Just heard this on the news at 12 today, DRS3 reported that the US and Switzerland signed an agreement yesterday that in accordance with FATCA all Swiss inland banks are to freely report all account details of all accounts held by US persons to the IRS.

This will go to the Swiss Parliament for the official stamp. The Parliament is already for it. Benefits for Switzerland include trade without discrimination of not reporting bank account details of US persons. With the stamp of approval from Parliament, this will take effect in 2014.

What does this mean for US persons in Switzerland, current and future? Think about it, if you don't complete your FBAR report completely and honestly, the IRS will fine you. So, to keep yourself out of hot water be sure to enter every account you have with all the details the government wants (like good boys and girls)... or Uncle Sam will cash in the next time you enter the US
JC

This sounds like positive news to me. Hopefully then the banks will stop kicking us out and let us open accounts?

I think people are overly fearsome of the IRS. If you make innocent mistakes, they don't take you away in hand-cuffs and ask for the balance of your bank account. Why wouldn't you complete your FBAR honestly? Rather not complete one at all than to do so fraudulently, oder?

Right, play the FBAR game and keep yourself out of trouble! My thoughts exactly. Especially now.

Posted this to inform those that may not have been completely honest. Not that anybody in particular here would do that

If that allows for bank accounts to be opened is a good point. Remember, the FATCA reporting brings extra costs for the bank that don't bring in any profit... thus, my thoughts are doubtful, unless you have at least seven numbers to the left of the decimal in your account balance.
JC

Nothing new about this. Just makes it easier for the IRS to catch the ones who are dishonest!

Exactly. What is new, is that the Swiss government is behind it.
JC

I wouldn't be too optimistic. There are only about 2-3 banks still in the game and they seem to continue to fall like flies. Being handcuffed to one financial institution is not exactly my idea of being able to conduct my banking business.

Actually I beg to differ, having just received a lien against property and threat of confiscation of my state tax return from the IRS yesterday. This is all for them charging me an absurd penalty and interest from 2009 taxes that they failed to notify me of until 2012. (what ever happend to due process?) All due to a foreign postal error that I have proved to them was no fault of my own. Are they being unreasonable, yes, are they insighting fear and levying unreasonable penalities against innocent persons, yes, are they bullying and charging unreasonable sums from foreign residents, yes. I have given up trying to be amicable and work something out, as each phone call and registered mail costs me to the tune of 30 chf each time, easily have done this 10 times now. I now have a bill negotiated down to 400 USD, which is still pure extortion. No way to fight it without more costly interventions that would soon exceed the 400, so they know they have the upper hand and innocent persons will have to pay.

I am amazed at the passivity of many of the comments on this post. It is as if everyone accepts the increasing draconian conditions, they will be left alone. Basically this new agreement strips all 'US persons' of all their Swiss constitutional rights to privacy. I have a friend who just got fined USD 1200.- for sending in his tax form a few months late. If the current trend continues, everything will just get worse. I suspect that in the future the US will be cashing in quite heavily from US expats. This is still a relatively untapped source of revenue.

Switzerland to announce Fatca tax deal with US

I'm curious to know what this means from the article linked above.

" Some details of a potential agreement were released jointly by the US and Switzerland in June, showing that pensions, insurance and social security would not be covered by the Fatca agreement, but such details will be confirmed only when the final agreement is published, after it is signed."

Nothing is free and the banks don't want more bureacracy than they already have. In fact, if they can avoid the US government, they will. Or they'll charge for this service.

The noose has just tightened.

Yes, most tax authorities charge penalties and interest for late filing if there is a balance due.

This is nothing new, and has been this way since, well the beginning of compliance.

FYI - tax filing deadlines are the following dates following the year of assessment:

15 April in the US
15 June if outside the US
15 October if file extension
15 December if file for additional 2 month extension, only when 15 October extension has been filed.

The dates do not change, give a or take a day or two for national holidays or whatever, there is plenty of time do it, its not like its due 1 January.

So, I dont quite get it when someone says I am fined for filing late, dont file late then. Tell your friend.

Totally agree... nothing is free. But "freely" as used here is not in gratis, but voluntarily.

My gut says the banks will not lighten up on the US persons and accounts.
JC

To elaborate, this person asked their tax preparer over the phone to send in the extension. This was mistakenly not done. I could see how this could happen. This is one example how the IRS is arbitrarily penalizing overseas expats for the smallest of 'footfaults'.

Ah, ok, well in this instance negotiating on whether this was part of the scope of service will determine often who foots the bill.

I guess I don't see what the big deal is. I have nothing to hide (literally and figuratively). I don't have enough money in the bank to file an FBAR, so I don't care. I sold my house and reported that like I would have if I lived in the U.S. I file my taxes on time. So what if my bank tells the IRS how much money I have.

But maybe I'm one of those people who is too complacent and it will come back to bite me??

US expats living abroad are scrutinized to the max and more in the future. The future will be a serious obstacle course with regard to taxes, forms and accounts. Worst thing is no one (outside of EF) is there to tell you about the new changes, updates or withdrawals. The IRS will surely not lift a single finger to inform individuals. Without the EF sharing information, a US expat would be lost... unless of course, they spent hours reading and scouring through the IRS websites and the many instructions involved.
JC

To me it is not a matter of being compliant. Americans are one of the most compliant cultures out there.

What I don't like is the fact that the individual is no longer a person. They are a number and there is nothing private anymore. The system has bent and manipulated the laws and regulations to their advantage... all starting with the initiation of "Homeland Security"... which is nothing more than a Big Brother allowed by law.
JC

I see a trend here. With FATCA, the US is not only ensuring current 'compliance' but also is inventorying all your assets for future use. You may not have a 'bite' now, but just wait a few years, especially as your pension amounts increase, sell your house at a profit due to the currency appreciation, etc ....

How is this different than if I were living in the US? You think the government/IRS wouldn't know then? It is just the way it is, no matter where you live as as US citizen, the way I see it. Of course, I could be wrong...

You have to report all accounts that meet or exceed $10USD at any point during the calendar year. Living in Switzerland, it's pretty difficult to not meet that criteria.