As published on internationalinvestment.net, Thursday September 5, 2019.
American Citizens Abroad, a nonprofit organisation, has launched the Tax Fairness for Americans Abroad: An Idea Worth Fighting For! campaign which aims to get Congress to hold hearings about the tax compliance burdens that American citizens living abroad incur.
"The campaign uses an online appeal that guarantees delivery of messages into Congressional offices and the offices of the House Ways & Means Committee, the committee responsible for holding hearings on tax legislation. Individuals can even add their own messaging and comments.
"The Tax Fairness for Americans Abroad: An Idea Worth Fighting For! campaign reflects what the founding fathers of America fought for, and won, the battle for tax fairness. Americans overseas want the same." said Jonathan Lachowitz, ACA Chairman.
The campaign reflects what the founding fathers of America fought for, and won, the battle for tax fairness. Americans overseas want the same"
"All of us here at ACA are very excited about the campaign. The online petition guarantees that supporters' messages get seen by their representatives' offices and it will be instrumental in supporting the push for hearings. The petition platform will be used for future campaigns as well. The community needs ACA's help in DC but ACA also needs the community - together we can win the fight for tax fairness just like the founding fathers," added Marylouise Serrato, ACA Executive Director.
The organisation hopes that the campaign will push tax-writing committees and legislators to start to look at specifics of the legislation for refinement, such as Social Security income, income associated with the new "transition tax" and GILTI, and different types of PFIC income, will need more consideration and details will need to be worked out to determine how these income streams will be taxed under a new residency-based regime.
The US tax system deems anyone with a connection to the States is a taxpayer even if they only lived in the country for a short time as a child. And as a US citizen, they are obliged to pay tax on their worldwide earnings
These taxpayers with a tenuous link are called ‘accidental Americans' and many do not realise they are subject to paying taxes in the US.
Banks in Europe have warned that they could be forced to close up to 40,000 accounts belonging to US citizens because of ongoing difficulties with the Foreign Account Tax Compliance Act (FATCA).