Overall Goals in 2014

Over the years, U.S. legislation has made it increasingly difficult for Americans to live and work overseas.  Our organizations urge Congress and the Administration to review and rethink certain policies that restrict the effectiveness of the 6-7 million overseas Americans who are both ambassadors for American interests abroad and creators of domestic jobs.

Our most important issues this year are:

·       TAXATION: We believe that the United States puts itself at a competitive disadvantage by taxing the income earned by its citizens working abroad.  The ability to send an employee abroad to manage, direct, instruct or train the employees of a foreign subsidiary is crucial to successful competition.  We support the complete exclusion of foreign-earned income from U.S. taxation or, at a minimum, an exclusion adjusted for inflation since the Foreign Earned Income Exclusion was first created.

·       BANKING: Overseas Americans are being denied financial services worldwide.  We call for legislation to require U.S. banks to provide services for U.S. citizens with a foreign address; to allow Americans abroad to maintain bank accounts where they reside; to ensure access to low-cost savings and retirement products worldwide; and to stop U.S. tax discrimination against foreign pension funds.

·       FATCA: The Foreign Account Tax Compliance Act understandably targets those who evade paying taxes by hiding assets in undisclosed foreign bank accounts but, as an unintended consequence, penalizes American citizens overseas and U.S. economic interests.  We recommend an IRS Advisory Council to dialogue with overseas Americans, exemption from FATCA reporting requirements for “same country” accounts belonging to bona fide American residents fiscally domiciled abroad, and other measures to redress the damage created by FATCA.

·       VOTING: Legislation should be introduced to clarify certain provisions of the Military and Overseas Voter Empowerment (MOVE) Act (complete elimination of witness and postmark requirements, clarification that  a voter’s ballot request applies to each election in the year, etc.). Funding should be assured for the Election Assistance Commission to allow it to carry out its mission and for continued improvement of election technology. American citizens who do not meet state residency requirements should have the right to vote in federal elections in all states and the District of Columbia at the legal voting residence of their U.S. citizen parent(s).

·       CITIZENSHIP: All Americans should enjoy an equal right to transmit U.S. citizenship to their children at birth, including children born to or adopted by a U.S. citizen abroad. Children born to American citizens abroad should be defined as “natural born” U.S. citizens.  We propose alleviating conditions for recognizing children born abroad as U.S. citizens, in particular for unwed American mothers.

Other issues:

·       REPRESENTATION: We strongly support H.R. 597,  Congresswoman Maloney’s Commission on Americans Abroad Act, calling for a Federal Commission to study the impact of government policies upon the millions of Americans residing overseas.  Our organizations look forward to continued fruitful collaboration with the bipartisan Americans Abroad Caucus.

·       SOCIAL SECURITY: Americans who have worked abroad should be exempted from application of the Windfall Elimination Provision which unfairly reduces Social Security pension benefits. Americans abroad should not be required to contribute to U.S. Social Security and Medicare programs in addition to government pension plans where they reside. This double contribution affects, in particular, self-employed Americans abroad and Americans sent overseas by a U.S. employer to a country which does not have a Totalization agreement with the United States; only 24 countries have such a Totalization agreement, which leaves 170 countries without.  The thresholds for taxation of old age and disability pensions should be significantly raised and adjusted for inflation.

·       BUSINESS AND TRADE FACILITATION:  We call on the Department of Homeland Security to expedite implementation of the APEC Business Travel Cards Act of 2011, facilitating travel by U.S. citizens in the APEC economies, whose nationals already enjoy ABTC streamlined visa and immigrations procedures.  Business facilitation with Asia is of critical importance to America and its economy.  ABTC implementation will increase the sale of U.S. goods and services in Asia, and create better employment opportunities for Americans both domestically and internationally.

·       HEALTHCARE: Overseas Americans who retire in America should not be financially penalized for the quarters after retirement age that they lived abroad (where they were covered by other systems and ineligible for Medicare and therefore did not contribute to it), but should be allowed to enter the system.  American civilians eligible for Medicare who retire abroad must return to America to receive Medicare benefits, where medical costs are much higher. A program for civilians abroad similar to Tricare for Life for military veterans retired abroad could ultimately save money for Medicare.

·       CONSULAR ACCESS: We support prompt Congressional action on legislation implementing judicial remedies in serious cases for foreigners arrested in the U.S. whose rights under the Vienna Convention on Consular Relations have been violated. For U.S. citizens arrested abroad to be assured of consular access under terms of the Convention, enforcement must be reciprocal.

·       CEDAW:  The U.S. Senate should finally ratify the Convention on the Elimination of All Forms of Discrimination Against Women, without “Reservations, Declarations and Understandings” (RDUs) that would undermine CEDAW’s meaning and effectiveness.

Our organizations

AARO: Association of Americans Resident Overseas, founded in 1973, is a not-for-profit, non-partisan public service organization representing United States citizens living abroad. AARO’s mission is to seek fair and equal treatment from the U.S. government for Americans living and working abroad; to inform AARO members of issues affecting them; and to build awareness in the United States of the role played by Americans overseas. www.aaro.org

FAWCO: Federation of American Women’s Clubs Overseas, a non-partisan not-for-profit network founded in 1931, currently  comprises over 65 independent  volunteer American and international organizations in 34 countries worldwide with a membership of some 15,000. The oldest and largest organization representing private-sector Americans abroad, it is a 501(c)(3)  corporation established in the State of New York, and an approved Non-Governmental Organization with special consultative status with the Economic and Social Council of the United Nations. It has been particularly active in the fields of citizenship rights and voting from overseas. www.fawco.org

The US Tax & Banking Committee gathers information on US tax and banking legislation and regulations, and informs the membership of their US tax responsibilities while living overseas. It collects information from the FAWCO membership on specific tax and banking related problems to bring these to the attention of legislators in Washington.

What will I find here?

The Tax & Banking Committee develops lists of resources and advisors, and publishes periodic newsletters, presentations and videos, and updates and links to media articles and other resources for Overseas Americans and “US tax persons.” You can find more information on each category by clicking on the title below.

• Tax: Cross-border tax issues, information & IRS links
• FATCA information

We encourage Overseas Americans to plan their international financial lives and maintain compliant status with US regulations.

Remember, overseas residents have until June 15 each year to file their US taxes. However if you owe taxes, to avoid late payment penalties, pay the taxes by April 15. Please refer to this link for more detailed information.

How can I get more information about tax and banking issues?

Even as a FAWCO Member, you must subscribe to receive the US Liaison Bulletins, which include information about US citizenship, voting from overseas and tax and banking information.

Send us your questions, comments, problems or let us know if we can help you with anything. Contact .  

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