Americans Abroad

As of now you are still a short term expat and this will not really harm you in any way.

Get up to speed on how you will be affected and go from there.

The real harm is older expat families who have long term not lived in the U.S and who have foreign families. Most of us are in Canada and Europe where nobody runs to escape high taxes. Matter of fact I do not mind one bit how high my taxes are here in Canada. I get fantastic quality of life, health care, great schools etc. Had it not been for Canada and this health care system my son would not be alive as we'd never have been able to afford his care in the U.S. Five specialists, several long hospital stays at CHEO in Ottawa and on going life long follow up care with complications for 22 years now.

However, FATCA for families like mine is just unworkable. If you are a long term low income or middle income family. It can look like this.

Cost to do international taxes each year plus FBARS between 1200 to 3000. You'll end up owing nothing ..82 percent of you.
Able to save with a foreign spouse for retirement? No. Many complications and foreign spouse can end up being taxed by the U.S. on gains not earned there or even earned by an American.
Able to hold a mortgage with a foreign spouse where you live? Maybe/maybe not. Lots of so called "foreign" banks do not want any accounts with U.S. persons on them anymore. Here it is illegal for them to discriminate on the basis of nationality origin..but, they can get around it. In fact FATCA is illegal here based on the above but, looks like weasel words will be used in any IGA to get around Canadian laws and protect the banks from law suits.
Able to save for children's education abroad? No..only put your foreign spouses name on these accounts. While they are tax free savings in most countries they are NOT in the U.S.
Able to save in a disability fund for disable kid? NO. Do not put your name...see above.

If you already had your name on said accounts not knowing abt. FBAR *most people never heard of this paper nor where they told about it long ago, not up until recently* then you need professional advice badly. It's not taxes and you won't owe tax on it in most cases but the FBAR penalties are as Ms. Olsen said "draconian" and yes could wipe you clean out.

If you know someone elderly who has no idea about what is coming regarding their local bank and perhaps being a U.S. person/Accidental American *there are LOTS of accidentals in Canada* then please try and help them. To most of these people calling their account down the street "off shore" is a totally new concept.

Do what you can for those who are low income or elderly and are just now finding out about FATCA. Maybe you can't do much but, I know of more than one person in such circumstances. One lady in her 80's who married and moved to Canada decades ago. Her husband was a farmer but, she's a widow now. She never heard of FBAR *no one back then did!* She's terrified. Not rich, not an off shore tax evader.

I am very active on this issue in my town and city and have been interviewed by CBC and several other Canadian media outlets so people call me.

Tell people to read as much as they can and to do nothing for now until some of these amendments perhaps have a hearing in congress. Congress knows there are problems. House Ways and Means has had hundreds of submissions out lining these situations and DA has made their proposal along with ACA. There DOES need to be a response to these proposals urgently.