Even Amy’s husband, who is Swiss and not American is being considered American.  Unbelievable and a clear violation of Swiss sovereignty.

German banks are kicking Americans out too, because FATCA is just too complicated for them. I saw the light over a year ago and gave up my US citizenship. 

The United States doesn’t want it’s citizens to be able to live anywhere except inside the United States. Not a good way to promote exports.

BTW for your web master.  It is  FATCA, not FACTA, as shown in your headline. :) You might want to correct that. It stands for Foreign Account Tax Compliance Act. 

This is one of the most important regulatory stories in a long time that has been totally overlooked by most of the US media.  It comes with a lot of systemic risk if the world becomes divided between compliant and non compliant financial institutions, and it is not certain that all will comply in this extraordinary over reach by Congress.

FATCA was passed inside the 2010 Hire Act.  Ostensibly it was to hunt down and stop Homeland Tax evasion. It was passed right after the flush of victory in cracking open Switzerland secrecy with the UBS DOJ prosecution.  However, they did not limit it to US residents.  They passed it for all US persons world wide and due to the unique nature of US Citizenship taxation it is having many negative unintended consequences. 
 
By putting the requirement on all Foreign Financial organizations in the world to hunt down and report to the IRS on all US persons living anywhere in the world it is turning the US banking customer into a pariah.   Some institutions rather than be subject to the serious penalties resulting from non compliance are just getting rid of US customers and/or divesting themselves of US investments.  I don’t think that was the intention of Congress, but as we know the road to hell is paved with good intentions.

FATCA is very very complex (regulations are 400 pages) and expensive for foreign financial institutions to comply with and, in my opinion, a stepping stone for a bigger agenda to have a global tax data exchange program world wide.  

There is also a Domestic equivalent of this which I like to call DATCA that is being forced on US banks to report all non resident depositors in the US to the IRS so they can exchange information with other governments to get them to go along with this intrusion into their sovereignty.  You can read more about it by cutting and pasting this into your browser:  bit.ly/Ngoss8

There was a recent debate in Switzerland between Dick Harvey, one of the academics creators behind this monster, and Jackie Bugnion of American Citizens Abroad.  You might be interested in some of the comments and observations from that debate here:  bit.ly/LbvUkl

Then finally, the entire subject of US Citizenship taxation and impacts on  Canadian dual citizens was just carried by a CBC interview on Canada Day, yesterday.  Here is the link to that story.  bit.ly/LN92WY  
 
Bottom line, the last 3 years of the IRS jihad on offshore tax evasion, is creating a lot of collateral damage. Not the least of these is a BIG increase of renunciations or relinquishing of US citizenship.  That is exactly the opposite of what our nation should want, as the more US citizens there are abroad, the more salesman and ambassadors there are for US exports and jobs back home.  However, we are going just the opposite direction.  Sad really.  Maybe this testimony by Roger Conklin to the House Ways and Means Committee would open some eyes..  1.usa.gov/xyIbEk

Thanks again for your coverage.  There is a much bigger story to be told, but you have made a start, and this is good.

We have friends who have lost their accounts and there are no reasonable alternatives. The implications of losing access to banking services are very serious.  Even the Post Office is not refusing clients with ties to the US (a citizen, green card holder or a person married to either of the other two).  In the story above, Katherine cannot get a mortgage.  That’s a serious enough problem.  Mine is worse.  I have a mortgage and that’s a bigger problem.

Swiss mortgages (and many other countries) are not like US mortgages.  First, the principle is paid in fixed quarterly payments regardless of the interest rate. i.e. each year, we pay about 2% of the principle in a separate payment. Second, because the principle is decoupled from the interest, the mortgage is broken into pieces and no one piece can run more than 10 years. So, most people like me have a part of their mortgage loan coming due every two or three years.  This lets both the bank and the client reduce interest rate risk and loan risk.

When a piece comes due, you go get a new loan to replace the expiring loan.  At that moment, the bank can refuse you.  Normally, this could happen because the value of the property or your credit worthiness has declined.  In our case, it will be because we are US citizens.

We are not sure what is going to happen, but there are already stories in the local press of Americans losing their mortgages and being forced to sell and vacate.

Our next piece is due in 2014.  My wife was denied an account in June, so we are not living with illusions : ou options are drastic.  First, I must state categorically, that we cannot repatriate to the US.  That would be the most drastic option because of my wife’s health and our children’s lives.  So, the plan is for me to renounce my US citizenship since I can hold the mortgage and she cannot.  But this is not enough.  She and I have to divorce and she must have no access to my accounts nor have any interest in the home.

In this way, we get to keep our home and our children can remain in the community where they grew up.  But we understand that it means that I will never be able to return to the US if Charles Schumer’s Ex-PATRIOT act passes.  I love my parents and miss them terribly.  I cannot believe that this could happen to us.

We love Switzerland.  It is a free and truly democratic nation of free people and my pride to be Swiss is beyond measure.  But we often feel alone and stranded.  We feel victimized by the US. so on this 4th of July, there is nothing but resentment left in our hearts.  The thought of renouncing was unthinkable two years ago, but I have come to accept it with a hollow resolve.

This is the path that thousands are now taking.  The Eduardo Saverin case has allowed US politicians to distract attention by accusing renunciants of being rich tax-dodgers, but this is not the case. We cannot go on, living under two a remote government.

As a result of FATCA, in June I decided that it was time to relinquish my “toxic” US citizenship. As the US Embassy in Bern is apparently overrun with appointment requests to give up US citizenship, it will be 2013 before the “swearing out” ceremony can occur.

What is surprising is that the US Ambassador to Switzerland, Donald Beyer, has not issued a public statement to Americans here at least regretting the difficulties that the US government has caused. Possibly he was a better fundraiser than an ambassador. 
 

BTW it is  FATCA, not FACTA, as shown in your headline. :) You might want to correct that.
It stands for Foreign Account Tax Compliance Act. This is one of the most important regulatory stories in a long time that has been totally overlooked by most of the US media.  It comes with a lot of systemic risk if the world becomes divided between compliant and non compliant financial institutions, and it is not certain that all will comply in this extraordinary over reach by Congress.FATCA was passed inside the 2010 Hire Act.  Ostensibly it was to hunt down and stop Homeland Tax evasion. It was passed on the back of the UBS DOJ prosecution.  However, they did not limit it to US residents.  They passed it for all US persons world wide and due to the unique nature of US Citizenship taxation it is having many negative unintended consequences.  By putting the requirement on all Foreign Financial organizations in the world to hunt down and report to the IRS on all US persons living anywhere in the world it is turning the US banking customer into a pariah.   Some institutions rather than be subject to the serious penalties resulting from non compliance are just getting rid of US customers and/or divesting themselves of US investments.  I don’t think that was the intention of Congress, but as we know the road to hell is paved with good intentions.FATCA is very very complex and expensive for foreign financial institutions to comply with and, in my opinion, a stepping stone for a bigger agenda to have a global tax data exchange program world wide.  There is also a Domestic equivalent of this which I like to call DATCA that is being forced on US banks to report all non resident depositors in the US to the IRS so they can exchange information with other governments to get them to go along with this intrusion into their sovereignty.  You can read more about it here…  http://bit.ly/Ngoss8There was a recent debate in Switzerland between Dick Harvey, one of the academics creators behind this monster, and Jackie Bugnion of American Citizens Abroad.  You might be interested in some of the comments and observations from that debate here:  http://bit.ly/LbvUklThen finally, the entire subject of US Citizenship taxation and impacts on  Canadian dual citizens was just carried by a CBC interview on Canada Day, yesterday.  Here is the link to that story.  http://bit.ly/LN92WY   Bottom line, the last 3 years of an IRS jihad on offshore tax evasion, is creating a lot of collateral damage. Not the least of these is a BIG increase of renunciations or relinquishing of US citizenship.  That is exactly the opposite of what our nation should want, as the more US citizens there are abroad, the more salesman and ambassadors there are for US exports and jobs back home.  However, we are going just the opposite direction.  Sad really.  Maybe this testimony by Roger Conklin to the House Ways and Means Committee would open some eyes..  http://1.usa.gov/xyIbEkThanks again for your coverage.  This is a much bigger story, but you have made a start, and this is good. 

BTW it is  FATCA, not FACTA, as shown in your headline. :) You might want to correct that.
It stands for Foreign Account Tax Compliance Act. This is one of the most important regulatory stories in a long time that has been totally overlooked by most of the US media.  It comes with a lot of systemic risk if the world becomes divided between compliant and non compliant financial institutions, and it is not certain that all will comply in this extraordinary over reach by Congress.FATCA was passed inside the 2010 Hire Act.  Ostensibly it was to hunt down and stop Homeland Tax evasion. It was passed on the back of the UBS DOJ prosecution.  However, they did not limit it to US residents.  They passed it for all US persons world wide and due to the unique nature of US Citizenship taxation it is having many negative unintended consequences.  By putting the requirement on all Foreign Financial organizations in the world to hunt down and report to the IRS on all US persons living anywhere in the world it is turning the US banking customer into a pariah.   Some institutions rather than be subject to the serious penalties resulting from non compliance are just getting rid of US customers and/or divesting themselves of US investments.  I don’t think that was the intention of Congress, but as we know the road to hell is paved with good intentions.FATCA is very very complex and expensive for foreign financial institutions to comply with and, in my opinion, a stepping stone for a bigger agenda to have a global tax data exchange program world wide.  There is also a Domestic equivalent of this which I like to call DATCA that is being forced on US banks to report all non resident depositors in the US to the IRS so they can exchange information with other governments to get them to go along with this intrusion into their sovereignty.  You can read more about it here…  http://bit.ly/Ngoss8There was a recent debate in Switzerland between Dick Harvey, one of the academics creators behind this monster, and Jackie Bugnion of American Citizens Abroad.  You might be interested in some of the comments and observations from that debate here:  http://bit.ly/LbvUklThen finally, the entire subject of US Citizenship taxation and impacts on  Canadian dual citizens was just carried by a CBC interview on Canada Day, yesterday.  Here is the link to that story.  http://bit.ly/LN92WY   Bottom line, the last 3 years of an IRS jihad on offshore tax evasion, is creating a lot of collateral damage. Not the least of these is a BIG increase of renunciations or relinquishing of US citizenship.  That is exactly the opposite of what our nation should want, as the more US citizens there are abroad, the more salesman and ambassadors there are for US exports and jobs back home.  However, we are going just the opposite direction.  Sad really.  Maybe this testimony by Roger Conklin to the House Ways and Means Committee would open some eyes..  http://1.usa.gov/xyIbEkThanks again for your coverage.  This is a much bigger story, but you have made a start, and this is good.