The fact does not change that it still is a complicated form and seems to duplicate the FBAR, certainly in terms of penalties. The much loved number of $10,000 is thrown around again, increasing to $50,000.

In my case, in addition to the fact that I have to live under the threat of huge penalties for a possible minor mistake, FBAR is making my life a real pain when it comes to daily life.

I can no longer live a normal life in the country where I reside and of which I am a citizen because I also have a US passport. It seems that many things which are a normal part of daily life in the electronic world we live in are considered “financial accounts” by the US Treasury and their highest balances must be reported. Among these things are a prepaid phone card, my supermarket card and a lunch card I buy from my company. All are debit cards because money can be put on them and used to pay for things in different places. In the case of my supermarket card, there is no way to find the highest balance out other than to buy something every day and check the balance in a reader in the supermarket. I gave mine up because of this and now probably pay 10-20% more than my fellow countrymen for my groceries. Yes, it is a small inconvenience, but the amount of these small inconveniences seems to grow as societies become more wired and the US Treasury does not take the time to differentiate reporting on what are essentially tax evasion vehicles and what are not.

While it is not the intent of the FBAR regulation to report on cards like I mentioned above, technically they must be reported or bingo – a $10,000 fine for each one of them.

FATCA is making it even worse. I just won a battle with my bank because they told me that Americans could no longer open investment accounts and I refused to accept it and was capitulated to, but the question is for how long?

And then we get to Form 8938 which becomes a part of our tax returns in 2011 and will require reporting on loans, house, car, etc., just because one lives “offshore” and all under threat of $50,000 penalties if a mistake is made. The instructions are not very clear to me, so I am afraid. It also seems that since this type of reporting will now be part of a tax form, the US can force foreign countries to collect penalties for mistakes under tax treaties.

The requirements, threats and invasiveness are exhausting. The only relief in sight appears to be to renounce.

In my case, in addition to the fact that I have to live under the threat of huge penalties for a possible minor mistake, FBAR is making my life a real pain when it comes to daily life.

I can no longer live a normal life in the country where I reside and of which I am a citizen because I also have a US passport. It seems that many things which are a normal part of daily life in the electronic world we live in are considered “financial accounts” by the US Treasury and their highest balances must be reported. Among these things are a prepaid phone card, my supermarket card and a lunch card I buy from my company. All are debit cards because money can be put on them and used to pay for things in different places. In the case of my supermarket card, there is no way to find the highest balance out other than to buy something every day and check the balance in a reader in the supermarket. I gave mine up because of this and now probably pay 10-20% more than my fellow countrymen for my groceries. Yes, it is a small inconvenience, but the amount of these small inconveniences seems to grow as societies become more wired and the US Treasury does not take the time to differentiate reporting on what are essentially tax evasion vehicles and what are not.

While it is not the intent of the FBAR regulation to report on cards like I mentioned above, technically they must be reported or bingo – a $10,000 fine for each one of them.

FATCA is making it even worse. I just won a battle with my bank because they told me that Americans could no longer open investment accounts and I refused to accept it and was capitulated to, but the question is for how long?

And then we get to Form 8938 which becomes a part of our tax returns in 2011 and will require reporting on loans, house, car, etc., just because one lives “offshore” and all under threat of $50,000 penalties if a mistake is made. The instructions are not very clear to me, so I am afraid. It also seems that since this type of reporting will now be part of a tax form, the US can force foreign countries to collect penalties for mistakes under tax treaties.

The requirements, threats and invasiveness are exhausting. The only relief in sight appears to be to renounce.