As an expat (Non-American) this will be interesting in my community. Many expats are completely ignorant of this new regulation of FATCA. Tried to inform some but most did not care and went back to drinking. Likely most banks and that will adapt to this. Through grudgingly. But I do expect some backlash. Banks refusing American customers. Even other security companies from pension funds will stocks will decide to divest of American links and customers.

Once again the government did not look at the hidden costs. If a small bank / credit union with maybe 100 American citizen customers needs to spend lets say 30,000 dollars to update system and change procedures to maybe keep 300,000 worth of deposits, just too expensive. Easier to lose them. But of course this might not even mean American customers, it can just be an American security. When investing in something comes with having to divulge to a government agency with red tape, will make said governments securities harder to sell. So for about 8 billion extra dollars the US government probably just ruined 10 fold or more of that in business.

True most American expats do not have much worry. I forget the the min amount to be looked at? This will be fun to watch.

Some of the costs from another article
http://www.amcham.ch/members_interests/p_business_ch.asp?s=7&c=1

foreign financial intermediary = FFI

The definition of an FFI and its reporting requirements are addressed in more detail in the corresponding regulations. There are three categories of FFI]s, starting with foreign banks and financial institutions. The broadly-drawn definition of "financial institution" includes life insurers offering more than purely death-risk insurance. Securities traders are included in the third category, including collective investment vehicles such as investment funds, hedge funds, and private equity investments.

Many describe FATCA as the "neutron bomb of the global economic system". The predicted tax revenues of approximately USD 850 million annually are countered by enormous implementation costs, not to mention the resulting operating costs. A provisional and very rough estimate shows average introduction costs of approximately $ 5-10 million per FFI, which if introduced by all FFI's results in global costs of $ 1000-2000 billion. This represents approximately the yearly gross domestic product of Brazil or India.

Not. A. Surprise.

There are the people that voted in the Luxury Tax years ago. It made it harder for people to buy things, so it put thousands of Americans out of work. Feadship and Cheoy Lee rejoiced, thanking Congress for pointing out to the well-off that a 10% tax on a yacht could easily be covered by buying one overseas.

Yeah, I actually know quite a few people here in Switzerland who are renouncing their citizenship. Since America has lost a lot of soft power, being a citizen doesn't really get you any benefits here, in fact it is a huge liability.

A woman I know (born here) has 2 kids, who don't qualify for citizenship because she didn't live there for 5 years after age 14 or whatever the rule is. She's like, "I was keeping the citizenship all these years and filing taxes all these years for THEM, if they can't get it what's the point?" You also don't get a tax deduction for your kids unless they are US citizens.

John, a lot of the banks ALREADY won't do business with Americans. I'm lucky because I'm bi-national and my husband is Swiss, never even had a green card even though he lived in the US 15 years (he was there legally, which explains why he didn't get a green card :p ), so the banks gave us a mortgage anyways. But a lot of people have problems. My mom had to give up power of attorney on my grandmother's account, even though my mom is Swiss, because she's also an American citizen.

I'm married filing separate, and have no income right now as I'm at home with a toddler. This will get more annoying later.

America is pissing people off with tax stuff, and TSA.

Welcome to my world.

Congress couldn't care less about many expats. Since Congress is apportioned by geography, expats don't fall into anyone's remit.

To the extent that anyone thinks about us, we're traitors and criminals and deserve whatever befalls us.

BTW, the citizenship renunciation numbers are still miniscule in the scheme of things. Most Americans don't see moving abroad as a realistic option.

I always figured that if you move out of the country, you're just stuck with Citibank as your only banking option. Lame.

Probably nothing. They just do it because they can.

Costs vary quite a bit depending on the parties involved and the action taking place.

In my friends case there is lots of little fees by lots of parties. He is pushing money from his US accounts (for some strange reason his employer pays his salary in USD into a US bank) to his foreign accounts. There is a fee because extra work is required to identify him as really being him since he is not showing up at the original bank in person. Then that bank has some basic fee. They don't have a relationship with a bank in the foreign country, so the money has to go through a second US bank which across charges a fee. The money then goes to a foreign bank and is converted into the local currency. My friend doesn't have enough money to establlish an account with that foreign bank so the money then has to be transfered to a fourth bank. More fees.

My credit card through a tiny credit union doesn't charge any extra for foreign transactions though the fees from Visa are passed on.

But you people don't understand - you're all part of the 1%, evading taxes via your offshore accounts. Of course no normal person could ever earn money overseas!

I ran into a similar law in Aust in about 2000 - a stupid personal services income tax that decreed that any income derived from labour and not paid out to the individual involved within 14 days should be preemptively taxed. Umm, when your creditors are paying on 30 or 60 day accounts? Where do I get the cash? Ouch. Fortunately, although their target was people quitting their jobs and gong back as contractors the next day, they accidentally caught a heap of trades - electricians, plumbers, etc - in the net and had to water them down.

So if your an expat married to a forign national you habe to tell the US governemnt every detail of your partners finacial dealing even though legally you are not earning money on them or own them jointly? WTF

And the thing that they also don't mention is the "Exit Tax" or "the billionaires' amendment

• Income Tax Test: The expatriate's average annual U.S. income tax liability over the 5 years prior to expatriation was over $145,000 (for renunciations as of 2010; the figure will be adjusted annually for subsequent years).
• Net Worth Test: The expatriate's net worth is at least $2 million.
• Compliance Test: The expatriate does not certify that he met all U.S. tax obligations for the five years before expatriation.

So if you are relatively "rich" i.e. you scrimped and saved until you had $2M to retire on; you worked at a skilled job that made a crap load of money; and you retired to Barbados; the fed is going to bend you over and fuck you to renounce your citizenship.

This is like the death tax -- based on assets, not income.

If SB 1811 passes-- and it's likely that it will be passed without a ruffled feather-- the IRS can with-hold our passports if they believe we owe more than $50k in taxes. So, if we happen to return from our vacation, we cannot go home unless we cough up.

Well, we can go home if we have dual citizenship.

OK, do you want me to sound paranoind and conspiracy theory-ish?

Sometimes it feels like the US doesn't WANT its citizens to travel to other countries, even for vacations, let alone live there. It's like they're trying to prevent us from doing so. Like North Korea or something. I know, I know, we're not anywhere near North Korea, but sometimes it feels like the authorities would like to push the US in that direction.

Also, what's with the crazy border security when you enter the country? No other country I've been to cares if you bring a piece of cheese in. Why is the US so worried about it? Ironically, the US is the country with the weird frankenfoods... if anyone should be worried it should be the OTHER countries...

When I come home to CH, they sort of glance at my passport and say "Bonne rentrée Madame" and that's it. No uniformed officers asking me about what I bought abroad, or if I visited a farm... I don't even have to fill out that form!!!

WTF?

NicoleK you have never been Australia. I am amazed the Aussies allow live people in to the country. You think America is paranoid about some food, they are more vigilant.

In a way I understand border and customs asking about food and farm visits because they want to protect against diseases. All it can take is the wrong food with the wrong disease and bam - millions of dollars of damage to the tomato industry. Or forgot to mention that visit to a farm. Bang - quarantine and slaughter of livestock because of foot and mouth disease.

True at times some of these restrictions are taken to the nth degree or out of context. Like some customs official wanting to seize Vegemite spread because it has extra folate in it. Silly.

Other countries (apparently not Australia) manage to keep their food safe without giving incoming folk the third degree.