U.S. citizens working overseas are subject to double taxation – in the country of residence and by the U.S., putting American business and citizens overseas at a competitive disadvantage. The U.S. should end its discriminatory citizenship-based taxation and allow all Americans to compete worldwide on a level playing field.
A first step to alleviate double taxation is to eliminate the cap on the foreign-earned income exclusion. U.S. tax and trade policy should support, not impede, the vital role that U.S. citizens play in building markets and good will all over the world.
For a more detailed analysis of the issue, please consult AARO's Position Paper on Taxation.
Sen. Jim DeMint (R-SC) and Congressman Gregory Meeks (D-NY) have introduced the "Working American Competitiveness Act," which would allow taxpayers to exclude from gross income all earned income from foreign sources. This legislation deserves the energetic support of all overseas Americans. (See model letter on the right.)
AARO holds an annual tax seminar in Paris to tell members about recent changes in U.S. tax regulations. Summaries of this event are sent to members to keep them up to date on the latest tax developments. Registered AARO members may view the 2009 Tax Seminar video here. The AARO tax committee keeps its eyes on tax legislation or proposals that have unintended or unfair consequences for overseas taxpayers.
AARO’s annual U.S. and French tax updates are now available. These highly useful memos provide information on recent changes in tax regulation and useful tips for first time filers.
ACA proposal to resolve non-compliance issues for overseas Americans
AARO’s partner organization ACA (American Citizens Abroad) has written to the Treasury Department and the IRS with a simple, clear and eminently sensible proposal to help these Americans who, far from being tax evaders, are, in the main, eager to correct their situation. We applaud their initiative and support their proposal, the full text of which can be found here.
Page 1 of 2
FYI - Taxation News
Jane Bruno’s letter to the Treasury Department about Form 8938 March 15, 2011 Jane Bruno is a tax lawyer who specializes in tax return preparation services for expatriate Americans. Her website is http://www.expattaxpreparation.com. Jane wrote the following letter...
URGENT: Tell the IRS what you think of their new financial report form! A new reporting form that may have direct tax consequences for many US citizens living abroad is in the works at the IRS. The proposed form would also impose additional record-keeping and reporting obligations...
More American Expatriates Give Up Citizenship New York Times, by Brian Knowlton, WASHINGTON — Amid mounting frustration over taxation and banking problems, small but growing numbers of overseas Americans are taking the weighty step of renouncing...
FATCA in the News
- Four Ways to Get FATCAed
- FATCA Losing Its Way
- Overseas Americans: Time to Say 'Bye' to Uncle Sam?
- From 'The Hill': FATCA, a Simple Premise Gone Terribly Wrong', co-authored by AARO Board Member Victoria Ferrauge
- How to Lose Friends, Citizens and Influence (July 18)
- Letter from Congressman Bill Posey to Treasury Secretary Lew, questioning the feasibility of FATCA implementation
- Reed-Schumer Amendment on "Ex-Citizen Tax Dodgers"