Americans abroad need action from Congress to eliminate double taxation, remove barriers to banking, saving and investing and simplify filing. We have been talking to Congress for many years about a switch to Residency Based Taxation (RBT). Americans abroad won’t be taxed fairly and on a par with the rest of the world until we have RBT.

Work is on-going on a model to introduce RBT that would provide lasting relief to Americans abroad and not create tax loopholes. We support that work wholeheartedly, as RBT is still the goal that Democrats Abroad has in it sights. We commit to continuing the work to persuade Congress to embrace RBT, but we cannot let this critical year for ground-breaking legislation finish without achieving some practical, consequential tax relief for Americans abroad.

We believe Congress can adopt and enact these reforms for Americans abroad this year. 

Democrats Abroad joins fellow activists seeking tax relief for Americans abroad in responding to the Senate Finance Committee's International Tax Framework Discussion Draft.  Click here to download our submission.  Included in our submission is a Briefing Note summarising our August research findings on the experience of American business owners abroad and GILTI Tax.  Click here to download the GILTI Tax and American Businesses Abroad Briefing Note.  The whole of the research is available here.

In August 2021 Democrats Abroad hosted a research project to examine how the small to medium size businesses of Americans abroad are coping with the onerous new tax burdens created by the 2017 TCJA. 

Click here to download the research report. 

Click here to download the datapack.

We are using the findings in our work to persuade Congress to embrace our GILTI Tax reform recommendation for American business owners abroad:  an exemption from the GILTI tax for American business owners abroad with income under $400,000.  

We hope this data is useful to lawmakers, advocates and activists interested in understanding the experience of Americans abroad and GILTI Tax and working on ways to provide support and relief to the Americans raising families and building a future off the operations of their small to medium size businesses registered abroad.

Please contact the Democrats Abroad Taxation Task Force with questions: [email protected]

Democrats Abroad work through the dog days of summer has set up tax reform activists for a powerful drive through the autumn months to get tax relief for U.S. citizens abroad into the 2021 Budget Reconciliation Bill. 

Read on for updates on:

• Expat tax relief currently being drafted into legislative language for the 2021 Budget Reconciliation Bill;
• GILTI Tax research findings being used to persuade Congress to also include GILTI Tax relief in legislation this year;
• Discussions with the IRS to secure access for Americans abroad to IRS online accounts and other service portals, and to halt automatic assessment notices; and
• Planning for DA webinars in the coming months about restoring U.S. tax compliance.

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Democrats Abroad is working extremely hard to get tax relief for Americans abroad into legislation being written RIGHT NOW.  July was a huge month of activity and achievement in the fight for tax reform for Americans abroad.

In this update we share -

• DA’s success in getting tax writers in Congress to support a filing simplification for Americans abroad included in legislation this year 
• DA’s GILTI Tax research survey NOW CLOSED for submissions by Americans abroad who own small businesses and need GILTI Tax Relief; and
• DA’s engagement with the National Taxpayer Advocate about improvements to IRS service for Americans abroad.

Details ARE below.  Contact us at any time with questions:  [email protected]

Let's get GILTI Tax relief into legislation this year.  Congress needs data on Americans abroad who have small businesses hit by GILTI Tax.  If you are an American living abroad with a small to medium size business registered as a company in the country you live in please click here to do this GILTI Tax survey.  Thank you!

Democrats Abroad has written to the IRS National Taxpayer Advocate with recommendations for improving IRS service to Americans Abroad.  Download our letter here.

Congress is in the process of developing important, transformational policy that will strengthen communities and advance opportunities for all Americans.  We Americans who live outside the United States must be included.  Those in the best position to persuade Congress to do that are constituents, so we are zooming them together to talk about tax reform for Americans abroad. 

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Help Democrats Abroad Global Black Caucus fight for our democracy in 2021 and beyond.

Donations of any size will help us "Get Out the Vote" and support the Biden/Harris Administration in the mid-term elections.

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Donations are to Democrats Abroad (Democratic Party Committee Abroad) and not to any candidate for Federal Office.

Democrats Abroad has written to Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig about the proposal included, amongst many other measures, in the American Familes Plan Tax Compliance Agenda, to introduce reporting, by banks in the United States and not in the United States, on total cash inflows and outflows of the accounts of U.S. taxpayers.  For Americans abroad we fear it will expand the bank lockout, further restrict access to savings and investment vehicles and exacerbate stresses in dual-national families.  You can download our letter here.

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On Wednesday May 12 the House of Representatives Subcommittee on Select Revenue Measures (the key tax writing subcommittee of the House Ways and Means Committee) held a hearing on Funding our Nation's Priorities:  Reforming the Tax Code's Advantageous Treatment of the Wealthy.  Democrats Abroad has submitted this statement for the hearing record and is following up the comments and recommendations in our statement during hearings with Ways and Means Committee members.  We encourage tax reform advocates to make a submission of their own.

Democrats Abroad has published a submission in response to the Senate "Creating Opportunities Through a Fairer Tax Code" hearing.  Our submission outlines our tax reform priorities and recommendations for inclusion in the American Jobs Plan/Made in America Tax Plan and American Families Plan.  Click here to download our submission.   Supporters of Tax reform for Americans abroad are encouraged to submit their own statement.  Information is here.

Democrats Abroad has published a submission in response to an invitation from the Financial Crimes Enforcement Network to provide comment on the introduction of the new beneficial ownership reporting requirement which was enacted in the Corporate Transparency Act of 2021 (CTA).  Congress expects the new law to form an important part of the IRS tax enforcement system cracking down on the use of foreign financial accounts in tax secrecy jurisdictions to commit financial crimes.  Democrats Abroad believes the implementation of mandatory reporting of (currently anonymous) shell companies gives us an opening to ask for foreign financial account reporting modifications to ease the burden on Americans abroad.  Click here to download our submission.

Having a Congress that understands and supports the Americans abroad community is essential to building critical Congressional support for our reform recommendations. That's why we are working to increase membership in the Congressional Americans Abroad Caucus - a group of Congressional leaders motivated to address the unique issues of the Americans abroad community.

Invite your Congressperson to join the American Abroad Caucus TODAY.

Find a script, ways to get in touch and more details about the caucus and our caucus membership drive.  CLICK HERE if you are on a handheld device.  CLICK HERE to download our Americans Abroad Caucus Membership Drive Participation Guide. 

On Friday 23 April the IRS published a bulletin describing the 2 million payments they distributed in the 6th batch of Economic Impact Payments (EIPs) from the American Rescue Plan Act.  This is the U.S. Government's 3rd round of EIPs since the pandemic started: EIP1 = $1200 (Mar 2020); EIP2 = $600 (Dec 2020); EIP3 = $1400 (Feb 2021).  The IRS 23 April bulletin is copied in full at the very end of this post.

Democrats Abroad continues to hear from eligible Americans abroad waiting for their EIP(s) and wanting to contact the IRS.  The IRS has published this information about how to contact them from abroad.  The International Call Center contact numbers listed at this website, open Monday through Friday from 6am to 11pm Eastern time, are: 

Tel: 267-941-1000 (not toll-free)
Fax: 681-247-3101 (for international tax account issues only)

You have the best chance of being near the front of the queue if you begin dialing at 6am US Eastern time, though many have reported long wait times even if they started dialing early.

You might also try to reach the IRS with a question through your member of the House of Representatives.  Your Representative has constituent services officers, usually in the district office, to handle a range of constituent issues.  You can request that your Representative's Constituent Advocate access the Congressional Liaison to the IRS on your behalf.  You may be able to get in contact with the IRS in this way, though, again, many have reported to us that their outreach to constituent services staff was fruitless.  It's no magic bullet, but it is worth a try.  Here's how:

1.  If you do not know who your Representative is then use this link to find the name of your Representative by entering the zip code of your voting address.  

2.  Once you have the name of your Representative you can use this link to find the name of their Constituent Services Officers/Constituent Advocates.  Put your Rep's last name in the Search bar at the top of the page and hit return.  The search will produce a list of ALL of your Representatives staff members and their titles.  The staff member you are searching for will be identified as Constituent Advocate or Constituent Services Officer.  The phone number and email address of the Constituent Advocate is listed next to the person's name. 

On March 25 the Senate Finance Committee held a hearing on "International Tax Policy and the Impact on American Workers, Jobs and Investment".  Democrats Abroad provided written testimony to the Committee hearing to raise the issues Americans abroad face in complying with U.S. taxation and financial account reporting compliance.  You can download the Democrats Abroad submission here.  You will note that we have joined our colleague organizations advocating on behalf of the Americans abroad community in asking for hearings on U.S. Taxation and Americans abroad and a switch to Residency Based Taxation.

Democrats Abroad continues to receive messages with questions about pandemic aid and how to access it.  If you have questions we encourage you to read on and also to:

1. review our past postings about accessing the first two aid programs and about how to cash a U.S. government check from abroad;
2. view a recording of our webinar about the second round of COVID aid; and
3. consider attending one of these upcoming tax webinars being hosted by DA Country Committees. 

The next (third) round of pandemic aid for individuals is coming as part of the American Rescue Plan, which was passed in the Senate this past weekend.  The bill is widely expected to be passed by the House and signed by President Biden by the end of the week commencing Monday March 8. 

We think this is the best reporting on the American Rescue Plan aid to individuals, or Economic Impact Payment 3 (EIP3) e.g. eligibility; how to get the $1,400 payment; how and when it will come.  Read on for further advice on positioning yourself to receive EIP3 as quickly as possible.

In line with the Democrats Abroad 2020 outreach to Treasury Sec Mnuchin and IRS Commissioner Rettig regarding the delivery of pandemic relief to Americans abroad, and with the American Rescue Plan with its $1,400 pandemic aid payment expected to be signed by President Biden later this week, Democrats Abroad has written to Biden-Harris Treasury Sec Janet Yellen requesting changes to improve both aid delivery efficiency and agency engagement with the Americans abroad community.

The IRS announced on 16 February 2021 that all first and second round Economic Impact Payments (EIP) have now been issued.*  Get My Payment, the online IRS platform for taxpayers to track EIPs, was last updated on Jan. 29, 2021, to reflect the final payments and will not be updated again for EIP1 or EIP2. 

What if you are still waiting for your payment?

Further to the publication of our October research into the experience of Americans abroad access the aid in the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act Democrats Abroad has scheduled a series of meetings with lawmakers in a position to help us implement our recommendations to improve the delivery of aid such as the economic impact payments.  

We have also written to the U.S. Treasury Secretary Mnuchin, IRS Commissioner Rettig, Speaker Pelosi, Leader McConnell, Americans Abroad Caucus co-chair Carolyn Maloney, Senate Finance Committee Chair Grassley, House Ways and Means Committee Chair Neal, Senate Finance Committee Ranking Member Wyden and House Ways and Means Committee Ranking Member Brady to share the research findings and recommendations.  Download the correspondence here.

We will report out on our meetings after next week.

DEMOCRATS ABROAD TAXATION TASK FORCE