A delegation of Democrats Abroad is in Washington DC this week meeting with members of Congress to share the results of our 2019 research on Americans abroad facing US taxation and continue discussions about legislation enacting a switch from our current system of citizenship based taxation to residency based taxation.

In our Leave Behind Pack is a summary of the findings of the research and a document making the case for RBT.  

Residency Based Taxation activists are asked to reach out this week to their members of Congress in support of expat tax reform.  Please refer to this grassroots campaign guide for reaching out to Congress about expat tax reform, which has scripts for calls and language for writing messages.

Please send questions and comments to [email protected]

Democrats Abroad has written to Congressional leaders in support of a citizenship renunciation mechanism for "Accidental Americans".   Download the letter here.

Please send questions or comments to [email protected]

Democrats Abroad is pleased to present its fourth major research project on the experience of Americans living and working abroad facing the challenges of a range of U.S. tax, financial account reporting, banking, securities and other laws that discriminate against them as non-resident citizens:  Tax Filing From Abroad:  Research on Non-Resident Americans and U.S. Taxation.

The key findings of the research are summarized below. The report includes not only the survey data but also comments from research participants that expand on the numbers. Download the full report here.

We will use the findings to profile the Americans abroad community to lawmakers and regulators in discussions aimed at persuading them to enact reforms to laws and regulations that place an unfair and undo burden on Americans abroad.  We hope the data is useful to all those advocating on behalf of the Americans abroad community.  To that end we will be publishing a Datapack of the raw data collected in the survey undertaken in January 2019.

Please send questions and comments to [email protected]

Key findings of the Democrats Abroad 2019 research on Non-Resident Americans and U.S. taxation:

Democrats Abroad wishes to express heartfelt condolences to the family and friends of Lucy Stensland Laederich, of the Association of Americans Resident Overseas, Paris (AARO) and the Federation of American Women's Clubs Overseas (FAWCO) and to acknowledge Lucy's profound contribution to the Americans abroad community. Lucy was a greatly respected and valued colleague of all those working to advance the interests of Americans living and working outside the U.S., especially in the area of tax reform for Americans abroad. We celebrate her life and achievements and recognize the contribution she made to our community.

Many thanks to all those who have made submissions to our 2019 Non-Resident Taxation Research Project over the two week study period.  The survey was closed at midnight on Sunday February 3, 2019.  We look forward to publishing a full report on the findings of the research by the end of February.  

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Democrats Abroad is launching our 2019 Non-Resident Taxation Research Project to generate information we will use to advocate for reforms to relieve the burden of tax, banking, financial account reporting, securities and other laws that discriminate against Americans living abroad. Please contribute to our research by filling out this questionnaire. It will be open for submissions for 2 weeks, closing at midnight US EDT on Sunday February 3, 2019.

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As each year passes our list of expat tax issues grows.  As followers of expat tax matters know, there was nothing good for Americans living abroad in the Tax Cuts and Jobs Act of 2017.  Not only did the law fail to address any of the tax problems Americans abroad endure, it also placed a further serious - and for many existential - tax burden on Americans who own small to medium sized businesses overseas.  For these reasons you could say 2018 was the most challenging year yet for expat tax reform activists, many of whom invested enormous energy advocating on behalf of the Americans abroad community during the 2017 tax writing process.

Democrats Abroad welcomes the introduction of H.R. 7358, the Tax Fairness for Americans Abroad Act. H.R. 7358 is not a perfect bill and, coming on the eve of adjournment, it cannot be given serious consideration or debate. That said, it is a milestone for advocates of a switch from the current U.S. system of Citizenship Based Taxation to the globally-accepted norm of Residency Based Taxation (RBT), and raises to attention important issues that Congress must address with hearings in the 116th Congress. 

Democrats Abroad has written to Senator Sheldon Whitehouse (D-RI) and Representative Lloyd Doggett (D-TX), sponsors of the 2017 Stop Tax Haven Abuse bill, in relation to measures in the bill involving offshore account disclosure.   Americans abroad face serious problems obtaining everyday banking products and services in their countries of residence (as well as in the United States [1]) arising from foreign financial account disclosure requirements.   In our letter we have outlined our concerns about the 2017 bill and, in anticipation of its re-introduction in the 116th Congress, have offered a range of recommendations for anti-abuse mechanisms to curb tax evasion PLUS protect the ordinary and entirely legitimate financial accounts held by Americans abroad in the countries where we live and work.  This is our letter.

More Treasury Regulations proposed for implementing the 2017 Tax Cuts and Jobs Act (TCJA)

On Thursday 13 December 2018 Treasury published proposed guidance on the Base Erosion and Anti-Abuse Tax in the 2017 TCJA.  An easing of rules governing the way foreign financial institutions and U.S. banks should deal with foreign account disclosure laws also factors into the proposed regulations.  Reporting on the proposed rules is here, here and here.

Democrats Abroad is pleased that Treasury, in providing relief for U.S. corporations abroad, has also given consideration to foreign financial account reporting; this is an issue that significantly impacts U.S. citizens abroad.  We strongly urge Treasury to not only consider regulatory changes to benefit companies that operate outside the U.S. but also to consider further changes that would benefit ordinary American citizens who live and work outside the country.   

Democrats Abroad Taxation Task Force

[1] Provisions in the USA PATRIOT Act requires holders of U.S. financial accounts to have a U.S. address. Americans living abroad without one are not able to open or retain accounts back home.

Democrats Abroad has reached out to Democratic members of Congress expect to lead in the House of Representatives on key committees to request hearings early in the 116th Congress examining laws and regulations that harm and discriminate against Americans living outside the U.S.  Our letter is here.  We expect to follow up on this letter once the 116th Congress is seated and especially during a Congressional Door Knock to be held in conjunction with the Democrats Abroad 2019 Annual Global Meeting to be held the first half of the year.

Further more detailed information about the matters raised in this letter and other grievous discriminations against U.S. citizens abroad that Democrats Abroad has and will continue to bring to the attention of our elected representatives please see the Democrats Abroad 2016 Platform which is posted here.

Democrats Abroad has written to Senator Orrin Hatch, Chairman of the Senate Finance Committee, Senator Ron Wyden, Ranking Democrat on the Senate Finance Committee, Rep Kevin Brady, Chairman of the House Ways and Means Committee and Rep Richard Neal, Ranking Democrat of the House Ways and Means Committee, asking for our transition tax reform recommendations to be included in any technical corrections bill moved in the lame duck session to remedy serious problems arising from the 2017 Tax Cuts and Jobs Act rushed through Congress in December of last year.  Click here to download the letter.

Our letter goes on to ask for their support for an urgent switch from citizenship based taxation to residency based taxation (RBT).  

The Democrats Abroad Taxation Task Force is very much looking forward, in the next year, to reaching out to the 116th Congress, so many members of which have the overseas vote to thank for their seats. We will make a special effort to engage with them and continue to persuade the all-important tax writing committees about the need for urgent action on expat tax reform.