PETITION TO EXEMPT AMERICANS ABROAD
FROM THE REPATRIATION & GILTI TAXES
We are law abiding American citizens and green-card holders living abroad. We are professionals or have interests in businesses in the countries we live in. In the vast majority of cases, our businesses are small and support ourselves and our families. We pay high taxes in the countries we live in, often higher than is paid in the U.S. Suddenly, due to the 2017 tax reform, we find ourselves subject to the draconian 15.5% Repatriation and GILTI taxes, taxes that were intended for companies like Google and Apple who have been hoarding hundreds of billions of dollars overseas. And to make matters worse, while Google and Apple get tax credits and deductions to avoid or minimize these taxes, we, simple Americans living abroad do not!! (To better understand the issues see www.silvercolaw.com/articles from items 31-38)
For years we have suffered in silence as we have been inflicted by one U.S. tax and/or disclosure regime after another. These regimes have sought to target U.S.- resident companies and rich individuals who were abusing the system. We, simple people living our lives, have been collateral damage to these tax wars.
NO MORE!! WE HAVE ONE SIMPLE GOAL: EXEMPT AMERICANS ABROAD FROM THE 15.5% AND GILTI TAXES.
We can do it and it won't cost a dime!!!After spending hours talking to the IRS, the Treasury, the relevant people at the Ways & Means committee, DC-based senior tax lobbyists, expats and expat organizations from around the world, we see a simple solution.
What to do? Send one email!
1. Send one single emailto the people listed below. What you need to say is also written below. So simply cut and paste the text into an email, edit it if you want, then send it. You can also call them and tell them how you feel. Simple, right? SO DO IT!! It will save you money and a future of headaches while trying to comply with outrageously complex reporting requirements!!
2. Share the petition with (i) your expat friends, (ii) your US CPAs, and have them contact us at firstname.lastname@example.org (very important!), and (iii) relevant networks you are a member in (an accounting firm and its global alliance, American Chamber of Commerce, Republicans Overseas or Democrats Abroad, expat organizations like ACA or AARO, or local expat group). Get them involved!
If we all engage, we will win!!
STEP 1: Cut and Paste email addresses (a single email to all!)
Who these people are:
House Ways and Means Committee (in charge of initiating/changing US tax laws)
Susan Angus, Chief Tax Counsel and Aaron Junge, International tax matters - Republicans
Phone: (202) 225-3625
Kara Getz, Chief Tax Counsel - Democrats
Senate Finance Committee (in charge of initiating/changing US tax laws)
Mark Prater, Chief Tax Counsel, Senate Finance Committee -Republicans
Tiffany Smith, Chief Tax Counsel, Senate Finance Committee - Democrats
2. IRS/Treasury - MOST IMPORTANT!
David Kautter, Assistant Secretary of the Treasury for Tax Policy
Chip Harter, Deputy Assistant Secretary (International Tax Affairs)
Leni C. Perkins, Office of IRS Chief Counsel & attorney in charge of Repatriation Tax
William M. Paul, Acting Chief Counsel
Arlene Preston - assistant to Mr. Paul
Phone: (202) 317-3300
Fax: (855) 573-7040
Note that we include our gmail in the list. In order to present our case to the Treasury/IRS, we must be able to show them petitions.
Step 2: Cut and Paste email text
Subject: Repatriation/GILTI Tax Relief for Americansbusiness owners abroad
Dear Mr. Kautter, Mr. Harter, Mr. Paul, Ms Preston,Ms. Perkins, Ms. Angus, Mr. Junge, Ms. Getz, Mr. Prater, and Ms Smith:
My name is ________________ [NAME]. I am an American living in______________ [COUNTRY] and I vote in _______________ [STATE].
As you may be aware, the Repatriation Tax and GILTI Tax regime have truly created chaos in the lives of people like me – American professionals andbusiness owners living abroad. Unlike corporate giants such as Google and Applewho are hoarding billions of profits in overseas subsidiaries, I am probably just like you: an ordinary, law-abiding person seeking to live my life andraise a family in the community I call home.
For years I have quietly suffered, being collateral damage in tax battlesbetween the U.S. Government on the one hand and wealthy U.S. based companiesand persons that may have been abusing the tax system on the other. But theRepatriation Tax and GILTI regimes have forced me to speak out, explain mysituation and demand relief. Not only am I being viewed in the same way as alarge, aggressively tax-structured multinational corporation, but I am beingtreated much worse. First, I cannot access the tax credits and deductions thatthese companies are entitled to, thus I am unable to minimize or avoid thesetaxes like they do. Second, I am now obligated to deal with exceedingly complextax and filing requirements which neither I nor my tax adviser can understandbecause of incomplete IRS guidance. These new rules have come completely out ofthe blue and I am terrified to think of what they might cost me.
A common sense solution is at hand. Americans overseas with interests inforeign corporations should be exempt from the Repatriation Tax and from theGILTI regime for any given year so long as: (1) we meet the conditions requiredfor exemption under IRC Section 911, and (2) we are individual U.S.Shareholders. This solution both achieves the U.S. government's goal ofcapturing corporate tax it has been long-denied, and recognizes that theprofits our businesses generate were always meant to remain in the place wherewe have made our lives.
We understand that Congress will struggle to enact a remedy as soon as werequire. Therefore, we urge the Treasury and IRS to take the following actions:
1. Issue an immediate notice stating that for Americans abroad, the firstpayment under IRC Section 965 is due the earlier of October 15, 2018, orthe issuance of further guidance.
2. Issue a further notice in line with our proposal.
There is precedence to the Treasury/IRS taking both such actions:
• In issuing regulation 1.6038D-2, the Treasury added both the IRC Section 911and dollar conditions that did not appear in the law in order to clarify theimplementation of FATCA.
• Congress passed IRC Section 2801 (dealing with the taxation of Americansgiving up citizenship) in 2008. However, realizing that problems existed withthe law, in October 2009 the Treasury/IRS froze its implementation pendingfurther evaluation. To date the Treasury/IRS have yet to implement thelaw.
The Repatriation Tax and GILTI Tax regime are far more damaging to me thaneither of the above examples. They drastically (and unintentionally) hurt meand millions of law abiding Americans overseas just like me. And unlikethe Section 2801 provision, I am not someone who is giving up my citizenship toavoid estate and gift tax. I am just an ordinary person who is being seriouslyharmed by an accidental policy flaw.
Thank you for your attention and I sincerely hope that the Treasury/IRS canaddress this matter until such time as Congress acts.
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