All posts in Americans Abroad

An Insider on FATCA

by Peter Dahlen on February 5, 2012 in Americans Abroad, Taxes with No comments

The Issac Brock Society offers an insider’s take on the Foreign Account Tax Compliance Act (“FATCA”), written by a former IRS attorney with extensive knowledge and expertise about how the IRS works, and how tax legislation is enacted.

Interestingly, the author makes clear that the IRS does not make tax policy, emphasizing that: “Tax policy is determined by the Treasury Department and the White House who then fight it out with Congress who accepts what the Treasury Department wants, rejects it, or compromises on it.” Still, the IRS is engaged in part of the legislative process, more or less.

One of the best take-aways from the post is:

“No one in the US government was thinking of Canadian citizens who had little or no connection to the United States when FATCA was enacted.”

I’d add that its likely no policymakers were thinking of middle class Americans abroad at all, whether in Canada, Mexico, Iraq or Thailand. But with several million U.S. citizens working, serving and living abroad, shouldn’t someone in the U.S. government look out for our interests? It’s time to turn up the lobbying pressure.

Survey of Americans Abroad

by Peter Dahlen on December 3, 2011 in Americans Abroad with No comments

Americans abroad are a diverse group of people and Amanda Klekowski von Koppenfels, an American who works as a Lecturer in Migration and Politics at the University of Kent, Brussels, wants to tell their story. As part of her research work at the university, she is conducting a survey on Americans abroad.

The purpose of the project is to learn more about who Americans living overseas are and answer questions such as: How long have people lived overseas, and why did they move? And why, in some cases, did they stay? What jobs do Americans overseas have? Where do they plan to retire? The survey also looks at what links Americans have with the U.S., and how they have settled in to the countries they live in.

Please participate if:

  • you are a US citizen
  • you are currently living outside of the United States (you do not need to have ever lived in the US),
  • you are at least 18 years old and
  • you have either lived outside of the US for at least 12 months or are planning to remain outside of the US for a total of at least 12 months

    • The survey is completely anonymous and takes 20-30 minutes to finish. What is more, you can ask to be notified of results and related publications. Please share the link to the survey with other Americans abroad: https://www.surveymonkey.com/s/Americans_overseas

    Happy Thanksgiving!

    by Peter Dahlen on November 24, 2011 in Americans Abroad, General Interest with 2 Comments

    Celebrating Thanksgiving abroad helps me focus my attention on gratitude.

    As an American abroad I often celebrate Thanksgiving in a vacuum while the rest of the society around me races along. Still, as we plan gatherings of Americans and source turkey, stuffing, cranberries and the other necessary fixings for our favorite Thanksgiving dishes, I notice that I have more time to simply be thankful. And that is what it’s all about.

    Happy Thanksgiving, wherever you are!

    Americans in Canada feel compelled to divorce from the U.S.

    by Peter Dahlen on November 18, 2011 in Americans Abroad, General Interest, Washington with 1 Comment

    This Globe and Mail story of a mass citizenship renunciation recently came to my attention and it serves as a stark illustration of the reality of the sharp spike in renunciations over the past few years. According to the Globe and Mail, “Last year, 1,534 Americans renounced their U.S. citizenship – more than twice as many as in 2009 and a sevenfold increase from 2008.”

    We have held large ceremonies to confer citizenship for generations and these have been joyous occasions, but now, sadly, on at least this occasion, Americans have gathered for a mass renunciation.

    The renunciations seem to stem from the burdens and penalties under the IRS’ Report of Foreign Bank and Financial Accounts, the so-called FBAR.

    The IRS’ inflexible application (PDF) of FBAR penalties is a worldwide problem for Americans abroad and for Americans who may have lived abroad and still have assets overseas. There have been numerous press accounts of Americans all over who owed little or no U.S. taxes and who entered recent voluntary disclosure programs in good faith, but who have nevertheless been penalized for failing to files FBARs.

    Beyond the tragedy of so many of our fellow patriots feeling compelled to take such drastic measures to avoid indiscriminate and unjust prosecution by our own government, is the draining effect it will have on the power of soft diplomacy to advance American interests abroad. If our fellow citizens give up their citizenship because of abusive enforcement measures, how can we convince the rest of the world of our fundamental fairness and reliance on the rule of law and due process?

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