AARO Members Talk FATCA with the AAPA

In May, AARO members John Fredenberger, Delphine Brett-Ziller, and Lucy Laederich attended a meeting of the Anglo-American Press Association in Paris to discuss the implications of FATCA legislation on the 8.7 million Americans overseas. The attendees, many of whom are members of the press, were interested to hear the consequences of FATCA on all Americans, including "accidental" Americans, or those who were born to a U.S. citizen but may not be aware that they have U.S. nationality. You can read more about the meeting here: http://www.aapafrance.org/tax-professional-brief-aapa-on-punitive-u-s-legislation/

FATCA lawsuit dismissed

On 25 April 2016 the U.S. District Court for the Southern District of Ohio issued its decision dismissing the FATCA lawsuit brought by Senator Rand Paul (R-KY) and other plaintiffs.  

The full text of the decision can be found here.

FATCA Compliance Date extended for 1 year in Model 1 IGA jurisdictions

On September 18, the IRS issued Notice 2015-66 which provides that Foreign Financial Institutions (FFIs) in countries with "Model 1" Intergovernmental Agreements (IGAs) will be treated as FATCA compliant, and not subject to FATCA withholding by the IRS, if those jurisdictions notify the IRS before September 30 of this year that they require more time to put their systems in place. In that case, the impending deadline will be extended to September 30, 2016.

Tax Controversy Watch has published an article explaining the change, with links to a list of countries affected. Notice 2015-66 does not change the deadline for FFIs to report financial information to their local tax authority, which remains governed by the law of that country. The new rules do, however, provide additional time for non-compliant taxpayers to complete one of the various IRS disclosure programs and become compliant before the 2016 deadline.

"Same Country Exception" in the WSJ

An excellent op-ed piece has appeared in the Wall Street Journal laying out the concept of the "same country exception" to FATCA reporting that AARO and its partner organizations advocate, and drawing attention to the letter written by the Co-Chairs of the Americans Abroad Caucus, Representatives Carolyn Maloney and Mick Mulvaney, to Treasury Secretary Lew and IRS Commissioner Koskinen.

Anyone who has not already contacted his/her legislator to urge him/her to co-sign this letter should forward the link to Mr. Lachowitz's very clear and concise article.  The letter will be sent in the next few days and its effectiveness will be directly proportional to the number of co-signers from both sides of the aisle in the House of Representatives!

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