Overseas filers issues highlighted in Advocate's report
ACA applauds the Taxpayer Advocate (TAS) for continuing to highlight the issues and concerns for overseas filers.
On page 48 of Nina Olson’s mid-year (July 2015) report to Congress, TAS notes that the FATCA legislation as currently drafted has impacted the following taxpayer rights: 1) the right to pay no more than the correct amount of tax and, 2) the right to privacy and the right to a fair and just tax system.
TAS notes that the consequences of FATCA continue to fall heavily on honest taxpayers and that FATCA non compliance rates for overseas filers are not significantly greater than non-compliance rates for the general tax population of taxpayers. TAS recommends the “development of mechanisms, such as the “same-country exception,” to mitigate the unintended negative consequences of FATCA….”
TAS also highlights the lack of outreach by the IRS to overseas filers, noted on page 77 of the report, impacting taxpayers rights to: 1) be informed, 2) to quality service and, 3) to a fair and just tax system.
TAS continues to advocate for increased services for overseas filers including the reopening of the IRS tax attache offices abroad with the inclusion of a LTA (Low Income Taxpayer Assistance) service. ACA has worked to bring the issues of overseas Americans to the attention of TAS and we are pleased to see that the concerns ACA has raised and the proposed solutions are being supported by TAS.