FATCA Inflicts Heavy Collateral Damage
FATCA has spawned a booming business for cross-border accountants in Canada, which is home to hundreds of thousands of U.S. citizens. Most Americans living here owe no U.S. taxes because Canadian taxes are generally higher. Many, however, have never filed or stopped filing years ago, and now risk being exposed by FATCA’s net.
The threat is forcing many Americans out of the shadows and into the offices of accountants licensed to do U.S. taxes. With demand brisk and supply of experts limited, some individuals report being charged as much as $4,000 a year to do relatively straightforward U.S. taxes – filings that would typically cost less than $1,000 in the United States. An individual who hasn’t filed for years can easily face tens of thousands of dollars in accounting fees to come clean, even if they owe no U.S. taxes.
FATCA is also proving to be extremely costly to most financial institutions. In a recent speech, the head of a U.S. umbrella organization for banks, brokers and asset managers said his industry is facing compliance costs that could eclipse the IRS’s $11-billion (U.S.) annual budget.
To understand the shocking real reason for FATCA see this article here.