American taxpayers abandon U.S. before register to FATCA
The U.S. Treasury Department has published indicative numbers illustrating the number of 1 577 United States taxpayers giving up their passports or their green cards in the first half of this year.
The increasing number of individuals doing so, has been the consequence of the actions taken by the Treasury and the Internal Revenue Service (IRS) to trace American undeclared assets and income held abroad gather pace.
Of particular relevance was the July 1 deadline for the application of the Foreign Account Tax Compliance Act. The Act is intended to ensure that the IRS obtains information on accounts held abroad at foreign financial institutions by US taxpayers, and under which the US is negotiating more agreements with foreign jurisdictions. In addition, more than 100 Swiss banks have now agreed to participate in a US tax regularization program and disclose information on US account holders.
It has also been said that more Americans living abroad are becoming aware of their unwanted US tax reporting obligations – for example, the requirement to file a Report of Foreign Bank and Financial Accounts – due to the US “worldwide” tax code, which subjects all of an individual’s earnings to US taxation.
Source: tax-news
