US Citizens Abroad Organise to Fight Worldwide Tax Net

The International Wealth Structuring newsletter of The Society of Trust and Estate Practitioners (of which I am a member), recently pick up the report of news agency Bloomberg, examining the tax problems faced by expatriate American citizens, especially with regard to Foreign Account Tax Compliance Act (FATCA) compliance. US Expats are organising to lobby for a change of the US practice of taxing its citizens wherever they live, it says. The most significant player in lobbying the US government on these issues, is the ACA or American Citizens Abroad, who vociferously advocate for the US adoption of a residence based taxation system.  This would bring the basis of US taxation inline with most other developed countries, and would address the inequities that currently arise under US taxation initiatives such as the FATCA, and the Foreign Bank Account Report (or Form TD F 90-22.1), and better known as FBAR.  It will be interesting to see how the US government and how the US House Ways & Means Committee on Tax Reform address these concerns. We will keep you posted.