Two-Thirds Of US Expats Resent IRS Tax Filing And FATCA
Huge numbers of the 9 million US expats living around the world are fed up with the IRS and resent tax filing from their new homes.
A poll suggests two-thirds of expats feel they should not have to tell the IRS about their finances if they do not live in the US.
And almost nine out of 10 do not believe they are fairly represented by the government in Washington DC.
The survey, by US expat tax firm Greenback, found dissatisfaction is rising, with 5% more expats complaining about President Donald Trump’s government.
The data comes on the eve of Trump revealing details about his plans for tax reform and a call by the influential Republican National Committee to repeal controversial FATCA laws.
57% want to repeal FATCA
FATCA – the Foreign Account Tax Compliance Act – obliges foreign financial institutions to tell the IRS about any accounts controlled by US customers.
The poll showed 57% of US expats would support scrapping FATCA, with one in 10 having to find a new bank because their current one does not want US customers because of the rigours of FATCA reporting.
The figures show US expats are not enthusiastic supporters of Trump, says Greenback founder David McKeegan.
He says expats want three things from their president –
Changing citizen-based taxation to a residence-based system. The US is one of a handful of countries taxing citizens wherever they live in the world. Most others tax residents.
Simpler tax filing rules
Lowering tax burdens by increasing exclusions, credits and deductions
Expats have a voice
“Many interesting insights surfaced in this year’s survey, but perhaps the most alarming data points to the drop in expat voter turnout and the potential effect that it may have had on the 2016 US Presidential Election,” said McKeegan.
“The data shows an ongoing trend toward citizenship renunciation with the new presidential administration seemingly contributing to expat decisions to renounce. The vast majority of expats don’t feel their interests are fairly represented by the US government and continue to be frustrated by the obligations of citizenship based taxation and the burdensome tax filing process.
“This survey once again reinforces the fact that only a small percentage of Americans abroad feel their needs are acknowledged and advocated for. Government leaders should be equally taking into account the interests of all Americans, regardless of where they’re currently living and working, not just because it’s the right thing to do as the expat voice is strong enough to sway an election.”