On February 26, 2026, Senate Finance Committee Chairman Mike Crapo (R-IA) and Ranking Member Ron Wyden (D-OR) introduced the bipartisan Taxpayer Assistance and Service Act (TAS Act). The bill includes ten sections of common sense tax administration fixes, with the second section dedicated to fixes for Americans abroad.
Democrats Abroad endorses the bill with the following quote: “Democrats Abroad appreciates the Senate Finance Committee’s introduction of proposed legislation, which would make commonsense fixes to IRS procedures and administration. The proposed legislation would address a number of longstanding proposals from the National Taxpayer Advocate, and we are particularly encouraged to see the inclusion of a title which specifically addresses the unique challenges faced by taxpayers residing outside the United States.”
The American abroad section of the bill (Sec. 2) is made up of five provisions:
Sec. 201. Report on Combined Tax and Foreign Bank and Financial Account Reporting
Instructs the Treasury Secretary to consult with the National Taxpayer Advocate and US citizens abroad on how to combine and simplify FBAR and FATCA reporting, eliminate duplicative requests for information, and recommend legislative changes within 180 days.
Sec. 202. Study and Reports on Simplification
Instructs the Government Accountability Office (GAO) to create a publicly available report within one year on the burdens of complying with federal tax laws on U.S. persons living abroad. The report would include problems specific to low- and moderate-income persons, such as filing returns and reports with the IRS and FinCEN in an affordable manner, understanding and responding to inquiries from these agencies, accessing financial products and services abroad, accessing affordable tax preparation services, and compliance burdens disproportionate to the amount of tax owed.
Sec. 203. Simplification of Currency Exchange Rules
Fixes current “phantom gains tax” issues for earning income in another currency, sale of a foreign home, or refinancing a foreign mortgage.
Sec. 204. Increase in Threshold for Simplified Foreign Tax Credit Rules and Reporting
Increases the Simplified Foreign Tax Credit rules from $300 ($600 joint filing) to $1,000 ($2,000 joint filing) and indexes the threshold to inflation.
Sec. 205. Extension of Time for Persons Outside the United States to Request Abatement of Math Error
Currently, all taxpayers who receive an IRS math error notice are given 60 days to respond. This provision gives taxpayers abroad an additional 60 days to respond (120 days total).
Additional provisions in the bill that will also benefit Americans abroad include:
- Requires the IRS to accept e-filed tax returns and amended returns for all forms. (Sec. 101)
- Requires the IRS to offer a callback option for all phone lines, including the international number. (Sec. 104)
- Requires the IRS to expand the online IRS account functionality to include viewing images of tax returns, documents, notices, and letters sent or received by the IRS (during a rolling six-year period starting on the date of enactment) and provide responses to IRS inquiries through the online account. (Sec. 105)
- Extends the rule where electronic payments made are counted on the date the payment was made rather than date the payment is received. (Sec. 903)
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