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Expatriate Tax Returns

tax reform

Too Early To Tell How Tax Reform will affect Expats

As 2017 draws to a close, tax reform has become a priority for both the current administration and for Congress. Many of our clients are wondering, “How Will Tax Reform Affect Expatriates?”

We’ve heard a lot in the media about tax brackets for individuals and domestic corporations, but the truth is that we do not have much information yet about how the proposed tax reforms will impact the already complicated world of Expatriate Tax Returns.

Tax Reform 2017 for Expats

With tax reform, there are a number of variables in play for American expatriates. In September, Forbes speculated that corporations might only have to pay U.S. taxes on profits in the United States, but individuals might still be on the hook for their income worldwide.  Earlier this year, the conservative group Americans for Tax Reform called for the repeal of the FATCA, or Foreign Account Tax Compliance Act, a 2010 statute.

The bottom line, however, is that tax reform will likely face many changes as it works its way through Congress. These tax reforms no doubt will affect Americans from Denmark to Dubai.  It’s simply too early to know if and how these changes, if signed into law, will affect you. What we can tell you is that Expatriate Tax Returns will continue to follow all tax changes to the letter, as we have since our inception. Filing a tax return as an American expatriate is not a simple process, and it’s best for you to consult with professionals like our team of skilled CPAs at Expatriate Tax Returns.  Please check back here on our Expat Tax blog for updates as the laws change and feel free to call our team with any questions at 877-382-9123.

 

U.S. Expats Should Be Hopeful After Senate’s Finance Tax Reform Proposal

Just last week a report was issued on tax reform from the Republican staff of the U.S. Senate Committee on Finance. That report “has caused a flutter in the global expat community,” the Wall Street Journal reported.

The long report stated what many expats have argued for a long time: “The United States is the only industrialized country in the world that imposes citizenship-based taxation. In other words, the United States taxes its citizens on their worldwide income even if the citizen resides outside the United States and has no connection to the United States other than citizenship.” It continued, “The United States needs to rethink its taxing rules for nonresident U.S. citizens.”

Expat-Taxes

This report was prompted by a proposal from the organization American Citizens Abroad that has gained traction among many American expats frustrated with their tax status.

While it doesn’t look like any changes in expatriate tax policy will come about in the short term, the Senate report does call for the creation of a test to determine at what point a U.S. citizen is considered a nonresident of the United States and then at what point the U.S. citizen is considered to be a resident again.

At the very least, this report addresses many of the issues Americans living overseas have been had for years, most notably that it is unfair to continue taxing American expats who plan to return to the U.S. eventually, but are now living and working aboard. We’ll continue to keep our clients informed of any potential reforms in Congress to the expat tax laws.

Learn how Expatriate Tax Returns can help you stay current on expat tax policy and file your expat taxes on your behalf by visiting the expatriatetaxreturns.com website or call (877) 382-9123.