A story authored by Richard Rubin of Bloomberg on May 7, 2015 and published in Accounting Today on Friday, May 8, 2015, illustrates the growing frustration among United States citizens living abroad with the current United States tax system.
Click here to read the article.
The frustration, as noted in the article, is leading more and more Americans to actually give up their U.S. citizenship. This growing phenomenon is becoming increasingly worrisome as Congressional leaders struggle to address the issues through comprehensive legislation.
Once such legislative measure is the Foreign Account Tax Compliance Act, known as FATCA, which allows the U.S. government to gather data about its citizens’ international financial activities. FATCA requires U.S. financial institutions to impose a 30% withholding tax on payments made to foreign banks that don’t agree to identify and provide information on U.S. account holders.
Click here for detailed discussion of the FATCA requirements