Harsh Tax Law for American Expatriates

Tax law for American expatriates continues to be a hot topic of debate. While financial experts think that employees in this position may be getting the best of the tax system, many Americans living abroad say it's actually punishing them.

State Estate TaxesThis is a particularly large issue for American executives who spend a major portion of their careers in different countries, Bloomberg News reports. According to these individuals, filings their taxes involves fillings out more than 100 pages of documents, such as those for foreign pension and tax credits.

"It can be extremely complicated," Charles Allard, a financial services executive living in Hong Kong, told the newspaper. "This will become more of an issue as the world becomes more global and more Americans want to live and work overseas."

The United States is currently the only county in the Organization for Economic Cooperation and Development that taxes its citizens no matter where they work. This accounts for nearly 7 million expatriates.

Even members of the Internal Revenue Service agree that the the current tax codes faced by Americans working abroad are overly strict and create unnecessary burden, according to the news source.

In an effort to change the ways in which American expatriates file their taxes, Allard and roughly 100 other executives nationwide are urging the House Ways and Means Committee to change their tax requirements. However, as tension continues to build between lawmakers and those pushing for more tax codes and requirements, Allard may be fighting an uphill battle.

Share on LinkedInShare on FacebookTweet about this on TwitterShare on Google+Share on TumblrPin on PinterestShare on RedditShare on StumbleUponEmail this to someone

Frank Brunetti has been practicing law for over thirty years in the areas of estate and wealth preservation, tax planning for business entities and complex tax matters. He is admitted to the New Jersey and New York Bars as well as the United States Tax Court. Mr. Brunetti provides representation in federal and state tax matters, IRS controversies, estate and business planning and guidance for the preparation of wills and trusts as well as the administration of estates. For more information, please visit Frank Brunetti's full biography at Scarinci Hollenbeck

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*