Advocacy Group Wants Hearings on Nonresident Tax Matters

American Citizens Abroad launches an online campaign to press lawmakers to act on the Tax Fairness for Americans Abroad Act.

By Melanie Waddell | September 06, 2019 at 02:38 PM
Internal Revenue Service, Washington D.C.

American Citizens Abroad has launched an online campaign designed to press lawmakers to hold hearings this fall on the "wide range of tax compliance issues" for Americans overseas, namely the Tax Fairness for Americans Abroad Act, or HR 7358.

The online write-in campaign, Tax Fairness for Americans Abroad: An Idea Worth Fighting For! , guarantees users that their messages will be delivered to congressional offices, including those of the powerful tax-writing House Ways & Means Committee, ACA said.

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HR 7358 would, among other things, exclude a qualified nonresident citizen's foreign income from gross income. In announcing the online campaign, ACA said that it has "long advocated for the adoption of residency-based taxation," or RBT, and in 2016 developed a basic approach for RBT.

In 2017, ACA's sister organization, ACA Global Foundation (ACAGF) funded revenue estimates for ACA's approach to RBT.

"ACA's work on the subject was instrumental in helping offices working on tax reform," notably Rep. George Holding, (R-N.C.), who in December of 2018 introduced the Tax Fairness for Americans Abroad Act.

The online campaign "reflects what the founding fathers of America fought for, and won, the battle for tax fairness. Americans overseas want the same," ACA chairman Jonathan Lachowitz said in a statement.

The online petition platform "will be used for future campaigns as well," added ACA executive director Marylouise Serrato.

According to the Internal Revenue Service, United States citizens residing overseas must pay taxes; however, they may be entitled to foreign-earned income exclusions; the maximum exclusion in 2019 is  $105,900 per taxpayer, for instance. Also, taxpayers may exclude some housing expenses that exceed 16% of this maximum with limits.

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Melanie Waddell

Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.  

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