US Treasury admits that the US is NOT able to provide reciprocity, and never ever intended for FATCA to apply to US FIs

Obama Administration admits that FATCA is NOT reciprocial, and the domestic DATCA for is buried in the FY15 budget. “… Accounting Today asked about complaints that companies are still able to skirt the FATCA requirements by setting up shell corporations in the U.S. without declaring the beneficial owners of them. The senior Treasury official noted that the Obama administration has a budget proposal to provide for such reporting but acknowledged that the FATCA requirements don’t currently apply to U.S. banks. “Under FATCA, under certain circumstances foreign banks have to identify the owners of entities that hold passive assets,” he said. “The reason for that is, if those people are U.S., it could be a way of holding assets. The United States, of course, is not subject literally to FATCA so we don’t provide exactly what has to be provided by other foreign financial institutions to us. The [Obama] administration has a budget proposal that would make FATCA what we call ‘reciprocal,’ that is to say, we would be giving the same information that we’re getting from other jurisdictions and in that space there is a proposal for United States financial institutions to learn about the owners of entities that hold passive assets and report them to our reciprocal-type jurisdictions………”
 http://www.accountingtoday.com/news/government_news/fatca-tax-withholding-deadline-takes-effect-71137-1.html

More evidence that US ‘reciprocity’ under FATCA IGAs is not going to happen:

“..“Delaware is highly protected by political lobbies in the US. A huge number of Fortune 500 companies use Delaware, and that is why it will be so hard to push through reciprocity in Congress,” said John Christensen, director of the Tax Justice Network in London. “Perhaps some of the most extraordinary discussions I’ve had have been in (the state of) Wyoming, where service companies and trust companies seem to compete with one another on being devastatingly secret and illegal. It is real Wild West territory and beyond the federal government. In terms of scale it is not like Delaware but tends to be attracting low life activities, not the Fortune 500, so a bottom feeder.”…”‘
http://backinbeirut.blogspot.ca/2014/07/fatca-china-and-world.html

Interesting blog post by Allison Christians:
http://taxpol.blogspot.ca/2014/06/irss-super-creditor-status.html

“Thursday, June 26, 2014
IRS’s “Super creditor” status
Bryan Skarlatos recently testified to the House Ways & Means Committee about the IRS’s “Super creditor” status via its federal tax lien power. Given the global nature of the US tax jurisdiction over nonresidents with US person status, the powers of the IRS to seize assets in satisfaction of tax debts is of increasing interest. I think this power is very likely to be ill-understood by those outside the United States. Looking ahead at life under FATCA, consider that soon the IRS will have the information to start assessing tax debts on its global diaspora, and then we will see what happens.
“……………