# Foreign tax rules may be unfairly targeting US expats



## kyla4u

Hi,
I just wanted to clarify the information you've given in this statement:

"FACTA was introduced in 2010 to tackle what was seen as a growing number of wealthy US citizens living abroad failing to disclose their income,"

When FATCA was created, it had NOTHING to do with wealthy US citizens living abroad. It was created to catch wealthy citizens living IN THE US who were hiding income in secret overseas accounts. The creators of FATCA were unconcerned with US citizens living abroad and really couldn't care less how FATCA affects them. 

Most US citizens living abroad are not wealthy and are trying to live a normal life like everyone else. Unfortunately US expats have become FATCA fodder and are losing bank accounts, mortgages, insurance policies and all the other financial vehicles that most of people take for granted.

Sadly, the IRS has cottoned on to the fact that there are millions of middle-class hard working citizens living abroad that can be targeted for their lack of knowledge regarding tax filing requirements. The IRS is using this opportunity to levy fines and penalties that can be in excess of the amount of the original accounts in question. 

Anyway, just wanted to clarify that US citizens abroad were not the original target of FATCA.


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