Taxation


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    The Democrats Abroad Taxation Task Force (TTF) consists of volunteers researching U.S. tax policy as it affects Americans living outside the U.S. and considering, developing, and executing initiatives aimed at enacting reforms that resolve adverse impacts.

    We undertake research-based advocacy to describe the problems that U.S. taxation causes Americans abroad and to garner large-scale support for our reform recommendations.

    We call on the United States to tax based upon residency and source, exempting Americans abroad from FATCA reporting, and fixing the tax code to eliminate tax discrimination for Americans abroad.

    Our latest research on the tax filing and financial account reporting experience of Americans abroad was published in November 2022. Click here to download the report.

    Democrats Abroad has published a "laundry list" of tax code provisions that discriminate against Americans abroad - with accompanying reform recommendations on how to fix them. The list is here.

    We are committed to Residency Based Taxation as a remedy, requiring little effort by Congress, that addresses the vast majority of the tax problems faced by Americans abroad.

    Further, we will continue to promote:

    • the elimination of FATCA reporting for the accounts of Americans abroad,
    • the repeal of the Windfall Elimination Provision,
    • an exemption for American business owners abroad from the transition taxes in the 2017 Tax Cuts and Jobs Act, and
    • a citizenship remedy for "accidental Americans".

    We support tax reforms that help reduce inequality, boost opportunity for all Americans and raise enough revenue, predominantly from those with the greatest ability to pay, to meet public needs.

    Democrats Abroad Taxation Task Force
    [email protected]


    Have you been impacted by Americans abroad tax and financial access issues and you'd like help?

    We want to hear your stories. Click here to tell us about the problems you've experienced. We especially want to hear from you if you've experienced any of the following problems:

    • Were unfairly double taxed on your income
    • Had a bank account closed on you for being a U.S. citizen in your country of residence
    • Refused to open or had a bank account closed in the U.S. due to not having a U.S. address
    • Asked to return the 2021 Child Tax Credit
    • Have been hit by the GILTI tax and/or Transition tax as a business owner

    Want to get involved?


    Looking for more information?

    DA Taxation Leadership:

    Rebecca Lammers
    | Chair Taxation Task Force, DAUK DPCA Rep
    See all Leaders

    News

    Get the tax report to your Members of Congress in three quick and easy steps

     

    We need your help this week. You can really make a difference!

    Nearly 7,000 Americans abroad responded to our tax survey in 2022. Now we need to make every Member of Congress aware of our findings in order to advance our advocacy goals. This will only take you an estimated 20 minutes, and it is much easier than you think!


    Step 1: Find your two Senators’ and one Representative’s phone numbers

    • Click here and search for your last US address or your US voting address, or your parents last US address if you have never lived in the US.
    • Grab the Washington D.C. phone numbers (area code 202) for all three members.

     

    Step 2: Call their offices!

    • Call first, in order to identify the correct person to send your email to.
    • When receptionist answers, read the following script:

    Hi, my name is [name], I am a constituent and I would like to send a copy of a recently released report on tax problems for Americans abroad to the person in charge of tax on the Congress[wo/man]'s legislative team. This is an issue that matters to me since I live abroad in [country]. Could you tell me his or her email address so I can send a copy of the report?

    • Call during Washington D.C. office hours (9am to 5pm ET, weekdays) to increase your chances of success.
    • Do not leave voicemail. After three unsuccessful attempts, email us at [email protected] and we'll see if we can help.
    • Call your House representative first if you don’t have time for all three.
    • Minimum credit (usually about $5) can get you connected through any internet device to reduce costs if you cannot make an international call.

     

    Step 3: Send a separate email to each Member’s tax staff

    • Copy, paste, and customize the following text to a separate email for each contact. Attach the full report and one-page summary.

     

    To: Tax staff email
    Cc: [email protected] (this is very important, don't forget to cc us so that we know that you contacted your reps! This helps us track who contacted whom.)

     

    Dear [Tax staff's first and last name],

     

    My name is [your name], I am a proud constituent living in [city and country you live in].

     

    [Please add your own personal story about how you've been impacted by tax and financial access issues. The more personal, the better.]

     

    Solutions to these issues of concern to the estimated nine million(!) Americans abroad are non-controversial and bipartisan. With the 118th Congress just around the corner, fixing these problems could garner bipartisan support.

     

    Please find attached a one pager and copy of a recently released report on Americans abroad tax and financial access issues. Can you please add this report to your records? Can you also include this in the briefing material for the Congress[wo/man] for the start of this Congress?

     

    Thanks,
    [Your name]

     

    If you can't send an attachment with your email, use these links to share the report:

     

    If you do not receive a reply within 24 hours, send a follow-up email.

    • Ask for confirmation that they received your email for their records (1-2 minutes of your time).
    • Message them on their social media platforms to help bump your email up to the top of their inbox.
    • If the Congressional staff requests additional information or wants to speak to you about the report but you're not confident in doing this, reply that someone in Democrats Abroad will be happy to speak with them (cc [email protected] to the email)
    • If you receive any reply, please forward it to [email protected] so we know how the member's office responds.

     

    Thank you so much for helping us with this very important work.

    • If you have any questions on this action, please email us at [email protected].
    • Feel free to share this webpage with anyone you think is interested in helping fix the tax problems for Americans abroad!
    read more

    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.
    read more
    See all posts

    Upcoming Events

    Sunday, December 31, 2023 at 01:00 PM Eastern Time (US & Canada) · $5.00 USD · 1775 rsvps
    Zoom

    How to Survive Tax Day as an American Abroad (RECORDING)


    Feeling lost or overwhelmed about filing your IRS tax return this year?

    Join us for a consumer focused Zoom webinar on How to Survive Tax Day as an American Abroad!

    WHEN: Wednesday, January 11th from 1:30-2:30pm EST view your time zone

    $10 General Admission / $5 Concessions. Recording available. All proceeds go to Democrats Abroad

    Scroll to the bottom for tickets

    The aim of this event is to help you feel more confident going into filing your US tax return this year. Presented by Rebecca Lammers, Chair of the Democrats Abroad Taxation Task Force. This is a consumer focused webinar to help you save money on your tax preparation costs.

    This session is for Americans abroad/U.S. citizens/dual citizens/expats who:

    • Aren’t happy with your accountant and want to switch
    • File yourself but you're not sure if you're doing it right
    • Filed when you first moved abroad but haven't done it for a while and need to get back on top of filing
    • Haven’t filed since you moved abroad
    • Just moved abroad and don’t know how to start
    • Just learned you’re supposed to file and want to get caught up

    Topics discussed in the session will include:

    • The Taxpayer Bill of Rights
    • Deciding between filing yourself, using a tax preparation software, or hiring an accountant
    • The difference between an EA, CPA, and tax attorney
    • How to spend $0 to file your own taxes
    • How to get free tax prep if you're a 50+ senior
    • How to find an accountant
    • How to keep your tax prep costs as low as possible
    • What to do if you don’t know how to get started
    • How to contact the IRS and communicate with them

    Ticket proceeds go to Democrats Abroad, feel free to donate additional recording tickets to bump up your donation!

    Feel free to email [email protected] if you have any questions about this event. Note: No tax professionals will be speaking at this webinar. If you have questions specific to your circumstances, please seek the advice of a qualified tax professional.

    If you are unable to attend this event you can select the recording ticket option (scroll to the bottom of this page)

    Add event to calendar

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    The fine print:

    • No refunds are available.
    • We can't guarantee we will be able to answer all questions submitted before, during, or after the event, but we will try to answer as many questions as possible.
    • This event is closed to the press.

    Please click here to add yourself to the Democrats Abroad Taxation Task Force mailing list to keep up to date with the actions and upcoming events.

    Disclaimer: Democrats Abroad cannot provide individual tax advice. We are not tax lawyers, accountants or advisers. Please consult a professional tax adviser/accountant/return preparer when addressing your personal tax matters.

    We recommend the IRS Tax Return Preparer Directory to find a service provider who meets your needs and budget, though buyers need always beware. Democrats Abroad suggests Americans abroad in need of tax advice consult the IRS Tax Return Preparer Directory to find an advisor or tax return preparer near you or providing online services: https://irs.treasury.gov/rpo/rpo.jsf