FATCA is ruinous for Americans and for American business overseas
FATCA has turned Americans into pariahs in the international financial world.
FATCA requires foreign financial institutions to report to the IRS the names and assets of all clients who are U.S. persons. Consequently, foreign financial institutions banks, insurance companies and pension funds are already turning away American clients due to the costly IRS reporting requirements and the perceived significant legal and financial risks. ACA has received multiple testimonies from Americans abroad who have had their foreign bank accounts closed, been refused entry into a foreign pension fund, or who cannot enter into insurance contracts overseas. How can Americans abroad survive and U.S. businesses develop globally without access to foreign banks, foreign pension funds and insurance coverage? In many cases Americans have been unable to participate in company pension funds or conclude insurance contracts, and as a result are rendered unemployable by this punitive framework.
If a U.S. company aims to develop exports, either through a sales representative or its own sales subsidiary, it necessarily must have foreign bank accounts to facilitate payments from foreign clients and to pay local expenses. It must be able to contract insurance plans for its company’s assets and provide pension plans for its employees. FATCA creates an enormous barrier for U.S. companies attempting to penetrate foreign markets with U.S. products and services. This barrier adds to the already burdensome IRS reporting required for foreign controlled corporations
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