It’s been an enormously active year for Democrats Abroad in the fight for tax relief for Americans abroad.  Our execution around a 5 point strategy for enacting tax reforms that provide consequential tax relief for the vast majority of Americans abroad yielded a bill in the House of Representatives that has a chance of being embraced by the Senate and passed into law.  Dems Abroad is proud of our achievements and reaffirms our commitment to the goal of tax fairness for Americans abroad.  

Read on for our annual Year in Review statement and click here for a full accounting of our work in 2021 to achieve tax reform for Americans abroad.  Contact the Taxation Task Force at [email protected]

New York Times Op-Ed published June 15, 2021

The Washington Post published further revelations from the Pandora Papers this week, expanding upon what was already understood from the Panama Papers and the Paradise Papers about how the really big Fat Cats hide their money from tax authorities. They hire formation agents, like one of the fourteen whose documents were leaked to the Pandora journalists, to stash their untaxed cash in anonymous shell companies whose legal filings, financial disclosures and bank records never reveal the Fat Cats’ identities.

In 2010 Congress enacted the Foreign Account Tax Compliance Act (FATCA), creating a system to catch tax cheats and other financial criminals who use foreign bank accounts to hide money from the IRS. Foreign bank accounts with no account holder names don’t make FATCA reports to the IRS.   The Fat Cats go free.

Meanwhile FATCA causes real pain for ordinary, law-abiding, working class Americans living abroad. Foreign banks lock them out to avoid FATCA reporting; 1 in 3 report having accounts closed or bank products denied. Non-US spouses remove them from financial accounts and assets to avoid FATCA reporting. And they lose employment and business opportunities.

The Pandora Papers revelations prove that FATCA fails to discourage and apprehend tax cheats; but it traps Americans abroad in a damaging and unfair system never meant for them. It’s time for Congress to direct policy at the right enemy and exempt from FATCA the bank accounts of ordinary Americans abroad in the countries where they live.

Thanks to all who participated in our YOUR REPRESENTATIVE BELONGS IN THE AMERICANS ABROAD CAUCUS campaign to build the membership and the profile of the Americans Abroad Caucus.  The caucus now has expanded leadership, more members and a new agenda.  Read on to see if YOUR Representative has joined the caucus.  If they're not, ask them to join!

Click here for FAQs on the Tax Simplification for Americans Abroad Act introduced in the House of Representatives by Rep. Don Beyer (D-VA08) on Friday 19 November 2021.

A new bill - H.R. 6057 the Tax Simplification For Americans Abroad Act – has just been introduced in Congress by Rep. Don Beyer (D-VA08).  It’s currently building support in the House and Senate.  If we want the provisions in this bill to be enacted into law, it’s up to us to fight for it. If you support tax simplification for Americans abroad, then there is no more important time to make your voice heard back in DC. Read on for how to call or message your members of Congress and what to say.

Tax reform will happen when enough Americans abroad reach out to our members of Congress and demand it.

---

On Friday November 19th, 2021 Rep. Don Beyer (D-VA08) introduced the Tax Simplification for Americans Abroad Act, a bill to greatly simplify tax filing for most Americans abroad.  Download the draft here.  

The IRS has upgraded its online tools, portals and applications, improving the identity verification and sign-in process.  It now enables American taxpayers with non-US ISPs to create and access accounts.  We are hearing from DA members who have created new online accounts and logged into their IRS records for the first time.  It's a great step forward.  DA applauds this progress for American taxpayers abroad and will continue encouraging the IRS to improve its support for our vastly under-served community.  Click here for DA's most recent correspondence with the IRS National Taxpayer Advocate.  Read on for more from the IRS about their system upgrades.

Thanks for your on-going interest in the work Democrats Abroad is doing to secure tax relief for Americans abroad.  It’s been a busy time, with outcomes for our 2021 advocacy goals still uncertain.  Which puts us into the same position as a great many others pushing Congress for important reforms this year.  This week and next week may be critical to understanding what important reforms from the Biden American Families Plan and American Jobs Plan get into the Build Back Better Bill.  Or, there may be many weeks of negotiation to come.  We will be pushing continuously on behalf of the Americans abroad community.

These are important updates on our work.

Democrats Abroad is pleased to announce that it has joined the RBT Coalition, adding our name to a non-partisan list of organizations, individuals and entities who support a switch from our current system of citizenship based taxation to residency based taxation, also known as RBT.  Of all the Americans abroad issues, taxation is THE issue that impacts every single one of us.  It affects young and old, married and single, regardless of economic status and party affiliation.  We believe that this growing community of RBT advocates and activists will demonstrate to Congress the enormous demand for tax fairness for Americans abroad and persuade them to work with us on a workable RBT implementation model.  Click here to download our expression of interest letter in joining the RBT Coalition and the RBT Coalition Media Announcement.

----

Democrats Abroad is scheduling zoom meetings with Congress for Americans abroad who own small to medium size businesses getting hit by GILTI tax.  Congress doesn't understand the enormous pressure GILTI tax is putting on the businesses of Americans abroad.  Let's tell them.

If you want to talk to your Representative about GILTI and your business abroad, please click here to register.  Leave the rest to us.

----

Thanks to all who responded to the DA campaign in support of a letter from Congress to Ways and Means Chairman Richie Neal asking that tax relief for Americans abroad be included in the House Build Back Better (budget reconciliation) Bill.  Click here to download the letter.

Look out for a social media campaign pushing U.S. Senators to back tax relief for Americans abroad in the Senate budget reconciliation bill.

Tax relief will happen when enough Americans abroad reach out to their elected representatives and demand it.

DA Taxation Task Force

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.

---

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!

Join the team working on our newest caucus, the new Global Disability Caucus!

We would like to build the broadest possible membership in this new and important team within Democrats Abroad. 

The mission of the Democrats Abroad Global Disability Caucus is to provide a voice for individuals with disabilities across its global membership. In addition to participating in voter and electoral support work the team will collaborate with allies within the Democratic Party and disability rights groups to ensure that all activities and venues are accessible; advocate on proposed legislation addressing disability rights; and educate and empower Democrats Abroad members and leaders about the issues impacting individuals with disabilities.

In addition to Democrats Abroad members with disabilities, we welcome and encourage the involvement of supporters of our members and our issues.  We hope to form an inclusive, diverse, active and effective community which provides fulfilling experiences for all.

**Please note that if you sign up to volunteer with us, you may be contacted directly via email by Chair, Marnie Delaney.

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