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American citizens contest reporting rules

The Geneva-based American Citizens Abroad has demanded that the United States rethink regulations being drafted to monitor assets held in foreign banks.

According to the ACA, the legislation, called the Foreign Account Tax Compliance Act (FATCA) will have a severe, negative impact on American citizens living and working around the world.

This week the ACA sent a 13-page letter outlining its concerns to the Internal Revenue Service (IRS), members of Congress and other key figures, including President Obama.

Congress has created a “reporting monster”, the ACA believes, referring to how foreign banks and overseas US citizens will have to declare their assets. Some banks would be required to withhold 30 per cent of a client’s US source income as a guarantee.

“US citizens residing abroad are absolutely enraged by the FATCA legislation,” said Jackie Bugnion, member of the ACA Executive Committee, “not only because of the compliance costs and discrimination, but also because the law de facto treats us like criminals, simply because we reside overseas.”

Established 30 years ago, the ACA is a non-partisan, non-profit association.

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