Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

FATCA Causing Chaos Worldwide For Americans

Politics / Taxes May 14, 2014 - 08:18 PM GMT

By: Jeff_Berwick


The Illegitimate Revenue Agency (IRS) has just announced that the Foreign Account Tax Compliance Act (FATCA) has been postponed from July 1, 2014 until January 1, 2016.

This is good news in many ways for both those with assets that they wish to internationalize as well as for the dollar and US banking system itself but in many ways the damage has already been done.

FATCA, signed into law in 2010, ensures that, if you don't tell the US government where your assets are and how much is there, your bank will no matter where that bank exists.  FATCA has been acknowledged as the death of the dollar by many experts including our own FATCA expert, Jim Karger, who recently stated such at our recent TDV Wealth Management Crisis Conference in both Panama and Mexico. Many foreign banks simply won't comply. The cost and risk of complying outweighs the benefit of accepting American clients.

By requiring banks all over the world to become unpaid employees of the IRS and keep tabs on American citizens FATCA is perhaps the most egregious, overarching and draconian "law" put into effect by the US government crime organization to date.

We've heard story-after-story of banks all over the globe that are simply not taking on American clients. In many cases, they are telling their current American clients their accounts will soon be closed. The account holder's crime? Being American.

But there has been some temporary reprieve for those who will be affected by the law. 

The recent IRS guidelines regarding FATCA give many of the companies and financial institutions implementing FATCA another 18 months to be in compliance. Of course, as with all government laws it will be selectively enforced. Any banks not appearing to be doing their best to comply will likely find themselves in contention with the IRS. At any rate, what this effectively means is that if Uncle Sam doesn't like you or wants your money he might come after you. Nothing new here...

A recent Thomson Reuters survey of 500 European and US tax professionals showed 74% believed there to be a lack of clarity in the IRS regulations for FATCA.  This would impede compliance, they predicted.

The notice from the IRS states:

“Calendar years 2014 and 2015 will be regarded as a transition period for purposes of IRS enforcement and administration of the due diligence, reporting, and withholding provisions…

With respect to this transition period, the IRS will take into account the extent to which a participating or deemed-compliant FFI, direct reporting NFFE, sponsoring entity, sponsored FFI, sponsored direct reporting NFFE, or withholding agent has made good faith efforts to comply with the requirements of the chapter 4 regulations and the temporary coordination regulations.

For example, the IRS will take into account whether a withholding agent has made reasonable efforts during the transition period to modify its account opening practices and procedures to document the chapter 4 status of payees, apply the standards of knowledge provided in chapter 4, and, in the absence of reliable documentation, apply the presumption rules of §1.1471-3(f).”


FATCA has already affected many Americans with accounts abroad.  They have seen their accounts closed at a moment's notice, have been unable to open accounts and perhaps even worse hardly anyone even knows how to deal with the FATCA regulations even if they did want to deal with it.

I have just returned from the Cayman Islands where lawyers and accountants are running scared.  They are slowly figuring out what FATCA means to their American clients, many of whom have a large amount of assets in the Cayman Islands that they do not want to repatriate to the US or be reported to the IRS.  And, even if they wanted to adhere to all the rules under FATCA it is nearly impossible to understand and fraught with risk.

The lawyers in the Cayman Islands told me that company incorporation in the Cayman Islands is rock solid in terms of privacy and ease of setup (we will have more on that to subscribers soon) but the problem is banking in the Cayman Island.  They told me that if an American is even involved, in any way, with a company that has a bank account in the Cayman Islands they will report all information on that account to the IRS.

I informed them of a few things.  

First, any American with substantial assets should be running, not walking, to get a second passport to protect against all of the capital controls coming out against Americans.  We have heard of some companies that have stopped working with Americans at all just because of the problems it causes them with their bank accounts.

Secondly, there are ways for Americans to have international structures and banking without falling under the FATCA legislation.  We enlightened dozens of people recently at our Crisis Conference on how to do this.  You can find out more by contacting TDV Wealth Management.


As you can see, the law will still go into effect...and January 1, 2016 is right around the corner. The IRS fines for FATCA non-compliance could result in fines or jailtime on individuals who fail to report. Already this coming July 1, 2014, foreign financial institutions risk being fined.

The next 18 months are merely a reprieve. Already foreigners are moving away from the dollar. The facade of the US government has fallen and the entire world recognizes that the US and the dollar is about to collapse because it cannot pay off its debts and printing money is the only way the game can continue on much longer. Countless movements are ongoing in Russia, China, the Middle East and more all moving away from the dollar and the US banking system... and this is exacerbated by FATCA.

If you were caught on your heels in the lead up to July 1, 2014, then don't be in the lead up to the next FATCA deadline. The folks at TDV Wealth Management are ready to help you today with any questions you might have.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2014 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in