Monthly Archives: August 2013

Cities Crackdown on Private Transport

"The Dallas City Council was scheduled to vote on a substantial city code rewrite that will redefine everything from who can dispatch a car to who can drive a limo to the cost of a limousine's off-the-lot sticker price (has to be more than $45,000). The rewrite will 'require limousine service to be prearranged at least 30 minutes before the service is provided.' The addendum item says 'the use of computer applications and other technologies by some providers of limousine service has distorted certain distinctions between limousines and taxicabs, and that it's high time the city 'establish those distinctions to help the public understand the differences between those types of passenger transportation services.'" Continue reading →

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Non-American spouse of American abroad narrowly avoids becoming a U.S. person

"In February 2013, an IRS examiner combing over the couple’s return wanted to know whether the wife’s act of submitting a 'married filing jointly' Form 1040 had accidentally turned the husband into a U.S. person, even if they had not explicitly made a § 6013(g) election for a nonresident alien spouse to be treated as a resident alien for tax purposes. Such treatment would saddle him with an obligation to file Form 3520 on what the IRS hilariously calls 'foreign trusts' and what the husband probably thinks of as 'my local & fully-tax-compliant retirement account' — and since the would-be joint return apparently didn’t include any 3520s for him, the couple would have been subject to penalties." Continue reading →

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Following the Bitcoin trail

"Before the paranoid start dumping their Bitcoins, Ms Meiklejohn says that changes could be made to reduce the trail that her group followed. Mixing services, for instance, can take money from one party and return it using entirely an new key. 'Those kinds of services would completely thwart our kind of analysis', she says. But caveat emptor: in the team’s testing of four mixing services, one stole their money and another returned the same key. She says the trust required and volume necessary for mixing simply doesn’t yet exist. The fundamental problem is that 'right now there are not enough ways to buy and sell Bitcoins,' which means that it is difficult to take advantage of the underlying protocol’s anonymity." Continue reading →

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Rentalutions enables US residents to pay rent in bitcoins

"A company in the US is now enabling tenants to pay their rent in bitcoins, which has the potential to significantly increase the currency’s use. Rentalutions was co-founded in Chicago by Ryan Coon as an online property management platform to help landlords vet potential tenants and look after their properties, plus enable tenants to pay their rent and request maintenance work. Landlords signed up with the company have to pay between $5 and $150 per month depending on the level of services they want to receive. Currently, there is no option for landlords to pay these monthly fees in bitcoins, but Coon said he hopes to set this feature up in the near future." Continue reading →

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Seminal Moments

"They were big, intimidating fellows all decked out in dark, navy blue uniforms and bomber jackets. Each had their pants legs stuffed into black, leather boots, trying to go for that snazzy, SS look. None had the 'have a nice day' smile on their faces either. Now, I'm not a small guy, standing over 6' 2". But these guys were gorillas. Even the one female looked tough as galvanized nails. They were absolutely there to intimidate. I was both angry and curious. I was angry since I knew it was my taxes that paid for them to act like Xanax-fueled chimps. But I was also curious to see if all the stories of nasty US patrol guards from my Internet readings were true. I can assure you the answer is a resounding 'yes.'" Continue reading →

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The negative value of US citizenship

"It’s much easier to travel the world on a US passport than it is on a passport from, say, Syria, or Bangladesh — but, that said, there are countries which really don’t like admitting Americans, and if you already have a passport from Canada, or the EU, then you’re going to find it just as easy to travel as you would if you had one from the US. A green card holder can leave the US at any time, give up her green card, and thenceforth never have to pay a cent in US taxes, or even file a US tax return, ever again. This is an option which would be valued extremely highly by many Americans. By becoming a US citizen you essentially give up that option, as the likes of Eduardo Saverin have learned to their cost." Continue reading →

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Swiss banks face hefty fines under US tax deal

"The deal offers individual Swiss banks the opportunity to avoid US prosecution if they agree to pay 'substantial fines', disclose all of their cross-border activities, provide details on the accounts of US citizens, and give information on the sources and destinations of transferred funds in relation to secret American accounts. Each bank will set its own non-prosecution agreement or deferred-prosecution agreement with the US authorities under those terms. The fines will be assessed at 20-50 percent of the aggregate value of any undeclared accounts held by Americans, depending on the time they accounts were open — before 2009 or since then." Continue reading →

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Foreign Retirement Plans Seen Scrutinized in U.S. FATCA Effort

A U.S. tax crackdown is coming for foreign retirement plans. The U.S. has been pushing banks and individuals to report overseas assets, making it tougher to hide money abroad with new rules and penalties rolling out under the 2010 Foreign Account Tax Compliance Act, known as Fatca. The next wave of scrutiny will cover retirement accounts, Bloomberg BNA reported. “The retirement community has been a little slower to catch up,” said Russell E. Hall, a senior consultant at Towers Watson. Foreign retirement plans generally must agree to report their U.S. account holders to avoid a 30 percent withholding tax on U.S.-sourced interest, dividends and proceeds from the sale of securities beginning July 1. Global companies with programs overseas will need to catalog their funded retirement plans to figure out which ones may be exempt, Hall said. Continue reading →

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France adds Jersey, Bermuda to tax-haven blacklist

"France has added Jersey, Bermuda and the British Virgin Islands to its list of uncooperative tax havens. The entry gave no reason for the move. According to data compiled by the French government through to August 2011, Jersey and Bermuda had responded to all French requests for information. The British Virgin Islands had responded to 31 out of 41 requests. Tax has always been a sensitive issue for France, which has among the highest tax takes in the developed world, but President Francois Hollande has been under pressure to regain the initiative after the embarrassing resignation of his budget minister this year over a secret Swiss bank account." Continue reading →

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France backs action on Syria as U.S. seeks coalition

"French President Francois Hollande gave a boost Friday to US hopes of forging an international coalition for possible strikes against Syria after British lawmakers rejected any involvement in military action. The White House had signalled Thursday that President Barack Obama, guided by the 'best interests' of the United States, was ready to go it alone on Syria after deadly chemical weapons attacks last week. But Russia, the Syrian regime’s most powerful ally, warned any military strikes would 'deal a serious blow to the entire system of world order'. While Germany and Canada ruled out joining any military strikes, Hollande said the British vote would not affect his government’s stance." Continue reading →

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