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ACA in the News: Child Tax Credit Bill Has One Fatal Flaw, Nonprofit Says

  Thomson Reuters, August 23, 2023   "Child Tax Credit Bill Has One Fatal Flaw, Nonprofit Says"   "A recent legislative proposal introduced by a cohort of Senate Democrats to permanently restore the now lapsed expanded child tax credit provisions originally enacted as COVID-19 relief leaves out U.S. citizens living overseas, an advocacy organization argued. The Working Families Tax Relief Act (S 1992) was introduced by 40 Democratic senators in June, with Ohio’s Sherrod Brown as the primary sponsor. The bill effectively reverts the child tax credit back to its tax year 2021 expanded version and mirrors provisions of the American Rescue Plan Act (ARPA; PL 117-2), which made the CTC fully refundable and worth $3,000 for children aged 6-17, or $3,600 for children aged 5 or younger. Another change the proposed bill incorporates from ARPA is delivering the CTC on …


ACA in the News: American Citizens Abroad Raises Political Stakes

  Wealth Briefing, June 19, 2023 "American Citizens Abroad Raises Political Stakes"   "For years, the ACA has called for the US system of worldwide tax to move towards a more residency-based one, as is the case with the vast majority of countries. The current regime means that many expats struggle to obtain financial services when abroad. American Citizens Abroad, an advocacy and membership group that has called for the US tax code to move to a territorial instead of worldwide basis, has launched a political action committee. ACA said it has formed the American Citizens Abroad Political Action Committee. This will focus on members of the Americans Abroad Congressional Caucus and other House of Representatives members and senators. 'After carefully considering this step, we have concluded the community needs to ‘up its game’. The time has come to provide …


ACA in the News: Titus, Groups Tout Bill to Study Issues Faced by Americans Abroad

  Tax Notes Today International, June 16, 2023 "Titus, Groups Tout Bill to Study Issues Faced by Americans Abroad" by Andrew Velarde     "Marylouise Serrato of Americans Citizens Abroad (ACA), whose group has advocated for years for a move toward residency-based taxation, praised the bill’s potential as a learning tool for Congress because it could show that most of the citizens abroad affected by U.S. tax laws are not ultrawealthy individuals looking to evade taxes.   'Often the Congress in drafting legislation doesn't fully understand how this legislation will affect this group of U.S. citizens,' Serrato said. 'The cost and complexity of filing, which often results in no additional revenue for the U.S. Treasury, often limits these citizens to invest and manage their day-to-day lives while they’re living and working overseas. . . . The commission bill will help Congress to understand who these individuals …


ACA in the News: Ooh-Là-Là: Did Belgium Just Cancel FATCA?

Tax Notes International, June 5, 2023   "Ooh-Là-Là: Did Belgium Just Cancel FATCA?" by Robert Goulder     ACA's 2023 Thomas Paine Award winner Robert Goulder's recent article on the Belgian Data Protection Authority's decision that the Belgium-U.S. IGA (agreed to for FATCA legislation data exchange) violates the EU’s General Data Protection Regulation (GDPR) cites Same Country Exemption (SCE), a regulatory treatment that ACA has proposed and long advocated for, would go a long way towards addressing some of the immediate issues US citizens living and working overseas face with regard to FATCA.   Read More...


ACA in the News: Belgium Prohibits Transfers of Tax Data to IRS Under FATCA

Tax Notes Today International, May 25, 2023   "Belgium Prohibits Transfers of Tax Data to IRS Under FATCA" by Kiarra M. Strocko   "The Belgian tax authority will need to consider what steps to take if this ruling is to be implemented, said Charles Bruce of American Citizens Abroad. FPS Finance 'will be talking with U.S. Treasury, and the Belgian banks and other financial institutions will no doubt want to weigh in,' he added. Bruce said that ultimately incorporating a same-country exemption into FATCA — which was proposed but not added as an amendment to the U.S. National Defense Authorization Act — would be ideal for Americans abroad, foreign banks, and foreign tax authorities." "'The silver lining here is taxpayers and groups representing them are pushed to become more vocal, calling for hearings on taxation of Americans abroad,' Bruce said, adding that those groups 'are banging their …


ACA in the News: Foreign Taxpayers Cautiously Optimistic About IRS's Payment Plan

  Tax Notes Today Federal, April 17, 2023 "Foreign Taxpayers Cautiously Optimistic About IRS's Payment Plan" By Jonathan Curry   "Buried in the IRS’s new strategic operating plan is a project that would make paying taxes just a little bit easier for overseas taxpayers, but it’s still not clear how — or when — the agency will meet its pledge. Taxpayers in foreign jurisdictions often struggle to meet even basic taxpayer obligations for a litany of reasons, and Initiative 1.10 of theplan, released April 6, briefly describes a project that would at least make it easier for such taxpayers to make tax payments and receive refunds while living abroad. 'It’s a big deal,' Charles Bruce of American Citizens Abroad told Tax Notes. 'There are many Americans overseas who don’t have a U.S. [bank] account, so this is a big help.' Bruce said it 'would be terrific' if overseas taxpayers could pay their taxes …


ACA in the News: Retirement in Paradise Isn’t Without Financial Headaches

  Wall Street Journal, May 23, 2023 "Retirement in Paradise Isn’t Without Financial Headaches"   ACA's Jonathan Lachowitz speaks with the Wall Street Journal about the financial headaches facing Americans abroad and what financial research to do before making a move to another country. "'Expats have to be motivated and persistent problem solvers,' saidJonathan Lachowitz, chairman of American Citizens Abroad, a nonprofit focused on tax and other issues that Americans living abroad face. He recommends joining expat groups and online forums to find people who have already made the move. Banking, immigration and tax policies can change frequently, so double check everything you hear, said Lachowitz, who also is the founder of White Lighthouse Investment Management of Lexington, Mass., and Lausanne, Switzerland."   Read More...


ACA in the News: Change of model in sight for FATCA

  Le Temps, April 27, 2023 "Change of model in sight for FATCA"   Recent article from Le Temps in Switzerland (April 27th) discusses the agreement between Switzerland and the United States to move from Model 2 FATCA reporting to Model 1 wherein Swiss banks, via the Swiss Federal Administration, will report directly to the IRS. The article discusses whether this change in reporting will assist with the problems of banking lockout that many US citizens living and working overseas are facing. ACA was asked to comment on the change and was quoted as follows. "The Executive Director of American Citizens Abroad, Marylouise Serrato, is sceptical about whether the new FATCA reporting agreement [between Switzerland the the United States will alleviate the problems of US citizens in Switzerland] saying, 'No matter whether it is Model 1 or 2 that is …


ACA in the News: Lessons From Account Level FATCA Filing

  Tax Notes State, April 10, 2023   "Lessons From Account-Level FATCA Filings" by Robert Goulder*     ACA shares an excellent article "Lessons From Account Level FATCA Filing," by Tax Notes International journalist Robert Goulder discussing FATCA, Residence-based taxation and the National Bureau of Economic Research’s (NBER) recent report, "The Offshore World According to FATCA."   Goulder's arguments echo what ACA has been saying; adopting Same Country Exemption (SCE) for FATCA filing is not a replacement for RBT, the real problem is Citizenship-based taxation, therefore the need for RBT. It's a very small percentage of super high-wealth individuals that present tax compliance issues for the Congress and US Treasury, and not the majority of US citizens overseas.  Having articles such as this published are helpful to ACA's advocacy as they support what ACA has been reporting to Congress and the Administration and they highlight some …