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American Citizens Abroad (ACA), a group advocating on behalf of overseas Americans, is calling on Congress to ensure that Americans living abroad are supported during the unprecedented global lockdown to slow down the spread of the coronavirus, COVID-19.
In a letter sent to the Treasury Secretary, the IRS Commissioner, and representatives of both the Democrats and Republicans in the House of Representatives and the Senate, the ACA argues that Tax legislation along the lines of the “Coronavirus Aid, Relief, and Economic Security (CARES) Act” (H.R. 748) must ensure that Americans living and working overseas are treated in the same manner as other taxpayers, and that special issues arising from the fact that they live outside the U.S. are addressed, so as to avoid mistakes and unintended consequences. All too often, as evidenced by the recent Tax Cuts and Jobs Act, consideration has not been given to how changes will affect the community of Americans overseas."
Marylouise Serrato, ACA Executive Director, explained that "The Congress, Treasury and IRS must ensure that Americans overseas are treated equitably. In many cases, U.S. citizens overseas claim foreign tax credits, resulting in little or no U.S. tax liability, even though they have significant adjusted gross income. These individuals should not be adversely affected, and they should not be subject to reduced refunds/credits."
In the ACA's letter, the organization points to several problems that may arise for Americans living overseas which have yet to be addressed, including provisions for small loans for businesses, tax filing deadlines and the need for a bank account.
Last week, we contacted the Treasury Department to ask if any provisions were being made for overseas Americans in relief efforts, though we have not received a response.
The full ACA letter can be seen by going to www.americansabroad.org/news/aca-message-to-congress-treasury-irs-americans-overses-must-be-included-in-covid-legislative-relief