He's hoping to become President, but first he would like to strip the Internal Revenue Service of some of its power. Sen. Rand Paul is suing the Treasury Department and IRS in federal court over the Foreign Account Tax Compliance Act. He says in his lawsuit that FATCA violates constitutionally protected privacy rights. The suit also seeks to strike down FBAR (Report of Foreign Bank and Financial Account) filing requirements and penalties he deems unconstitutionally excessive.
Presidential candidate Paul argues that "FATCA deprives individuals of the right to the privacy of their financial affairs."
Signed into law in 2010 by President Barack Obama, FATCA requires foreign banks to disclose financial information to the IRS about accounts held by Americans. The Treasury Department and IRS have been putting pressure on reluctant foreign financial institutions to release the information as part of an effort to crack down on tax evasion.
Americans with overseas accounts of $10,000 and up are required to file a FBAR (Report of Foreign Bank and Financial Accounts). Failure to file can in some cases result not only in onerous financial penalties but also criminal prosecution.
We don't know what will come of the senator's efforts to rein in the IRS, but we do know that Central Florida residents who believe they might face criminal tax charges should discuss their circumstances with an Orlando attorney who knows tax law and has decades of criminal defense experience. Our law firm has a track record of success in defending clients at trial and in helping clients come to favorable agreements with the Department of Justice and IRS.
Please visit our FATCA, FBAR and IRS Amnesty page for information about the experience and knowledge available to you at the Law Offices of Mark L. Horwitz, P.A., of Orlando, Florida.