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Pages tagged “Taxation”
The US State Department is hosting an open comment period to reduce the renunciation fee from $2,350 to $450. This is a great opportunity for your voice to be heard about the tax problems forcing Americans abroad to renounce their citizenship in the first place (aka the tax compliance nightmare suffered by Americans abroad).
Here’s all you need to do:
- Go to the relevant State Department page at this link.
- Click the big green button on the right side that says “SUBMIT A FORMAL COMMENT.”
- Leave a comment! We’ll include a template below - but the more personal your comment is the better!
Comments close November 1, so be sure to submit before the deadline.
Template Messaging (But the more personal the better!)
Asking Americans to pay $450 to renounce their citizenship is still exorbitant (as compared to other consular fees that are substantially lower), but at least it’s an improvement.
But the real tragedy is that so many Americans feel like they have to cut ties in the first place. The fact that more Americans renounce their citizenship than any other nationality is deeply embarrassing - instead of penalizing them on their way out the door, the State Department should be asking why they’re leaving in the first place.
The obvious answer is the uniquely unfair tax system to which the US subjects its citizens living abroad. The State Department’s mission includes “shape[ing] an international environment in which all Americans can thrive.” Surely that involves helping guide the government toward policies that don’t massively complicate life for Americans abroad.
Instead of nickel-and-diming Americans forced to renounce their citizenship to escape double-taxation, the State Department should push Congress to bring the US into line with the entire rest of the world in the way it taxes its expats.
Thanks for your help!!
DA Global Taxation Task Force
Please share this with any friend or family member that might be interested in submitting a formal comment!
October 12, 2023
The webinar that was going to be tomorrow, Wednesday, September 27 at 12pm ET with Rep. Don Beyer to talk about the Tax Simplification for Americans Abroad bill is now cancelled.
We will come back to you once we are able to reschedule, but here's what you can do in the meantime:
- Click here to donate to Democrats Abroad. We recommend $10 or $20, but any donation amount is welcome.
- Click here to contact your House Representative *TODAY* and ask them to co-sponsor the bill. Because no one will be there to answer a call or check emails once the government shuts down on October 1. So act now!
Chair, Democrats Abroad Taxation Task Force
P.S. Don't forget to sign up for the latest tax advocacy new by joining the Taxation Task Force mailing list. Click here to join now.
We are excited to announce that H.R. 5432 Tax Simplification for Americans Abroad Act has been introduced in the U.S. House of Representatives. Join us for a webinar with the sponsor of the bill, Congressman Don Beyer (D VA-08) on Wednesday, September 27 at 12pm ET to find out more!
The Tax Simplification for Americans Abroad Act will:
- Create a simplified tax return form to help make it easier for Americans filing from abroad who owe no U.S. tax
- Eliminate double taxation for pensions and retirement distributions (including Social Security benefits), scholarships, fellowship grants, disability benefits, childcare expenses, family medical leave, and unemployment benefits
- Consolidate the FBAR into FATCA, increase the filing threshold, and eliminate the requirement to report separately to FinCEN
Please call your House Representative today and ask them to co-sponsor the bill. Click here for how to call and what to say.
Need more info to make the call? Join us for the webinar where we will lay out clear instructions for how to call your House Representative!
Thank you for taking the time to help us pass the bill!
Don't forget to sign up for the Taxation Task Force mailing list by clicking here for the latest on tax updates.
Below is a copy of the letter from Democrats Abroad submitted to the Senate Finance Committee in response to the report "Credit Suisse's Role In U.S. Tax Evasion Schemes" released on March 29, 2023.
Response from Democrats Abroad Taxation Task Force to IRS Notice 2023-11: Temporary FATCA Reporting Relief for Non-U.S. Banks
On Friday, December 30, 2022, the IRS issued Notice 2023-11, which provides temporary relief from the FATCA reporting rules for non-U.S. banks (known as FFIs, “foreign financial institutions”) in about 90 countries (known as Model 1 Jurisdictions). The notice specifically provides relief for reporting of U.S. TINs (Social Security or ITIN numbers) for 2022, 2023, and 2024.
Democrats Abroad is encouraged by the recognition by Treasury and the IRS that modifications to the FATCA-reporting regime are necessary. Although temporary relief for non-U.S. banks is a positive step, the temporary relief is provided to FFIs rather than directly to Americans abroad. We would prefer permanent relief that resolves the core problem caused by FATCA: loss of access to non-U.S. bank accounts for Americans abroad.
In 2022 the Democrats Abroad Taxation Task Force met with IRS and Treasury officials to raise awareness of the ongoing tax and financial-access issues experienced by our constituency. We are pleased to see some of our views are recognized in this IRS notice. We look forward to an ongoing productive dialogue with these government agencies and Congress in order to resolve the tax and financial-access issues that severely impact the daily lives of Americans abroad.
Highlights from the notice that are relevant to Americans abroad include:
- Treasury and the IRS acknowledge that foreign countries, non-U.S. banks, and U.S. citizens (including for Americans living abroad) are concerned about account closures when a U.S. TIN has not been provided.
- Treasury and the IRS acknowledge notification that some non-U.S. banks are refusing to open or maintain accounts for Americans abroad, or are “otherwise providing access to accounts on less favorable terms than apply to other account holders, even if the U.S. citizen provides a U.S. TIN.”
- One of the requirements for FFIs to receive relief is for the relevant country to encourage its banks not to discriminate against Americans abroad who do provide a U.S. TIN.
- Even though Americans abroad and FFIs had up to 6 years to provide U.S. TINs for FATCA reporting, TINs were still not provided.
- Relief to FFIs is limited to reporting on accounts opened before a certain date and is conditional upon the bank providing U.S.-citizen customers with information on how to come into tax compliance and/or renounce citizenship.
- Relief also obliges banks to take steps to encourage tax compliance by U.S. citizens like providing links to the IRS and U.S. State Department’s websites.
The Taxation Task Force will be hosting a new volunteer info session on April 19th. Anyone that's interested in rolling up their sleeves to help resolve the tax and banking problems Americans abroad face is welcome to join. RSVP here to join.
You don't have to attend the info session to volunteer. You can apply by clicking here to fill in the volunteer interest form so we can get a better sense of your strengths, interests, and time availability. After you've filled in the form, you'll be invited to a call to discuss next steps.
You can also learn more about what roles are available by clicking here for an outline of volunteering opportunities with the tax team.
If you have any questions, don't hesitate to email the team on [email protected].
As part of efforts to make the Democratic Party's convention the most inclusive and engaging yet, the Democratic National Convention Committee (DNCC) has launched a digital engagement campaign inviting everyone to share what ideas, values, and beliefs they want to see reflected in the 2020 Party Platform.
The main ways to participate in this campaign are by:
Democrats Abroad is working to see Residency Based Taxation (RBT) included in the 2020 Party Platform, so that it helps us gain more support in Congress to make RBT a reality.
Democrats Abroad will be going to Washington DC to speak to Members of Congress (MoCs) on Wednesday, September 18th to Thursday, September 19th in our continued effort to advocate for a switch from Citizenship Based Taxation (CBT) to Residency Based Taxation (RBT).
We need your help and support to contact your Members of Congress during our visit to show Congress how important our issues and that they need to take action.
You are invited to attend this webinar on Tuesday, September 17 at 3pm EST to learn how to contact your Members of Congress in support of our tax advocacy efforts and to ensure your voice is heard!
Whether you experience the nuisance of being double taxed from overseas or want to help for social justice change of Medicare for All or the Equal Rights Amendment - here's your chance to get involved! Urgent deadlines below and there will be actions to do after this month.
Medicare for All
Medicare for All was endorsed by Democrats Abroad at the AGM 2019 and is by far the most comprehensive, compassionate, health-focused and economically sensible plan.
Most importantly, if you have a Representative on the Ways and Means Committee who has not endorsed Medicare for All yet - that list here, we urge to contact them before Wednesday, 12 June - see image at left!
We also encourage everyone to see if your Representative is a co-sponsor of the HR.1384 Medicare for All Bill and email them if they have not signed on yet.
Residency Based Taxation (RBT)
RBT is a remedy, requiring little effort by Congress, that addresses the vast majority of the tax problems faced by Americans abroad. You can read the report by the Taxation Task Force on these issues here.
Join Democrats Abroad Call Storm for RBT on Thursday 13 June - Call Storm Instructions here! This coincides with the International Tax Filing day.
Equal Rights Amendment (ERA)
It is hard to believe, but men and women are not equal under the Constitution! If you want to help change that, contact your Representative and/or Senator. If your state has not ratified the ERA, please also contact your local State legislators members to support it.
Stay tuned for more campaigns in this year as after the middle of June, the campaigns for Residency Based Taxation, Medicare for All and Equal Rights Amendment will continue!+