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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introduced by a cohort of Senate Democrats to permanently restore the now lapsed expanded child tax credit provisions originally enacted as COVID-19 relief leaves out U.S. citizens living overseas, an advocacy organization argued.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: 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 …


ACA in the News: American Citizens Abroad highlights its recent findings on U.S. adoption of RBT

The American Expat Financial News Journal (August 25, 2022) ICYMI: American Citizens Abroad highlights its recent findings on U.S. adoption of RBT       "As growing numbers of expatriate Americans are calling on U.S. lawmakers to replace America's problematic citizenship-based tax regime with a system that's based on a taxpayer's current country of residence, the Washington, DC-based American Citizens Abroad is urging expats, members of Congress and others to revisit its most-recent research report – which ACA officials say has some of the best data anywhere on the subject. " Read more...


ACA in the News: Defense Bill Amendment Would Offer FATCA Same-Country Exception

  Tax Notes International, July 12, 2022, Pg. 4923-4924 Defense Bill Amendment Would Offer FATCA Same-Country Exception by Andrew Velarde     "An amendment to the National Defense Authorization Act offered by a high-ranking House Democrat would provide a long-sought-after same-country exception from the Foreign Account Tax Compliance Act, though questions remain on practical implementation."   "House Oversight Committee Chair Carolyn B. Maloney, D-N.Y., offered an amendment to the mustpass legislation sometime after July 5. If included in the legislation, it would modify sections 1471(d) (1) (withholding to a foreign financial institution) and 6038D (information reporting) to provide an exception for some individuals living abroad."   "Maloney has been pushing for some relief from FATCA for overseas Americans for years. In 2015 she and several other lawmakers asked the IRS to provide an exception from FATCA reporting for financial accounts from countries where U.S. citizens are bona …


ACA in the News: Does Renouncing U.S. Citizenship Make Sense For The Average American Abroad?

  Forbes (July 28, 2022) Does Renouncing U.S. Citizenship Make Sense For The Average American Abroad?   "A survey by Greenback Expat Tax Services shows that one in four expats are 'seriously considering' or 'planning' to renounce their U.S. citizenship. The burden of U.S. tax filing is the top reason for this.   Of the 3,200 expats in 121 countries surveyed, 86% feel that their issues are less likely to be addressed by the U.S. government than those of stateside Americans.   They aren’t alone in their thinking. American Citizens Abroad, for instance, advocates for taxation, compliance (specifically, 'Simplification of US tax compliance for US citizens abroad,'), and representation."   Read More...


ACA in the News: Bloomberg Tax Daily Tax Report - Taxation of Americans Abroad

  Bloomberg Tax Daily Tax Report (April 26, 2022) Taxation of Americans Abroad "The U.S. could adopt residence-based taxation for expats in a revenue-neutral way, according to a study released Monday by the advocacy group American Citizens Abroad. Under the current international tax regime, U.S. citizens living abroad are subject to U.S. taxes on worldwide income. Under residence-based taxation, they would not be subject to U.S. tax on foreign income. American Citizens Abroad, which supports residence-based taxation, said those abroad should be allowed to move between the two systems at will. 'No one would be forced to do this,' the group wrote. 'No one would be made worse off, as the existing foreign earned income exclusion rules would remain for those wishing to use them.'"


ACA in the News: More organizations join coalition fighting for new tax rules for US expats

Mexico Daily News (November 3, 2021)   More organizations join coalition fighting for new tax rules for US expats   "An advocacy group fighting for new tax rules for U.S. citizens living abroad has gained momentum after two new organizations joined its coalition.    American Citizens Abroad (ACA) argues that U.S. expats should pay residence-based taxation (RBT) rather than citizenship-based taxation (CBT).    In late October, two new organizations joined the coalition: Democrats Abroad, a group for expats who support the Democratic Party, and American Families United, a organization that lobbies for reform around immigration law for families. ACA was founded in January 2021, and quickly assembled a wide coalition. The member organizations are The Adrian Leeds Group (Paris, France), AmCham Abu Dhabi, the Association of Americans Resident Overseas (AARO), the American International Club of Rome, Americans Overseas, Angloinfo, Bright!Tax, Dunhill Financial, ExpatExchange, National …