Washington, D.C. (November 6, 2013)
A bipartisan bill has been introduced in the Senate with the goal of simplifying income tax collections for taxpayers who work abroad.
Senators Sherrod Brown, D-Ohio, and John Thune, R-S.D., led a bipartisan group of senators Tuesday to introduce the Mobile Workforce Abroad Income Tax Simplification Act, legislation that would simplify and standardize expat income tax collection for employees who live outside of the US.
While some nations require income tax filing for as little as one day of work in the country, the Mobile Workforce Abroad Income Tax Simplification Act would establish an exemption to help ensure that an equitable tax is paid to the nation and jurisdiction where the work is being performed while alleviating employees and employers from burdensome US tax requirements.
“This common-sense legislation will help simplify and standardize foreign tax filing for Americans abroad who conduct business in other nations,” Brown said in a statement. “This is a great example of government working to reduce burdensome and confusing barriers to help ease the cost of doing business for Americans abroad.”
The bill would also help foreign financial institutions who must file withholdings and reporting requirements. Currently, individuals and foreign finanical institutions face up to 41 different state income tax reporting requirements that vary based on length of stay, income earned, or both.
“Americans abroad shouldn’t be burdened with complex tax reporting requirements because jobs in the modern economy involve work in various nations,” said Thune. “Our legislation would establish a clear exemption for foreign income tax purposes, preventing individuals from having to sort through the complicated tax reporting burdens where they live abroad. This legislation will greatly simplify expat income tax filings, is fairer to those residents in other nations, and should help to encourage tax compliance.”
Getting excited yet? Well, stop dreaming. The actual unedited bipartisan bill is not for you, of course. You are an expat with no representation and America doesn’t give a hoot about you.