Saturday, September 01, 2012

FORMER US CITIZENS IN CANADA - OBAMA GETS YOUR BANKING RECORDS

KING JESUS IS COMING FOR US ANY TIME NOW. THE RAPTURE. BE PREPARED TO GO.

WELL IT SEEMS TO ME IF YOU USED TO LIVE IN AMERICA AND MOVED TO CANADA, OBAMA CAN GET ALL YOUR BANK INFORMATION BY THIS NEW LAW THAT STARTS TODAY.TO PUT IT BLUNTLY,EVEN THOUGH YOU NOW LIVE IN CANADA.OBAMA CAN TRACK YOUR BANK ACCOUNT INFORMATION.AND IF YOU OWE THE AMERICAN GOVERNMENT ANY MONEY.YOU CAN BE JAILED IN CANADA FOR OWEING THAT MONEY AS IN THE IRS.TALK ABOUT OBAM-AAAAAAAAAAA. BEING A DICTATOR AND WANTING TO KNOW EVERYTHING ABOUT YOU.EVEN IF YOU DO NOT LIVE IN AMERICA ANYMORE.

US Tax Information

*UPDATE*
Dear Constituents,
Hundreds of thousands of other Canadian citizens and residents who have past ties to the U.S. continue to grapple with the situation of filing Internal Revenue Service (IRS) tax returns and Report of Foreign Bank and Financial Accounts (FBAR).
The IRS recognizes the issue and states that its purpose is to bring Americans abroad into compliance.
On June 26, 2012, the IRS announced efforts to help U.S. Citizens living overseas, including dual citizens living in Canada and those with Canadian Registered Retirement Savings Accounts, catch up with filing their U.S. federal income tax returns or Reports of FBARs and comply with the law without facing penalties or enforcement action.
The new procedures will be effective as of September 1st, 2012.
The IRS memo dated June 26, 2012 provides new procedures and requirements that will allow taxpayers who are at low compliance risk to get up to date with their tax requirements without facing penalties or additional enforcement action.
Absent high risk factors, if the submitted returns and application show less than $1,500 in U.S. tax due in each of the years, they will be treated as low risk.
However, submissions that present higher compliance risk are not eligible for the procedure and will be subject to a more thorough review and possibly a full examination, which in some cases may include more than three years.
The IRS also announced that the new procedures will allow retroactive resolution of certain issues related to certain foreign retirement plans, mentioning specifically Canadian Registered Retirement Savings Plans.

Additional information
To read the IRS’s June 2012 memo, please see:
http://www.irs.gov/businesses/small/international/article/0,,id=256772,00.html
For further information regarding the U.S. Examining Process for FBAR, please see: http://www.irs.gov/irm/part4/irm_04-026-016.html.
For more information on low and high compliance risk and foreign retirement plans, see: http://www.irs.gov/businesses/small/international/article/0,,id=256772,00.html.
You may wish to keep abreast of developments through the U.S. Embassy in Ottawa website for Taxpayers Assistance at http://canada.usembassy.gov/service/taxpayer-assistance2.html.
I hope you find this information helpful.
Sincerely,Denise
http://denisesavoie.ndp.ca/us-tax-information

Chapter 26. Bank Secrecy Act

Section 16. Report of Foreign Bank and Financial Accounts (FBAR)

4.26.16  Report of Foreign Bank and Financial Accounts (FBAR)

4.26.16.1  (07-01-2008)
FBAR Law Overview

  1. The Report of Foreign Bank and Financial Accounts, TD F 90–22.1, (FBAR), is required when a U.S. Person has a financial interest in or signature authority over one or more foreign financial accounts with an aggregate value greater than $10,000. If a report is required, certain records must also be kept.
  2. In April 2003, the IRS was delegated civil enforcement authority for the FBAR.
  3. IRM 4.26.16covers FBAR law. FBAR procedures are covered in IRM 4.26.17.

4.26.16.2  (07-01-2008)
FBAR Authorities

  1. FBAR issues can be researched at:
    1. 31 U.S.C. § 5314 the United States Code,
    2. 31 C.F.R. Part 103, the Code of Federal Regulations, and
    3. Instructions to the FBAR.

  2. FBAR relevant authorities are listed on the SB/SE FBAR web site at http://sbse.web.irs.gov/FR/BSA/ProgTechGuidance.htm#fbar. If additional research sources are needed:
    1. Statutory material may be found using commercial legal research services on the IR web home page research center. This is preferable to using the official version of the United States Code because the web site is updated more frequently.
    2. Regulations may be found using commercial legal research services or at http://www.gpoaccess.gov/ecfr. The Electronic Code of Federal Regulations (ECFR) is updated frequently.
    3. The best source for the most current version of the FBAR and its instructions is IRS Forms and Publications at http://publish.no.irs.gov/catlg.html

  3. The public can obtain the FBAR and instructions as follows:
    1. On the internet at http://www.irs.gov.
    2. In some libraries and IRS Forms Distribution centers
    .

4.26.16.2.1  (07-01-2008)
FBAR Statutory Authority

  1. Statutory authority for the FBAR is 31 U.S.C. § 5314.
  2. Section 5314 directs the Secretary of the Treasury to require a resident or citizen of the United States, or a person in and doing business in the United States, to keep records and/or file reports when making transactions or maintaining a relationship with a foreign financial agency.
  3. 31 U.S.C. § 5321(a)(5) establishes civil penalties for violations of the FBAR reporting and recordkeeping requirements. See IRM 4.26.16.4 FBAR Penalties for a discussion of penalties.

4.26.16.2.2  (07-01-2008)
FBAR Regulatory Authority

  1. Regulatory authority for the FBAR is 31 C.F.R. §§ 103.24 and 103.27. Section 103.32 provides for FBAR records and Section 103.56 tasks the IRS with FBAR enforcement. Section 103.24 states that each person subject to the jurisdiction of the United States (except a foreign subsidiary of a U.S. person) who has a financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country must report that relationship to the Commissioner of the Internal Revenue for each year in which the relationship exists. The U.S. person must provide information as specified in the required reporting form.
  2. The FBAR must be filed on or before June 30 for foreign financial accounts aggregating more than $10,000 in the previous calendar year. 31 C.F.R. § 103.27(c)
  3. Any person required to file the FBAR must keep certain records of the account for five years. Records may need to be maintained for a longer period by persons who have been formally charged with a criminal tax violation. 31 C.F.R. § 103.32
  4. The authority to enforce the provisions of 31 U.S.C. § 5314 and 31 C.F.R. §§103.24 and 103.32 has been re-delegated from the Financial Crimes Enforcement Network (FinCEN) to the Commissioner of the Internal Revenue Service by a Memorandum of Understanding (MOU) between FinCEN and IRS. The MOU is referenced in 31 C.F.R. § 103.56(g). This includes authority to:
    1. Investigate possible civil violations of these provisions;
    2. Assess and collect civil FBAR penalties;
    3. Employ the summons power of subpart F of part 103;
    4. Issue administrative rulings under subpart G of part 103; and,
    5. Take any other action reasonably necessary for the enforcement of these and related provisions, including pursuit of injunctions.

4.26.16.2.3  (07-01-2008)
FBAR Instructional Authority

  1. The instructions for the FBAR provide additional guidance and contain some rules not found in the FBAR statute or regulations. For example, the instructions identify exceptions to the filing requirement for certain corporate officers and employees having signature or other authority over a foreign financial account.
  2. The instructions in some instances are clarified by reference to the regulations. For example, terms in the instructions such as " United States" are defined in the regulations.

4.26.16.3  (07-01-2008)
FBAR Filing Criteria

  1. In order to determine whether or not the FBAR is required, all of the following must apply:
    1. The filer is a U.S. person;
    2. The U.S. person has a financial account(s);
    3. The financial account is in a foreign country;
    4. The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
    5. The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.

4.26.16.3.1  (07-01-2008)
U.S. Person

A U.S. person is defined by reference to three sources. 31 U.S.C. 5314 and 31 C.F.R. 103.24 identify persons who may be subject to the FBAR reporting requirement. The FBAR instructions identify a smaller group of persons who must file FBARs than could have been required, under the statute and regulations, to file.
  1. "The Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing business in, the United States, to keep records, file reports..." and that " The Secretary may prescribe a reasonable classification of persons subject to or exempt from a requirement under this section or a regulation under this section" . 31 U.S.C. § 5314
  2. Each person subject to the jurisdiction of the United States (except a foreign subsidiary of a U.S. person)…shall provide information specified in a reporting form prescribed by the Secretary. 31 C.F.R. § 103.24
  3. The instructions to the July 2000 FBAR (the current version) define "United States person" as "a citizen or resident of the United States, a domestic partnership, a domestic corporation or a domestic estate or trust."
  4. "United States" includes the states, territories, and possessions of the United States. 31 C.F.R. 133.11(nn)
  5. Examiners should use the definition of "United States person " found in the FBAR instructions when determining whether a person has an obligation to file the FBAR.
    http://www.irs.gov/irm/part4/irm_04-026-016.html
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