Some have proudly retained only American citizenship.
FATCA may even capture Canadian "snowbirds" who help support U.S. economy by spending winters in southern states or others with a "significant presence."
They have a few things in common:
They are not tax cheats.
They are not tax evaders.
They are not traitors.
They are not criminals.
They pay taxes where they live, work, and earn income.
Their personal finances will soon be under intense scrutiny by IRS.
I know because I am one of them.
How FATCA Is Attacking Honest People
This extraterritorial law demands foreign financial institutions (FFIs) report comprehensive financial information of "US persons"--those born in US, naturalized American citizens who return to their homeland, Green Card holders, and others. This includes total assets, account balances, transactions, account numbers, and other personal identifying information.
If a "US person" does not consent to release this information to IRS, FFI is expected to declare the customer "recalcitrant" and close accounts.
Banks in some countries have already closed legal accounts and cancelled mortgages of long-time customers simply because they were born in United States. Some patriotic Americans have had long-held retirement accounts closed in the country where they live, save, and planned to retire.
Even education savings of children born in other countries and raised as citizens of those countries may be vulnerable if one parent is a "U.S. person."
It's important to understand many of these people have no economic ties to United States. They owe no taxes to United States. Their accounts are in no way "off shore." Their banks are not "foreign." These "US persons" are banking in communities where they live, work, earn an income, deposit pays, own homes, pay bills, mortgages, and rent, save, invest--and pay taxes.
Frequently, these accounts are held with non-US spouses and family. They often include education savings for children who were born and raised as citizens of other countries and retirement savings shared with a "foreign" spouse.
FATCA violates laws and even constitutions of many countries.
How many Americans living in US would accept such intrusion into their personal financial matters?
One can imagine the outcry if naturalized American citizens or permanent residents from China, Cuba, Korea, Argentina, or Eritrea were having personal financial information submitted to their home countries from American banks or if their banks were identifying and closing their accounts based on place of birth or national origin.
Yet, that's reality for millions of "U.S. persons" outside of United States. Even before FATCA takes effect, banks in some countries have already closed accounts or refused to open accounts for anyone born in US--even if they are citizens of countries where they live, work, and bank.
Not content to merely attack personal integrity and intrude into financial lives of honest people, there are demands that FATCA information be provided to U.S. national security and law enforcement for investigation of money laundering, drug trafficking, terrorist financing, and other crimes and "misconduct."
FATCA may even capture Canadian "snowbirds" who help support U.S. economy by spending winters in southern states or others with a "significant presence."
They have a few things in common:
They are not tax cheats.
They are not tax evaders.
They are not traitors.
They are not criminals.
They pay taxes where they live, work, and earn income.
Their personal finances will soon be under intense scrutiny by IRS.
How FATCA Is Attacking Honest People
This extraterritorial law demands foreign financial institutions (FFIs) report comprehensive financial information of "US persons"--those born in US, naturalized American citizens who return to their homeland, Green Card holders, and others. This includes total assets, account balances, transactions, account numbers, and other personal identifying information.
If a "US person" does not consent to release this information to IRS, FFI is expected to declare the customer "recalcitrant" and close accounts.
Banks in some countries have already closed legal accounts and cancelled mortgages of long-time customers simply because they were born in United States. Some patriotic Americans have had long-held retirement accounts closed in the country where they live, save, and planned to retire.
Even education savings of children born in other countries and raised as citizens of those countries may be vulnerable if one parent is a "U.S. person."
It's important to understand many of these people have no economic ties to United States. They owe no taxes to United States. Their accounts are in no way "off shore." Their banks are not "foreign." These "US persons" are banking in communities where they live, work, earn an income, deposit pays, own homes, pay bills, mortgages, and rent, save, invest--and pay taxes.
Frequently, these accounts are held with non-US spouses and family. They often include education savings for children who were born and raised as citizens of other countries and retirement savings shared with a "foreign" spouse.
FATCA violates laws and even constitutions of many countries.
How many Americans living in US would accept such intrusion into their personal financial matters?
One can imagine the outcry if naturalized American citizens or permanent residents from China, Cuba, Korea, Argentina, or Eritrea were having personal financial information submitted to their home countries from American banks or if their banks were identifying and closing their accounts based on place of birth or national origin.
Yet, that's reality for millions of "U.S. persons" outside of United States. Even before FATCA takes effect, banks in some countries have already closed accounts or refused to open accounts for anyone born in US--even if they are citizens of countries where they live, work, and bank.
Not content to merely attack personal integrity and intrude into financial lives of honest people, there are demands that FATCA information be provided to U.S. national security and law enforcement for investigation of money laundering, drug trafficking, terrorist financing, and other crimes and "misconduct."
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