— Patricia Moon (@nobledreamer16) April 28, 2015
This is a fantastic article written by our own Lynne Swanson (Blaze) & Victoria Ferauge. Please go over to The Hill and add your comment there as well as here!
“Why are we doing this to folks? Why are we tormenting them in this way?” IRS Taxpayer Advocate Nina Olson asked in an address to Securities Industry and Financial Markets Association FATCA Policy Symposium in Washington last year.
These “folks” are not FATCATS with offshore bank accounts. These are U.S. citizens with regular checking and savings accounts, retirement accounts and college saving accounts located in countries where they live. These are local accounts for Americans abroad—not offshore or foreign.
Even those who are fully tax compliant in the United States and their country of residence (where they are often citizens) are experiencing discrimination on the basis of national origin. Today, having an American birthplace or passport and living outside the United States means being a target and a pariah and living with the fear that banks will pull a mortgage or close bank accounts just because that person is a “U.S. person.”
Filing U.S. taxes from abroad is not only more complicated, it is more costly. Americans abroad must pay exorbitant sums to international tax specialists just to file the paperwork that shows they owe absolutely nothing to the U.S. government.
Not only does this put them at a competitive disadvantage in the global market but since over 80 percent of Americans abroad owe no taxes to the IRS when they do file, the United States gets mostly paperwork to process, not tax revenue. The only people making money from this torment are lawyers and accountants in the compliance industry.
Americans abroad take strong exception to being tarred as tax evaders and criminals. They don’t understand the logic behind the taxation because we all seem to agree that for most Americans abroad zero is a “fair share”.
The question is not will lawmakers “stand with the American people”? Americans abroad ARE “the American people.”
Americans abroad want to know if their fellow Americans and lawmakers will stand with them.