GET RID OF THAT IRS.
Deregulating the US Constitutional tax uniformity laws have been occurring for several decades ---it soared in Clinton era as national media only reported the TAX BONES helping the 99% of citizens without explaining how Clinton using all kinds of TAX CREDITS-----targeted to this industry ---that development----these homeowners----those kinds of financial products all the while killing TAX UNIFORMITY. CLINTON/BUSH/OBAMA spent these few decades not only killing tax uniformity nationally but getting state governors and state assemblies----then our US city/county pols to deregulate tax uniformity locally.
THIS IS A FAR-RIGHT WING GLOBAL WALL STREET THING TO DO----NO LEFT LEANING DEMOCRAT WOULD EVER DEREGULATE TAX UNIFORMITY ----IT PROTECTS THE 99% OF CITIZENS, SMALL BUSINESSES, AND REAL FREE MARKET.
We will spend one day on the push by global Wall Street to KILL THE IRS----and if you think global Wall Street is not going to create that Roman corporate tax collector coming to our doors to replace a developed nation, democratic republic, having US Rule of Law, and US Constitutional rights of WE THE PEOPLE-----I have swampland in Florida to sell.
FOLKS------GLOBAL WALL STREET IS NOT KILLING THE IRS TO PROTECT 99% OF PEOPLE FROM TAXATION----THEY WILL SUPER-SIZE TAXES AND COLLECTION PROCESS ON WE THE PEOPLE WHILE PAYING NOTHING THEMSELVES.
Let's take a look at how this very, very, very, very bad tax policy is being pushed across all population groups----selling it as a good thing that will end taxation on the poor---seniors----workers-----small businesses---WITH NO INTENTION OF DOING SO.
The previous article about tyrannical IRS was promoting an end to IRS using these corporate non-profit names-----all geared towards FAMILY--------when killing the IRS will kill our family wealth as corporate tax collectors see WE THE PEOPLE as taxation for corporate subsidy and profit
FACT is pleased to associate with the following national organizations in the course of its work on behalf of families in Tennessee:
Alliance Defending Freedom
Family Research Council
Family Policy Alliance
Focus on the Family
Here we have those religious groups that most likely are not religious making PAYING OF TAXES TYRANNICAL ---and indeed it can be----but the solution is KILLING THE IRS-----which will set lose REAL TYRANNICAL TAXATION. The problem is not the IRS----it is corporate and Wall Street avoidance of taxation and now policies to become that tyrannical tax collector.
Remember how Obama supposedly selectively used the IRS against political groups---the problem during Obama was complete ignoring of corporate tax and wealth tax collection----trillions of corporate tax revenue was lost from Obama's IRS. The targeting of a few political groups is NOTHING BUT FLUFF.
How To “Kill” The IRS
May 17, 2013/in blog /by David Fowler
The Internal Revenue Service targeting “patriotic” organizations as well as those focused on smaller government and constitutional constraint is downright tyrannical. But even if politicians abolish the IRS or radically simplify the tax code, that won’t “fix” the underlying problem. Will anyone call for the real solution, one that would “kill” the IRS?
Having been a politician, I know that politicians like to “fix” problems. I also know that it is easy to fix the symptom rather than address the underlying disease. For example, the fight over the Internet sales tax legislation is the latest example of political “fixing.” Civil government has strangled free enterprise through excessive regulation, creating alleged inequities and artificial markets. However, rather than restore free enterprise to health by reducing regulation, some politicians “fix” things with more regulations. But I digress.
The problem with the IRS is that it is a result of an idea, an idea that flowered with promise but has now produced its poisonous fruit. The idea is that of Thomas Hobbes, published in 1651.1 Unless we, as a nation, deal with his idea, future generations will find themselves back where we are today; only the names will have changed.
At the risk of great oversimplification, Hobbes tried to explain where the power of civil government came from such that it could legitimately and authoritatively govern men, and men would obey its edicts.
The supposed “greatnesses” of his idea was that he broke from the past. Prior to Hobbes, God was viewed as the basis for civil government’s authority even though there were great disputes as to whom that authority had been delegated.
Hobbes, however, grounded his theory on reason divorced from revelation (the Bible). Specifically, he believed that men, by mutual consent, agreed to come together to create the power of the state. The concept of the “consent of the governed” comes through to this day.
That does not mean that the “consent of the governed” is evil or bad per se. It also doesn’t mean that “consent of the governed” is irreconcilable with the principle that the authority of civil government comes from God. But it does mean the authority God has delegated to us, the “power of the ballot box,” is subject to God. That means it is subject to His “rules” for justice and righteousness. It also means God prescribes the extent of civil government’s power, not a majority of men who consent together to do whatever their hearts desire.
While many object to any attempt to inject God into politics, the fact of the matter is civil government, divorced from God, isn’t too pretty, as evidenced by the IRS scandal and Benghazi-gate. Civil government, untamed by God, becomes god. Even a god created by man will not be easily tamed by its creators, for it is the nature of every god to rule over others.
Hobbes summed it up pretty well:
“This is the generation of that great LEVIATHAN, or rather, to speak more reverently, of that mortal god, to which we owe under the immortal God, our peace and defence.” (emphasis in original)
The surest way to solve the problem of big, tyrannical, oppressive government is for all men to humbly submit to the governance of God. As a nation, we don’t seem willing to do that, but anything less is just fixing the symptom, not the disease. William Penn, founder of Pennsylvania, said it well, “If men will not be governed by God, they will be ruled by tyrants.”
Because we have not been self-governed under God, but have thrown off every natural restraint, we have a bloated civil government with a voracious appetite that only an IRS can fill.
To slay today’s Leviathan, the IRS, that we created, we will need to re-introduce our nation to our forgotten exercise in self-government under God. It’s the only true remedy for tyranny.
1The book, commonly known simply as Leviathan, is actually entitled, Leviathan or the Matter, Forme and Power of a Common Wealth Ecclesiasticall and Civil.
As the global Wall Street 1% and their 2% pull out all the stops in making the 99% believe KILLING THE IRS is a good thing for everyone-----enlisting religion to make this a moral issue=====enlisting patriotism to make it A LIBERTY issue=====when it is NEITHER---please remember this saying handed down for thousands of years-----DEATH AND TAXES ARE THE ONLY SURE THING IN LIFE.
So, there is no intention of lowering taxation on 99% of people or small businesses----the article below shows what these 5% to the 1% global Wall Street pols and their players are doing -----under Obama and now Trump will do the same----they are building tax collection TECHNOLOGY that will not allow any of the 99% escape paying taxes and they will come after anyone who does not fork over SOMETHING---POOR OR NOT.
This is happening because citizens allowed a tax uniformity clause meant to keep taxation under control ----be dismantled by thinking ignoring taxation was a GOOD THING. So, far-right wing global Wall Street CLINTON/BUSH/OBAMA is now really going to make taxation UNBEARABLE and it started with massive US TREASURY AND STATE MUNICIPAL BOND DEBT. This did not happen during Trump---Clinton/Obama global Wall Street neo-liberals did this and Trump will make sure all that bond debt targeted at building global corporate campuses and corporate subsidy and profit will be collected no matter how poor.
This article was written by UNC-----now North Carolina has been the mid-Atlantic Wall Street these few decades of CLINTON/BUSH/OBAMA and so UNC will not blog in public interest
-----it will let people know changes are coming----
'UNC School of Government
Campus Box 3330, UNC Chapel Hill
Chapel Hill, NC 27599-3330'
Invitation to Comment – Or Invitation to Disaster??
The Long Slog to a New Financial Reporting Model Begins!
March 7, 2017 / Gregory Allison
Well, it was inevitable. While we all are still reeling from the fun that has been GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments that was issued in June 1999, another chapter in the never-ending saga has begun. Yes, the Governmental Accounting Standards Board (GASB) recently added a new financial reporting model project to their official agenda. Now, the good news is that this type of project takes time – lots of time. The project that culminated in GASB Statement No. 34 was a 15-year process. The first implementers of GASB Statement No. 34 did so 15 years ago. So, one would hope that this is the beginning of another 15 year adventure and, at the end, most of us will be retired. Well, no such luck this time. While we do have time to possibly retire, the potential release of a new reporting model standard is currently slated for November 2021, with implementation certainly several years after that. However, we are not looking at a 15-year process.
There is no way that this project can be adequately addressed in a single blog post. Indeed, we are just beginning to see the first potential pieces, with much, much more to come. So, this blog post is going to focus on two main topics. First, it will address the significance of an Invitation to Comment issuance and its overall role in the GASB’s due process. Second, the elements of the project will be briefly described. And last, but certainly not least, there will be an overview of the Invitation to Comment that was issued in December 2016. Future blog posts (oh, there is something to live for!) will be used to further describe what is being considered within this first Invitation to Comment and later on, the other proposals of the financial reporting project as they are released. You need to step back from the ledge now.
Let the fun begin!
What is an Invitation to Comment and why should I care?
In December 2016, the GASB issued an Invitation to Comment entitled Financial Reporting Model Improvements – Governmental Funds. It is the first step in rolling out proposals for the GASB to consider as the new reporting model project develops. It is a critical first peek of either how much you would potentially like the new guidance being considered or how quickly you want to consider retiring.
Especially in major projects such as this, the GASB may issue up to three different documents at various stages of the process – an Invitation to Comment, a Preliminary Views (PV), and an Exposure Draft (ED). Technically, an Invitation to Comment is a GASB staff document that is typically used, as in this case, to solicit feedback on various proposals being considered in the early stages of the project evaluation. The Board does not have a consensus view as of yet and preparer and user respondents provide invaluable feedback at that this stage that helps the GASB and its staff narrow their focus and better define the potential trajectory of the evolving guidance.
As the project becomes better defined and the Board has reached a broad consensus on the ultimate path of the guidance, they will issue a Preliminary Views document. Unlike an Invitation to Comment, a PV does not generally identify various paths being considered, but rather provides a very rough blueprint of where the Board foresees the guidance moving toward a proposed standard. There are numerous circumstances where the potential guidance in a PV is substantially changed before an ED is issued; at other times, the PV is simply tweaked before an ED is issued. For this project, the tentative timeline for the issuance of a PV is July 2018.
Finally, an ED is the final proposed guidance from the GASB, although it is certainly subject to change before adoption of a final standard. However, modifications at this point are usually minor and rarely have represented an “about face”. Currently, the Board anticipates issuing an ED in April 2020, with a final standard being issued in November 2021. It is very important to note that at all stages, public hearings are held and comments solicited on the ITC, the PV, and ultimately the ED.
What is the overall reporting model project expected to address?
Let me be the first to break the news now. Whether it is good news or bad news is in the eye of the beholder. This project is not an overhaul of the current financial reporting model, no matter how hopeful some of you may be. Instead, it is “intended to consider improvements to only selected aspects of the existing model”, to quote the summary at the beginning of the Invitation to Comment.
In addition to what this Invitation to Comment is designed to address, future due process documents that will be issued will address the following elements of the reporting model:
- Management’s discussion and analysis
- Government-wide statement of activities
- Debt service fund presentations
- Permanent funds
- Proprietary funds
- Extraordinary and special items
- Budgetary comparisons
Now, this may appear at the surface to be nothing short of an overhaul. However, in many cases, only “tweaking” will be proposed in some of these areas while in others, significant changes could ensue. The path taken after the feedback from this Invitation to Comment will mold how potential modifications will be addressed for the above-mentioned elements of the reporting model.
What is this Invitation to Comment addressing?
In short, a lot. This is why there will be future blog posts that address the elements of this document in more detail (but in pieces so that you can digest slowly and seek medical help as needed). The focus in this publication is on the governmental funds and the measurement focus and basis of accounting that is currently used (i.e., the current financial resource measurement focus and the modified accrual basis of accounting).
To that end, the Invitation to Comment is broadly addressing the following:
- Potential recognition approaches (yes, a change to what we currently do)
- The format of the governmental fund statement of resource flows (in English, the operating statement)
- Related terminology
- The reconciliation to the government-wide statements
- The possibility of a governmental fund statement of cash flows with certain recognition approaches (yes, you read that right!)
In addition, there are admittedly many inconsistencies in some of the information reported, especially with the assets and liabilities. A true current financial resource measurement focus would only report “liquid” assets and short-term liabilities that are immediate draws on those resources. However, long-term receivables, inventory, and prepaid items are considered financial assets and there are times when true longer-term liabilities (e.g., tax, grant, and revenue anticipation notes) are reported as short-term liabilities. Thus, many would argue that the short-term financial focus is too narrow and the inconsistencies too numerous for there not to be room for significant “improvement”, however one defines “improvement”.
Thus, this Invitation to Comment provides a multitude of approaches that are being considered as the project evolves to its next phase, which is Board consensus on a path to pursue.
First, and of dire importance, three potential recognition approaches are being presented:
- A near-term financial resources focus that is probably the closest to the current recognition approach used in the governmental funds in the existing reporting model
- A short-term financial resource focus which would continue some elements of focus that is currently used in the governmental funds, but departs much more so than the near-term approach
- A long-term financial resource focus which is only steps away from actually being more like an economic resource perspective than a financial perspective
Next, as if the above was not enough, the Invitation to Comment also offers up for consideration the addition of a statement of cash flows if either the short-term or long-term financial resource focus were adopted. Finally, two alternatives to the format and the information included therein are identified for the governmental fund operating statement. One is simply retention of the current format of revenues, expenditures, and other financing sources and uses. The other format would represent a focus on current and long-term activity and would report inflows and outflows related to capital assets and long-term indebtedness apart from inflows and outflows of other activities within the governmental fund.
The deadline for written comments for the Invitation to Comment is March 31, 2017, admittedly sooner than all my blogs on it will be completed. However, public hearings and user forums are
being held in various locales across the country during the months of April and May. However, one would need to provide written notice to the GASB of their intent to participate in any of the events by March 31 as well.
To be continued….
Future blog posts will provide deeper insight into the proposals being “run up the flagpole” in this Invitation to Comment. By staying tuned to the evolution of these proposals, one will have a much better perspective of the ramifications of these various approaches as the direction of the reporting model project becomes clearer. (This is not a shameless plug for readership, but a general suggestion.) I promise that I will try to make the medicine as painless as possible!
Here we see Clinton era tax policy from 1999. What this model is looking towards as a goal can be seen as SMART METER SMART CITY TECHNOLOGY where everything a citizen does is captured in data---from what you buy at a grocery store----liquor store----what home energy usage via what appliances----all of that data including workplace wages, traveling roads or trains-----will be used to calculate taxes. Clinton was doing SMART GRID at a national level while a Baltimore Mayor O'Malley was doing so in Baltimore City. During these few decades of ROBBER BARON FLEECING OF AMERICA a complete disregard to all US Rule of Law also was seen in Americans not paying taxes and they thought ----man I'm getting away with something when they were not.
SHAREHOLDERS PROTECTED THESE FEW DECADES NOW HAVE CHILDREN WHO WILL BE ENSLAVED TO TAXATION.
What will happen as these tax policies are implemented and as the article above said it is in the making and will be a decade or so to be applied----after the economic crash and Great Depression ---a system basically of ONE BIG TAX ----much like a VAT ----will have each citizen receiving tax bills in each US Foreign Economic Zone with no global 1% or their 2% ---no global corporation paying those taxes----but the global 99% will work simply to pay those taxes.
GLOBAL WALL STREET CLINTON/BUSH/OBAMA NOW TRUMP ARE BUILDING A SUPER - TAX CALCULATION AND COLLECTION SYSTEM WE THE PEOPLE WILL NOT BE ABLE TO AVOID---ESPECIALLY THOSE POOR FOLKS.
'GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments that was issued in June 1999, another chapter in the never-ending saga has begun'.
While those pesky 5% to the 1% were feeling privileged as global Wall Street players of avoiding taxation these few decades---they are not only going to lose ALL THEIR WEALTH----they set the stage for their families to be killed because they DEREGULATED TAX UNIFORMITY.
I am listening to what are now called WARRIORS AGAINST TAXATION pretending they are simply not going to pay-----and Clinton/Bush/Obama have spent these few decades building a taxation system no one will avoid.
Death and Taxes: A Film about War Tax Resisters and Their Motivations
“The greatest changes in history have only come when people are willing to put everything on the line.” —Julia Butterfly Hill
Twenty-eight people offer their motivations for and methods of resisting the war machine with their tax money. This tightly-paced 28-minute film introduces viewers to war tax refusal and redirecting tax dollars to peace, with music by Sharon Jones and the Dap-Kings, Antibalas, Rude Mechanical Orchestra, and First Strike Theatre’s version of “Don’t Pay Taxes” by Charlie King. Released in 2010 — timely until war ends!
Watch online or order below
Order with Paypal, or to order by mail make checks out to NWTRCC and send with a note asking for the DVD to: NWTRCC • PO Box 150553 • Brooklyn, NY 11215
Death and Taxes DVD
Teachers: See our teaching kit “Thoreau & His Heirs”
Tips for Screenings: Excellent for workshops and presentations with time for discussion.
Produced by: National War Tax Resistance Coordinating Committee, Brooklyn, New York
Editing: Carlos Steward, Asheville, North Carolina
Review from Library Journal, September 1, 2011:
In this un-narrated film, 28 American tax resistors relate via on-screen interviews
their reasons and methods for withholding taxes from the U.S. government. Most
say it is a matter of conscience barring them from financially supporting war or other actions they find morally unacceptable. They explain that tax resistance can range from including a protest letter with full payment to withholding payment completely. Some of the resistors say they have taken on lifestyles that keep them below the legal threshold for taxable income. Others explain their drawn-out dealings with the IRS. A placard at one point explains that of the tens of thousands of tax resistors since World War II, fewer than 30 have been jailed. The combination of the speakers’ good humor and their apparent sincerity makes this film recommended for anyone interested in learning about using tax resistance as a method of protesting wars and war funding.
—Lawrence Maxted, Gannon Univ. Lib., Erie, PA
National War Tax Resistance Coordinating Committee (NWTRCC) P.O. Box 150553, Brooklyn, NY 11215-0553 • (718) 768-3420 • (800) 269-7464
National Affiliates: Christian Peacemaker Teams, Center on Conscience & War, Conscience & Military Tax Campaign (CMTC) Escrow Account, Episcopal Peace Fellowship, Fellowship of Reconciliation, Mennonite Central Committee, National Campaign for a Peace Tax Fund, Nonviolence International, Sojourners, Voices for Creative Nonviolence, War Resisters League, War Tax Resisters Penalty Fund
©2017 National War Tax Resistance Coordinating Committee
Again, this is OCCUPY.COM a Clinton global Wall Street outlet so we know the information is biased towards not letting us know the real problems. We heard national media constantly tell us tax evasion overseas was a problem and a show of IRS targeting offshore rich for tax evasion was just that-----a show used to promote the idea of GLOBAL TAX INFRASTRUCTURE ----we have already been reading that US ex-pats are losing their sovereign rights as American citizens in protections while overseas---this is because we are now controlled by ONE WORLD ONE GOVERNANCE AND ONE GLOBAL TAX COLLECTION. It appears to be the US IRS----but it is not.
China is building this same system to track all its citizens' actions overseas and as with the ROMAN EMPIRE-----these global corporate tribunal networks will be sending global corporate tax collectors wherever we are in the world as Foreign Economic Zones around the world calculate how much tax revenue they need ---
“My husband has a daughter from his first marriage,” Eysselinck said. “He became very uncomfortable that the American government was going to impinge on his inheritance to his children and grandchildren who are Italian citizens and have never been American.”
“He said to me, ‘maybe you have an unwavering faith in the honesty of all of those people who work in the IRS, but I don’t,’” she added'.
The IRS is not colluding with banks---they are building a global tax system that follows global workers wherever they work. What will look like the IRS tracking overseas workers will become a global tax system for ONE WORLD FOREIGN ECONOMIC ZONES----
There are still nations as in Europe not wanting to give up sovereignty and sovereign citizens ---not the US ---global Wall Street cannot wait to send out American human capital for profit.
Exposed: IRS Is Colluding With Banks To Unfairly Target U.S. Citizens Abroad
Wed, 8/14/2013 - by Catherine Featherston
7729 80 reddit2 828
BERLIN—Until she divulged her husband’s financial records to the IRS three years ago, Genette Eysselinck was a proud American, born on an Army base in North Carolina, and living in a small city in southern France.
Then, Eysselinck, 66, was trying to comply with U.S. tax law requiring her to provide bank account numbers and balances for her and her spouse – a Belgian citizen – who lay in the hospital recovering from vascular surgery. Once her husband discovered what she had done, he was incensed.
“He felt that I had robbed him of his privacy,” she recalled. “He said he had no reason to give them that information. He is not an American, he’s never lived in America and nowhere in our marriage contract from 1981 did it say that he had to give that information to marry me. So he was not very happy with my giving it over.”
Ultimately, Eysselinck decided there was only one way to save her marriage – by renouncing her U.S. citizenship. She did so on February 6, 2012.
"I’ve become more and more depressed,” she said of her feelings since surrendering her passport. "I went ahead and in a panic decided to renounce my citizenship simply because I had upset my husband so much and he was so ill at the time.
“I hope someone, somewhere, sometime will say that this is wrong. You can’t just paint all Americans abroad with the same paintbrush as being tax frauds because we’re not."
Eysselinck is one of hundreds of Americans living overseas who are being hounded by the IRS since it began cracking down on tax evasion three years ago. Stories that used to be few and far between are now a constant concern for organizations like American Citizens Abroad and the Federation of American Women’s Clubs Overseas.
And it is a problem that will likely worsen as the U.S. Treasury Department moves to construct an automatic exchange of taxpayer information between governments. The effort is mired in questions about the role of banks in policing government policies, the state of data privacy protections for citizens and the limits of American power.
“In some cases, the banks have broadened the scope and said it’s not just U.S. citizens,” said Victoria Ferauge, a member of American Citizens Abroad who lives just outside Paris with her husband and two daughters. “It’s just about anybody with a U.S. connection.”
That means green card holders, those born in the U.S. but who have never lived there, and people married to Americans.
Ferauge said she was recently introduced to an "accidental" American whose family moved abroad in the 1930s when she was three -- and when she would normally have lost her citizenship for having moved.
“All these years she believed she was no longer an American citizen,” said Ferauge. “Now her bank believes she may fall under the category of U.S. ‘persons’ who they are required to report to the IRS. She has a 98-year-old mother, whose accounts she manages and she’s terrified that she’s going to get shut out of them.”
This painful mess ensnaring an increasing number of ordinary people is the result of the U.S. government’s response to a dispute with the world's largest private bank, Switzerland's UBS.
In a 2009 settlement with the U.S. Justice Department, UBS conceded it had assisted American citizens for nearly a decade in evading taxes by concealing their ownership of bank accounts abroad. The bank agreed to end its American offshore operations and paid a huge fine: $780 million.
Since then, the Treasury department has begun enforcing the Report Foreign Banks and Financial Accounts (FBAR) regulations, and Congress passed new legislation in 2010 called the Foreign Account Tax Compliance Act (FATCA).
FBAR has existed since the 1970s but only recently has the federal government started enforcing it against small account holders. The tax form requires U.S. citizens to declare foreign accounts in which they have a financial interest, or accounts for which they have signature authority, if the combined value of those accounts exceeds $10,000 at any time during a calendar year.
But after years of slack tax administration abroad, there is a lot of confusion about who and what needs to be filed on FBAR, and the consequences for a failure to understand and comply can be ruinous.
Marvin Van Horn, a 64-year-old U.S. citizen and permanent resident of New Zealand, realized he had not been compliant with FBAR after listening to a program on National Public Radio during a trip to the U.S. in 2009. He and his wife, an Australian national, own a house in New Zealand but have no major bank accounts there. They weren’t sure the requirements applied to them but decided to participate in an amnesty program the IRS was offering.
As he went through the process, Van Horn tried to calculate his penalty for failing to file FBAR. "I figured, 'Oh my God, it's going to cost around $90,000,'" he said. "I am not rich, and that's not chicken feed anymore. That eats up retirement savings. It hurts."
Worse, when the IRS examiner reviewed his voluntary disclosure file, he says, she wanted to know if he'd ever rented out his house when he wasn't there. Because the answer was yes, she told him, his house would go into the penalty calculation. Van Horn was incredulous.
"I said, 'You want to apply the penalty based on my house?' So then my penalty went from $90,000 to $172,000. I said, 'This is ridiculous. For a tax failure that's less than $20,000 over six years and a failure to file a form, you want to charge me a penalty of $172,000?'"
In the end, Van Horn says he settled for something – $25,000 – he probably should not have paid. But it was in the context of the time and the hardline position the IRS was taking. It was a "relief decision," he says, anchored by the draconian $172K penalty he was staring in the face.
In case any U.S. citizens should decide not to voluntarily declare their bank accounts to the IRS, FATCA requires foreign financial institutions to do it for them. Under the new law, banks must report assets held by U.S. persons to the IRS through a new system of automatic information exchange. No suspicion of tax fraud is necessary. FATCA is scheduled to take effect July 1, 2014.
Beyond the anxiety of looming personal financial disaster threatened by the IRS, expats are also feeling some resistance to the methods by which the U.S. government is persuading foreign financial institutions into providing bank information to the American tax authorities: the FATCA requirements for banks have already resulted in Americans’ bank accounts being closed down; U.S. expatriates being denied lines of credit and loans including mortgages; second thoughts over hiring Americans for top positions that involve signature authority over company accounts; as well as millions of dollars in fines and expenses for individuals and businesses trying to become compliant.
“We feel a little like David against Goliath here,” said Ferauge. “It’s not that I think some sort of information exchange is a bad idea – I believe that it’s coming like it or not – but there are no safeguards here. There are too many unintended consequences. It’s negatively impacting people who are not tax evaders. What I find astonishing is how it never occurred to the IRS how this could have an impact on regular people.”
The government’s motivation to close tax loopholes is well founded. In addition to the UBS scandal, Apple CEO Tim Cook recently assured the Senate that Apple pays every single dollar of taxes it owes but, nevertheless, managed to sidestep billions in taxes through subsidiary companies on other continents.
Today, that tactic is used by hundreds of other corporations – some of which directly imitated Apple’s methods, say accountants at those companies, according to reports from the New York Times.
Most Americans agree there is a problem with taxation in the country. An ABC News/ Washington Post poll conducted in April showed that 56 percent of Americans view the federal tax system unfavorably. And part of the problem is with offshore bank accounts. But is FATCA, and the multilateral automatic information exchange that goes with it, the right solution?
“In my view, a working system to address offshore accounts addresses offshore accounts,” said Itai Grinberg, professor of law at Georgetown University. “For a U.S. expat living in Berlin, having an account in a Berlin bank is not an offshore account. It’s an on shore account.”
“That’s my view, that’s not what FATCA says,” he added.
Grinberg worked in the Office of International Tax Counsel at the Department of Treasury while FATCA was being drafted and has written about it as part of an evolutionary moment for the international tax system.
According to Grinberg, the distinction between offshore and onshore bank accounts hasn’t been made in FATCA because the U.S. taxes citizens regardless of where they reside. Many Americans don’t know that they are subject to tax by Uncle Sam despite the fact that they left home long ago. Most tax systems are based on residency not citizenship.
“We’re the only major economy on earth that has that rule,” said Grinberg.
In addition to the complications that citizen-based taxation creates for FATCA, it’s unclear if the law includes adequate protections for the distribution of personal financial information. Grinberg says those protections are still being sorted out.
This would seem important given the recent news that the U.S. culls and shares information on its citizens in secret through the NSA's PRISM program.
Charges from the former U.S. government contractor Edward Snowden that, despite their public posturing, the German intelligence service is ‘in bed’ with the National Security Agency have shed a new light on the liberties the United States is willing to take have added to growing public concern.
Snowden leaked information last week about a ‘don’t ask, don’t tell’ intelligence swapping arrangement the U.S. has with its allies.
As the U.S. Treasury moves to implement FATCA by July, it has begun negotiating intergovernmental agreements promising reciprocity from U.S. banks holding foreign assets. These agreements were not part of the legislation passed by Congress, but without them the law is essentially unenforceable.
“The easiest way to think about the intergovernmental agreements (IGAs) is to start with the legal problems that financial institutions outside the U.S. were facing with FATCA,” said Keith Lawson, a senior tax attorney at the Investment Company Institute and chair of the Business Advisory Group to the Organization for Economic Co-operation and Development (OECD).
“The IGAs were put into place to help, for example, UK banks to satisfy their U.S. FATCA obligations without violating home country laws. The reason that reciprocity is not necessarily problematic begins with the five countries that started discussions with the U.S.; these are countries that treat taxpayer information with a high degree of confidentiality," said Lawson. "The U.S. doesn’t have any particular concerns that, say, the German ministry of finance is somehow going to disclose information about German investors in the U.S.”
Currently there are 19 countries in the process of setting up a multilateral automatic exchange of information regime. Lawson said the UK, France, Italy, Germany and Spain announced in April that they were working together on a FATCA IGA between those countries. Since then, 14 other countries including Mexico have expressed an interest in joining that initiative.
“Assuming that initiative comes somehow to fruition there at some point will be quite a bit of tax information being shared between countries on a more automatic basis than it is today," Lawson said. “A lot of those countries already have agreements to share information but the mechanism to share that information is not as well developed as it would be under the intergovernmental approach.”
The data sharing arrangement is causing concern already – Germany has the strictest data protection regime in Europe.
Peter Schaar, the federal commissioner for data protection and freedom of information in Germany, criticizes FATCA for being personally intrusive at best and dangerous for society at worst.
“All in all, a fairly complex system – so complex that in some cases smaller banks often cancel their decades long business relationships with Americans living in Germany, denying them money and investments. This is rightly perceived by the affected Americans as discriminatory," he wrote on his official blog.
The European Data Protection Supervisor, Peter Hustinx, recently raised concern over major deficiencies it found in these anti-money laundering proposals. “Specific safeguards, such as the right of individuals to be informed and the respect of the principles of proportionality and purpose of limitation are essential to prevent ordinary citizens from being excessively profiled by service providers on dubious grounds with potentially damaging effects,” he said in a statement.
Such safeguards would welcome to Eysselinck and other Americans abroad that are among the first affected by these dictates.
“My husband has a daughter from his first marriage,” Eysselinck said. “He became very uncomfortable that the American government was going to impinge on his inheritance to his children and grandchildren who are Italian citizens and have never been American.”
“He said to me, ‘maybe you have an unwavering faith in the honesty of all of those people who work in the IRS, but I don’t,’” she added.
Meanwhile, there is a growing backlash against FATCA.
Congressman Bill Posey R-FL, has called for a moratorium on FATCA, contending that the effort would not only be bad for individuals but for the country as a whole. In a letter to Secretary Lew, he argued that FATCA would not bring a significant amount of money into the U.S. Treasury, but instead discourage investment in the United States.
“Basically we’re concerned that there has been no study of the economic impact of these regulations,” said Posey’s spokesperson George Cecala. “There is a real possibility that a lot of banks in our state could be destabilized because they have a large percentage of non-resident alien deposits that hold up their institutions and if you have a run on those deposits, those banks could collapse. Who’s going to bail that out?”
“You have to watch the balance here because you do have large banks that do benefit from smaller banks collapsing because then they can go in and buy up their business,” he added.
The law’s privacy provisions have also been questioned. Senator Rand Paul, R-KY, has introduced a bill to repeal the provisions of FATCA that he says undermine the privacy of U.S. citizens. “The intent of this law was to prevent tax evasion by increasing access to overseas bank accounts held by U.S. citizens,” Paul said in a letter to his Senate colleagues.
“However, any law enforcement benefits have been vastly outweighed by the deleterious effects of FATCA on economic growth and the financial privacy of Americans,” he wrote.
And across the political isle, Representative Carolyn B. Maloney, D-NY, is concerned about the absence of representation for the interests of ex-pat Americans in Congress.
“It's not always easy being an ex-pat American working overseas, yet still voting and paying taxes and maintaining ties here at home,” she said in an email.
“That's why I've long been an advocate for overseas Americans and why I've reintroduced my bill establishing a federal commission to examine how U.S. laws, policies, and bureaucracy affect this hidden constituency.”
Maloney argues that whether or not ex-pats work for American businesses overseas, they help increase exports of American goods and services because they traditionally buy American goods, sell American goods, and create business opportunities for U.S. companies and workers. She says their role in strengthening the U.S. economy, creating jobs in the United States, and extending American influence around the globe is vital to the well being of our nation.
“We're up to 16 co-sponsors from all parts of the country, so there's momentum behind the ‘Commission on Americans Living Abroad Act’ and I'm optimistic about its prospects,” said Maloney.
While there’s little indication FATCA will be repealed, the many unresolved questions about its inadvertent effects and insufficient privacy protections provide for a long road ahead.
“Of course there will be hiccups,” said Itai Grinberg of Georgetown Law. “Try to build a global system it takes a long time and it’s not easy. I suspect that over the next five to 10 years we will build it.”
For Americans currently overseas, this means living under universal suspicion without individual evidence until a better system can be worked out.
“Americans should care that their fellow Americans who live abroad and are proud of their country and love their country but don’t necessarily feel the need to live within its borders don’t have the rights and privileges guaranteed by the American constitution," said Eysselinck. “We should be considered innocent until proven guilty. The current situation is that Americans are considered guilty simply by virtue of the fact that they do not live on the American continent and this is profoundly wrong.”
No one is more ONE WORLD ONE GOVERNANCE EXTREME WEALTH AND EXTREME POVERTY than Ted Cruz---this guy is the face of global corporate fascism. The right wing has for decades used this tax ploy of FLAT TAX-----the idea everyone pays that 10% tithe to IRS. Supposedly says Cruz we could end the IRS and simply charge everyone rich and poor with tax equity-----what Ted is selling is END THE IRS-----he is not selling tax equity. This is a right wing CONSERVATIVE BONE thrown at the poor the same as the LEFT WING SOCIAL PROGRESSIVE BONE of holding those overseas rich accountable to taxation when the goal is simply building that ONE WORLD ONE GOVERNANCE ONE TAX SYSTEM globally. Cruz as Hillary as Trump all want this REMODELING OF OUR IRS and it has nothing to do with flat tax 10% equity.
“Instead of a tax code that crushes innovation, that imposes burdens on families struggling to make ends meet, imagine a simple flat tax that lets every American fill out his or her taxes on a postcard,” Cruz said. “Imagine abolishing the IRS.”
Presidential Hopeful Ted Cruz Intends to Kill the IRS If Elected
By Elyssa Kirkham | March 24, 2015
Texas Sen. Ted Cruz, announced his bid for Republican presidential nominee Monday at Liberty University in Virginia, reports The Washington Post. In his speech to announce his candidacy, Sen. Cruz also said he would aim to not only reform taxes, but abolish the IRS altogether.
“Instead of a tax code that crushes innovation, that imposes burdens on families struggling to make ends meet, imagine a simple flat tax that lets every American fill out his or her taxes on a postcard,” Cruz said. “Imagine abolishing the IRS.”
Ted Cruz Has Threatened IRS Closure Since 2013
Cruz has mentioned before that he thinks the IRS should be abolished, and made a Facebook post as long ago as May 2013 with similar wording used in his presidential bid speech. And while Cruz’s speech touched on many ideas and plans for his potential presidency, Cruz has stuck to his conviction that the U.S. would be better off without the IRS, and even told Sean Hannity at the Conservative Political Action Conference in February that abolishing the IRS was his No. 2 priority after repealing Obamacare, joking he would “take all 125,000 IRS agents and put them on our southern border.
Tax reform is a big sell for Tea Party voters, who have so far been Cruz’s strongest supporters. But while this tax season is probably making a defunct IRS sound attractive to many taxpayers, Cruz’s proposal to do away with the IRS is just silly.
And Cruz acknowledges that enforcing a tax code, even a simple flat-rate version, would still be necessary, with a spokesperson for Cruz, Catherine Frazier, said to Dallas News, “The senator has never contested that there would be a small department that would enforce the tax code, but the IRS as we know it would be gone.
Cruz’s view that the IRS should be abolished is just an extreme of conservative attempts to limit the IRS’ scope, budget and power.
Already, IRS budget cuts have undermined its ability to enforce the tax code, which could actually cost the U.S. government up to $3 billion in uncollected taxes for the 2014 tax year, reports Reuters. While its role of collecting Americans’ money makes the IRS deeply unpopular, it is vital to funding numerous other federal agencies that many taxpayers depend on, from Medicare to Social Security.
In his speech, however, Cruz glossed over the difficulties of completely overhauling the U.S. tax system and agency.
“Over and over again, when we face impossible odds, the American people rose to the challenge,” Cruz said. “You know, compared to that, repealing Obamacare and abolishing the IRS ain’t all that tough.”
Here we see the movement by CLINTON/BUSH/OBAMA to defund the IRS and reduce Federal tax revenue collection while building global IRS structures for ONE WORLD ONE GOVERNANCE. Now, don't worry about falling Federal revenue because these few decades have seen every Federal, state, and local public asset fleeced ----every avenue of citizen wealth fleeced ----to replace any lost Federal tax revenue.
The goal of allowing American citizens to feel they were escaping taxes was more important these few decades while ending TAX UNIFORMITY and centuries of tax fairness bringing back WHAT IS YOURS AND OURS ---THE GLOBAL 1%!
It has been those 5% to the 1% as the winners in stock market frauds not paying taxes----this was the pay-to-play for dismantling all of a developed nations TAX UNIFORMITY to return to EMPIRE-BUILDING TAXATION.
So, building that global IRS tax structure while global Wall Street pols all shout KILL THE IRS.
The IRS Has New Favorite People to Audit
The taxman is actually getting less ferocious, unless you live overseas
April 9, 2015, 9:34 AM EDT
IRS Budget Cuts: Fewer Funds Lead to Fewer Audits
If you’re scared of an audit by the IRS, there’s less to fear these days. New data show that budget cuts at the IRS mean the agency is investigating fewer wealthy taxpayers.
An average taxpayer’s chance of being audited has tumbled 23 percent in three years, in line with an IRS budget that’s dropped an inflation-adjusted 17 percent since 2010. Only 0.9 percent of individual taxpayers were audited last year, the lowest proportion in seven years.
Even in this era of IRS austerity, wealthier people still face more scrutiny than average. If you make $200,000 to $1 million annually, your chances of an audit are around 2.2 percent, more than double the average. It's even higher for the extra-wealthy—people who earn more than $1 million are audited at a rate of around 7.5 percent. But those rates are dropping, and precipitously:
The only major group that saw an increase in their chances of an audit last year? Taxpayers living overseas. New laws and regulations on investments held overseas have made their tax filing much more difficult.
While this may help individual taxpayers relax, fewer audits mean less tax revenue, in both the short and long term. Last year IRS audits of individuals uncovered $11.9 billion in unpaid taxes, 15 percent less than the year before. Fewer audits in 2014 could also mean more cheating in future years. Academic studies show that having gone through an audit causes taxpayers to report more taxable income for years to come; the threat of another audit keeps them honest. IRS Commissioner John Koskinen estimates that budget cuts mean the government is losing at least $2 billion in revenue per year. "It's a classic example of being penny wise and pound foolish," he said in a March 31 speech.
For now, though, a growing economy is more than making up for what the IRS is losing from lower audit rates. The IRS still managed to boost its net collections by 8 percent last year, to $2.7 trillion.
We have shouted for ten years of CITIZENS' OVERSIGHT MARYLAND to watch out with all these free-for-alls tied to CLINTON/BUSH/OBAMA ROBBER BARON decades because what are a 5% thinking they are WINNERS will be a 5% thrown under the bus. The key words today have been the IRS was defunded and not auditing or looking for tax evaders. Laws written in finance have wording that can be tricky-----when they say there is a window of 10 years for the IRS to collect back taxes---and this is true of our state taxes-----they play with what DETERMINES WHEN THE IRS KNEW taxes were owed. One thinking the year of filing taxes was the start of those 10 years----will find that an IRS wanting to start auditing past filings will see this AUDIT DATE as the start of those 10 years. There are trillions of tax dollars owed by US citizens thinking they were being allowed to play tax evader ----who will see this global Wall Street tax collector coming for anything citizens own in wealth and assets.
When the IRS determines that you owe taxes-----
'The IRS 10 year window to collect starts when the IRS originally determines that you owe taxes'
The State of Maryland plays this game with its citizens all the time---it will allow debt to state or Baltimore will all debt as in parking tickets to go on and on accumulating late fees and interests that take a $50 debt to $1,000.......this is how global Wall Street thinks----NO FLAT TAX IN SIGHT FOLKS.
Five truths about how long the IRS has to collect taxes
By Howard S. Levy, Esq., IRS collection notices, Statute of limitations on collections
Will my IRS debt ever just go away? Will there ever be a time that the IRS will just leave me alone?
Yes, and yes.
The collection of most every IRS debt eventually ends, and that would include yours. This is called the statute of limitations on IRS collections. The Internal Revenue Code gives the IRS a window of time to collect from you; after that window closes, you are free from your tax debt and the IRS.
Here are five truths about how many years the IRS to collect back taxes from you:
1. There is an IRS statute of limitations on collecting taxes. The IRS is limited to 10 years to collect back taxes, after that, they are barred by law from continuing collection activities against you.
2. The IRS 10 year window to collect starts when the IRS originally determines that you owe taxes – that is usually when you filed your tax return, or when the result of an IRS audit becomes final.
3. You can unknowingly give the IRS more time to collect. The filing of an offer in compromise, innocent spouse request, collection due process appeal or bankruptcy all gives the IRS more than 10 years to collect. Each of these acts extends the 10 years during the time they are pending. If you submit an offer in compromise, and it takes the IRS 9 months to investigate it, and the compromise is rejected, the IRS will tack 9 more months on to your collection time frame.
4. IRS tax liens become legally unenforceable when the collection window closes. After the collection statute of limitations expires, the IRS will no longer have an valid lien on your property, including your house.
5. After the IRS can no longer collect from you, they will make an internal adjustment to their books and credit your account for the amount of unpaid taxes, interest and penalties. IRS account transcripts can be obtained verifying that you no longer owe them – they will contain a line entry along the lines of “Time Frame To Collect Expired” and a resulting zero balance.
We can determine how much time the IRS has left to collect from you. First, the IRS has a date in their internal database – they will tell us what it is if we ask. Also, IRS account transcripts can be obtained and analyzed to determine and confirm your end date. If you are uncomfortable calling the IRS, a Federal tax lien will have information on it that can be used to calculate the statute of limitation on collection. It is important to know where you stand with the IRS, and to know whether you may soon be on ground that the IRS will be unable to reach.
'The Taxand study is well worth checking out (click here for a pdf) It gives a fascinating overview of what tax leaders in the really big players in the global economy are thinking on such topics as transfer pricing, audit outlook, and the cost of compliance'.
This article would lead one to believe that what is indeed a goal of ONE WORLD ONE GOVERNANCE and has been the focus of our US IRS these few decades of CLINTON/BUSH/OBAMA and is well on its way to being installed----is not likely to happen---when it will indeed happen----shows how much thought and development by global CFOs around the world has already occurred.
Please take time to click the PDF FILE connected to this article THE TAXAND study to see WORLD BANK UNITED NATIONS MOVING FORWARD on these ONE WORLD ONE TAX policies. Of course it will be implemented in Foreign Economic Zones globally first----with national sovereignty being peeled away as in the US.
Obama and Clinton neo-liberals in Congress sent trillions to building global technology infrastructure for projects just like this.
Time for a One-World Tax System? Yes Please, Say CFOsJul 25, 2011 by John Cummings in Business Finance Blog
RSSAre we in the very early stages of the birth of a world-wide tax system?
As I noted a couple of weeks ago, tax authorities around the world are working together more frequently and more effectively on enforcement issues. On the legislative side, the harmonization of national tax codes is well under way in Europe. Globally, tax treaties are becoming de rigeur, even for traditional haven states like the Cayman Islands, the British Virgin Islands, and the Bahamas, all of which have struck deals in the past couple of years to stay off the OECD's “grey list” of countries that have not fully implemented internationally agreed tax standards.
Tax harmonization, whether regional or global, can't come fast enough for the majority of tax leaders, judging by the results of a new survey from Taxand, a global independent tax organization.
Taxand polled CFOs and tax directors at big multinationals around the world, and found that nearly three-quarters (74 percent) think that global tax harmonization is desirable. Apparently, most finance leaders would like to see some rationalization of the international system, even if it means giving up the chance to indulge in the kind of tax planning shenanigans that got Google so much bad press last year (with arcane but tasty-sounding tax strategies like the Dutch Sandwich, the Double Irish and so on -- see my blog here)
Don't hold your breath, though. Having raised the intriguing prospect of a proto-One World system, Taxand immediately throws cold water on the idea: “It is only right that multinationals conceive of the simpler, more cost-effective tax regimes that harmonization could bring about. However, considering the cost of implementation at a time when many jurisdictions are struggling with budget deficits and using alterations to their tax codes to attract business to their shores, harmonization still looks a long way off, perhaps even beyond the horizon altogether.”
Oh well, it was a nice thought.
The Taxand study is well worth checking out (click here for a pdf) It gives a fascinating overview of what tax leaders in the really big players in the global economy are thinking on such topics as transfer pricing, audit outlook, and the cost of compliance.