The German EU Council Presidency has contacted the head of the US tax administration, Charles Rettig, to schedule a meeting about the tax and banking obligations falling on ‘Accidental Americans’ under the U.S. FATCA Act (US Foreign Tax Compliance Act), according to a letter made public on Wednesday, 16 December.
In a letter dated in March (see EUROPE 12458/25), the US Treasury had indeed invited EU Member States and representatives of the financial institutions concerned to continue working with the US Internal Revenue Service (IRS) on this issue. The German Presidency has accepted this invitation and therefore proposes to organise a meeting as soon as possible.
“At this meeting, the EU representatives wish to address and illustrate the magnitude of the problems faced by EU residents with dual nationality. In addition, representatives of financial institutions can share some practical examples of the problems they encounter, the number of citizens involved and what could give them more confidence to refrain from freezing or closing bank accounts”, it writes.
In addition, the letter emphasises the fees, which remain very high, for renouncing US citizenship and the complexity of the procedure.
Last September, the Accidental Americans Association filed a complaint against the U.S. Department of State for violations of the U.S. Constitution and international law. The association asked to be invited to this meeting as well.
According to our information, the EU Council has not yet received a response from the US administration.
See the letter: https://bit.ly/3ajeYNj (Original version in French by Marion Fontana)