Washington, DC
July 17, 2024
American Citizens Abroad (ACA) Responds to the National Taxpayer Advocate and TIGTA on their Recent Reports to Congress
ACA has responded to the National Taxpayer Advocate (NTA) on her recent, “Fiscal Year 2025 Objectives Report to Congress” and to the Treasury Inspector General for Tax Administration (TIGTA) on its report, “Opportunities Exist to Improve Taxpayer Service to Underserved, Underrepresented, and Rural Communities”
“What both these reports underscore is the fact that U.S. citizens overseas are underserved by the IRS. If U.S. citizens overseas must comply with U.S. tax law, then the IRS has an obligation to provide them with servicing and resources just like U.S. citizens living in the U.S.,” said Marylouise Serrato, ACA Executive Director.
In ACA’s response ACA_Response_to_NTA_2024_Mid_Yr_Report_Fiscal_Year_2025_240716.pdf (nationbuilder.com) to the “Fiscal Year 2025 Objectives Report to Congress” they congratulate the NTA for raising the lack of filing-support to Americans abroad along with other serious issues such as the systematic assessment of international information return penalties. ACA is encouraged to see that the NTA has promised to meet with taxpayers abroad and their representatives to document the challenges of complying with U.S. tax filing obligations. ACA notes that it is ready to assist the NTA in this important effort.
The TIGTA report highlights their efforts in assisting the IRS in improving accessibility and availability of customer service to the underserved and underrepresented. However, the report does not call out as underserved the community of 4 to 6 million U.S. citizens overseas who lack easy and direct access to the IRS and lack the availability of clear and direct information on their filing obligations. ACA’s response ACA_Comments_on_TIGTA_report_on_underserved_taxpayers_240716.pdf (nationbuilder.com) reminds TIGTA that the NTA has already identified the community of Americans overseas as underserved and has done so for the past several years. Just like underserved and underrepresented communities in the United States, IRS resources need to be provided to U.S. citizens who live and work abroad.
“ACA’s submissions to Administrative and Congressional offices are an essential part of our advocacy on Capitol Hill. They let offices know that ACA has experience, knowledge, and data/research on the issues, and we are available to consult with them in Washington, DC. ACA looks forward to working with the NTA and the IRS to increase servicing and address tax compliance problems for the community,” added Carmelan Polce, ACA Executive Director.
“All the work that the NTA is doing is essential for the 4 to 6 million Americans living overseas, however the real solution to these problems is to adopt Residence-based taxation (RBT). ACA is meeting with key legislators on Capitol Hill to encourage them to hold hearings and include us in their listening tours. Congress is out gathering information on how the U.S. tax code, and in particular, TCJA is affecting taxpayers. U.S. citizens overseas must be included in Congressional efforts to learn how the US tax code truly impacts this important and under-represented community.” said Jonathan Lachowitz, ACA Chairman.
