Democrats Abroad has written to Senator Sheldon Whitehouse (D-RI) and Representative Lloyd Doggett (D-TX), sponsors of the 2017 Stop Tax Haven Abuse bill, in relation to measures in the bill involving offshore account disclosure. Americans abroad face serious problems obtaining everyday banking products and services in their countries of residence (as well as in the United States [1]) arising from foreign financial account disclosure requirements. In our letter we have outlined our concerns about the 2017 bill and, in anticipation of its re-introduction in the 116th Congress, have offered a range of recommendations for anti-abuse mechanisms to curb tax evasion PLUS protect the ordinary and entirely legitimate financial accounts held by Americans abroad in the countries where we live and work. This is our letter.
More Treasury Regulations proposed for implementing the 2017 Tax Cuts and Jobs Act (TCJA)
On Thursday 13 December 2018 Treasury published proposed guidance on the Base Erosion and Anti-Abuse Tax in the 2017 TCJA. An easing of rules governing the way foreign financial institutions and U.S. banks should deal with foreign account disclosure laws also factors into the proposed regulations. Reporting on the proposed rules is here, here and here.
Democrats Abroad is pleased that Treasury, in providing relief for U.S. corporations abroad, has also given consideration to foreign financial account reporting; this is an issue that significantly impacts U.S. citizens abroad. We strongly urge Treasury to not only consider regulatory changes to benefit companies that operate outside the U.S. but also to consider further changes that would benefit ordinary American citizens who live and work outside the country.
Democrats Abroad Taxation Task Force
[1] Provisions in the USA PATRIOT Act requires holders of U.S. financial accounts to have a U.S. address. Americans living abroad without one are not able to open or retain accounts back home.