FATCA Update: June/July 2015

Another step forward for FATCA Reform: Americans Abroad Caucus Chairs circulating FATCA reform “sign on letter” through the House.

This month Democrats Abroad and all those campaigning for relief from FATCA reporting for Americans living abroad hit a milestone in our advocacy campaign.

The Democratic Co-Chair of the Americans Abroad Caucus, Rep Carolyn Maloney of New York, and the Republican co-chair of the Americans Abroad Caucus, Rep Mick Mulvaney of South Carolina finalized the language of a letter to the IRS and Treasury asking that they urgently implement the recommendation of the National Taxpayer Advocate to exempt from FATCA reporting the financial accounts of Americans abroad in their country of residence. The letter is attached below.  Representatives Maloney and Mulvaney are distributing the letter to the members of the Americans Abroad Caucus and others in the House of Representatives, asking that they support this reform by signing the letter and sending it to Treasury Secretary Jacob Lew and IRS Commissioner John Koskinen.

Democrats Abroad will also be forwarding the letter to members of Congress asking for their support. A strong message of support from Congress in favour of this FATCA reform, which we refer to as the Same Country Safe Harbor, will be critical in getting regulators to embrace it.

We have our work cut out for us, but we are convinced this is doable.

Senate Finance Committee publishes reports of Tax Reform Working Groups

Last week the Senate Finance Committee reported out on the findings of its call for recommendations on reforming the US Tax Code. Democrats Abroad made two submissions about the need to urgently reform FATCA: one to the Individual Income Tax Working Group and one to the International Tax Working Group. The Senate Finance Committee Working Group reports can be found here. We draw your attention to the International Tax Working Group report where on page 80 the submissions from Americans abroad about Citizenship Based Taxation, FATCA and FBAR are discussed very briefly.

We have known that these issues are on the radar screen of the Senate Finance Committee and we now know that we must push even harder to get the Committee to make our grave concerns about them a priority.