The IRS Has Unleashed a Massive New Regulation

As Americans prepare to celebrate Independence Day, the Internal Revenue Service has unleashed a massive new regulation under the guise of reducing tax evasion. The Foreign Account Tax Compliance Act - FATCA - took effect July 1, imposing substantial new compliance requirements and paperwork burdens on foreign financial institutions, which must now track the financial activity of U.S. citizens and report that information to the IRS. While there is scant evidence that this regulation will add significantly to federal revenues, there is more than a sinking feeling that the new law infringes upon the civil liberties of American citizens.