Tuesday, August 30, 2016

Courts Not Sympathetic to FATCA Challenges!

On September 30, 2015, we posted Judge Denies Injunctive Relief for FATCA Implementation!, where we discussed that an Ohio federal judge said that Senator Rand Paul, R-Ky., and others do not have standing in a challenge to the offshore financial account tax enforcement measures enacted in the Foreign Account Tax Compliance Act and they were not likely to succeed on the merits in the case. The case is Crawford v. U.S. Dep't of Treasury, S.D. Ohio, No. 3:15-cv-00250, 9/29/15.

The only member of the group who has standing is Daniel Kuettel, a citizen of Switzerland who renounced his U.S. citizenship, and only regarding two counts alleging the heightened reporting requirements of the law deny equal protection to Americans living abroad and that the penalty for failing to file a Foreign Bank Account Report is excessive, Judge Rose said. However, those assertions do not survive a facial challenge, he said.


The public interest is also best served by keeping the FATCA provisions in place, Judge Rose said. 
More recently a district court has dismissed the amended complaint of a U.S. citizen living in Saudi Arabia challenging the constitutionality of the Foreign Account Tax Compliance Act (FATCA).

The court found that the amended complaint, like the original, failed to establish that the taxpayer had standing to bring the suit because it didn't sufficiently allege that he was in fact injured by FATCA or that any FATCA-related harms to him were imminent. Alsheikh v. Lew, et al, (DC CA 08/22/2016) 118 AFTR 2d ¶2016-5149.

It Is Time to Wake up and Smell the Coffee People
– FATCA Is Here to Stay!


Is This Your Idea of Dealing with 
Previously Undeclared Foreign Income?

Want to Know which OVDP Program is Right for You?

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