Tags: Rand Paul | rand paul | fatca | tax | foreign | offshore

Sen. Rand Paul Again Targets Tax on Americans Living Abroad

Image: Sen. Rand Paul Again Targets Tax on Americans Living Abroad
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By    |   Wednesday, 11 Mar 2015 07:30 AM

Sen. Rand Paul has re-introduced a bill that would repeal key provisions of the Foreign Account Tax Compliance Act which has upset many of the more than 7 million Americans living abroad.

Some Americans, facing possible financial ruin, have either renounced their U.S. citizenship or turned over assets to loved ones. A number of banks abroad refuse to serve overseas Americans because of the cost and burden of complying with IRS demands,  The Washington Times reported.

The law, known as FATCA, compels foreign financial institutions to report on the holdings of U.S. taxpayers to the IRS. Those who fail to comply face fines on their U.S. assets.

Paul, a Kentucky Republican and likely 2016 presidential contender, said Wednesday that the law "has threatened the livelihood of millions of Americans working or living overseas" and "is in complete violation of every Americans' constitutional right to privacy and adds burdensome regulations that negatively impact our economy."

The 2010 law, which was championed by President Barack Obama and congressional Democrats, was intended to punish offshore tax evasion.

Paul said FATCA is defective because it "disregards the mutual respect of sovereignty among nations and drains money from the federal treasury, on top of discouraging overseas investment in the United States."

Americans living abroad are obligated to file tax returns with the IRS. Any money expats earn beyond $99,200 abroad may be subject to U.S. taxes even if they pay foreign taxes on this income. Ex-pats also have to declare all foreign bank accounts, including local checking accounts, according to CNN.

Andrew Quinlan, who heads the Center for Freedom and Prosperity, said FATCA has produced one disaster after another.

"Congress passed a rash law without first properly weighing the costs and benefits, and now millions of innocent Americans are suffering the consequences. Thankfully, Senator Paul recognizes that it's not too late to correct this egregious error," Quinlan said, Accounting Today reported.

With Republicans now in control of Congress, Paul hopes the measure, which he first proposed in 2013, will come to a vote, according to the Times.

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Sen. Rand Paul has re-introduced a bill that would repeal key provisions of the Foreign Account Tax Compliance Act which has upset many of the more than 7 million Americans living abroad.
rand paul, fatca, tax, foreign, offshore
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2015-30-11
Wednesday, 11 Mar 2015 07:30 AM
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