U. S. Government Hacks Into Expats Financial Files

6 Oct

Oh, it’s all “legal” and condoned by Congress via the HIRE Act of 2010. Yes, you guessed it. It’s called FATCA which requires foreign financial institutions to send the IRS information on the accounts of U.S. taxpayers, or else face stiff penalties of up to 30 percent on their income from U.S. sources. How can the government of the United States of America “require” my local bank here in Israel where I live to send them everything they have in their computer systems about me? The end of the previous sentence tells it all. If my bank doesn’t cooperate, the U.S. Department of Justice will impound the investments of this small bank in the USA. The US Treasury negotiated agreements with other countries to allow for reciprocal exchange of tax information on both U.S. and foreign taxpayers from both U.S. and foreign banks, in accordance with existing tax treaties to prevent double taxation. This reciprocal exchange of tax information will flow from the banks into each country’s tax authority and through them to the IRS. Because these “agreements” are reciprocal, there will be a bidirectional flow with the Israel Tax Authority receiving everything that the US Treasury knows about me. What a massive flood of information that I am sure will clog up the computers of the IRS and the ITA. I sincerely doubt that they have thought out how to deal with all this information. Nevertheless, this is in my opinion nothing more than hacking of personal financial information by these government agencies. They whitewash it as being legal, but at best, it can be only termed quasi-legal hacking.

To meet the Sept. 30 milestone, the IRS said it developed an information system infrastructure, procedures, and data use and confidentiality safeguards to protect taxpayer data while facilitating reciprocal automatic exchange of tax information with certain foreign jurisdiction tax administrators as specified under the agreements implementing FATCA. This sounds like government gobbledygook for hacking.

So as of one week ago they have started to hack away at what was once sacrosanct, your personal financial information. Let it be said that I am in no way shape or form hiding anything from any tax authority. I do not evade taxes. I have always dutifully declared all my assets and paid appropriate levels of taxes to both tax authorities. I don’t think that it is proper for the United States to be the only country other than Eritrea that has citizen-based taxation. But until the law is changed, I comply and pay. Let them hack away all they want. May they drown in all the data.


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