Foreign Account Tax Compliance Act

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The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law requiring all non-U.S. ('foreign') financial institutions (FFIs) to search their records for customers with indicia of 'U.S.-person' status, such as a U.S. place of birth, and to report the assets and identities of such persons to the U.S. Department of the Treasury. FATCA also requires such persons to self-report their non-U.S. financial assets annually to the Internal Revenue Service (IRS) on form 8938, which is in addition to the older and further redundant requirement to self-report them annually to the Financial Crimes Enforcement Network (FinCEN) on form 114 (also known as 'FBAR'). Like U.S. income tax law, FATCA applies to U.S. residents and also to U.S. citizens and green card holders residing in other countries.

FATCA was the revenue-raising portion of the 2010 domestic jobs stimulus bill, the Hiring Incentives to Restore Employment (HIRE) Act, and was enacted as Subtitle A (sections 501 through 541) of Title V of that law. FATCA is controversial because foreign banks have been forced to comply under threat of a 30% withholding penalty on all their U.S. transactions. The U.S. has yet to comply with FATCA itself, because as of 2017, it has not yet provided the promised reciprocity to its partner countries and it has failed to sign up to the Common Reporting Standard (CRS). FATCA has also been criticised for its impacts on Americans living overseas, and implicated in record-breaking numbers of U.S. citizenship renunciations throughout the 2010s. Bills to repeal FATCA have been introduced in the U.S. Senate and House of Representatives, citing its unconstitutionality, particularly its breach of 4th amendment rights, as well as its high implementation costs and lack of revenue generation. A hearing on the unintended consequences of FATCA was held by the Committee on Oversight and Government Reform on 26 April 2017.

Video Foreign Account Tax Compliance Act

Background

FATCA was reportedly enacted for the purpose of detecting the non-U.S. financial accounts of U.S. resident taxpayers rather than to identify non-resident U.S. citizens and enforce collections. However, although there might be thousands of resident U.S. citizens with non-U.S. assets, such as astute investors, dual citizens, or legal immigrants, FATCA also applies to the estimated 5.7 to 9 million U.S. citizens residing outside of the United States and those persons believed to be U.S. persons for tax purposes. FATCA also affects non-U.S.-person family members and business partners who share accounts with U.S. persons or who have U.S.-person signatories of accounts. This feature allows the reporting of the assets of non-U.S. corporations, volunteer organisations, and any other non-U.S. entity where a U.S. person can be identified.

FATCA is used to locate U.S. citizens (residing in the U.S. or not) and "U.S. persons for tax purposes" and to collect and store information including total asset value and Social Security number. The law is used to detect assets, rather than income. The law does not include a provision imposing any tax. In the law, financial institutions would report the information they gather to the U.S. Internal Revenue Service (IRS). As implemented by the intergovernmental agreements (IGAs) (discussed below) with many countries, each financial institution will send the U.S.-person's data to the local government first. For example, according to Ukraine's IGA, the U.S.-person data will be sent to U.S. via the Ukrainian government. Alternatively, in a non-IGA country, such as Russia, only the Russian bank will store the U.S.-person data and will send it directly to the IRS.

FATCA is used by government personnel to detect indicia of U.S. persons and their assets and to enable cross-checking where assets have been self-reported by individuals to the IRS or to the Financial Crimes Enforcement Network (FinCEN). U.S. persons, regardless of residence location and regardless of dual citizenship, are required to self-report their non-U.S. assets to FinCEN on an annual basis. According to qualification criteria, individuals are also required to report this information on IRS information-reporting form 8938. FATCA will allow detection of persons who have not self-reported, enabling collection of large penalties. FATCA allows government personnel to locate U.S. persons not living in the United States, so as to assess U.S. tax or penalties.

Under FATCA, non-U.S. ('foreign') financial institutions (FFIs) are required to report asset and identify information related to suspected U.S. persons using their financial institutions.

Under U.S. tax law, U.S. persons (regardless of country of residence) are generally required to report and pay U.S. federal income tax on income from all sources. The U.S. is unique in taxing not only non-resident citizens but also non-resident "U.S. Persons for tax purposes". The law requires U.S. citizens living abroad to pay U.S. taxes on foreign income if the foreign tax should be less than U.S. tax ("taxing up"), independently within each category of earned income and passive income. For this reason, the increased reporting requirements of FATCA have had extensive implications for U.S. citizens living abroad. Taxpayer identification numbers and source withholding are also now used to enforce asset reporting requirements upon non-resident U.S. citizens. For example, mandatory withholding can be required via FATCA when a U.S. payor cannot confirm the non-U.S. status of a foreign payee.

The IRS previously instituted a qualified intermediary (QI) program under Internal Revenue Code § 1441, which required participating foreign financial institutions to maintain records of the U.S. or foreign status of their account holders and to report income and withhold taxes. One report included a statement of a finding that participation in the QI program was too low to have a substantive impact as an enforcement measure and was prone to abuse. An illustration of the weakness in the QI program was that UBS, a Swiss bank, had registered as a QI with the IRS in 2001 and was later forced to settle in the UBS tax evasion controversy with the U.S. Government for $780 million in 2009 over claims that it fraudulently concealed information on its U.S. person account holders. Non-resident U.S. citizens' required self-reporting of their local assets was also found to be relatively ineffective.

The Hiring Incentives to Restore Employment Act (of which FATCA is a part) was passed on party lines: It narrowly passed the House, with no Republican members voting "yes" and passed the Senate with only one Democrat member voting "no". President Obama (D) signed the bill into law.

Senator Carl Levin (D-MI) has stated that the U.S. Treasury loses as much as 100 billion USD annually to "offshore tax non-compliance" without stating the source of the data. (Another source stated 40-70 billion USD without citing the source). Accurate figures on unreported income have not been supported. On March 4, 2009 the IRS Commissioner Douglas Shulman testified before the Subcommittee that there is no credible estimate of lost tax revenue from offshore tax abuse.

Supplementing the reporting regimes already in place was stated by Senator Max Baucus (D-MT) to be a means of acquiring more financial data and raising government revenue. After committee deliberation, Sen. Max Baucus and Rep. Charles Rangel (D-NY) introduced the Foreign Account Tax Compliance Act of 2009 to Congress on October 27, 2009. It was later added to an appropriations bill as an amendment, sponsored by Sen. Harry Reid (D-NV), which also renamed the bill the HIRE Act. The bill was signed into law by President Obama on March 18, 2010.

A legal challenge against the constitutionality of FATCA, its IGAs, and FBAR reporting requirements was filed in a federal district court in Ohio on July 14, 2015 (see below). The case is Crawford v. U.S. Department of Treasury. Arguments for an injunction against the FATCA IGAs were held on Sept 4, 2015.

Maps Foreign Account Tax Compliance Act

Provisions

FATCA has the following important provisions:

• Requires non-U.S. ('foreign') financial institutions such as banks to agree to search customer databases to identify those suspected of being US persons, and to disclose the account holders' names, TINs and addresses, as well as the transactions for most types of account. Some types of account, notably retirement savings and other tax-favored products, may be excluded from reporting on a country-by-country basis. U.S. entities making payments to non-compliant foreign financial institutions are required to "withhold... tax equal to 30 percent of the amount".

Foreign financial institutions which are themselves the beneficial owners of such payments are not permitted a credit or refund for taxes withheld, absent a treaty override.

US persons are identified by "FATCA indicia". A bank official who knows a U.S. person's status by other means is also required to identify that person for FATCA purposes. After identification, the FFI is responsible under the law for further questioning the individual.

• To implement this requirement, the IRS put out Form W-8BEN in February 2014. Since then, the IRS has required FFIs to have all foreign account holders certify their status on Form W-8BEN unless an intergovernmental agreement is in place authorizing another method of certification.

In other words, all account holders of FFIs are expected to comply with FATCA reporting requirements.

• U.S. persons who own or have signing authority on these foreign accounts or assets must report them on the new IRS Form 8938, Statement of Specified Foreign Financial Assets, which is filed with the person's U.S. tax returns if the accounts are generally worth more than US$50,000. A higher reporting threshold applies to U.S. persons who are overseas residents and file jointly . Account holders would be subject to a 40% penalty on understatements of income in an undisclosed foreign financial asset. Understatements of more than 25% of gross income are subject to an extended statute of limitations period, six years. It also requires taxpayers to report financial assets that are not held in a custodial account, i.e. physical stock or bond certificates.
• Where foreign investors had not been due U.S. dividends the law introduced a method that converting them into "dividend equivalents" through swap contracts.
• FATCA also increased penalties and imposed certain negative presumptions on Americans whose accounts are not located in U.S.

The reporting requirements are in addition to the one that all U.S. persons repor of non-U.S. financial accounts to the U.S. Financial Crimes Enforcement Network (FinCEN). This notably includes Form 114, "Report of Foreign Bank and Financial Accounts" (FBAR) for foreign financial accounts exceeding US$10,000, required under Bank Secrecy Act regulations issued by the Financial Crimes Enforcement Network .

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FATCA indicia

Banks which are performing functions according to FATCA law will be searching according to FATCA indicia, which include:

• A U.S. place of birth
• Identification of the account holder as a U.S. citizen or resident
• A current U.S. residence or mailing address (including a U.S. PO box)
• A current U.S. telephone number
• Standing instructions to pay amounts from a foreign (meaning non-U.S.) account to an account maintained in the United States
• A current power of attorney or signatory authority granted to a person with a U.S. address
• A U.S. "in-care-of" or "hold mail" address that is the sole address with respect to the account holder
• Special note: Others affected by FATCA include
  • any non-U.S. person who shares a joint account with a U.S. person or otherwise allows a U.S. person to have signatory authority on their account.
  • Any business or not-for-profit organization that allows a U.S. person to have signatory authority on a financial account.

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Revenue and cost

There are varying estimates of the revenues gained and likely cost of implementing the legislation.

Revenue

With implementation, FATCA was estimated by the United States Congress Joint Committee on Taxation to produce approximately $8.7 billion in additional tax revenue over 11 years (average $792 million a year). A later analysis from Texas A&M includes an estimate that revenues would be less than $250 million USD per year ($2.5 billion USD total). (Jane Gravelle, a specialist in economic policy at the Congressional Research Service, has asserted that this figure is small relative to her estimate of $40 billion per year as the cost of international tax evasion.) "The actual annual tax revenue generated since 2009 from offshore voluntary disclosure initiatives and from prosecutions of individual's tax evasion is running significantly lower than the JCT's estimated annual average, at less than $400 million, and will probably result in less than that over the decade 2010 to 2020." "The IRS has claimed that over ten billion dollars in additional tax revenues will be recovered from offshore accounts over the next decade. Since the enactment of FATCA the IRS has received approximately $8.0 billion nearly entirely from FBAR penalties and not from tax collection." Recently, a calculation showed that $771 million of tax revenue loss from U.S. banks could nearly nullify the reported revenue gain reported by the Joint Committee.

Implementation cost

The estimates of the costs to be incurred in the private sector, by the IRS, and by foreign revenue authorities are less precise. "FATCA as detailed today will bring huge implementation & processing costs and effort. This cost has to be borne by investors and account holders. Industry members estimated increase of cost per account around USD 20-50." What is not discussed is the cost of liability insurance since FATCA requires that, among other matters, Compliance Officers will be personally liable. "FATCA requires major initial investment within an institution, estimated at $25,000 for smaller institutions, to $100,000 to $500,000 for most institutions and $1 million for larger firms. While a boon for the financial consultancy and IT industry, it is an extra cost that institutions would rather not have."

• Global: The compliance cost to financial institutions has been roughly estimated by Forbes at US$8 billion a year, approximately ten times the amount of estimated revenue raised. Based on implementation costs known in a few countries, projected costs exceed $200 billion for all the financial institutions of the world to implement FATCA. This projection excludes annual administration costs. A chapter of the Chamber of Commerce estimated FATCA global implementation costs to be 1-2 trillion USD.
• Canada: According to the Financial Post, the Scotia Bank in Canada has already spent almost $100 million.
• Australia: The costs in Australia are estimated to be A$255 million for implementation, and A$22.7M for each year of maintenance. Over 10 years, this totals A$482.68M. With 77,000 resident US citizens (54% of whom are of dual citizenship) and known population of 24,003,100, the estimated implementation cost is A$6,270 per residing U.S. citizen, A$11,590 per U.S.-person account, or A$20.20 per capita. The most representative developed country has 661 bank accounts per 1,000 adults, and Australia has 82.1% population above 15 years old (adults). This yields an estimated 41,700 US-citizen bank customers in Australia, or a FATCA implementation cost of A$37.30 per customer. As there are 3,668 Australian FFI's are currently registered, the average estimated FATCA cost for each is A$132,000. The same analysis showed that costs without the IGA would be A$477M for implementation, and A$58.8M for each year of maintenance. Over 10 years, this totals A$1.066bn, which would have been A$44.40 per capita, A$81.10 per customer, A$13,800 per resident U.S. citizen, or A$25,600 per U.S.-person account. This is the only published non-IGA country cost estimation identified. Without an IGA, the estimated FATCA cost per FFI is A$291,000. Australia succeeded to locate only 30,000 of those US citizens (72% effectiveness) in its first FATCA submission to USA. It was determined that each located U.S. citizen bank account averaged A$160,000.
• New Zealand: The government of New Zealand has estimated that locating approximately 21,462 resident U.S. citizens would cost the government alone about $20,600,000. That cost would equal approximately 960 NZD per resident U.S. citizen, or about 4.48 NZD per capita. Country costs (including costs at the institutions) was not included in the reporting, nor was the financial impact made when the IGA was signed. Costs to FFI's was estimated to be 100 million NZD, just to bring New Zealand into initial FATCA compliance.
• Europe: The costs of implementation in Europe are shown (below) with available documentation to be greater than U.S. revenue estimates in only 3 of its countries. Implementation in UK, Germany, and Sweden alone will cost more than 10 billion USD.
  • United Kingdom: The United Kingdom government has estimated that the cost to British businesses will be £1.1 billion to £2 billion for the first five years (approximately two thirds of the estimate total additional global tax revenue expected), in order to locate approximately 177,185 U.S. citizens. The cost there is then approximately £6,000 to £11,000 per resident US citizen or 17-31 GBP per capita. " HMRC' estimates its own one-off IT and staff project costs at approximately £5m, with ongoing annual costs of £1.4m from 2016."
  • Germany: The costs in Germany are estimate to be 386 million EUR for implementation, and 30 million EUR for each year of maintenance. With 108,845 U.S. citizens residing in Germany and known population, the implementation cost is 6027 EUR per residing U.S. citizen, 10,390 EUR per U.S.-person account, 8.07 EUR per capita, or 13,91 EUR per customer. Using Germany's own implementation estimate and the known quantity of FFI's, the implementation cost of a German FFI averages 149,000 EUR
  • Sweden: The Swedish government administration stated that the costs of implementation should be considered versus the threatened 30% sanctioned tax which could be applied for non-compliance. Sweden could not estimate the business effect of FATCA, despite that Swedish law requires that the business impact must be evaluated for legislations. In following discussions, it was estimated that each small financial institute (comprising 95% of the FFI's) would incur 1 million SEK yearly FATCA administration costs. (Documentation of the costs to larger institutions has not been located.) IRS lists 744 FFI's to date, yielding a minimum estimated yearly cost of 744 million SEK (excludes the cost of the 5% larger institutions), or 7.44 billion SEK over 10 years. The costs to the Swedish government were estimated to be above 15 million SEK for implementation and 15 million SEK per year thereafter, for a 10-year public cost of 165 million SEK. Total FATCA implementation costs in Sweden are estimated to be greater than 7.61 billion SEK. With 9,784,445 inhabitants and 17,000 resident U.S. citizens, the Swedish government cost is 777 SEK per capita, 447,700 SEK per resident US-citizen resident and 937 SEK per adult Swedish account, or an astounding 539,984 SEK per adult resident U.S.-person account.
• United States: There are few reliable estimates for the additional cost burden to the U.S. Internal Revenue Service, although it seems certain that the majority of the cost seems likely to fall on the relevant financial institutions and (to a lesser degree) foreign tax authorities who have signed intergovernmental agreements. The FATCA bill approved 800 additional IRS employees (cost estimated to be $40 - $160 million per year). According to a TIGTA report, the cost to develop the FATCA XML data website is $16.6 million (which is $2.2 million over the budgeted amount). However, "IRS also submitted a budget request of $37.1 million for funding FATCA implementation for 2013, including the costs to staff examiners and agents dedicated to enforcing FATCA, along with IT development costs. This budget request does not identify the resources needed for implementation beyond fiscal year 2013" The I.R.S. "has been unable to ascertain all potential costs beyond those for IT resources." ref name="gao.gov"/>

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Criticism

Certain aspects of FATCA have been a source of controversy in the financial and general press. The Deputy Assistant Secretary for International Tax Affairs at the US Department of the Treasury stated in September 2013 that the controversies were incorrect (myths). However, in April 2017 the Committee on Oversight and Government Reform, led by Congressman Mark Meadows, held a hearing on the unintended consequences of FATCA, citing its multiple breaches of constitutional rights, double standard of compliance (non-US banks have been forced to comply but US banks have not), and its enforcement of differential treatment for US citizens depending on where they live, with non-residents granted fewer protections whilst being expected to comply with much more burdensome requirements. The controversies primarily relate to the following issues:

• Cost. Robert Stack provided the Treasury position that "Treasury and the IRS have designed our regulations in a way that minimizes administrative burdens and related costs." Estimates of the additional revenue raised seemed to be heavily outweighed by the cost of implementing the legislation. In March 2012 the Association of Certified Financial Crime Specialists (ACFCS) said FATCA was expected to raise revenues of approximately US$800 million per year for the US Treasury with the costs of implementation more difficult to estimate. ACFCS claimed it was extremely likely that the cost of implementing FATCA, borne by the FFIs, would far outweigh the revenues raised by the U.S. Treasury, even excluding the additional costs to the US Internal Revenue Service for the staffing and resources needed to process the data produced. Contrary to established congressional practice, FATCA was not subject to a cost/benefit analysis by the Committee on Ways and Means. Perhaps not considered by Congress, the cost to the global financial institutions to implement FATCA has been reported to range from Forbes's estimate of US$8 billion a year (approximately ten times the amount of estimated revenue raised), to US$200 billion (based on per capita costs for Australia and the UK), to 1-2 trillion USD (chapter of the Chamber of Commerce).
• Benefits versus cost. The intention of locating US persons and their non-US financial accounts was to increase tax revenues from the interest, dividends, and gains of those assets. The majority of assets located was expected be the international equivalent of standard checking and savings accounts, where the applicable interest was less than 0.5% during 2015. The majority of that income is already (by tax treaty) attributable to the country where it resides. (IRS Form 1116 is normally used to credit foreign taxes upon passive income.) Another source from which FATCA intends to raise revenue is in the identification of a wider population of US persons. However, the majority (82%) of overseas US persons filing owe no tax to the US (due to tax treaties). At the congressional hearing on 26 April 2017, Congressman Mark Meadows stated that according to FATCA's drafters themselves, FATCA would, at most, reduce tax evasion by less than 1% (i.e. recoup less than $1billion out of an estimated $100billion in lost revenue). In contrast, he said, normal enforcement activities create a return of $20 for every $1 spent. Because $200million is being spent to implement FATCA in FY2017, the IRS commissioner's own estimates show that just shifting the money from FATCA to general enforcement would increase tax revenues by over $1billion.
• Possible capital flight. The primary mechanism for enforcing the compliance of FFIs is a punitive withholding levy on U.S. assets which the Economist speculated in 2011 might create an incentive for FFIs to divest or not invest in US assets, resulting in capital flight. When implementing FATCA, Congress did not publish the source of the revenue data, and neither had it performed a cost/benefit analysis.
• Relevance. United States does not have a wealth tax or any other tax upon financial assets. Without a tax upon wealth, it is questioned as to why wealth is required to be reported.
• Fairness. Residents of the United States have not, in general, been required to report their financial assets to the Internal Revenue Service. Non-residents are required to report asset values. This was highlighted by Senator Rand Paul and Congressman Mark Meadows at the congressional subcommittee hearing on 26 April 2017, who stated that it was unconstitutional to separate out one group of US citizens for differential treatment, based solely on where they live.
• Foreign relations. Forcing 'foreign' financial institutions and governments to collect data on US persons at their own expense and transmit it to the IRS has been called divisive and imperialist. Canada's former Finance Minister Jim Flaherty raised an issue with the "far reaching and extraterritorial implications" which would require Canadian banks to become extensions of the IRS and jeopardise Canadians' privacy rights. There are also reports of many foreign banks refusing to open accounts for Americans, making it harder for Americans to live and work abroad.
• Extraterritoriality. Robert Stack of the IRS said that extraterritoriality was incorrect (a myth): "FATCA has received considerable international support because most foreign governments recognize how effective FATCA, and in particular our intergovernmental approach, will be in detecting and combating tax evaders". The legislation enables US authorities to impose regulatory costs, and potentially penalties, on FFIs who otherwise have few if any dealings with the US. The U.S. has sought to ameliorate that criticism by offering reciprocity to potential countries who sign intergovernmental agreements (IGAs), but the idea of the US Government providing information on its citizens to foreign governments has also proved controversial. The law's interference in the relationship between individual Americans or dual nationals and non-American banks led Georges Ugeux to term it "bullying and selfish." The Economist called FATCA's "extraterritoriality stunning even by Washington's standards."
• Differentiation by national origin and discrimination. In each country of the world, those residents which are suspected to be U.S. citizens are separated out at their financial institutions for differential treatment, based upon their place of birth and nationality. Discrimination according to national origin is prohibited in most countries. For example, Article 14 of The European Convention on Human Rights specifies "Prohibition of discrimination: The enjoyment of the rights and freedoms set forth in this Convention shall be secured without discrimination on any ground such as ... national or social origin, association with a national minority, property, birth or other status." Those suspected to be of US nationality are treated differently than any of the other residents. Few precedents exist in the last 70 years, where any particular nationality has been searched out to be identified strictly by virtue of nationality, Previous identifications by national characteristic have only occurred within regions. Other global instances have not been identified.
• Effect on "accidental Americans". The reporting requirements and penalties apply to all US citizens, including accidental Americans, those who are unaware that they have US citizenship. Since the US considers all persons born in the U.S., and most foreign-born persons with American parents, to be citizens, FATCA affects a large number of foreign residents, who are unaware that the US considers them citizens. In 2017, the EU Commission heard a petition (No 1088/2016 by Mr J.R.) citing FATCA's infringements of accidental Americans' human rights, including discrimination based on national origin.
• Effects on non-Americans. The financial information of non-US spouses and family members who share accounts with US persons are reported to the IRS under FATCA. Moreover, persons who are not US residents and are not US persons and do not share accounts with US persons still must self-certify said status when opening a bank account outside the US at any FFI. According to the FATCA IGA, if such a person does not self-certify said status, that person cannot open a bank account at that institution. Canada and United Kingdom have interpreted the IGAs differently and believe that non-US persons who fail to self-certify shall not be refused a bank account. However, non-cooperating non-US persons shall be FATCA reported in the same way as those persons who have US indicia.
• Citizenship renunciations.
  • In 2013, Robert Stack of the IRS presented the administration's position that renunciations due to FATCA are incorrect (a myth), because: "FATCA provisions impose no new obligations on U.S. citizens living abroad." The statement ignores the FATCA self-certification processes and filings of form 8938. The US State Department admits that the rise in renunciation figures is related to US taxation policy. The State Department acknowledged the rise in relinquishments and renunciations, and expects them to rise further in the future.
  • In 2013, Time magazine reported a sevenfold increase in Americans renouncing U.S. citizenship between 2008 and 2011, attributing this at least in part to FATCA. According to BBC Magazine, the act is one of the reasons for a surge of Americans renouncing their citizenship--a rise from 189 people in Q2/2012 to 1,131 in Q2/2013. Another surge in renunciations in 2013 to record levels was reported in the news media, with FATCA cited as a factor in the decision of many of the renunciants. According to the legal website International Tax Blog, the number of Americans giving up U.S. citizenship started to increase dramatically in 2010 and rose to 2,999 in 2013, almost six-fold the average level of the previous decade.
  • In 2014 Forbes wrote that the numbers of those renouncing their citizenship are understated. According to a survey reported by Forbes, "5.5 million Americans eye giving up U.S. citizenship". There are serious differences between the figures cited by the Federal Register (which include renunciations, relinquishments, and loss of long-term resident (green-card) status to the National Instant Criminal Background Check System gun control database ("NICS") which only contain renunciations. Whereas the Federal Register stated that 3,415 people renounced or relinquished their citizenship or long-term residence in 2014, the IRS stated that 1,100 people renounced citizenship at only one particular US consulate during the first ten months of 2014. This contradicted prior claims that such statistics are not maintained at the consulates.
  • FY 2015: Renunciations reached a new record of 4,279 in 2015, despite the 422% rise in renunciation and relinquishment fees, which brought the cost of giving up US citizenship to $2,350, making it by far the most expensive renunciation fee in the world.
  • FY 2016: Renunciations rose by 26% from the previous record set in 2015, bringing the total to a new record of 5,411 for 2016. Many newspapers mentioned that this total included accidental American Boris Johnson, British Foreign Secretary and former Mayor of London, who was taxed by the IRS on the sale of his home in London despite only living in the US briefly as a toddler.
  • FY 2017: In the first quarter of 2017, the Federal Register published the names of 1,313 expatriates, though once again, this number did not match the NICS figure which was 1,484 for same period. In the second quarter, 1,759 American citizens were reported to have renounced. The third quarter saw 1,376 renunciations. This means that the number for first three quarters of 2017 is 4,448, which exceeds the entire year's total for 2015.
• American citizens living abroad. The Wall Street Journal reported in July 2014 that "FATCA worsens the already profoundly unjust tax treatment of millions of middle-class Americans living abroad...FATCA rules were intended to correct a tax loophole. Applied to Americans living abroad, they are absurd." The Guardian reports that Americans living abroad feel financially terrorized by FATCA requirements. According to research by Democrats Abroad, FATCA has an "intense impact" on overseas Americans: "Their financial accounts are being closed, their relationships with their non-American spouses are under strain, some Americans are being denied promotion or partnership in business because of FATCA reporting requirements and some are planning or contemplating renouncing their US citizenship." In 2013, Robert Stack stated the IRS position that "FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA."
• Lack of reciprocity. There is no US legislation to allow reciprocity, and as of 2017, no reciprocal data exchanges have taken place. The model IGA states: "The Parties are committed to working with Partner Jurisdictions and the Organisation for Economic Cooperation and Development on adapting the terms of this Agreement and other agreements between the United States and Partner Jurisdictions to a common model for automatic exchange of information, including the development of reporting and due diligence standards for financial institutions." The president's budget for year 2014 included a proposal to allow the Treasury Secretary to collect information which could be used for FATCA reciprocity. The proposal stated that its intent was to "facilitate such intergovernmental cooperation by enabling the IRS to reciprocate in appropriate circumstances"; however, the proposal did not request to allow the Secretary to have further transmittal authority. The president's federal budget proposals of 2014, 2015 and 2016 did not list either costs or revenues for reciprocity implementation in any of the coming 10 years--thus assuming that this collection was either cost neutral or, more logically, it would be interpreted as not budgeted.
• Reciprocity not authorised by Congress. FATCA as implemented by Congress included no mention of reciprocity. Rather, the Executive Branch's IGA implementation of FATCA has made reciprocity promises to foreign governments.
• FATCA IGAs are not treaties under US law. A treaty requires two thirds consent in the U.S, Senate in order to become applicable in U.S. law. The applicability of IGAs is being challenged in U.S. court. The plaintiffs state that the IGAs are not valid Executive Agreements. The IGA documents are all signed by officials lower than the President.
• IRS not equipped. According to The New York Times, the IRS is not equipped to handle millions of extra complicated filings. The IRS allowed 2014 and 2015 as a transition period for enforcement and administration for entities but not individuals. This lack of capacity, including closure of all IRS overseas offices, has contributed to breaches of taxpayer rights as noted in the 'most serious problems' section of multiple annual reports by the IRS Taxpayer Advocate.
• Complexity. Doubts were expressed as to workability of FATCA due to its complexity, and the legislative timetable for implementation was pushed back multiple times. According to U.S. national taxpayer advocate Nina Olsen in regards to FATCA: "This is a piece of legislation that is so big and so far-reaching, and [has] so many different moving pieces, and is rolling out in an incremental fashion (...) that you really won't be able to know what its consequences are, intended or otherwise,' Olson said. "I don't think we'll know that for years. And by that point we'll actually be a little too late to go, "Oops, my bad, we shouldn't have done this,' and then try to unwind it." Bloomberg reported in 2015 that the IRS help center is not able to provide adequate taxpayer customer service. In 2016, the Taxpayer Advocate reported that "FATCA implementation has created significant compliance burdens and risk exposures" for overseas Americans, and its "heavy-handed approach, especially when combined with the complexity surrounding IRS requirements, has negative consequences, both for FFIs and the IRS".
• Identity theft. The IRS reports that identity thieves are using fraudulent compliance requests as a "phishing" ruse to obtain sensitive account-holder information. As of April 2015, more than 150,000 financial institutions throughout the world were storing social security numbers and asset values of US citizens.
• Account closures. Due to the costs and complexity of implementing this legislation, many banks have been excluding US persons from holding financial accounts at their institutions. These closures, based upon nationality, have not been halted by government authorities. In fact, the EU affirmed the practice of closure based upon nationality, by stating "Banks have the right, under the contractual freedom principle, to decide with whom they want to contract. They can in any event refuse clients for sound commercial reasons." These closures are despite the fact that countries who have signed IGAs had also promised to not close the accounts of US persons.
• Additional complexity for US persons US persons were already forbidden by the Securities Act of 1933 to make investments in US Securities at banks which are not certified inside the USA by the Securities and Exchange Commission. This disallows US persons from participating in any product which may contain US investment products. If a financial institution is not able to segregate non-US investments from other investment products, a bank may place a total ban upon US persons using their investment products. Since non-US institutions located outside the USA cannot acquire sufficient competence of US law, non-US institutions often find no exemption allowing resident US persons to purchase any financial products from their institution.
• Security. As piracy, kidnapping, and global terrorism dominate the political and media climate, some thinkers have questioned the entire FATCA mentality, where non-U.S. banks and non-U.S. governments are entrusted with the private data of U.S. citizens. The following countries have been entrusted with FATCA's private data of U.S. persons: Brazil, Croatia, Israel, Kosovo, Mexico, Qatar, Uzbekistan, Algeria, Azerbaijan, Bahrain, China, Colombia, Georgia, Serbia, Thailand, Turkey, Ukraine, UAE, Angola, Cambodia, Kazakhstan, Tunisia. FFI's are required via FATCA to identify U.S. persons and store their asset values and U.S. Social Security numbers. There are many countries which have been, could be, or are at war or cold war, where FFI's have implemented FATCA. There is no control over which government or which individuals at these locations have control of the identity of U.S. persons. Here are some examples of the quantity of FFI's registered in troubled areas: Afghanistan: 15, Chad: 5. China: 1,021. North Korea: 1, Nigeria: 92. Iraq: 16. Russia: 1,117. Ukraine: 217. Venezuela; 179. Yemen: 13
  • Many countries have U.S. sanctions upon the country and the country's leaders and their assets. Many of those countries have FATCA programs in their banks, where U.S. person customers are being identified, such as these countries and the quantity of FFI's: Côte d'Ivoire (35) Zimbabwe (12)
• Minimum requirements without limits on the upper end. FATCA has minimum standards in its methodology of finding U.S. persons. For example, the accounts with minimum end balance of 50,000 USD must be investigated with at least the U.S. indicia criteria specified. The FATCA rules do not require any FFI to not investigate or report or FATCA-process accounts as low as zero. The FFI's are not prohibited from using any indicia to identify U.S. persons. There are no restrictions in FATCA regulations as to what is not allowed to be used against U.S. persons.
• Marketability of American financial products. European Parliament's Economic and Monetary Affairs Committee public hearing on FATCA May 29, 2-13, Robert Stack stated ", I believe the, the members here present today and the participants understand that the United States, ah, put its markets at risk in doing FATCA"
• Income Tax Complications. For the 2014 tax year, National Bank of Canada Inc. issued 1099's for investments to US residents that only covered the 6 months prior to FATCA. With a 1099 in hand, many residents filed income taxes not knowing the 1099 was incomplete. Subsequent years without 1099's leave residents guessing whether their dividends are 'qualified' for tax purposes.
• FATCA and human rights. In a 2016 paper academics argue that tax evasion can be directly linked to violations of human rights. That situation must be balanced against the risk that collection techniques violate other human rights like privacy and the legitimate protection of trade secrets.
• FATCA and the European Union: Robert Stack of the IRS stated the administration position that it was incorrect (a myth) "that legislation could force foreign banks to violate laws in their own countries: [Instead,] Treasury's decision to implement FATCA through IGAs that are respectful of the individual laws and customs of partner jurisdictions has contributed to the significant international interest in participating in FATCA compliance efforts."
  • Privacy and data protection legislation in Europe. Civil rights such as the right to privacy, or the right to data protection as a taxpayer are compromised by FATCA and its IGAs. There is no provision in FATCA for the protection of taxpayer rights, complains legal researcher Leopoldo Parada. The association of data protection supervisors is working on the case. As for other data protection legislation in Europe, for instance, the Swedish law Personuppgiftslagen (PUL) or personal data law, requires (unforced) consent of the individual in order to send data to a third country. The need for the information must also be greater than the need for the persons integrity. It is forbidden to deliver data that is not protected to a level adequate to EU standard
  • FATCA and the ECHR: All of parties to the European Convention of Human Rights (which includes all EU member states) are bound by its provisions including the interpretation through the case law of the European Court of Human Rights. Each law must have respect for an individual's private life except in cases of the state's or population safety, or the country's economic health. FATCA's data is not used for the benefit of any EU member state. An EU member's economic health is not improved by FATCA, it only avoids the threatened 30% tax sanctions by complying with FATCA.
  • E.U. requirements limiting data-sharing. FATCA does not fulfill the E.U. requirements limiting data-sharing which allow sharing to be done only with organizations following the (now invalidated) Safe Harbor Principles. The IRS is not listed as meeting this demand.
  • E.U. member state requirements that bank accounts be opened. Many EU countries require banks to open accounts for applicants (because this is the only method to receive salary). FATCA's mechanism to close bank accounts if FATCA demands are not met violates such laws (see insättnings garanti in Sweden). New FATCA IGA requirements demand that banks shall not open accounts for U.S. persons or accounts for non-U.S. persons if the individual refuses to declare U.S.-person status upon bank account applications.
• Duplicate reporting requirements. FATCA has implemented reporting requirements that significantly overlap with FBAR reporting requirements already in place. National taxpayer advocate has recommended multiple times to eliminate this duplication.
• Extreme penalties. The maximum penalty for failing to file an FBAR is $100,000 or 50% of the value of the account, whichever is greater for each unfiled report. Because the statute of limitations period is six years, the maximum penalty is essentially 300% of the maximum account balances. Another penalty of $10,000 or more may apply if the person does not report the same account on Form 8938, Statement of Specified Foreign Financial Assets. This would be true even if the taxpayer did not owe any U.S. tax on unreported income from the account, and even if the taxpayer's tax preparer did not inform him or her of the FBAR filing requirement. Such large penalties may be unconstitutional under the excessive fines clause.

Opposition

Congressional bills to repeal FATCA

In 2017, bills to repeal FATCA were introduced in Congress: Senator Rand Paul (R-KY) introduced S. 869 in the Senate and Representative Mark Meadows (R-NC) introduced H.R. 2054 in the House of Representatives. On 26 April 2017, the Oversight and Government Reform subcommittee on Government Operations held a hearing called 'Reviewing the Unintended Consequences of the Foreign Account Tax Compliance Act', chaired by Congressman Meadows.

Republican National Committee

On January 24, 2014, the Republican National Committee passed a resolution calling for the repeal of FATCA.

American expatriates

American Citizens Abroad, Inc., (ACA) a not-for-profit organization claiming to represent the interests of the millions of Americans residing outside the United States, asserts that one of FATCA's problems is citizenship-based taxation (CBT). Originally ACA called for the U.S. to institute residence-based taxation (RBT) to bring the United States in line with all other OECD countries. Later in 2014 two ACA directors commented on the situation of Boris Johnson. In 2015, ACA decided on a more refined stance.

In March 2015 the United States Senate Committee on Finance sought public submissions to a number of Tax Reform Working Groups. Over 70 percent of all submissions to the International Taxation Working Group and close to half of all submissions to the Individual Taxation Working Group came from individual U.S. expatriates, many citing specific consequences of FATCA in their countries of residence, and nearly all calling both for residence-based taxation and the repeal of FATCA.

Legal challenge

As reported in the Washington Times, a legal challenge was launched by attorney James Bopp in 2014. The suit is backed by a group called Republicans Overseas (RO), which is led by members of the rules committee of the Republican National Committee including Bruce Ash and Solomon Yue. The suit is based on the assertion that FATCA violates the Senate's power with respect to treaties, an 8th Amendment Excessive Fines claim, and a 4th Amendment Search and Seizure claim. Kentucky Sen. Rand Paul is among the individuals suing the U.S. Treasury and IRS. The case is Crawford v. U.S. Department of Treasury, and includes seven plaintiffs, whose specific claims are as follows:

• Count 1: The IGAs are Unconstitutional Sole Executive Agreements, Because they Exceed the Scope of the President's Executive Powers;
• Count 2: The IGAs are Unconstitutional Agreements, Because They Override FATCA
• Count 3: The Heightened Reporting Requirements for Foreign Financial Accounts Deny U.S. Citizens Living Abroad the Equal Protection of the Laws;
• Count 4: The FATCA FFI Penalty is Unconstitutional under the Excessive Fines Clause;
• Count 5: The FATCA Pass-through Penalty is Unconstitutional under the Excessive Fines Clause;
• Count 6: The FBAR Willfulness Penalty is Unconstitutional under the Excessive Fines Clause;
• Count 7: FATCA's Information Reporting Requirements are Unconstitutional under the Fourth Amendment;
• Count 8: The IGAs' Information Reporting Requirements are Unconstitutional under the Fourth Amendment.

An injunction is also sought against FATCA's asset reporting requirements on Form 8966 and on the form for the report of Foreign Bank and Financial Accounts (FBAR). The plaintiffs declare that these requirements violate the constitution and that the government should not be allowed to enforce them.

On 18 August 2017 the Sixth Circuit dismissed the plaintiffs' appeal against the initial ruling that they lacked standing to bring their action. RO subsequently stated that they will take the case to the Supreme Court.

Canadians, particularly those considered to be American persons for taxation purposes

An organization called the Alliance for The Defence of Canadian Sovereignty is challenging a Canadian law that implements FATCA. The organization claims that the Canadian law violates the Canadian Charter of Rights & Freedoms, particularly the provisions related to discrimination on the basis of citizenship or national origin. This is not technically a direct opposition to FATCA -- as the United States Congress has no legislative authority over Canada -- but is instead an opposition to the parallel Canadian federal legislation. On August 11, 2014, in an action supported by the Alliance for the Defence of Canadian Sovereignty, two Canadian citizens filed suit in the Federal Court of Canada challenging the constitutionality of the Canadian law that implements FATCA in Canada. Both of the citizens were born in the United States, with at least one Canadian parent, but they returned to Canada in childhood and have had no residential ties to the United States since that time. They state that this would result in them having U.S. indicia, and therefore being discriminated against by Canadian banks. On August 12, 2014, Canadian government spokesman Jack Aubry defended the constitutionality of the legislation, but otherwise declined to comment on the pending litigation.

A Canadian Federal Court ruling would not involve jurisdiction over the relationship of United States citizens with the United States Government, but would affect those individuals' rights as Canadians. Such a ruling would therefore be a finding of unconstitutionality as a matter of Canadian constitutional law, as to the two litigants. It would allow a remedy under Canadian law, but would not relieve them of their responsibilities to the United States under FATCA, as United States citizens. Thus, such a ruling would not remove the effect of the provisions of FATCA on U.S. citizen-taxpayers, no matter where their bona fide non-U.S. tax home is located. However, a human rights complaint submitted to the United Nations, by members of The Isaac Brock Society and Maple Sandbox, that the U.S. system of taxation, and requirements, compliance reporting, and excessive penalties therewith, of its citizens tax resident in other countries including taxation of their income and assets in those countries, represents violation of their human rights. This complaint is suggestive that such taxation violates the IRS Taxpayer Bill of Rights provision #10 "The Right to a Fair and Just Tax System."

On October 7, 2014, the legal claim by the Alliance for the Defence of Canadian Sovereignty was amended to include the allegation that the FATCA IGA and enabling legislation are in violation of both the Income Tax Act of Canada and the Canada U.S. Tax Treaty.

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Implementation

Domestic

FATCA added 26 U.S.C. § 6038D (section 6038D of the Internal Revenue Code) which requires the reporting any interest in foreign financial assets over $50,000 after March 18, 2010. FATCA also added a requirement in 26 U.S.C. §§ 1471-1474 that U.S. payors withhold taxes on payments to foreign financial institutions (FFI) and nonfinancial foreign entities (NFFE) that have not agreed to provide the IRS with information on U.S. accounts. FATCA also added 26 U.S.C. § 1298(f) requiring shareholders of a passive foreign investment company (PFIC) to report certain information.

The U.S. Department of the Treasury issued temporary and proposed regulations on December 14, 2011 (26 C.F.R. 1.6038D-0T et seq.) for reporting foreign financial assets, requiring the filing of Form 8938 with income tax returns. The Department of the Treasury issued final regulations and guidance on reporting interest paid to nonresident aliens on April 16, 2012 (26 C.F.R. 1.6049-4 et seq., 26 C.F.R. 31.3406(g)-1). Treasury issued proposed regulations regarding information reporting by, and withholding of payments to, foreign financial institutions on February 8, 2012, and final regulations on January 17, 2013 (26 C.F.R. 1.1471-0 et seq.). On December 31, 2013 the IRS published temporary and proposed regulations (26 C.F.R. 1.1291-0T et seq.) on annual filing requirements for shareholders of PFICs. On February 20, 2014, the IRS issued temporary and proposed regulations making additions and clarifications to previously issued regulations and providing guidance to coordinate FATCA rules with preexisting requirements.

On April 2, 2014, the U.S. Department of the Treasury extended from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the initial public list of "Global Intermediary Identification Numbers" (GIINs) maintained by the IRS, also known as the "FFI List." In June 2014, the IRS began publishing a monthly online list of registered FFIs, intended to allow withholding agents to verify the GIINs of their payees in order to establish that withholding is not required on payments to those payees.

International implementation

Implementation of FATCA may encounter legal hurdles. It may be illegal in foreign jurisdictions for financial institutions to disclose the required account information. There is a controversy about the appropriateness of intergovernmental agreements (IGAs) to solve any of these problems intellectually spearheaded by Allison Christians.

France, Germany, Italy, Spain, and the United Kingdom announced in 2012 they consented to cooperate with the U.S. on FATCA implementation, as did Switzerland, Japan and South Africa.

The deputy director general of legal affairs of the People's Bank of China, the central bank of the People's Republic of China, Liu Xiangmin said "China's banking and tax laws and regulations do not allow Chinese financial institutions to comply with FATCA directly." The U.S. Department of the Treasury suspended negotiations with Russia in March 2014. Russia, while not ruling out an agreement, requires full reciprocity and abandonment of US extraterritoriality before signing an IGA. Russian President Vladimir Putin signed a law on June 30, 2014 that allowed Russian banks to transfer FATCA data directly to US tax authorities--after first reporting the information to the Russian government. Russian banks are required to obtain client consent first but can deny service if that consent is not given. Bangladeshi banks, which have accounts of US taxpayers, may report to the IRS, However they need prior approval of their clients.

A 2014 Swiss referendum against the act did not come to fruition.

Intergovernmental agreements

As enacted by Congress, FATCA was intended to form the basis for a relationship between the U.S. Department of the Treasury and individual foreign banks. Some FFIs responded however, that it was not possible for them to follow their own countries' laws on privacy, confidentiality, discrimination, and so on and simultaneously comply with FATCA as enacted. Discussions with and among financial industry lobbyists resulted in the Intergovernmental Agreements (IGA's) between the Executive Branch of the United States government with foreign governments. This development resulted in foreign governments implementing the US FATCA requirements into their own legal systems, which in turn allowed those governments to change their privacy and discrimination laws to allow the identification and reporting of US persons via those governments. In an IGA, a government agrees that all of its financial institutions shall comply with FATCA (whereas without the IGA each FFI would have been able to decide if it were to comply with FATCA or not). With the IGA's, the private data of suspected US persons would be collected and handled by the FFI's, whereas the many governments would then collect and store that data for further transmittal. The IGA added the applicable government to the list of handlers of the data.

The United States Department of the Treasury has published model IGAs which follow two approaches. Under Model 1, financial institutions in the partner country report information about U.S. accounts to the tax authority of the partner country. That tax authority then provides the information to the United States. Model 1 comes in a reciprocal version (Model 1A), under which the United States will also share information about the partner country's taxpayers with the partner country, and a nonreciprocal version (Model 1B). Under Model 2, partner country financial institutions report directly to the U.S. Internal Revenue Service, and the partner country agrees to lower any legal barriers to that reporting. Model 2 is available in two versions: 2A with no Tax Information Exchange Agreement (TIEA) or Double Tax Convention (DTC) required, and 2B for countries with a pre-existing TIEA or DTC. The agreements generally require parliamentary approval in the countries they are concluded with, but the United States is not pursuing ratification of this as a treaty.

In April 2014, the U.S. Department of the Treasury and IRS announced that any jurisdictions that reach "agreements in substance" and consent to their compliance statuses being published by the July 1, 2014, deadline would be treated as having an IGA in effect through the end of 2014, ensuring no penalties would be incurred during that time while giving more jurisdictions an opportunity to finalize formal IGAs.

In India the Securities and Exchange Board of India (SEBI) said "FATCA in its current form lacks complete reciprocity from the US counterparts, and there is an asymmetry in due-diligence requirements." Furthermore, "Sources close to the development say the signing has been delayed because of Indian financial institutions' unpreparedness."

With Canada's agreement in February 2014, all G7 countries have signed intergovernmental agreements. As of December 2017, the following jurisdictions have concluded intergovernmental agreements with the United States regarding the implementation of FATCA, most of which have entered into force.

The following jurisdictions have also reached "agreements in substance":

Delays in implementation of IGAs

Many jurisdictions are required to have their IGAs in effect and start exchange of information by 30 September 2015. The US IRS has issued Notice 2015-66, which relaxes the deadline for countries which have signed Model 1 IGAs "to hand over information regarding accounts held by U.S. taxpayers", if the jurisdiction requests more time and "provides assurance that the jurisdiction is making good faith efforts to exchange the information as soon as possible."

Implementation is noted as delayed in the following countries:

• Croatia "The Croatian tax authority announced September 10 (2015) that it would not implement reporting provisions of the intergovernmental agreement it signed with the United States by the September 30 deadline in the IGA but that Croatia would not be subject to the withholding tax."
• Philippines "The mandatory reporting of financial information on US nationals by local financial institutions, as required under the new treaty on Foreign Account Tax Compliance Act (Fatca) between the Philippines and the US, has been moved to the second quarter of 2016. Internal Revenue Commissioner Kim Jacinto-Henares has advised Philippine financial institutions that the required reporting of financial information on US nationals will not take place on September 30, as originally intended. The deferment was because the intergovernmental agreement (Iga) on Fatca has yet to be ratified by the Senate as a treaty." It is known (see above) that the treaty is not ratified by the US Senate, but it is not determined in the text if Philippines has ratified the FATCA IGA in its own Senate.
• Belgium "the Belgian Ministry of Finance orally confirmed that the IRS agreed to delay the FATCA reporting deadline. Belgian financial institutions now will have until the 10th day following the publication of the Belgian FATCA law into the Belgian official gazette to report their 2014 FATCA information to the Belgian tax authorities. The Belgian FATCA law is expected to be voted on before 2015 year-end."

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Related international regulations

In 2014, the OECD introduced its Common Reporting Standard (CRS) proposed for the automatic exchange of information (AEOI) through its Global Forum on Transparency and Exchange of Information for Tax Purposes. The G-20 gave a mandate for this standard, and its relation to FATCA is mentioned on page 5 of the OECD's report. Critics immediately dubbed it "GATCA" for Global FATCA. Ironically however, so far the US has refused to sign up to CRS.

The Common Reporting Standard requires each signatory country to gather the full identifying information of each bank customer, including additional nationalities and place of birth. Prior to the implementation of CRS, there had been no other method of fully and globally identifying immigrants and emigrants and citizens by way of their identification numbers, birthplaces, and nationalities. Each participating government is tasked with collecting and storing the data of all its citizens and immigrants and of transferring the data automatically to participating countries. CRS is capable of transmitting person data according to the demands of either Residence Based Taxation or Citizenship Based Taxation (CBT) or Personhood-Based Taxation.

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Renunciation of citizenship

The number of Americans renouncing their citizenship has risen each year since the enactment of FATCA, from just 1,006 in 2010 to 3,415 in 2014, 4,279 in 2015, and 5,411 in 2016. Among those who renounced was the Mayor of London, Boris Johnson, who did so after the IRS taxed the sale of his house in London. Due to the rise in applications and resulting backlog, the fee for renouncing citizenship was raised by roughly 400 percent in 2015 to $2,350. The 5,411 renunciations in 2016 were a 26% increase from the previous record, set in 2015. The number of renunciations for the first three quarters of 2017 was 4,448, which exceeds the entire year's total for 2015.

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See also

• Common Reporting Standard, dubbed the Global Account Tax Compliance Act (GATCA)
• European Union withholding tax
• Extraterritorial jurisdiction#United States
• FATCA agreement between Canada and the United States
• Financial Secrecy Index
• Foreign earned income exclusion
• Income tax in the United States
• International taxation#Citizenship

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References

Notes

Further reading

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External links

• Report Unauthorized Disclosure or Misuse of Tax Information Exchanged Under an International Agreement, such as FATCA
• FAQ from the US Internal Revenue Service
• FATCA Resource Center from the US Treasury Department

Source of article : Wikipedia