Will the Supreme Court hear a battle over the FATCA?

The Foreign Account Tax Compliance Act (FATCA) has faced serious opposition. It was signed into law in 2010 by President Obama and is currently part of a  lawsuit that alleges the law causes harm to a number of individuals.  

Who is bringing this lawsuit? The lawsuit, as noted in a recent piece in International Investment, was brought by a group referred to as the Republican Overseas Action group. It includes members like Kentucky Republican Senator Rand Paul as well as expat United States citizens that span both parties. 

What is the claim? As noted above, the claim is basically rooted in the contention that the law causes harm. Expatriates state that at the same time FATCA was signed into law foreign bank accounts asked that they take their accounts elsewhere. These same individuals also experienced difficulties getting mortgages and loans and contend that these difficulties were due to the FATCA.

Will the claim against FATCA succeed? The latest court to hear the case, the Court of Appeals, ruled in favor of the law. The court stated that the law caused the plaintiffs no harm. As such, they did not have standing to sue.

The plaintiffs have stated that they will pursue the claim by filing an appeal to the United States Supreme Court.

It is important to note that this is not the first challenge to the law. A group in Israel also attempted to challenge the law and its enforcement within Israel. Ultimately, the challenge failed. The current and previous cases provide a good example of the evolving nature of tax law. As such, anyone that is experiencing a tax law issue, particularly one involving foreign assets, is wise to note that this area of law changes frequently.

These changes can have a direct impact on your tax obligations. Anyone attempting to navigate these issues is wise to seek legal counsel. An experienced attorney will consider the most current tax law when advising you on your legal matter.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map