Tax Advocate Questions FATCA Implementation Process
"The Foreign Account Tax Compliance Act Has the Potential to be Burdensome, Overly Broad, and Detrimental to Taxpayer Rights," states Nina Olson's Taxpayer Advocate report to Congress. It highlights the continued problems with FATCA that the IRS and Treasury have yet to address. Read the report on "Most Serious Problem #23" here...
In the conclusions on this topic, The National Taxpayer Advocate recommends that the IRS:
- Undertake proactive steps to preserve the due process rights of taxpayers, by issuing FATCAspecific guidance for reasonable cause or similar relief, which adopts a measured approach to the imposition of penalties with respect to benign non-filers.
- Ensure that U.S. taxpayers and non-residents have at their disposal a timely and effective mechanism for addressing information reporting errors of FFIs.
- Act responsively and expeditiously to implement recommendations of stakeholders that have particular expertise on the effective implementation of FATCA.
- Take immediate steps to eliminate or reduce duplication between the Form 8938 and the FBAR form.
The full Taxpayer Advocate 2013 Report to Congress can be accessed here...