The enactment of the Foreign Account Tax Compliance Act (FATCA) in 2010, has had a significant impact on the ability of Americans living outside the United States to open and maintain financial accounts. It has increased the burdens on reporting of financial assets held outside the United States, including those located in the jurisdiction of residence of the US citizen.
AARO is committed to bringing the real challenges of Americans living overseas to the attention of our governmental representatives. AARO advocates for simplifications to FATCA reporting that do not detract from the law’s stated goals, such as exempting financial accounts in the country of residence of the taxpayer from FATCA reporting requirements. Together with our banking committee, we work to address the challenges created by FATCA for Americans living overseas and to propose and promote more fair laws and policies.
Crawford vs the US Treasury: FATCA Lawsuit Dismissed
Published: 22 August 2017
On August 18, 2017, the Sixth Circuit Court of Appeals dismissed the Crawford vs the US Treasury case challenging FATCA, affirming the district court's judgment that all of the plaintiffs lacked standing to sue as "none of these alleged harms are injuries that are fairly traceable to FATCA."
The full text of the judgment is available here
This is disappointing news. But AARO will continue discussions with both Congress and government agencies regarding how to remedy the negative consequences of FATCA. We also continue to work closely with other organizations in our advocacy efforts in Washington.
AARO Members Talk FATCA with the AAPA
Published: 20 September 2016
In May, AARO members John Fredenberger, Delphine Brett-Ziller, and Lucy Laederich attended a meeting of the Anglo-American Press Association in Paris to discuss the implications of FATCA legislation on the 8.7 million Americans overseas. The attendees, many of whom are members of the press, were interested to hear the consequences of FATCA on all Americans, including "accidental" Americans, or those who were born to a U.S. citizen but may not be aware that they have U.S. nationality. You can read more about the meeting here: http://www.aapafrance.org/tax-professional-brief-aapa-on-punitive-u-s-legislation/
FATCA lawsuit dismissed
Published: 28 April 2016
On 25 April 2016 the U.S. District Court for the Southern District of Ohio issued its decision dismissing the FATCA lawsuit brought by Senator Rand Paul (R-KY) and other plaintiffs.
The full text of the decision can be found here.
FATCA Compliance Date extended for 1 year in Model 1 IGA jurisdictions
Published: 20 September 2015
On September 18, the IRS issued Notice 2015-66 which provides that Foreign Financial Institutions (FFIs) in countries with "Model 1" Intergovernmental Agreements (IGAs) will be treated as FATCA compliant, and not subject to FATCA withholding by the IRS, if those jurisdictions notify the IRS before September 30 of this year that they require more time to put their systems in place. In that case, the impending deadline will be extended to September 30, 2016.
Tax Controversy Watch has published an article explaining the change, with links to a list of countries affected. Notice 2015-66 does not change the deadline for FFIs to report financial information to their local tax authority, which remains governed by the law of that country. The new rules do, however, provide additional time for non-compliant taxpayers to complete one of the various IRS disclosure programs and become compliant before the 2016 deadline.
"Same Country Exception" in the WSJ
Published: 29 July 2015
An excellent op-ed piece has appeared in the Wall Street Journal laying out the concept of the "same country exception" to FATCA reporting that AARO and its partner organizations advocate, and drawing attention to the letter written by the Co-Chairs of the Americans Abroad Caucus, Representatives Carolyn Maloney and Mick Mulvaney, to Treasury Secretary Lew and IRS Commissioner Koskinen.
Anyone who has not already contacted his/her legislator to urge him/her to co-sign this letter should forward the link to Mr. Lachowitz's very clear and concise article. The letter will be sent in the next few days and its effectiveness will be directly proportional to the number of co-signers from both sides of the aisle in the House of Representatives!