The Foreign Account Tax Compliance Act (FATCA)

fatcaSo the United States isn’t happy with its residents earning money overseas and using overseas financial institutions.  The IRS has decided to introduce FATCA, or the Foreign Account Tax Compliance Act.  This act forces all Americans living overseas, or living the US but with foreign accounts, to report their accounts in a special rider to their tax returns.  It also forces banks in foreign countries to keep tabs on their American account holders and report that information to the IRS.

So, it’s not enough that I have to pay income tax to the United States government on money that I earn in a foreign country and spend in a foreign country, but now they expect my bank in Singapore to keep tabs on the amount of money I have and report to the IRS any amounts higher than a certain cutoff!!??  How ridiculous is that?!?  I don’t live in the United States, I make sure that I spend less than 35 days in the US each year (the cutoff for having to pay taxes on my full salary), and the United States really does nothing for me anymore other than provide me with a passport.  Yet, they feel they can get all up in my business because I have that passport!  This is disgusting.

Because foreign banks are being forced to comply with FATCA by their respective governments who want good relations with the United States, it’s making it more difficult for US expats to get bank accounts.  These banks are expected to invest their own money and manpower into compiling the reports for the US IRS, that they don’t want to be bothered.  So, they’re refusing accounts to American citizens.  Americans that live and work overseas are finding it increasingly difficult to get bank accounts in their countries of residence now because of FATCA.  The US is actually hurting the livelihood of its citizens with this law rather than just helping the IRS claim everything it feels it’s owed.

I don’t feel that the money I earn in another country and the money I save in that country are really any of the United States’ business.  Like I said, they only provide me a passport, nothing else.  I have not lived in the United Stated in 8 years and I have no intention of ever returning.  A lot of what has been going on with this “Mickey Mouse” administration in the past 7 years has definitely made me want to stay away.  If it weren’t for my family, I wouldn’t even visit.  I don’t owe them anything, and I have a right to my money that I earn overseas.  I pay taxes in Singapore and I paid them in Spain and China as well.  I haven’t earned money in the US in 8 years, yet they still want to take their cut of my hard work.  All this for a lousy passport.  I’d gladly give up the passport if I could find another country that would give me one!

http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

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