The Campaign to Repeal FATCA has sent a letter pushing Congress to include repeal of the Foreign Account Tax Compliance Act in any tax reform package sent to the White House.
Under FATCA, which came into effect in July 2014, all non-U.S. financial institutions are required to report the financial information of American clients who have accounts holding more than $50,000 directly to the IRS.
The official aim of the legislation is to try and combat tax evasion. However, its opponents claim FATCA’s dragnet approach will be highly ineffective at achieving this serious and worthwhile objective.
The March 21 letter, addressed to Speaker of the House Paul Ryan, U.S. Senate Majority Leader Mitch McConnell, Ways and Means Committee Chairman Kevin Brady, and Senate Finance Committee Chairman Orrin Hatch, makes five key points:
FATCA fails in its primary goal to catch wealthy tax cheats; It ensnares innocent Americans with excessive reporting