, except in cases where they earn an income in the US (such as through investments).

      You know, kinda like what just about every other country in the world does….

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