The national tax advocate has suggested that two separate rules for reporting foreign bank accounts be combined, according to American Citizens Abroad, Inc.
The proposal is to combine rules for the Foreign Bank Account Report with requirements for the Foreign Account Tax Compliance Act. Both are now required from many Americans living abroad.
American Citizens Abroad also is an advocate for expats, and its main proposal now is the same country exception. That is if an expat maintains a bank account for personal use in the same country in which she or he lives, there would be no need to make annual reports.
The National Tax Advocate is an official position within the U.S. Department of Treasury.
“We are very happy to see progress made on these subjects,” said Marylouise Serrato, executive director, American Citizens Abroad, Inc. “But we cannot rest in our efforts to get these changes actually made. For sure, the same country exemption could be put in place almost immediately. It does not require congressional action. It is a change that everyone, including Treasury Department and the IRS, should be enthusiastic about.”