U.S. FATCA Applies to Green Card Holders, Citizens

In a bid to increase tax revenues and account for offshore accounts the U.S. has decided to implement the Foreign Account Tax Compliance Act from July of 2014. This Act will make it compulsory of U.S. citizens as well as Green Card holders to report all offshore accounts and investments and pay the tax due on them. In case they maliciously fail to do so, they can be penalized.FATCA1

America is in Debt

The U.S. has already signed agreements with a few countries to implement this law and is likely to sign an agreement with China on this soon. This will make it essential for U.S. citizens and Green Card holders with accounts in China as well as U.S. businesses with accounts in China to report them to U.S. tax authorities and pay any necessary taxes. Uncle Sam is quite greedy because the senate and the president have to pay for a health care bill monstrosity which they cannot even defend any more.

America has not balanced a budget in years―when Newt Gingrich forced Bill Clinton to balance a budget in 93 this led to an economic upheaval for America in the 90s.

America is Pitiful

This is likely to impact the way businesses owned by Chinese citizens in the U.S. are run as the businesses will be U.S. entities. Also, because even those with Green Cards will have to furnish details of their offshore accounts and investments, many people are likely to find the Green Card less attractive. Also, since America continues to hound its citizens since it has to spend money to pay the interest off its debt over taxes, being an American is not that special any more.

Those who have accounts and investments in China as well as those U.S. businesses owned by Chinese and, therefore, having accounts in China as well have to consult with an experienced tax attorney in the U.S. to ensure that their accounting and tax moves are in compliance with the latest U.S. tax regulations. This is important to avoid penalties and fines if the U.S. tax authorities unearth these accounts later.

The Game Continues

As the U.S. tax authorities have started moving to ensure that all U.S. citizens and Green Card holders pay all the taxes due even form their offshore accounts, those people and businesses that have offshore accounts need to revisit their accounting and tax plans or just a country that has not made any agreements with the IRS.