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Oh no this isn't good for future lottery winners thinking about moving money to offshore banks..

Topic closed. 5 replies. Last post 3 years ago by sully16.

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United States
Member #125918
March 31, 2012
362 Posts
Online
Posted: March 20, 2014, 1:36 pm - IP Logged

The Foreign Account Tax Compliance Act (FATCA) is having a negative impact on the U.S. economy, U.S. financial markets, American businesses operating abroad and American citizens who work and reside overseas.

American Citizens Abroad (ACA) is working hard to educate the legislature and decision makers to inform them of the many dangers of FATCA. Recently legislators and the media have come out in strong opposition to FATCA, some advocate for repeal, others for revisions of the regulations. All our unanimous that FATCA as currently drafted is bad for America and Americans.

What is FATCA?

FATCA was initially introduced to target those who evade paying U.S. taxes by hiding assets in undisclosed foreign bank accounts. With such a noble goal, and with the strong backing of the Administration, Congress quickly drafted the FATCA legislation and quietly slipped it into the HIRE (Hiring Incentives to Restore Employment) bill signed into law by President Obama in March 2010. Most members of Congress are unaware of the unintended negative consequences this legislation will have when fully implemented in 2014.

Key provisions of FATCA

FATCA requires foreign financial institutions (FFI) of broad scope - banks, stock brokers, hedge funds, pension funds, insurance companies, trusts - to report directly to the IRS all clients’ accounts owned by U.S. Citizens and U.S. persons (Green Card holders).

Starting July 1, 2014, FATCA will require FFIs to provide annual reports to the Internal Revenue Service (IRS) on the name and address of each U.S. client, as well as the largest account balance in the year and total debits and credits of any account owned by a U.S. person.

If an institution does not comply, the U.S. will impose a 30% withholding tax on all its transactions concerning U.S. securities, including the proceeds of sale of securities.

In addition, FATCA requires any foreign company not listed on a stock exchange or any foreign partnership which has 10% U.S. ownership to report to the IRS the names and tax I.D. number (TIN) of any U.S. owner.

FATCA also requires U.S. citizens and green card holders who have foreign financial assets in excess of $50,000 (higher for those who are bona-fide residents abroad) to complete a new Form 8938 to be filed with the 1040 tax return, starting with fiscal year 2011.

Those affected by FATCA

FATCA will have serious negative ramifications on the entire U.S. economy and more specifically on

• U.S. financial markets and financial institutions

• U.S. businesses operating in global markets

• American citizens residing overseas

• American citizens with legitimate investments overseas

 

So this also means anyone that wins a lottery and move the money overseas is subject to this FATCA law..  Wow this needs to be repealed.... This new law set to go into effect on July 1st, 2014. 

    whiteballz's avatar - Lottery-015.jpg
    Nutley, New Jersey
    United States
    Member #131058
    August 1, 2012
    875 Posts
    Offline
    Posted: March 20, 2014, 2:47 pm - IP Logged
      Avatar

      United States
      Member #149820
      December 9, 2013
      644 Posts
      Offline
      Posted: March 20, 2014, 4:39 pm - IP Logged

      Why would you move your money offshore? It's bad enough we got bankers robbing us here, why would you subject yourself to being robbed abroad?

        Lucky Loser's avatar - bucks
        Texas
        United States
        Member #86154
        January 30, 2010
        1649 Posts
        Offline
        Posted: March 22, 2014, 10:04 pm - IP Logged

        The Foreign Account Tax Compliance Act (FATCA) is having a negative impact on the U.S. economy, U.S. financial markets, American businesses operating abroad and American citizens who work and reside overseas.

        American Citizens Abroad (ACA) is working hard to educate the legislature and decision makers to inform them of the many dangers of FATCA. Recently legislators and the media have come out in strong opposition to FATCA, some advocate for repeal, others for revisions of the regulations. All our unanimous that FATCA as currently drafted is bad for America and Americans.

        What is FATCA?

        FATCA was initially introduced to target those who evade paying U.S. taxes by hiding assets in undisclosed foreign bank accounts. With such a noble goal, and with the strong backing of the Administration, Congress quickly drafted the FATCA legislation and quietly slipped it into the HIRE (Hiring Incentives to Restore Employment) bill signed into law by President Obama in March 2010. Most members of Congress are unaware of the unintended negative consequences this legislation will have when fully implemented in 2014.

        Key provisions of FATCA

        FATCA requires foreign financial institutions (FFI) of broad scope - banks, stock brokers, hedge funds, pension funds, insurance companies, trusts - to report directly to the IRS all clients’ accounts owned by U.S. Citizens and U.S. persons (Green Card holders).

        Starting July 1, 2014, FATCA will require FFIs to provide annual reports to the Internal Revenue Service (IRS) on the name and address of each U.S. client, as well as the largest account balance in the year and total debits and credits of any account owned by a U.S. person.

        If an institution does not comply, the U.S. will impose a 30% withholding tax on all its transactions concerning U.S. securities, including the proceeds of sale of securities.

        In addition, FATCA requires any foreign company not listed on a stock exchange or any foreign partnership which has 10% U.S. ownership to report to the IRS the names and tax I.D. number (TIN) of any U.S. owner.

        FATCA also requires U.S. citizens and green card holders who have foreign financial assets in excess of $50,000 (higher for those who are bona-fide residents abroad) to complete a new Form 8938 to be filed with the 1040 tax return, starting with fiscal year 2011.

        Those affected by FATCA

        FATCA will have serious negative ramifications on the entire U.S. economy and more specifically on

        • U.S. financial markets and financial institutions

        • U.S. businesses operating in global markets

        • American citizens residing overseas

        • American citizens with legitimate investments overseas

         

        So this also means anyone that wins a lottery and move the money overseas is subject to this FATCA law..  Wow this needs to be repealed.... This new law set to go into effect on July 1st, 2014. 

        FUNKY A$$ TAX COMPLIANCE AMENDMENT.

        F          A      T      C                     A

         

         

        L.L.

        Small games, frequent wins, and regular payouts 'cause.....

        There are seven days in the week...'Someday' isn't one of them.

        #lotto-4-a-living

          savagegoose's avatar - ProfilePho
          adelaide sa
          Australia
          Member #37136
          April 11, 2006
          3300 Posts
          Offline
          Posted: March 24, 2014, 2:23 pm - IP Logged

          i guess you havent read the part where people leaving  US citizenship and wanting to take their cash with them, face a witholding tax of i think %10, just incase the gov needs it later or can think of any reason th tax you after you are gone. so you  want to leave and take your winnings?  well thats  an extra %10 thanks.

          <div_prefs id="div_prefs">

          2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

          keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

            sully16's avatar - sharan
            Ringleader
            Michigan
            United States
            Member #81740
            October 28, 2009
            40471 Posts
            Online
            Posted: March 24, 2014, 4:11 pm - IP Logged

            Never ending supply of greed.

            Did you exchange a walk on part in the war ?

            For a lead role in a cage?

             

                                                        From Pink Floyd's " Wish you were here"