Yesterday we wrote that the Israel Tax Authority is now going to be notifying the U.S. Internal Revenue Service (IRS) about the incomes of and bank accounts owned by Americans living in Israel. This is taking place as a result of an agreement between the Israeli Ministry of Finance and the U.S. Department of the Treasury due to the Foreign Accounts Tax Compliance Act (FATCA).
Now the Association of Americans and Canadians in Israel is urging U.S. expats in Israel to protest the new regulations.
“The legislation — designed to catch tax cheats — has turned the lives of hard-working Americans living abroad into nightmares,” said Association of Americans and Canadians in Israel national president Asa Cohen in an email to Haaretz.
“Because complying with FATCA is costly for banks—including those in Israel—many are refusing to open any new accounts for U.S. citizens... Some banks have even gone so far as to ask customers to close their existing accounts. There have even been instances where Americans living abroad have been refused local mortgages, pension plans and life insurance policies," he also wrote.