I received the following information from the ACS unit in the U.S. Embassy in Panama City.

Wardens – below are the two links that we have updated to try to make the situation with having a foreign address in the Social Security system if you are living outside the US and the Proof of Life requirement for all persons receiving benefits when living outside the US a little more clear.

People living inside the US do not have the same Proof of Life requirement as those living outside the country, just to be clear.

These are official regulations, and must be followed to avoid interruption of benefits.   If US citizens living here are getting other information from the US that they wish to act on instead, they are, of course, free to do so.  If they can share the contacts that are providing this information to them, we would appreciate it.

The following are updated links relative to Social Security Changes of Address and Proof of Life requirements provided for your information.

http://panama.usembassy.gov/ssae.html – Change of address

http://panama.usembassy.gov/ssai.html  – Proof of life

I had many emails and questions that some people chose to not enter on the POL blog post. I am going to cover some of them here.

One question I received was if the Railroad Retirement and Veterans’s Administration Agency also had Proof of Life qualifications.

Here was the answer I received for that;

“Each agency has they own proof of life system, but none of the agencies ever have the amount of people suspended or problems for non receipt of a survey or proof of life as the SSA.   Besides the fact that the SSA does not only suspend because of the proof of life, they also suspend because of address issues (living overseas and using a US address).”

I also received more clarifying information as to why the POL would be different for those of us that retire here as opposed to those that live in the US.

One of the big differences between here in Panama and the US is that in the US deaths almost always are reported through the government by law, and so the process is generally self-policing as far as proof-of-life.  Here, that is not the case, and I am sure that there any number of US Citizens/Panamanian Residents here that die and are not reported to the US Embassy, no official death certificates are issued and people keep collecting benefits until they get caught and have to pay it back.  The US Embassy in Panama City always notifies the Vital Records sections of the states where people were born of the death certificate and send a scan to them.

Again, let me make this perfectly clear. I am not trying to tell anyone what to do. I am only providing information to anyone that is a US citizen and a permanent resident in Panama. There are guidelines issued by the US Government requiring notification when a US citizen lives outside the US for more than 3 months a year. I published them in the Proof of Life post.

I know many want to “fly under the radar”. Every year there is more communications between the Panamanian government and the US Government. It is not unreasonable to believe that information is shared about new pensionados from the US to Panama.

If you happen to get a retirement income from a US agency, it makes sense to comply with the regulations. Now if the SSA check is not a big deal to you and you can wait a couple months without having it, why worry? I can’t do that, so I will believe what I read and have been told.

I personally like Susan’s approach about just sending your information into the SSA every year and not waiting or depending on getting a letter. You have now taken control of the situation and removed control from a faulty mail system and other unknown problems that may arise.

The last post was on the Proof of Life notification that is required of all individuals living outside the U.S., who receive Social Security Benefits.

The website for other items covered by the FBU is http://panama.usembassy.gov/federal_benefits_unit.html I recommend that you makes yourself familiar with it if you are a U.S. Citizen living in Panama.

The FBU handles more than just Social Security payments. Email addresses and telephone numbers for the FBU are on their website.

The website for the U.S. Embassy on Panama City is http://panama.usembassy.gov

The ACS (American Citizen Services) is a major unit of the U.S. Embassy in Panama and the one that hosted the Warden’s meetings last week. Its website is http://panama.usembassy.gov/american_citizen_services_unit.html

Today, I will focus on the presentation given by ACS. They estimate that less than 10% of the U.S. Citizens register with the Embassy. This is really a shame in my opinion. They also estimated that there were around 42,000 U.S. citizens living in Panama. 1/2 in Panama City and the other 1/2 outside Panama City. You can register at the following site. https://step.state.gov/step/

The U.S. Embassy had an office in David in the past. If they had a better head count of citizens living in Chiriquí there might be justification of having an office in Chiriquí again.

My notes of the presentation by the ACS follows. Please note that these notes were as of May 8, 2013. Continue reading →

This is the first post I will do related to the meetings I have attended over the last two days with the American Citizens Services Unit in the US Embassy in Panama City. I am going to cover a single issue here because I do not want it to get lost in a post about many other things.

This is TOO important. Read the following carefully and multiple times if necessary.

ALL US Citizens living outside the United States, that receive checks from the Social Security Administration, need to read this and understand this! This relates to validating “Proof of Life” to insure that checks you depend on monthly do not get cutoff.

Of all the discussions and presentations that were given, this one probably had the biggest impact. Let me explain the precess as I understand it.

On a Biennial basis, the US Social Security Administration mails out a form to be completed by recipients of payments made by SSA. When a recipient lives outside the US, the form will only be mailed to an acceptable address.

Form GN 02401.080 specifies the policy for when a US address is allowed and when it is not as well as what US addresses maybe allowed.

Anyone that is living in Panama and using a PMB PMA, PTY or other mail-forwarding address does not have an acceptable address. I repeat, if this is the address you have on file with SSA, you will be losing your payments unless you take positive action.

It does not matter if the money is being received in a US banking institution or a Panama banking institution.

By the way, if you are a permanent resident of Panama and use a friend or relative’s address in the US as your address in this matter, you are not compliant.

Let me give you the schedule these letters will be mailed.

If your social security number ends in 00 through 49, your letter will be mailed out in May and June of even numbered years.

If your social security number ends in 50 through 99, your letter will be mailed out in May and June of odd numbered years.

The letters for 2013 will be mailed out between May and June (this month and next month). If you fall in the odd numbered years and have not received your letter by August, you have a problem.

The responses to those letters will need to be received by the SSA. If they are not received, the checks (or direct deposits) will be stopped! This usually catches the recipients by surprise and they wind up having to contact the Federal Benefits Unit in the US Embassy in Panama City to get the check flow turned back on. This is not instantaneous and many living in Panama find themselves with financial problems. No money will be lost, but you may be without money till the problem is solved.

So what do you need to do?

1. The obvious answer is to have a mailing address in Panama. It can be general delivery or PO Box, but it must be in the country where you reside.

As all of us that live here know, General Delivery and even PO Boxes do not insure that you will receive the letter in Panama. That is why you need to mark your calendar for August and if no letter has been received, then you need to contact the FBU in Panama City.

2. If you have a noncompliant US mailing address, you can complete Form SSA-21. Form SSA-21 is going to ask for a mailing address. Then you need to send it to the FBU in Panama City and they will notify SSA of your new address and your payments will continue.

I felt the meetings over the last two days were very worthwhile and when my mind clears, I will post more. However, in the interest of getting this information out as quick as possible, I elected to post it as a stand alone topic.

If you have friends that are US citizens that are permanent residents outside the US and receive SSA benefits, you may want to forward them this information.

Good luck and may the force be with you.

For more information on the Foreign Enforcement Program which serves as a proof of life, please refer to the following link: http://panama.usembassy.gov/ssai.html .

For additional information on changing your mailing address from a US address to a local address, please refer to the following link: http://panama.usembassy.gov/ssae.html

I, along with the other Wardens, for the U.S. Embassy in Panama will be attending a meeting at the Embassy in Panama City, the second week of May.

Part of the time will be spent in a training session, but most likely there will be an opportunity to express the needs, concerns, etc of U.S. citizens living in Panama.

If you have an issue that you would like raised, feel free to drop me or one of the other Warden’s an EMAIL and it will be raised in the meeting, if possible and if time permits.

This information was not sent out as an ACS advisory, but I felt it may benefit some, so I am going to post it.

http://www.irs.gov/Individuals/International-Taxpayers

http://www.irs.gov/pub/irs-pdf/p54.pdf       Tax Guide for US Citizens abroad – Publication 54 for 2012 taxes

http://www.irs.gov/pub/irs-pdf/p4732.pdf    IRS Information for US Taxpayers abroad – Publication 4732 for 2012 taxes

http://www.irs.gov/Individuals/International-Taxpayers/Details-on-the-FATCA-Registration-Process-for-Foreign-Financial-Institutions-(FFIs)*

Here is an access to IRS sites for information and questions on taxes for international taxpayers.  The site also includes link access to FATCA information available from the IRS and appears to be updated regularly.  There is also a link to receive updated information regularly if someone is so inclined.

We have received many queries wanting to know how to contact the local IRS person at the embassy.  Although there is someone stationed in the embassy, they are not personal tax experts and do not receive calls to answer tax questions.  Their role here is to interface with the Panamanian government on any tax issues between the two countries.   Personal income tax service is provided only in Frankfurt, London, Paris, and Beijing, due to the very large number of US Citizens living in those countries.  (745,000 in Great Britain, for example)

American Citizens Services Chief

Embassy Panama

507-317-5000

Panama-acs@state.gov 

This email is UNCLASSIFIED.

Here is the latest message from the US Embassy in Panama City.

American Citizen Services Unit

Consular Section

U.S. Embassy, Panama

 

THE U.S. CONSULAR SECTION (AMERICAN CITIZEN SERVICES, FEDERAL BENEFITS, AND VISAS UNITS) WILL BE CLOSED ON

WEDNESDAY, FEBRUARY 27, and

TUESDAY, MARCH 19, 2013, DUE TO TRAINING

The entire Consular Section of the U.S. Embassy in Panama will be closed to the public on Wednesday, February 27 and on Tuesday, March 19, 2013.  No routine service will be available those days in the Visas, American Citizen Services, or Federal Benefits Units.  If you are an American Citizen and have an emergency, please contact the Embassy at 317-5000 and they will put you in contact with the appropriate officer.

On Thursday, February 28, 2013, the Consular Section will resume full operations with its regular schedule (please see http://panama.usembassy.gov).

For updated information on the security situation in Panama, please contact the American Citizen Services Unit of the Consular Section of the U.S. Embassy at (011)-507-317-5030.  The Consular Section of the U.S. Embassy is located in Clayton, Building 783, in the Clayton section of Panama.  The Embassy web site is http://panama.usembassy.gov/ and e-mails should be addressed to Panama-ACS@state.gov.  The after-hours and emergency phone number is (011)-507-317-5000.

For up-to-date information on security, Americans traveling abroad should regularly monitor the Department’s Internet web site at http://travel.state.gov.  Further information on safety and security can also be obtained by calling 1-888-407-4747 toll-free in the United States and Canada or on a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Daylight Time, Monday through Friday (except U.S. federal holidays).
U.S. citizens who travel to or reside in Panama are encouraged to enroll in the State Department’s Smart Traveler Enrollment Program (STEP).  By enrolling, you make it easier for the U.S. Embassy to contact you in case of an emergency.

 

Following is the latest message from the U.S. Embassy in Panama City.

Reminder for U.S. Citizens during Carnival

The U.S. Embassy in Panama City reminds U.S. citizens that as the Carnival holiday approaches in Panama next week, there are several precautions U.S. citizens in Panama may take in order to ensure a safe and secure holiday.

Crime and Safety

 

As you are out and about enjoying the festivities, please remember that criminals are also out and about looking for targets. Unfortunately, there is always an increase in thefts and robberies during holidays. Please make sure you are not making yourself an easy target:

·         Be aware of your surroundings and watch for suspicious activity that indicates you are being targeted. If you note suspicious behavior, go somewhere safe, such as inside a store or mall and point out the person you are concerned about to security personnel.

·         Keep control of your purses, wallets, passports, and other belongings.

·         Be mindful that disturbances such as loud arguments, people bumping into you, or people dropping things near you may actually be used as distractions to allow someone to steal from you. Ensure you still have everything after someone bumps into you.

·         If you are the victim of a crime, please make sure you report it immediately to the local Panamanian authorities so that they can begin their investigation.

·         If you need to replace a lost or stolen passport, you may come to the embassy during our regular workday to purchase a replacement. The embassy will be closed Friday, February 8 in the afternoon, the weekend and on Tuesday, February 12 only. Regular hours are 8:00 -12:30 and 1:30 to 3:00 on Monday, Tuesday, and Thursday, and 8:00-12:00 on Wednesday and Friday. Appointments may be made on line and are appreciated.

For updated information on the security situation in Panama, please contact the American Citizen Services Unit of the Consular Section of the U.S. Embassy at (011)-507-317-5030.  The Consular Section of the U.S. Embassy is located in Clayton, Building 783, in the Clayton section of Panama.  The Embassy web site is http://panama.usembassy.gov/ and e-mails should be addressed toPanama-ACS@state.gov.  The after-hours and emergency phone number is (011)-507-317-5000.

For up-to-date information on security, Americans traveling abroad should regularly monitor the Department’s Internet web site at http://travel.state.gov.  Further information on safety and security can also be obtained by calling 1-888-407-4747 toll-free in the United States and Canada or on a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Daylight Time, Monday through Friday (except U.S. federal holidays).

U.S. citizens who travel to or reside in Panama are encouraged to enroll in the State Department’s Smart Traveler Enrollment Program (STEP).  By enrolling, you make it easier for the U.S. Embassy to contact you in case of an emergency.

This post is to notify you that Sharon Sample applied to assist the David area as an Alternate Warden for the U.S. Embassy in Panama City.

I just received an email from Sharon, stating that she had received the introduction letters from the U.S. Embassy. These letters opens some doors that are otherwise closed.

Sharon lives in La Barqueta. I appreciate her volunteering. While it will still be more convenient for me to do many things because of my location, I now feel that we are much better covered if I am sick, on vacation, too many things are happening, or it is more convenient for Sharon due to her location.

Sharon is a personal friend and I couldn’t be happier with the Embassy’s selection.

Thanks Sharon and welcome aboard.

I received the following email from the U.S. Embassy in Panama City. While I haven’t received any specific questions of FATCA, I will post this for those that may be interested.

Currently if you ask the U.S. Embassy about FATCA, this will probably be included in their answer.

I know all of you have been getting questions about FATCA.  We really cannot answer them because we are not privy to the background info nor are we tax experts, but here are some places with background info if people want to access them.

Treasury issued a press release on November 8, 2012 regarding implementation of FATCA:

http://www.treasury.gov/press-center/press-releases/Pages/tg1759.aspx.

The Treasury FATCA page also gives additional info:

http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA.aspx. 

The IRS resource is:  http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA). 

The IRS FATCA News and Information e-newsletter is also available for interested parties:

http://www.irs.gov/Individuals/International-Taxpayers/Subscribe-to-the-FATCA-News-and-Information-List.