Friday, June 26, 2015
Bloomberg, Rand Paul Said to Take on the IRS, Again:
Last week, Rand Paul said he wanted to blow up the tax code. Next week, he could be suing the tax man.
The Kentucky senator is expected to be one of the plaintiffs in a lawsuit against the Internal Revenue Service and the Treasury Department, challenging the government's rules on how Americans abroad are taxed and what foreign banks have to disclose about U.S. citizens who are their customers. Being on the wrong side of the IRS is, of course, a great place for a Republican presidential contender to be.
The focus of the lawsuit is the 2010 Foreign Account Tax Compliance Act—FATCA to the initiated—which has made it much harder for Americans to have foreign bank accounts hidden from the IRS. It's also been a logistical nightmare for the millions of Americans who live outside the country and are still required to file U.S. taxes. The law has also prompted some foreign banks to refuse U.S. customers rather than deal with the hassles.
Thursday. Solomon Yue, vice chairman of Republicans Overseas, and James Bopp, the lead lawyer on the suit, both said Paul will be one of the plaintiffs, which will be filed in federal court in southern Ohio. Sergio Gor, a Paul spokesman, wouldn't confirm the Kentucky senator's involvement.
Paul's portion of the suit will question the administration's ability to negotiate agreements with other countries for sharing tax data without going through the formal treaty process that requires Senate approval. To implement FATCA, the Treasury Department has signed cross-border agreements that are easier for governments and banks to use than the strict rules in the law itself.