Advocacy group for overseas Americans calls for FATCA repeal

As long as Congress is undertaking efforts to reform the U.S. tax code, why not repeal the Foreign Account Tax Compliance Act. That's the suggestion that's being made by the group American Citizens Abroad. The recommendation addressing this particular tax controversy was made in the form of a statement sent to Washington, D.C., this week to selected members of the House Ways and Means Committee.

Two separate groups of lawmakers from that panel which happen to be working on elements of tax reform received the plea. One is the International Tax Reform Working Group. The other is the Financial Services Tax Reform Working Group.

ACA is a non-profit organization representing the interests of the nearly 7 million Americans who live outside of the United States. And, as readers of this blog likely know, FACTA was enacted in 2010 in response to a concern that too much American income has been shielded from taxation by being stored in foreign bank accounts. Implementation is being phased in over time.

ACA has called for repeal of FACTA before. The basis of its argument is that the law has a crippling financial effect on U.S. citizens overseas. It also says the law is not succeeding in achieving its stated objective of curbing tax evasion.

But perhaps most significantly, ACA says, the law as written poses a threat to U.S. economic recovery. Provisions that call for foreign banks to violate their own country's privacy laws and comply with U.S. laws on reporting of accounts are seen as imperialistic and threaten to spark international backlash.

And, in the face of those provisions not being workable, the U.S. government has resorted to negotiating so-called "intergovernmental agreements" with some countries. ACA says that's a strategy that hasn't been approved by Congress.

With all that as support, ACA says that FATCA should be repealed now as part of any overall tax reform efforts by Congress.

There's no word on how the latest appeal for repeal is being received on Capitol Hill.

Source: The Bahamas Weekly, "American Citizens Abroad Blasts FATCA in Comment to House Working Groups, Calls for Repeal as Part of Tax Reform Framework," James Jatras, April 5, 2013

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map