FATCA cost-effective? Hmmm….
HR 5016 – you never heard of it? It's the "Financial Services and General Government Appropriations Act, 2015" so it is important. It passed the House on July 16 and will now have to pass the Senate. There is an amendment to the bill that concerns us as Americans living overseas: it has to do with FATCA, of course. A cost-benefit analysis was never done and it turns out, as is no surprise to AARO, that implementation is expensive, perhaps costing more than the tax income it might generate. On July 14, Congressman Bill Posey (FL-8) proposed an amendment to HR 5016, H.Amdt. 054, which passed on a voice vote. In the Congressional Record,Congressman Posey is reported as saying:
"My amendment transfers $1 million from the Internal Revenue Service enforcement division to the IRS office of the Inspector General. It is my intent that this money be used to study the impact of IRS nonresident alien bank account reporting and requirements on the United States economy."
The amendment has received support from the Credit Union National Association, which said, "We believe this study is necessary given the complexity of implementing FATCA, the complex rulemaking that has taken place, and the myriad unintended consequences of the law on U.S. financial institutions and U.S. citizens living abroad." (For the full text of the CUNA letter, click here)