The Subcommittee on Government Operations of the Committee on Oversight and Government Reform, U.S. House of Representatives, today held a hearing for the purpose of reviewing “unintended consequences” of the Foreign Account Tax Compliance Act (FATCA).
The subcommittee’s hearing specifically was convened to examine the effects of FATCA on the U.S. and international economy, as well as potential legislative remedies.
FATCA requires non-U.S. financial institutions to report assets and identities of certain U.S. persons with non-U.S. financial accounts to the IRS.
According to the subcommittee, many foreign banks have stopped serving U.S. citizens, and “record numbers of Americans have renounced their citizenship.”
Senator Rand Paul (R-KY) and five expatriates have filed a lawsuit claiming FATCA constitutes an unconstitutional breach of privacy, as well as an illegal treaty.
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