FATCA UPDATESummary of the Door Knock

February 2015 FATCA Door KnockApril 1, 2015

Contents of this Update

About the Door Knock

Key Take-Aways and Action Items

The Task Force

This update is a summary of materials provided by Democrats Abroad and is readily available on

the website at Report on the February 2015 FATCA Door Knock and from documents including

Democrats Abroad FATCA Position Paper, and FATCA Door Knock Discussion Points

About the Door Knock

The Delegation

The Agenda

Key Take-Aways and Action Items

The Task Force

Contents of this Update

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About the Door Knock

Beginning February 23, 2015, a delegation

conducted meetings in Washington D.C. to

discuss FATCA and the adverse impact of

FATCA implementation on Americans

abroad.

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The Delegation

Members of these organizations that represent Americans

living outside the U.S.A.

Democrats Abroad (DemsAbroad)

American Citizens Abroad (ACA)

Association of Americans Resident Overseas (AARO)

Federation of American Women’s Clubs Overseas

(FAWCO) and FAWCO Alumni USA (FAUSA)

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The Agenda

35 Meetings over 5 days discussing

Adverse impact of FATCA on Americans abroad

FATCA reform to create Safe Harbor

For more information

• Democrats Abroad FATCA Position Paper

• FATCA Door Knock Discussion Points

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The Agenda

Adverse impact of FATCA on Americans abroad 1 of 2

1. 2014 research suggests 1 in 6 Americans abroad has been

affected by FATCA with the closure of a financial account in a

foreign bank or brokerage house

2. Those who reported account closures are largely middle class,

married, having moved overseas to be with a partner, for a job, or

to retire

3. 19.6% of Americans abroad are self-employed: if they are unable to

open or maintain accounts then they simply cannot do business

Compiled from the FATCA Door Knock Discussion Points

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The Agenda

Adverse impact of FATCA on Americans abroad 2 of 2

4. 5.6% of survey respondents state they were denied a position (job

or a business partnership) because of FATCA

5. 21% of respondents with domestic partners reported they either no

longer have joint accounts or are thinking of moving to separate

accounts. 2.4% of respondents reported changes in their

relationships – either divorce or separation

6. …high number of responses indicate that FATCA is causing some

Americans abroad to question their U.S citizenship ...

Compiled from the FATCA Door Knock Discussion Points

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The Agenda

FATCA reform to create Safe Harbor 1 of 2

FATCA Safe Harbor is Win-Win for Americans living abroad, the

IRS and Treasury

Safe Harbor has the potential to eliminate unintended

consequences of FATCA for as many as 85-90% of Americans

abroad

Since Americans abroad will need to become tax compliant in order

to claim Safe Harbor, its implementation will alleviate the IRS’s

concern that at least 80% of Americans living abroad do not file U.S.

tax returns

Compiled from the Democrats Abroad FATCA Position Paper

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The Agenda

FATCA reform to create Safe Harbor 2 of 2

Implementation of the Americans Abroad Safe Harbor would cut IRS

ACA and FATCA-related paperwork by 85, easing the work-load for

the already overwhelmed and budget-strapped IRS

If the Safe Harbor were implemented, it would be far

easier to find the real targets of FATCA: the tax dodgers

and money launderers, who would not use banks in their

countries of residence to carry out their criminal acts

Compiled from the Democrats Abroad FATCA Position Paper

About the Door Knock

Key Take-Aways

Action Items

We Need Your Help

What’s Being Done

The Task Force

Contents of this Update

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Address Treasury

Treasury has the authority to implement FATCA Safe

Harbor without the need of a legislative amendment to

the act

‟ take-away offered by Deputy Assistant Secretary of the

Treasury – International Affairs Robert Stack

Key Take-Aways

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Address Treasury

1. Convince Treasury Safe Harbor is an effective Policy

Adjustment

2. Provide evidence financial closures/refusal of new

accounts are a result of FATCA legislation

3. Demonstrate Safe Harbor will result in resumed service

by foreign financial institutions to American clientele.

Action Items

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We Need Your Help

Evidence account refusals linked to FATCA

Send redacted copies of bank communications (e.g.

letters, emails, policy statements) that document a link

between the bank’s rejection of U.S. customers and their

obligation to comply with FATCA.

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We Need Your Help

Evidence account refusals linked to FATCA

Send redacted documents to FATCA@democratsabroad.org

(If you already sent documents before the July 2014 FATCA

implementation date, please consider sending documents that followed this

date)

Spread the word about our need for this information

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What’s Being DoneDemonstrate Safe Harbor will see resumed

service

We are engaging in discussions with banks to test Safe

Harbor

The Task Force is preparing a guide for Democrats Abroad

Country Chapter Committee Leaders to use when meeting with

local banking associations

We hope these associations will provide feedback about FATCA

Safe Harbor

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and Congress…So far 8 members agree to champion FATCA

reform

They want to hear accounts from the voters of their

states

They will review data gathered by DemsAbroad with

ACA, AARO, and FAWCO/FAUSA

Much like Treasury, Congress needs assurances that Safe Harbor

will end the foreign banking “lock out” of American customers

About the Door Knock

Key Take-Aways

The Task Force

Offices Approached

DemsAbroad FBAR/FATCA Task Force

Contents of this Update

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Offices Approached

Orrin Hatch (R-UT)

Ron Wyden (D-OR)

Charles Schumer (D-NY)

Mark Warner (D-V)

Ben Cardin (D-MD)

Bob Menendez (D-N

Tom Carper (D-DE)

Michael Bennet (D-CO)

Debbie Stebenow (D-WA)

Office of SFC Minority Staff

Sandy Levin (D-MI)

Richard Neal (D-MA)

Sam Johnson (R-TX)

Kevin Brady (R-TX)

Office of HW&MC Minority Staff

Senate Finance Committee

(SFC)

House Ways & Means

(HW&MC)

U.S. Treasury

National Taxpayer Advocate

White House Council of

Economic Advisers

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Offices Approached

Minority Leader Harry Reid (D-NV)

Majority Leader Mitch McConnell(R-KY)

Rand Paul (R-KY) anti-FATCA legislation sponsor

Mike Lee (R-UT) anti-FATCA lawsuit advocate

Sheldon Whitehouse (D-RI) FATCA legislation

sponsor

Barbara Mikulski (D-MD)

Kirsten Gillibrand (D-NY)

Jeff Merkley (D-OR)

Al Franken (D-MN)

Jon Tester (D-MT)

Minority Leader Nancy Pelosi (D-CA)

Carolyn Maloney (D-NY) Americans Abroad Caucus Co-

Chair

Chelli Pingree (D-MA)

Dina Titus (D-NV)

Mike Honda (D-CA)

Scott Tipton (R-CO)

Senators Representatives

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Democrats Abroad Task Force

FBAR/FATCA Task Force

Jim Black (U.S., formerly DA Germany)

DeeDee Gierow (Sweden)

Joe Green, co-chair (Canada)

Stanley Grossman (UK)

Maureen Harwood (Canada)

Carmelan Polce, co-chair (Singapore)

Joe Smallhoover (France)

Katie Solon, International chair (Germany)

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Door Knock Leave Behind Pack

1 pager on FATCA research findings

About Americans living outside the U.S.

2 page summary of FATCA

DA Position on FATCA, February 2015

FATCA Frequently asked questions, February 2015

Formal report on 2014 FATCA research

These materials were presented in hard copy and electronic form to all met

during the February 2015 FATCA Door Knock

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FATCA Update

Thank you to the members of the Task Force, the

Delegation, and all the members who contribute to the

effort

This update is a summary of materials provided by Democrats Abroad and is readily available on

the website at Report on the February 2015 FATCA Door Knock and from documents including

Democrats Abroad FATCA Position Paper, and FATCA Door Knock Discussion Points