All posts in General Interest

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?

Americans abroad

by Peter Dahlen on October 5, 2011 in Americans Abroad, General Interest with 1 Comment

Americans abroad play a crucial role in our economy and in our elections. Indeed, Americans living outside the U.S. helped decide the outcome of key races in 2008 with their votes making the difference in Senate races in Minnesota and Alaska. Yet Americans abroad do not compete on a fair and level playing field and the onerous double taxation to which we are subject makes our critical work to help boost U.S. exports and trade all that more difficult and ultimately may lead many of us to return home.

As Congresswoman Carolyn Maloney (D-NY) and Congressman Joe Wilson (R-SC), the founders and co-chairs of the Americans Abroad Caucus wrote to their colleagues on Capitol Hill when they started the caucus, overseas Americans are “unofficial ambassadors” of the United States, playing an important role in “strengthening the U.S. economy, creating jobs in the United States, and extending American influence around the globe.” It’s time Congress and the Administration recognize these simple truths and act to safeguard this vital segment of our society and our economy.

The Foreign Account Tax Compliance Act (FATCA)

by Peter Dahlen on September 29, 2011 in Americans Abroad, General Interest, Taxes with No comments

In a move that could ultimately affect the ability of all Americans abroad to use basic banking services, beginning in 2014, foreign financial institutions will be required by the US government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of US citizens to the IRS. This law requires foreign financial institutions such as local banks, stock brokers, pension funds, insurance companies, etc. to report to all their clients who are “US persons” (citizens and green card holders whether living in the USA or abroad) directly to the IRS.

FATCA also requires US citizens who have foreign financial assets in excess of $50,000 to report those assets on a new Form 8938 to be filed with the 1040 tax return starting fiscal year 2011.

If you are an Americans abroad or know any Americans abroad, write to your Congressmen and encourage all of your American friends in the United States as well as those living abroad to join the massive write-in campaign lead by American Citizens Abroad. Click on the link for a model letter.

Constitution Day

by Peter Dahlen on September 25, 2010 in Congress & Elections, General Interest, Government, Presidency, Representation, Washington with No comments

Better late than never… Friday, September 17 was Constitution Day, if you missed it, take a moment to read this excellent post by two American educators living abroad, Marina Mecl and Gladys Cagle Pieniazek. As Marina and Gladys point out, Consitution Day is a good time to read through this historic and vibrant document which is the embodiment of the founding fathers vision for our country. Given today’s political climate and the lack of civil public discourse on public policy, it’s also important to remember that this historic consensus was reached only after much heated debate and compromise.

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