Hi fellow small business owners and investors:
Once again we are collateral damage in the US Federal Government's attempt to catch the 'bad guy." In an effort to catch a few bad apples (criminal money launderers), the US government is introducing an anti-money-laundering regulation which - by its own admission - will catch twelve million innocent small businesses in its net. Rather then do its job and tailor a narrow solution to a specific problem, the Treasury/IRS selected the easy way - impose annual costly compliance obligations on the masses.
ONCE AGAIN WE SAY NO!! AND THIS TIME, THE FIGHT WILL BE SHORT AND IS RELATIVELY EASY TO WIN. WHY?
As currently drafted, the proposed anti-money-laundering regulation applies to ALL (i) US entities (corps, LLCs, etc) and (ii) All foreign entities that have registered to do business in the US by filing a document with a state office. What does this last sentence mean? Does "filing a document" mean filing a state tax return? I do not know and neither does your US tax professional. So to protect themselves, the average US tax professionals will force you and I to comply - meaning more compliance costs. Annually. This is so even if Treasury/IRS never intended us to comply, but was just being lazy and sloppy in drafting the regulation.
WE ARE NOT CRIMINAL MONEY LAUNDERERS. AND WE DEMAND THAT THE TREASURY/IRS MAKE IT CRYSTAL CLEAR THAT WE EXPAT BUSINESS OWNERS NEED NOT COMPLY. WHAT TO DO?
SUBMIT YOUR COMMENT OBJECTING TO THE REGULATION, BY FEB 7, 2022, BY CLICKING THE FOLLOWING LINK:
You can submit the comment anonymously.
To file a comment, cut and paste the following as your comment.
OPTION 1 - IF YOU ONLY HAVE A NON-US ENTITY.
Dear Treasury:
I have an interest in a non-US entity. I do not do business in the U.S. but I may (a) file state tax returns, and/or (b) file documents with state authorities as I have a license which is regulated by state authorities which requires me to file such documents.
The definition of what "filing a document with a state office" means is unclear. Thus, I will need to consult a US tax professional to advise me if I must comply with this regulation. As my US tax professional will want to avoid risk, will insist that I do comply. During these tough times, having to pay needless additional compliance costs will greatly hurt my small business.
I am a legitimate small business. I am not engaged in criminal money laundering. I ask that this definition be clarified and backed by clear, easy to understand examples, to make sure that simple innocent and honest small business owners can understand what their obligations are, if any.
Respectfully, ___________
OPTION 2 - IF YOU HAVE A US CORP/LLC
Dear Treasury:
I have an interest in a US entity. This fact is known to you as it is included in my US tax returns.
The law under which the regulations are being issued requires the Treasury/IRS to engage in maximum practical efforts to get the data you seek from other sources, or processes that already exist.
During these tough times, having to pay needless additional compliance costs will really hurt my small business. I am a legitimate small business. I am not engaged in criminal money laundering. Before you impose this additional compliance cost on me and over 12,000,000 other tiny businesses, I ask that you comply with the law and demonstrate a rea effrot to get this data from other sources or from processes that already exist. Simply casting a vast net which catches millions of little fish may be easy for you, but it is harmful to us and is unlawful.
Respectfully, ___________