|
An expatriate is an individual residing in a country other than the one he is a citizen of. America is the only country in the world that taxes citizens residing in foreign nations. For the longest time American expatriates have been suffering due to this unjust law. It has led to many of them renouncing their American citizenship. American expatriation taxes have been met with resistance by the ‘American Citizens Abroad’, an organization formed for American expatriates living abroad. American expatriates or ‘expats’ as it is abbreviated to, have been fighting relentlessly to have these laws changed. Out Of the Pot and Into the Fire After failing to find work in the United States, these expats moved to different countries in search of better opportunities, while some of them were sent by their employers. The Internal Revenue Service in accordance with U.S. laws has forced expats to pay expatriation taxes along with the taxes of their domicile nation. This has left American expats living abroad burden with taxes from two different nations. These taxes have seriously stifled the expats who are paying for services only a person residing in the U.S. can enjoy. It is also a nuisance for them to file tax returns in two different countries. Uncle Sam Wants You and Your Family According to the ‘Report of Foreign Bank and Financial Accounts’ rule by the IRS, American expatriates are required to report all foreign bank accounts having funds over $10,000. This includes the ones jointly owned with non-American spouses. This rule has led to an invasion of privacy, of individuals who have never been American citizens. ‘Foreign Account Tax Compliance Act’ is another rule by the IRS that requires foreign banks to report information about accounts held by Americans living abroad. Foreign banks are now reticent to provide banking services to Americans due to this new rule. Progeny The people who are most inconvenienced by these laws are the children of American expatriates. Having never lived or worked in the U.S. you might think you’re safe from their laws, but you’re not. Children of American expats who are born in another country are sometimes considered to be American citizens, even if one of their parents happens to be non-American. This puts them in the same jeopardy as their expat parents. It would be wise to consult an attorney to clear any doubts about your child’s citizenship status. ‘American Citizens Abroad’ is a non-profit organization that fights for American expatriates. The organization has its headquarters in Geneva, Switzerland. It was started in 1978 and has been at the fore front to represent the rights of American expats before the U.S. Government and in the press. During the Overseas American Week held in Washington D.C., the ACA proposed better laws for American expatriates living abroad. American expats can also enroll the help of tax and accounting firms that help them understand international tax regulations to simplify the process of filing tax returns. Such firms are a gift to the American expats who have been hounded by the IRS. International tax consultants can support companies and their employees with a variety of tax planning and compliance issue. Refer this link for additional details.
Related Articles -
International, tax, consultants,
| 
