We note from recent articles that have run in newspapers around the world that there is a growing concern about the impact of new US income tax regulations on US citizens who live anywhere abroad.

In addition to filing one’s 1040 income tax return, every US citizen has also the obligation to file with the Treasury Department TD F 90-22.1 i.e. the Foreign Bank Account and Financial Records (FBAR) form of which many of us have only recently become aware. It has a non-willful penalty of up to $10,000 for not filing. The FBAR must be filed every year if one has assets or deposits in foreign accounts (i.e., checking, savings, stocks, pension, etc.) that in the aggregate are over $10,000.

The IRS advises those who have filed their 1040s but did not file their FBARs, that they should file the delinquent FBAR reports (back to 2003) (send to Department of Treasury, Post Office Box 32621,
Detroit, MI 48232-0621) and attach a statement explaining why the reports are filed late. The IRS has stated they will not impose a penalty for the failure to file the delinquent FBARs if there are no underreported tax liabilities and the FBARs are filed by the new deadline of September 9, 2011 (Q #17). FBARs for this year 2010 were due on June 30, 2011 and had to be filed by that date.

US citizens who have not previously been filing a 1040 income tax return may want to take advantage of the IRS’ voluntary disclosure program (announced in February 2011) which is designed to bring US taxpayers into the US tax system and provide them with a mechanism for resolving their US tax issues. The new IRS initiative applies to calendar years 2003 through 2010 and is available now by extension to September 9, 2011. Another 90 day extension if afforded upon request. The voluntary disclosure program is designed to eliminate the risk of criminal prosecution and provides for lesser civil penalties than would apply if the non-compliance came to the IRS’ attention through other means. Seek professional accounting advice as soon as possible to discuss your alternatives as Democrats Abroad does not provide tax advice.

Finally, starting in 2014 (moved from 2013), foreign financial institutions will be required by the US government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of US citizens to the IRS. This law requires foreign financial institutions (FFI) like your local bank, stock brokers, hedge funds, pension funds, insurance companies, trusts, etc. – to report directly to the IRS all their clients who are US persons. The penalties for the institutions that do not cooperate are steep. There is no clear idea of what foreign banking institutions will do with their US clients.

FATCA also requires US citizens who have foreign financial assets in excess of $50,000 to report those assets on a new draft version of Form 8938to be filed with the 1040 tax return starting fiscal year
2011.

We have been in touch with Congresswoman Carolyn Maloney’s (NY-14) office as she is the Co-Chair of the Americans Abroad Caucus in the US House of Representatives about our concerns. She has sent several letters over the past 3 years expressing her concerns on these important issues and how they affect Americans living outside of the U.S. She has asked Treasury Secretary Geithner to provide to her “in detail what specific steps the Treasury Department will take to ensure that current U.S. banking laws and regulations do not prevent Americans abroad from accessing the same banking services available to all Americans.”

Should you want to read more about what other Americans Abroad organizations are saying about FATCA, please visit American Citizens Abroad (ACA) which is based in Geneva.

I hope you find this information helpful, and I pledge to keep you informed on our efforts as we move forward. Should you have questions feel free to contact me at Samuel@goodmorningba.com or Samuel@democratsabroadargentina.org .

Sincerely,

Samuel W. Warde
Chairman, Democrats Abroad Argentina
http://democratsabroadargentina.org

Skype: edraw3482
Home/Office: (+5411) 5984 1267
Cell:  153 286 2933
USA Line (works here in Buenos Aires): (925) 215-1124

Hyperlinks:

TD F 90-22.1- http://www.irs.gov/pub/irs-pdf/f90221.pdf

The IRS advises http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

The IRS has stated they will not impose – http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

Q#17 – http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

IRS’ voluntary disclosure program – http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

Foreign Account Tax Compliance Act (FACTA) – http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

Form 8938 – http://www.irs.gov/pub/irs-dft/f8938–dft.pdf

American Citizens Abroad (ACA) – http://www.aca.ch/joomla/index.php?option=com_content&task=view&id=466&Itemid=2

We are pleased to announce that the complaint was dismissed with prejudice after an electronic vote was held before the full Democratic Party Committee Abroad (DPCA).

This electronic vote conducted on July 22, 2011 to July 23, 2011, in reference to the DA-Argentina Election Dispute, passed. For those interested, the breakdown of the vote on whether to support the Hearing Officers Report that dismisses the DA Argentina complaint with prejudice was:

• 41 Yes
• 2 No
• 4 Abstain

Furthermore, 38 of 50 =76% County Committees cast their vote.  The regional response rate was:

• Asia Pacific = 67%
• EMEA (Europe, Middle East, Africa) = 76%
• The Americas = 90%

In casting their vote, members of the DPCA were voting yes to agree to the following:

Resolution in Reference to the DA-Argentina Election Dispute

WHEREAS in conformance with the requirements of the Rules of Procedure of the Democratic Party Committee Abroad (“Rules”), Section I.H., after having received the Hearing Officer Report on the DA Argentina Election Dispute (“Hearing Officer Report”), the Democratic Party Committee Abroad Executive Committee (“DPCA ExCom”) scheduled oral arguments to be made on Friday, July 1st, 2011, by the parties of the DA Argentina elections dispute during a meeting of the DPCA ExCom held via teleconference.

WHEREAS Rules Section I.H.2 allows for each party in a dispute to have up to 15 minutes apiece to make final oral arguments either speaking for themselves or represented by counsel, both sides confirmed to the DPCA ExCom that they would represent themselves. Michael Skowronek, the challenger, presented his oral arguments first. The challenged officer, Samuel Warde, waived his oral-argument period, stating that he would rest on the determination of the Hearing Officer.

WHEREAS Rules Section I.H.3 allows for up to 30 minutes of DPCA ExCom discussion and questions to be asked by the ExCom addressed to the parties, the DPCA ExCom did conduct extensive questioning of the respective parties with regards to the chronology of events and procedures pertaining to the DA Argentina election, quorum matters, etc.

WHEREAS the DPCA ExCom, having conducted its oral arguments voted 5-0 to adopt the Hearing Officer Report which recommends to dismiss the complaint with prejudice, and

THEREFORE now be it resolved that in line with its obligations under Rules Section I.H.4, the DPCA ExCom will present this matter to the DPCA for an electronic vote to take place prior to the end of July 2011.

It is further resolved that the DPCA ExCom will maintain the current requirement that Democrats Abroad communications lists and mechanisms shall not be used by any of the involved parties for making arguments outside the procedures as set out in the Rules.

I support the Hearing Officers Report that dismisses the DA Argentina complaint with prejudice.

Democrats Abroad Argentina

Prodeo will be offering special happy hour prices on select beer, wine, cocktails and non-alcoholic beverages.  They will also be offering some great specials on appetizers throughout the party.  For those wanting to stay after the reception, Prodeo will also be offering dinner specials as well as continued discounts on beverages throughout the night.

Prodeo is stunning with its sophisticated elegance. The striking interior design of the restaurant is distinguished by its custom concrete structures, proprietary furniture design, water elements to include a waterfall, and delicate illumination.

Prodeo offers modern authentic seasonal cuisine prepared with European sensibility and standards. Originally from Holland, and trained in some of the top Michelin-starred restaurants in Europe, Executive Chef Jeroen Van den Bos, whom can always be found in Prodeo’s open kitchen, has created a menu of fresh produce that marries French cooking techniques with an intensity and array of international flavors and local ingredients.

To better serve its patrons, Prodeo offers 2 lounges: a ground floor lounge and a first floor lounge which overlooks a courtyard on one side and the waterfall on the other. All in all, there is room inside for over 200 people and room in the courtyard and balcony for an additional 80 people.

We will also be conducting a very brief business meeting (maybe all of a couple of minutes) so persons participating in the meeting will need to be eligible to vote in the USA and members of Democrats Abroad Argentina (“DAAR“).

You can join online;  all you need to do is to go to https://www.democratsabroad.org/user/register  and sign up.  It only takes a couple of minutes!

***Remember though, you do not have to be a member to attend the reception,
only to participate in the very short business meeting.***

The reception itself will be a great opportunity for you to get to meet fellow Democrats in Argentina and talk about some of the latest hot topics in American politics.  There will be discussion about events leading into  the 2012 Campaign season as well as conversation about DAAR  Policy & Platform,  Voter Outreach and Community Outreach. There will also be signup sheets for persons interested in joining committees such as the Voter Outreach, Community Outreach, Programs & Events, Membership, Policy & Platform, Fund-Raising and Media.

***2011 is a new year with new opportunities to get together,
work on getting the vote out in 2012,
and to have a lot of fun!!!

Come and join us on Wednesday, February 16th from 7:30pm onwards! This will be a great opportunity for you to be able to meet your fellow DAAR members, grab a drink a coffee or a bite to eat, and get to know each other a little better. We hope you will all be able to attend.

This event is open to everyone whether a member of DAAR or not. However, we are always looking for new members so be sure to tell all your friends to go to https://www.democratsabroad.org/user/register to join today!

DATE:  Wednesday, February 16th, 2011
TIME: 7:30pm to 9:30pm
LOCATION: Prodeo Lounge & Suites, http://prodeolounge.com/
Gorriti 5374
(0)11 4831 4471