Liberty and justice for all United States persons abroad

The Isaac Brock Society

Posted on by Posted in Issues regarding US persons abroad 155 Comments

Thanks to comment on Brock from *Johnson*. Good find by Johnson, but merely a mention of individual expat submissions from the Senate International Tax Reform Committee.

The Senate International Tax Reform report is out.

It’s 82 pages all about corporate taxes until the final paragraph where they acknowledge receiving a large number of submissions from US expatriates regarding individual international tax issues. But they aren’t going to do anything about it.

In skimming through this, I see that there is reference to individual taxation issues (what is presently in place, I think).

This is what the final section, the one we’re most interested in, says (and doesn’t say):

F. Overseas Americans

According to working group submissions, there are currently 7.6 million American citizens living outside of the United States. Of the 347 submissions made to the international working group, nearly three-quarters dealt with the international taxation of individuals, mainly focusing on citizenship-based taxation, the Foreign Account Tax Compliance Act (FATCA), and the Report of Foreign Bank and Financial Accounts (FBAR).

While the co-chairs were not able to produce a comprehensive plan to overhaul the taxation of individual Americans living overseas within the time-constraints placed on the working group, the co-chairs urge the Chairman and Ranking Member to carefully consider the concerns articulated in the submissions moving forward.

155 thoughts on “82 page U.S. Senate International Tax Reform Report released…”

  4. Ok…this is priceless!! President Obama says this “Congress passed a crummy law that didn’t give people guidance and the irs acted poorly and stupidly” on the targeting the tea party but I swear he should be saying it about Fatca, instead. See it on “Obama denies irs scandal ever happened-and Jon Stewart is so floored he can only utter one phase”….(boy you really do only have a year left!!!!)

  6. “http://www.ijreview.com/…/374332-obama-denies-irs-scandal-ever-happened-..”

    “Forbidden
    You don’t have permission to access /404 on this server.”

  10. In fact I think we should post this at Democrats abroad since they asked for proof of Americans (and now Canadians being denied banking!! What better proof is there than from a news article and not a bunch of whining tax cheats making stuff up!!

  11. @ 2terrified2sleep
    And Canada too? I guess they think the chances of a client from Canada having a US connection are 1 in 30 and that’s too much risk for them to take. I hope someone will pass this along to DA.

  12. Indian financial institutions are afraid of those countries because:
    (1) They’re composed of former British colonies.
    (2) Their original inhabitants are Indians.
    (3) They have corrupt governments.
    Can we figure out the next country they’ll be afraid of?

  13. Good to know ACA is on the job

    Thank you for this Jak. We know Tiffany and have regular contact with her.

    Best,

    Marylouise Serrato
    ACA Executive Director

  14. Seems like things are stepping up

    https://www.democratsabroad.org/group/fbarfatca/americans-abroad-caucus-cover-and-sign-letter-support-fatca-safe-harbor

    Dear Democrats Abroad,

    We are at a pivotal milestone in our efforts to reform FATCA but we need our grassroots activists like you to ACT NOW.

    Help us write 1000 letters to Congress by Friday to support the FATCA reform “sign on” letter!

    As we reported earlier this month, Americans Abroad Caucus Co-Chairs Representative Carolyn Maloney (D-NY) and Mick Mulvaney (R-SC) are circulating a “sign on” letter on Capitol Hill pressuring Treasury Secretary Jacob Lew and IRS Commissioner John Koskinen to implement the FATCA Same Country Safe Harbor for Americans abroad.

    The letter should have hit the desk of your member of Congress. Maybe they’ve seen it, maybe not – but the letter will be closed for new signatures soon. Signatures of support from members of Congress are needed now! Send a message to your elected representatives RIGHT NOW, reminding them about the letter and asking them to sign it.

    It’s easy.

    1) Click here and enter your U.S. voting address to compose a message to your elected representatives

    2) Either copy and paste the suggested message below or write your own polite and succinct message urging your member of Congress to sign the letter in support of the Same Country Safe Harbor that Representative Maloney and Representative Mulvaney are circulating.

    3) Let us know who you have contacted by filling out this very very short questionnaire HERE so that we can amplify your voice and continue to put pressure on Congress.

    Thank you for participating in this important initiative in support of our work to fix FATCA. If you’d like to further support FATCA reform efforts, please make a contribution by clicking here.

    Democrats Abroad FBAR/FATCA Task Force

    ###

    SUGGESTED MESSAGE ENCOURAGING ELECTED OFFICIALS TO SIGN THE AMERICANS ABROAD CAUCUS LETTER TO TREASURY AND THE IRS IN SUPPORT OF THE FATCA SAME COUNTRY SAFE HARBOR FOR AMERICANS ABROAD

    SUBJECT: Congressional Sign On Letter supporting the FATCA Safe Harbor for Americans Abroad

    I live in [country of residence] and I vote in [state] District [number if known].

    Americans living outside of the United States like me are bearing the unintended, but serious consequences of the Foreign Account Tax Compliance Act (FATCA). The law was, of course, intended to discourage and apprehend US citizens hiding untaxed earnings in foreign financial accounts. The reporting requirements FATCA imposes us and our banks were never intended to impact ordinary, middle class, law-abiding Americans abroad. However, due to FATCA our financial accounts are being closed, our relationships with our non-American spouses are under strain, some of us are being denied roles, promotions or partnership in business and some are planning or contemplating renouncing their US citizenship. Some have already done so.

    We need help urgently.

    The Democratic and Republican leaders of the Americans Abroad Caucus, Representative Carolyn Maloney (D-NY) and Representative Mick Mulvaney (R-SC), have drafted a letter to the Treasury and IRS in support of a reform to the FATCA implementation rules which would resolve the problems that FATCA causes for 90 percent of Americans abroad: the FATCA Same Country Safe Harbor for Americans abroad.

    Representative Maloney and Representative Mulvaney are circulating the letter on Capitol Hill. I strongly urge you to join your Congressional colleagues in signing on to this letter in support of the Same Country Safe Harbor. There are 8.7 million Americans living outside the US. We vote, we file tax returns and we are calling on you to help us by fixing this law that has so badly impacted our financial and personal lives.

    Please sign the Congressional letter to Secretary Lew and Commissioner Koskinen in support of the FATCA Same Country Safe Harbor for Americans abroad. Please contact Natalee Binkholder (Natalee.binkholder@mail.house.gov ) in Rep Mulvaney’s office or Max Whitcomb (Max.Whitcomb@mail.house.gov) in Rep Maloney’s office with any questions and to deliver your support.

    Thank you for your help and thank you for serving.

    Regards,

    Name

    City, Country

    ###

    This message is paid for by the Democratic Party Committee Abroad
    Democrats Abroad

    PO Box 15130
    Washington, DC 20003
    United States
    Telephone: +1-202-621-2085 +1-202-621-2085
    It is being sent to you because you are a member of one or more of these Democrats Abroad group(s): DA International and DA International.

    I have moved back to the US and want to be moved to the DA US Alumni group.
    I have moved back to the US and want to be removed from the DA membership list.
    I have moved to another country or chapter area and want my membership to be transferred. Please send us your new address.
    I want to be completely removed from membership in ALL groups in Democrats Abroad.
    I want to continue my DA membership but receive only Voter Information emails.

  16. “Same country safe harbour” doesn’t help much when a dual has accounts in their other country of citizenship even though they don’t live there.

    “Same country safe harbour” doesn’t help much for people who become US persons (intentionally or not) but still have accounts in their home country, or who don’t even go to the US but marry US persons or who work at the same company where a US person works.

  17. No FATCA reporting etc. for clarity

    Does this safe harbor deal let me only get my foreign earned pension taxed in country of origin ?
    My house sale exempt by US tax ?
    No US death tax ?

  19. Newest from Democrats Abroad / 10,000 messages / at least messages getting through and getting attention / One can use this push to send their own suggested solutions

    Dear Democrats Abroad Members,

    We are pleased to report that after 2 days our FATCA grassroots campaign has yielded an excellent response! We asked you to message members of Congress asking them to sign the Congressional letter to the Treasury Secretary and IRS Commissioner in support of the Foreign Account Tax Compliance Act (FATCA) Same Country Safe Harbor reform.

    More than 3,000 of you have participated! Nearly 10,000 messages have been sent to your Representatives and Senators asking them to sign the letter and throw their support behind this common sense reform to provide relief to Americans abroad from the burden of FATCA reporting.

    Please help us send that number soaring towards 20,000 messages! We need your help URGENTLY!

    The sponsors of the letter (Rep Maloney and Rep Mulvaney) anticipate “closing it off” to signatures at the end of this legislative session – that’s the end of this week! We need to demonstrate that there is growing momentum in Congressional support for this reform in order to keep the letter open to more signatures. The more signatures on the letter the louder the call coming from Congress for Treasury and the IRS to act.

    If you have not yet participated, please send your message to your Senators and Representative RIGHT NOW, reminding them about the letter and asking them to sign it.

  20. From Jonathan Lachowitz (WSJ Article)

    Maybe invite him to talks with Tony, Tiffany and Eric and stress the point that it changes nothing on taxes?

    Hi Jak, This would unfortunately change nothing on taxes…different laws different subject matter…All the best, Jonathan

    P.S. happy to try and talk on issues…extra travel for a meeting tough at the moment..

  23. With respect to the meeting next week, here is suggestion for getting some good input from me:

    AT this link you will find the submissions to the senate finance committee for the International Tax working group.

    http://www.finance.senate.gov/legislation/details/?id=34184f67-5056-a032-52c8-0a4960018d92

    A search can be done on my name; my submission is on April 28th, 2015; I have also attached a .pdf here….

    This paper is reasonably well done (I could have done much better with more time but it at least covers most of the major issues affecting overseas Americans in a way that they generally like to see in D.C.; I think….)….I am of course more than happy to write/talk and give more input to working group to improve their next tax proposal.

    Best Wishes,
    Jonathan

  24. This morning there was a comment on the WSJ site that said there was a post at IB, would just like to set the record straight…

    · 3:38 am July 30, 2015

    · Anonymous wrote:

    From post on The Isaac Brock Society

    Jonathan Lachowitz earns his income filing 1040′s for USPs in CH. It is in his interest to NOT abolish CBT. Otherwise he’d be out of a job. He’s proposing SCE merely to maintain the status quo for himself.

    If you want to try and set the record straight. I am a small business owner; financial planner and investment advisor working with a lot of Americans overseas. Almost none of my income comes from tax work and certainly none from tax filing. I hired someone recently who worked mostly with low income people on tax filing; she is great…but migrating away from that business….I have probably put in 3-4000 hours in the past decade working for Overseas American issues…including being a key contributor to the Americans Abroad RBT proposal….When I have spoken in Washington on the subject I normally say that I am one of the few people who really understand the issues who don’t actually earn any money from it…In addition to ACA work I spend tons of time prop bono with people who are affected by these issues…mostly students, lower income etc…

    With respect to SCE…this will be a minor step…but personally I have no plans to stop fighting for RBT and other improvements for Overseas Americans….My views and tactics on some things may differ with respect to various groups. ….but the goals are largely the same. SCE is a totally different issue to RBT…I am happy IB is there doing what they are; far too many people complain loudly and naively about the issues…far too few actually try to make changes…keep up the fight!

    There are lots of uninformed comments out there…especially people who half understand what they are reading…not sure where this contributor came to such a conclusion about my work; maybe he or she should read my recent submission to the Senate and other writings….no vested interest for me personally, for my clients and friends overseas as the whole OA community in CBT….good riddance if possible…Also; I don’t get paid by the WSJ, I do this for fun…though it is a great platform to raise the profile of issues affecting overseas Americans…and it gets noticed in D.C.

    Best Wishes,
    Jonathan

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