Posts Tagged ‘Offshore voluntary disclosure initiative’
Swiss Secrecy Breach: Does the Punishment Fit the Crime?
If you still have the quaint idea that offshore bank secrecy laws have any “teeth” to them, think again. A case in point is the world-famous Swiss bank secrecy law. Article 47 (Art. 47) of the Swiss Banking Act, Paragraph 1 reads as follows: “Whoever divulges a secret entrusted to him or of which he [...]
The IRS Wants Your Electronic Data
Other than the crisis in Europe or Herman Cain’s latest mistress, what else is happening in the world? In case you missed it, on October 18, the IRS issued what’s called a “Chief Counsel Advice” (CCA) concerning what it calls “original electronic data files.” Basically, the IRS now asserts the right to issue a summons [...]
Form 8938: Not a Prelude to a Wealth Tax…This Time [Part II]
In my last blog entry, I described the latest salvo against offshore financial privacy from the IRS: the requirement to file a tell-all form annually with your tax return detailing “foreign financial assets” with an aggregate value exceeding $50,000. The IRS recently issued a draft version of this Form 8938, along with preliminary regulations on [...]
Form 8938: Not a Prelude to a Wealth Tax…This Time [Part I]
Back in 2010, President Obama signed the infamous Foreign Account Tax Compliance Act (“FATCA”). Among other provisions, FATCA provides that if you hold a “specified foreign financial asset” (SFFA), you must attach a disclosure statement to your income tax return for each year in which the aggregate value of all such assets exceeds $50,000, or [...]
USA to Non-Resident Citizens: “Pay Up, or Face the Consequences” (Part II)
Approximately seven million U.S. citizens live overseas. And while most of them don’t realize it, they’re subject to the same U.S. tax and reporting obligations as any other U.S. citizen. In Part I of this article, I described how the U.S. government has embarked upon a massive effort to force non-resident U.S. citizens to comply [...]
No “Right to Silence” to Avoid Disclosing Information about Offshore Accounts
The Fifth Amendment to the U.S. constitution provides, in part: “No person shall … be compelled in any criminal case to be a witness against himself.” The origins of the Fifth Amendment come from the courts of England. In common law, a confession signed under torture or threat of torture could be used as evidence [...]
IRS Makes Offshore Tax Compliance a Little Easier
It’s not often that I believe the IRS has actually done something right. I’m saying it now, in reference to a recent announcement that IRS is expanding the scope of its most recent “offshore voluntary disclosure initiative” (OVDI). It’s also extended the deadline to complete the disclosure process 90 days after the previous deadline of [...]
The Perils of “Accidental” U.S. Citizenship
Compared to most other countries, it’s comparatively easy to acquire U.S. citizenship. You become a U.S. citizen merely by birth within the geographic boundaries of the United States. In most cases, you’re also a U.S. citizen if you were born outside the United States, and at least one parent was a U.S. citizen or green [...]
Questions, We Get Questions…
Recently, I was going through some blog archives and picked out some of the most interesting questions I’ve received. Hope that you enjoy, and profit from the answers! Q. Are there any pitfalls to be aware of as a dual citizen of the United States and Canada? Plus, any recommendations for residence? A. Both the [...]