Official statement from AARO on the FATCA Lawsuit filed last Tuesday.
The filing of the lawsuit challenging the constitutionality of FATCA is one more development in the history of a law that AARO has always felt was crafted hastily without thinking of its repercussions on the estimated 8.7 million Americans living and working around the globe, the vast majority of whom are law-abiding citizens who strive, even when it is difficult overseas, to comply with their country’s tax laws.
As a non-partisan organization representing the interests of all overseas Americans, AARO supports all efforts to eliminate or alleviate the damaging effects of FATCA, including this constitutional challenge that would have the law repealed. Likewise, since the very early days of FATCA, we have supported the “safe harbor” concept that would eliminate from FATCA reporting the accounts held by overseas taxpayers in the country where they are fiscally domiciled. In that connection, we are grateful for the efforts of the Co-chairs of the Congressional Americans Abroad Caucus to convince Treasury Secretary Lew and IRS Chairman Koskinen of its merits.
Both approaches appear to us to pose problems – in the case of the constitutional challenge, probable litigation that could take months if not years to resolve, and in the case of the “same country exception”, probable difficulties in satisfying banks and the IRS of a taxpayer’s legitimate status abroad. However, we support any effort to alleviate the negative effects of FATCA on Americans abroad. AARO’s sole concern is the financial, professional, domestic and personal well-being of people abroad who are being treated like “tax cheats” because of financial accounts they must maintain in their countries of residence.
Note that the statement from Democrats Abroad condemning the Bopp/Republicans Overseas FATCA lawsuit is here.