Rep. Maloney Introduces Bill to Ease Financial Burdens of Americans Living Abroad
WASHINGTON, DC – In an effort to address some of the unintended consequences that well-intentioned Treasury regulations have been having on the estimated 6-8 million Americans citizens living and working abroad, Congresswoman Carolyn B. Maloney (NY-12) today introduced the Overseas Americans Financial Access Act. Rep. Maloney announced the introduction of her new bill at a House Committee on Oversight and Government Reform hearing to review the Foreign Account Tax Compliance Act (FACTA).
“For years, I have heard reports from law-abiding American citizens living overseas that they have been without access to essential everyday financial tools such as mortgages, bank accounts, insurance policies, and pension funds because of FATCA’s expensive and duplicative reporting requirements. These regulatory requirements have led foreign financial institutions to simply deny basic banking services to American citizens,” said Rep. Maloney. “Some of these institutions have even closed accounts or refused to open new ones for U.S. citizens, just to minimize their exposure to FATCA reporting requirements, withholding fees and potential penalties.
“While I recognize that the Treasury is tasked with the important and difficult job of making sure American money around the world remains compliant with the U.S. tax code, the current FATCA reporting procedures fail to effectively differentiate between law-abiding Americans and criminal tax evaders and money launderers. We need to make technical revisions to these policies so that Americans living abroad can lead normal lives, remain competitive in international business and continue to contribute to economies here in the U.S. and around the world. One metric that shows how burdensome this has become is the spike in citizenship renunciation levels. It is now time to do the right thing and provide these good people with some relief.”
Congresswoman Maloney’s Overseas Americans Financial Access Act would implement the IRS Taxpayer Advocate Service (TAS) recommendation from April 13, 2015 exempting Americans from FATCA reporting if they bank in the same country where they are a bona fide resident.