US Double Tax Treaties, Expat tax reform coalition at work on the Hill, and More GILTI regs

Thanks to all who participated in the Congressional CallStorm organized by Democrats Abroad to mark the 2019 International Tax Filing Day. With the help of all you expat tax activists we continue to build the profile of Americans abroad struggling to comply with double taxation and to bring our problems to the attention of members of Congress in both parties and across both chambers. We need the support of all those interested in expat tax reform in order to make it happen. Thanks again for your support.

Tax Treaties at last on the Congressional agenda

You may be aware that since Senator Rand Paul took office in 2006 he has blocked all tax treaties from coming to the floor of the U.S. Senate for a vote.  During this time tax treaties between the U.S and Hungary, Luxembourg, Switzerland, Chile, Spain, Poland, Japan and Portugal (at least) have been stuck in limbo, not to mention reforms made to the Model U.S. tax treaty. We recommend that all Americans abroad who vote in Kentucky to contact Sen. Paul and urge him to lift his holds on these treaties.

This week the Senate Foreign Relations Committee is expected to begin consideration of the treaties with Hungary, Chile, Spain, Japan and Portugal. Double taxation treaties address a range of matters that impact U.S. citizens living abroad, most especially the treatment of savings and retirement plans that receive beneficial tax treatment in our countries of residence but no favorable treatment under the U.S. tax system. When U.S. tax treaties are silent on this matter they leave payments made from foreign pensions, including those to which we may be legally mandated to contribute, subjected to double taxation.

It’s perhaps too early to anticipate those eight treaties moving closer to a floor vote in the Senate, but reporting suggests Sen. Paul is meeting with Treasury Sec. Steven Mnuchin to discuss his privacy concerns. We are following this issue and look forward to reporting back.

Americans abroad on Capitol Hill

Democrats Abroad gives an enormous shout out to our colleagues at Association of Americans Resident Overseas (AARO) and Federation of American Women’s Clubs Overseas (FAWCO) for their amazing week of meetings on Capitol Hill about expat tax reform. DA’s Tax Task Force was pleased to brief some members of their delegation and share with them an extensive list of members of Congress for them to meet (including names of key aides to speak to). We have since de-briefed with them and, to put it very briefly, they learned that: a) our concerns and recommendations are getting through to Congressional tax writers, and b) there remain a few outliers who either CONTINUE to harbor major misunderstandings about the demographics of Americans abroad or have concerns that RBT will open the flood gates to mass exploitation by wealthy Americans using real or faux off-shore residency to move assessable income to low-tax or no-tax countries.

Yes, we’ve heard it all before but at least these prejudices are well outside the mainstream.

Big, big THANK YOU to AARO and FAWCO for hitting it hard and fighting the good fight for a switch from citizenship-based taxation to residency-based taxation, financial account reporting reform and more. Heroic work by excellent colleagues (who, like us, are volunteers and) who share our goal of persuading Congress to fix the Internal Revenue Code and other laws and regulations that cause serious personal and financial harm to Americans living abroad.

Treasury announces more changes to GILTI regs

It’s been almost 18 months since Americans who own companies registered abroad were shocked to learn of two new taxes in the 2017 Tax Cuts and Jobs Act (TCJA) that could destroy not only their businesses but also their life savings. Regulations implementing the Repatriation Tax and GILTI Tax announced last year failed to provide material relief to Americans abroad. Last Friday June 14th Treasury issued “final regulations” on GILTI, Subpart F income and tax credits. You can read about them here (IRS and Treasury advice) or here (The Tax Adviser tax blog).


Democrats Abroad does not provide personal advice on tax matters.

Tax advice should be obtained from a qualified tax professional (accountant, lawyer, adviser or return preparer) who understands both the U.S. tax system and the tax system of the country where the taxpayer lives (including any applicable tax treaty). 

If you need tax advice Democrats Abroad recommends the Tax Return Preparer Directory published by our colleagues in expat tax advocacy, American Citizens Abroad. Click here to reference their directory.

Please send comments or questions to [email protected].


Intl Tax Filing Day CallStorm - Thur June 13 2019 - time to call Congress!!

The 2019 deadline for U.S. citizens living abroad to file their taxes is Monday June 17 (as the usual international tax filing deadline of June 15 falls on a Saturday this year).  

In order to draw attention to International Tax Filing Day Democrats Abroad is hosting a Congressional CallStorm.  We invite  U.S. citizens who support expat tax reform to participate in this campaign on Thursday June 13 (neither Friday June 14th nor Monday June 17th are House and Senate sitting days) and call their members of Congress asking for relief.

Everything you need to participate in the CallStorm is in this guide for campaign participants.

Date for calls:  Thursday June 13, 2019

Date for written and electronic messages:  Through the month of June

Who to contact:  your two Senators and your member of the House of Representatives.  If you don't know who they are advice for finding them and their contact details are in the guide.

What to say:  scripts for calls and sample language for emails, letters and postcards are in the guide. If you can add your personal story about why expat tax reform is important to you that would be even better.   Specifically, we are asking for -

  • A switch from our current system of citizenship based taxation to residency based taxation, in which we’d still be required to report US-based income to the IRS, but not the income we make in and pay tax on abroad 
  • the Overseas Americans Financial Access Act, which would exempt us  from disclosures of the  financial accounts we hold in our countries of residence which we use to pay bills and save for the future  

Further details on our tax advocacy ideals, strategy and asks are in the guide.

Thanks in advance for your support.  As noted in the guide, our work with the House tax writing subcommittee is making serious progress, but we need to build support for expat tax reform right across Congress.  To do that we need all who are seeking relief from the burden of complying with two tax jurisdictions to call your elected representatives and ask for it.

Please send questions or comments to [email protected]

Democrats Abroad Taxation Task Force 

Thanks to Rep Dina Titus (D-NV01) for telling Ways & Means that Americans abroad need tax relief

Democrats Abroad is enormously grateful for the long-standing support that Rep. Dina Titus has extended to the Americans abroad community.  She's always in our corner and never refuses an opportunity to show her concern for our problems - with the U.S. tax system and otherwise - and to push for common-sense reforms to address them.  

In response to our outreach about the Ways and Means Members Day Hearing, Rep. Titus has published this statement calling upon the Ways & Means Committee to ease the financial burdens placed upon Americans abroad by the U.S. citizenship-based taxation system.  Thank you, Rep. Titus, for noting that Americans abroad have been for too long neglected by Congress and for calling upon Congress to work together to provide us with relief.

Please also see this statement from Rep. Jamie Raskin (D-MD08) telling the Ways & Means Committee we need a switch from citizenship-based taxation to residency-based taxation.

It's not too late for rank and file members of Congress to join their voices to those of Reps Raskin and Titus in raising with the Ways and Means Committee the serious problems facing Americans abroad in complying with the filing obligations of two tax jurisdictions.  Please reach out to your representative and ask him/her to contact Ways & Means Committee Chairman Richie Neal and Ranking Member Kevin Brady about the urgent need for expat tax reform.  This guide will help you do so.

Please contact us at [email protected] with comments or questions.

Democrats Abroad Taxation Task Force

Thanks to Rep Jamie Raskin (D-MD08) for telling the Ways and Means Committee we need RBT

Further to our report from last week, we are delighted that Rep. Jamie Raskin (D-MD08), a former member of Democrats Abroad-France, has responded to our request to provide a submission to the June 4 House Ways & Means Committee Members' Day Hearing about the urgent need for expat tax reform.   We send our sincere thanks to the Congressman for his on-going support for our community and for legislation to address the serious personal and financial harm we suffer due to citizenship-based taxation.  Click here to read Rep. Raskin's submission.

As you will know from DA's previous tax advocacy reports, we now have a bi-partisan team from the House Ways and Means Committee working on the development of a proposal to enact residency-based taxation.  But there's much more work to do to persuade the other 40 members of that committee that this reform is urgently needed and can be sensibly implemented.  We continue our outreach to those important members, educating them on the harm citizenship based taxation causes ordinary, middle-class American families and persuading them to act urgently on our behalf.

We are counting on all Americans abroad supporting residency-based taxation to reach out to their elected representatives and reinforce our work.   Please call, write or message your members in Congress and tell your personal story about why a switch to residency based taxation is so important to you.   If you have trouble getting started then please refer to this guide to find your representatives and to add your voice to the cause.  It's imperative that members across Congress, in both houses, on all committees and of all political stripes hear from their overseas constituents about the urgent need for a switch to residency based taxation.

Thanks for your help.  Please contact us on [email protected] with comments or questions.

Democrats Abroad Taxation Task Force

DemsAbroad asks friends of Americans Abroad in Congress to raise RBT at the W&MC Members' Day Hearing

On Tuesday June 4th the House Ways and Means Committee will hold its Members' Day hearing enabling members of the House to comment on matters within the Committee's jurisdiction.  Democrats Abroad has reached out to members who are important friends of the Americans abroad community asking them to make submissions to the hearing about the need for Residency Based Taxation.  We have written to Rep Carolyn Maloney (D-NY-12), the Democratic co-chair of the Americans Abroad Caucus, Rep Dina Titus (D-NV-01) and Rep Jamie Raskin (D-MD-08), a former member of Democrats Abroad France.  

As we noted in our last report, we are delighted that there is now a bi-partisan team of Ways & Means Committee members working on a proposal to introduce residency based taxation.  We, in collaboration with the other organisations advocating for expat tax reform, continue to reach out to the all-important members of the Ways and Means Committee to profile the importance of this urgently needed reform.  It's great to have other members of Congress assisting us in this important work.

We will report back on the hearing.

In the mean time, it is our understand that an important meeting will take place the week of Monday 3 June between the Beyer-Holding team working on the residency based taxation proposal with legislative counsel.

Also, the week of Monday 10 June a delegation of members from Association of Americans Resident Overseas and the Federation of American Womens Clubs Overseas will be on Capitol Hill making the case for residency based taxation (as well as likely discussing other matters important to Americans abroad).  We have assisted them with their Congressional outreach and wish them the best in their meetings. 

You don't have to go all the way to Washington DC to make your views heard - on the matter of residency-based taxation or anything else that may interest you.   Advice for finding your elected representatives and calling or writing to them are included in this guide.   All (courteous and sincere) outreach is helpful.  

Please send comments and questions to [email protected]

A Step Forward on the Road to Residency Based Taxation

Americans abroad who support expat tax reform have taken another step forward on the road to Residency Based Taxation (RBT).

Further to our report on the DA tax advocacy Capital Hill meetings of May 14-16, on Tuesday May 21 a group of Democrats Abroad global leaders who vote in the Virginia 8th Congressional district were scheduled to meet with Rep. Don Beyer, their member of Congress, to discuss expat tax reform (plus to a few other issues uniquely impacting Americans abroad).

Unfortunately the Congressman was called away to a briefing by Trump administration officials on the escalating tensions with Iran. But the Beyer constituents had a productive exchange with his Legislative Director and learned that the Beyer team has scheduled a meeting about RBT with the Ways and Means Committee Legislative Counsel as a forerunner to a meeting with Rep. George Holding’s team about our keynote reform.

We, in collaboration with the other organizations advocating for expat tax reform, have made the progress we were hoping for, i.e. bringing the Beyer team into active engagement with the Holding team on the development of RBT legislation. But now begins the in-the-weeds work with Beyer’s team on the Holding RBT legislative design elements. The DA Taxation Task Force, in collaboration with our colleague organizations representing Americans abroad, will continue our work with the Beyer and Holding teams on this important reform.

Next steps

As noted in our last post, we expect the Beyer and Holding teams to create, in partnership, a consensus view on draft RBT legislation, send it to the Joint Committee on Taxation to be scored and to Ways and Means Committee Legislative Counsel to be structured into a bill which we can then build support for right across both parties and both chambers. Of course, nothing related to Congressional lawmaking is as simple or as linear as that. There will be zig zags, delays and pitfalls along the way, but there are many groups advocating actively for progress on RBT and working hard to keep the process moving forward.

What can you do to progress RBT?

The best thing you can do to progress RBT is to reach out to your elected representatives to remind them of the importance of this reform to you and your family and to ask for their support. Personal stories are the most effective. Include as much detail as you feel comfortable sharing. Call, write or send electronic messages to your House member and Senators. All outreach to those counting on your electoral support is helpful. If you get a boilerplate response that scarcely relates to the message you sent, write again demanding more. If you get an interesting response that you think would be useful for us to know about in progressing our work, please end it through to us.  We will follow up with your member.

Also happening

We understand that a bill establishing a Commission on Americans Abroad and the Overseas Americans Financial Access Act, establishing an exemption from all FATCA reporting for the foreign financial accounts of Americans abroad in their countries of residence, are soon to be re-introduced in the House of Representatives. We will let you know when those bills drop and what you can do to demonstrate your support for them.

Send questions or comments to [email protected].

Democrats Abroad Taxation Task Force 

May 14-16 Expat Tax Reform meetings with Congress: clarifying the way forward for RBT

Democrats Abroad was on Capitol Hill again on May 14-16 for meetings with Congress about legislation to enact a switch from our current system of Citizenship Based Taxation to Residency Based Taxation (RBT).[1]  Across the three days we held 18 meetings, 12 of which[2] were with members of the all-important Congressional tax-writing subcommittees[3] and so featured detailed discussion of the design elements of an RBT bill.  Of course, we always discuss the circumstances faced by Americans abroad being subjected to taxation in two (or more) jurisdictions and the personal and financial cost of maintaining U.S tax compliance.  The research data and case studies we present are critical to our efforts to underscore the urgent need for reform.

Twelve of the meetings were with House members; six were in the Senate.  Ten meetings were with Democrats; eight meetings were with Republicans.

Further to our previous reports, we continue to engage closely with Rep. George Holding’s team who lead the work to develop legislation to enact RBT in the 115th Congress.  They continue to demonstrate commitment to introducing a bill that can generate bi-partisan support in both houses.  Our work this year has focused on building support for the RBT proposal amongst other Ways and Means Committee members who can partner with Holding through the arduous legislation-writing process. 

It is our view (and the view of others) that Rep. Don Beyer (D-VA 8th district), is an ideal partner in fighting for RBT given his service on the Ways and Means Committee and his years of experience living abroad.  We understand discussions have occurred between Holding and Beyer and we continue to encourage Rep. Beyer as well.  When we met with the Congressman in March his support for RBT was in evidence.  When we met on Thursday with the Rep. Beyer’s Legislative Director (3rd time in 12 months) he voiced reasonable concerns.  The benefits of the 2017 Tax Cuts and Jobs Act (TCJA) were highly skewed towards large corporations and the wealthy; many Ways and Means Democrats have this same concern about RBT -  in addition to the concern that RBT will be exploited by wealthy Americans to use real or faux offshore residency in order to move assessable income out of the reach of the IRS.  We describe the anti-avoidance provisions in the RBT proposal to address the latter and use our research on the Americans abroad community to address the former.  Unlike the TCJA, the key beneficiaries of RBT will be predominantly middle-class Americans living abroad, as they vastly outnumber overseas earners making more than the Foreign Earned Income Exclusion.  

Perhaps the most persuasive arguments in support of RBT, however, come from the stories and case studies of affected Americans abroad.  This week (May 20, 21) the global leaders of Democrats Abroad are in Washington DC and, following on from our annual general meeting held in DC May 17-19, they will be on Capitol Hill talking to Congress about issues impacting Americans abroad.  By a wonderful coincidence, there are four DemsAbroad leaders participating in the 2019 DemsAbroad Congressional Door Knock who vote in Virginia’s 8th District, the seat held by Rep. Don Beyer.  We have arranged a meeting for them with Rep. Beyer and expect them to present compellingly about the personal and financial burden Citizenship Based Taxation places on them, including how it makes creating financial security in retirement so incredibly difficult.  We are hopeful that this week we will move another step closer to having bi-partisan support for RBT legislation in the House. 

What happens next?

While the proposal introducing RBT could take a number of different paths to becoming a bill, we understand that hearings may be required to document the tax problems of Americans abroad and discuss a legislative remedy.  We expect that the bi-partisan Ways and Means Committee RBT leaders would create a consensus view on the RBT design elements, incorporating advice from Legislative Counsel serving the Ways and Means Committee.  The resulting RBT proposal would go to the Joint Committee on Taxation to be scored (i.e. to quantify the impact the legislation would have on the federal budget).  In an ideal world the bill would be “revenue neutral” (as then it could be more easily welcomed as an amendment to another piece of tax legislation that has more momentum in getting to the floor for a vote).  The Ways and Means Committee Legislative Counsel would put the proposal into the language of a draft RBT bill; the draft bill could then be shared with members of the House and Senate in order to attract co-sponsors.  

Democrats Abroad and the other organizations representing Americans abroad have been meeting with elected representatives about expat tax reform for years.  We have a ready list of members who we believe will support an RBT bill enacting legislation that predominantly benefits ordinary, middle-class Americans abroad and includes robust anti-avoidance mechanisms to protect the law from abuse.

So, the work is far from over. 

In our meeting with the Committee’s Legislative Counsel we were advised a bill could be introduced as early as the beginning of 2020.  Of course, election year politics bring their own surprises, distractions and legislative priorities, which makes it difficult to know what timeline is realistic.

Democrats Abroad’s tax advocacy work will continue to focus on generating bi-partisan Ways and Means Committee support for an RBT bill and on Congressional outreach to both parties and both houses to continue to build the profile of this important reform.  In our meetings with Congress we also discuss the need for: an exemption from all FATCA reporting for the accounts of Americans abroad in their countries of residence; relief for Americans abroad from the “transition taxes” in the 2017 TCJA; reforms to the administration of FBAR, including changes to the enormously out-of-proportion penalties for non-willful non-compliance; establishment of a Commission on Americans Abroad; repeal of the Windfall Elimination Provision; and a more reasonable renunciation mechanism for “Accidental Americans”.

Shortly Democrats Abroad will also be reaching out to those who have declared their candidacy to be the Democratic Party nominee for president of the United States to seek their positions on issues such as taxation, voting and immigration as they uniquely impact Americans abroad.

We will continue to report out on our initiatives, and developments in our work and the work of the other amazing organizations representing Americans abroad.  We are grateful for their camaraderie and their commitment to improving the lives of all in the Americans abroad community.

Please send comments or questions to [email protected]

Democrats Abroad Taxation Task Force


[1] Under a system of Residency Based Taxation Americans living and working abroad would will be required to continue to declare their U.S.-sourced income to the IRS but would not be required to declare and pay tax on the income generated in another country.

[2] The balance of the meetings were with “friends of DA” i.e. members of Congress who support our work on behalf of the Americans abroad community and who we engage with regularly in order to keep them up to speed on our work.

[3] The Select Revenue Measures Subcommittee of the House Ways and Means Committee and the Tax Policy Subcommittee of the Senate Finance Committee.

Dems Abroad residency based taxation meetings with Congress 14-16 May - Time to call your members

The Democrats Abroad Taxation Task Force is back on Capitol Hill on 14, 15 and 16 May putting tax reform for Americans abroad at the center of discussions with Congress.   We have meetings scheduled with members in both Houses of Congress and on both sides of politics.  We will be discussing the need for residency based taxation and the design elements of the proposed legislation to enact it.  

We need those determined to see this important reform enacted to reach out to their members of Congress this week and next week to demand it.  Please consult this grassroots campaign guide for background on our advocacy work and for sample language you can use to call or write to Congress.

Please send questions to [email protected]

Democrats Abroad publishes 2019 Expat Tax Research Datapack

Democrats Abroad is pleased to make public the data obtained in our 2019 research into the experience of Americans abroad complying with U.S. tax filing and financial account reporting requirements.

Click here to download the DATAPACK of the Tax Filing From Abroad Report.

Click here for the full Tax Filing From Abroad report. 

Click here for a summary of the findings.

We hope this information will be useful to the many organisations and individuals working hard to persuade Congress to make urgently needed reforms to the way the U.S. tax code impacts Americans living outside the U.S.

Read more

March 2019 meetings with Congress about expat tax reform

The DemsAbroad Taxation Task Force is pleased to report back about our expat tax reform meetings last week (the week commencing 4 March 2019) on Capitol Hill.  Thanks to Carol Moore of DAUK for joining us for the meetings.

Work continues on a bill implementing a switch to Residency Based Taxation

As followers of this issue know, the residency-based taxation (RBT) bill introduced by Rep George Holding on the last sitting day of Congress in 2018 was lacking in the detail needed to generate the support it needs to be enacted.  However it was a great milestone for RBT activists and an important signal to us all that a powerful member of Congress is committed to an expat tax reform that would provide genuine relief to ordinary Americans living and working abroad.

We understand from Holding’s team that they are back at work with the Ways and Means Committee lawyers drafting the bill, and with the analysts on the Joint Committee on Taxation who are scoring the proposal (to establish the impact on the federal budget).  Holding's team expects to introduce another version of the Tax Fairness for Americans Abroad Act in the 116th Congress in the coming months and we support their work to see more of the detail we spent so much time developing through 2018 in the next version of the bill.

But you don’t have to take our word for it.  Rep Holding’s tax counsel, Matt Stross, will feature in a Webcast about the Tax Fairness for Americans Abroad Act hosted by our colleagues at American Citizens Abroad taking place on Wed 13 March and Thurs 14 March.  Click here for information and to register to attend.  Bring your questions and don’t forget to thank Matt.  He has worked very hard on this proposal and deserves our gratitude for his endeavors and his commitment to getting it done!

Building support for RBT across the House

We also met with the other members of the House who we know are our allies in expat tax reform:  Rep Carolyn Maloney (Americans Abroad Caucus co-chair); Rep Jamie Raskin (former member of DA France); Rep Dina Titus (former American abroad, very good friend to Democrats Abroad and featured speaker at our 2016 Global meeting in Berlin); and Rep Don Beyer (former U.S. Ambassador to Switzerland).  They are fully across work on the bill and, now that Democrats have control of the House, we expect them to become more hands-on with it.

Meetings with other members of the tax writing subcommittee of the House Ways and Means Committee suggests our band of mission-critical allies is about to grow.  We will give those members some time to develop an understanding of the reform and will be happy to share their names in due course.

What else

We understand that Rep Carolyn Maloney will be reintroducing the Overseas Americans Financial Access Act which would exempt from FATCA reporting all accounts of Americans abroad in their countries of residence and also reintroducing her bill proposing the establishment of an Americans Abroad Commission to examine the range of U.S. laws and regulations that have an unfair, adverse impact on Americans abroad.   If such a commission were in place then Congress might avoid inadvertently enacting laws that harm Americans who live outside the U.S., such as the Tax Cuts and Jobs Act (TCJA) which gave rise to the Transition Taxes which are seriously hurting Americans who own foreign registered companies.[i] 

The TCJA introduces two Transition Taxes: the Repatriation Tax and Global Intangible Low Tax Income (GILTI) tax.  Despite a year of activism, we are still waiting for some Repatriation Tax relief, other than the one-year deferral to start making payment.  The GILTI Tax, however, was the subject of new Treasury regulations introduced when we were on the Hill last week.   The rules change gives individual owners of foreign registered companies access to the same offsets and discounts afforded to US-based corporate owners of foreign registered companies.  Electing to be taxed as a corporation, however, could for some result in greater levels of taxation in the long run.  American owners of foreign-registered companies should consult their tax professional.

What’s next

Our expat tax advocacy team is back on Capitol Hill the week of Monday 8 April and again the week of Monday 13 May, having more meetings with law makers key to the development of the bill and the development of support for it.  Whilst normally we see members in both houses, the March 2019 meetings focused on the House where the in-the-weeds work on RBT is going on.  Our outreach will accordion out again to include the Senate next month. 

We can’t underestimate the importance of outreach by Americans abroad to your elected officials about expat tax reform.  If you’re looking for advice on how to contact your member please refer to this Guide.  It gives you everything to know about how to contact your member and what to say/write to them once you do.

Democrats Abroad Taxation Task Force

[email protected]




[i] The TCJA introduced territorial taxation for corporations giving them a deeply discounted tax rate on the repatriation of unrepatriated of profits.  It also imposed deemed repatriation of profits on Americans abroad who own foreign registered companies, many of whom never intended to repatriate the profits (and who are already paying taxes in the jurisdiction where the company is registered.)   These business owners living and working abroad are having to put their hand on many thousands of dollars to pay the retroactive Repatriation Tax on profits going back to 1986.  Catastrophic for many.

The TCJA also places a new tax on the future profits of foreign registered companies, with offsets and discounts for US-based corporate owners of foreign registered companies but none for Americans abroad who own foreign registered companies.