My nature is to volunteer. I do. I left the AARO board, but not the committees and I'm still organizing most of the Paris events, but I insist that others find the topic and the speakers and let me just handle the logistics.
Nothing was scheduled in April. That didn't bother me after a busy March. But then, an urgent meeting came up -- to present the new repatriation (transition) and GILTI taxes imposed on U.S. shareholders of foreign corporations. The motivation for those was the money hoarded abroad by U.S. corporations in their foreign subsidiaries. It also affects the Americans who live abroad and has a (small) company, like a restaurant, hair salon, or a service company, who have no intention of "repatriating" the profits to the U.S. because they don't live in the U.S. No more about that. I'll post the link to the report when available for anyone really interested.
The meeting was decided just as we were on our way to the south of France, in the second week of April. Paul was driving and I was trying to reserve a conference venue by phone. As soon as we would go over a hill, I'd lose the signal and have to start over. The meeting was scheduled for May 2. The month of May, in France, is a difficult month. May 1 and May 8 are fixed holidays; Ascension Thursday and Pentecost Monday are floating holidays. When these days are close to one another or close to weekends (Tuesday or Thursday) you get what are called "ponts". People bridge over the workday (Monday or Friday) to create a 4-day weekend. When they are all close together, people manage to get a whole 10 vacation with only a few work days in the count. Now, add in the two days of train strikes in every 5-day period! May 2 was not a strike day, but May 3 was and that could have impeded people needing to leave on May 3 from coming, at all. There was no availability at Reid Hall, so we held the meeting at FIAP Jean Monnet, which is, in my opinion, a fine conference center. The speakers agreed.
All of the May mess makes any hope of people showing up for a hastily scheduled meeting a risky hope. May 1 was Tuesday, so many for many of the expected professional audience, May 2 would be the start of their week. I was overly optimistic, but we were not too far from breaking even. oof.
The next meeting, coming up, is May 7 -- yikes! That's the Monday before May 8, in the bridge! It's the meeting dealing with how to declare your French taxes -- generally speaking and your U.S. income, specifically. We couldn't get the big room at Reid Hall for this, so we settled for a smaller room and it's sold out. The original date for this meeting was May 23, but people who are filing in France for the first time have a May 17 deadline, so we had to push it up. The deadlines for filing online are different, depending on what "département" you live in. In the Parisian area, we are lucky, having until mid-June.
There have also been committee meetings: a communications project and further advocacy on this repatriation and GILTI tax issue. But at least I had nothing to do with the scheduling.
Once the French tax meeting is over, Paul and I will be off on another excursion. More about that, later.
Showing posts with label US taxes. Show all posts
Showing posts with label US taxes. Show all posts
Saturday, May 5, 2018
Sunday, May 3, 2015
Lost Potential
I started this post almost a month ago and then got sidetracked because I reread Phyllis's book then traveled a bit.
Many, many years ago, back in 1961, Phyllis Michaux and a group of friends founded the A.A.W.E. At the time, US citizenship was hard to come by. By marrying a foreigner and living in the foreign country, and subsequently giving birth abroad, meant that the children might not be American if they, themselves, did not live for a prescribed time in the US. These American Wives of Europeans (The group is much less restrictive in reality -- unmarried women, men with non-European partners are welcome. It is Paris-based.) were unhappy about that. They would lose their citizenship if they took the foreign nationality, and they did not wish to do that, and they were raising their children to love the American side of their families. They worked hard to change the citizenship rules.
Phyllis wrote a book, The Unknown Ambassadors, in which she discussed all the ways we contribute to the United States. At the time, of course, Americans were a rare curiosity. Even in the 70s, when I arrived, we were called upon to explain what the US was doing in Vietnam. Why were we bombing Cambodia? What was this shooting at Kent State? What kind of system is this electoral college? It didn't matter what our own political leanings were, we explained. We still do. What was the fuss over Watergate? What was the fuss over Clinton's sex life? What's the fuss over health care? We are, whether we want to be, or not, a window to our country.
In the 60s, many US companies sent executives abroad to expand their businesses. Those expats brought American goods to foreign countries. So did we permanent Americans abroad. Our little celebrations of Halloween, Thanksgiving, even the way we celebrated childrens' birthday parties seeped into the local culture, as did our breakfast cereals, cookies, and other home delicacies. On return trips, we no longer pack our suitcases full of things we can't find, because we can find almost everything, now. Ordering a turkey for the end of November is no longer a jaw-dropping request. There are chocolate Easter bunnies with the chocolate fish and chickens. Is this a good or bad thing? I'm not going to judge. All I know is that by doing some things the way I grew up influenced my neighbors who liked what they saw and started doing it, too.
In the 70s, a washing machine that could also dry came onto the market, here, in France. It was expensive, but we bought one, because dryers simply were not available. Later, in the early 80s, we got a separate washer and dryer. My neighbor couldn't see the need for a dryer. (Well, she did have a yard, and I was in an apartment and had four young children!) After her first trip abroad, to Canada, she came home and ordered a dryer. Of course, by this time, the US was no longer exporting appliances, so it was just the concept we were importing.
Back to the children. Back in the 1960s and 70s, when Phyllis and some others created AARO the battles were to have our children become American citizens and to be able to vote: "Totally ignorant of the actual workings of the legislative process, we really believed that if Congress could be made to recognize that these young people would grow up able to work and live with ease on both sides of the Atlantic, changes in the law would inevitably follow. Our government would recognize their potential value and, ceasing to reject them, welcome them as valuable elements of the postwar generation." (Phyllis Michaux, The Unknown Ambassadors: A Saga of Citizenship, Aletheia Publications, 1996)
We learned how Congress works. Today, a child born to an American parent abroad is an American. In order to get the child a US passport, one has to report the birth of a US citizen abroad at the embassy or consulate, but even if one neglects to register the birth, never gets the passport, never travels to the US, the child is still an American. Most of us, though, were quite happy to go to the Embassy and get that first passport. We were happy and even anxious to speak English and feeling very guilty if we didn't. We took the kids to AAWE parties for American-style festivities. Many of the children went on to college in the US. They took their other language and other culture to the States, thus enriching life, there. Some fell in love and or got a job in the US; they stayed on. One could almost see a cycle of coming and going.
What is happening, now? The United States has a most unique tax system: citizenship-based taxation. That means that even if you don't live there, you must file your US tax return every year and include your worldwide income and report all foreign (non-US) accounts to the Treasury. Many non-US residents misunderstood or didn't even know about it. Some in the US conjectured that the US was missing out on a lot of income tax from overseas income, so they came up with FATCA, the foreign account tax compliance act, even though most who do file from abroad owe no tax. This requires financial institutions to ferret out all their US customers and report on them. The banks are doing it and either shutting the accounts held by the US customers or requesting them to fill out forms and such. This has alerted many who were unaware of their obligations that they do have such obligations. The penalties for non-filing are very severe, whether tax is due, or not. For many, the solution is to not be an American, to renounce. Renunciation comes at a price (a $2300 renunciation fee plus the cost of doing several years back tax returns and account reports if one hadn't done them plus a lawyer or qualified C.P.A. to help out). The ones most likely to renounce are the American children born abroad and the accidental Americans, the ones born in the US to foreign parents and who never really lived in the US. The US only sees their potential as taxpayers, none other, so the country will lose them as potential ambassadors. In addition, the country will lose those of us who followed our hearts and chose to live and work almost our entire adult lives elsewhere.
Many, many years ago, back in 1961, Phyllis Michaux and a group of friends founded the A.A.W.E. At the time, US citizenship was hard to come by. By marrying a foreigner and living in the foreign country, and subsequently giving birth abroad, meant that the children might not be American if they, themselves, did not live for a prescribed time in the US. These American Wives of Europeans (The group is much less restrictive in reality -- unmarried women, men with non-European partners are welcome. It is Paris-based.) were unhappy about that. They would lose their citizenship if they took the foreign nationality, and they did not wish to do that, and they were raising their children to love the American side of their families. They worked hard to change the citizenship rules.
Phyllis wrote a book, The Unknown Ambassadors, in which she discussed all the ways we contribute to the United States. At the time, of course, Americans were a rare curiosity. Even in the 70s, when I arrived, we were called upon to explain what the US was doing in Vietnam. Why were we bombing Cambodia? What was this shooting at Kent State? What kind of system is this electoral college? It didn't matter what our own political leanings were, we explained. We still do. What was the fuss over Watergate? What was the fuss over Clinton's sex life? What's the fuss over health care? We are, whether we want to be, or not, a window to our country.
In the 60s, many US companies sent executives abroad to expand their businesses. Those expats brought American goods to foreign countries. So did we permanent Americans abroad. Our little celebrations of Halloween, Thanksgiving, even the way we celebrated childrens' birthday parties seeped into the local culture, as did our breakfast cereals, cookies, and other home delicacies. On return trips, we no longer pack our suitcases full of things we can't find, because we can find almost everything, now. Ordering a turkey for the end of November is no longer a jaw-dropping request. There are chocolate Easter bunnies with the chocolate fish and chickens. Is this a good or bad thing? I'm not going to judge. All I know is that by doing some things the way I grew up influenced my neighbors who liked what they saw and started doing it, too.
In the 70s, a washing machine that could also dry came onto the market, here, in France. It was expensive, but we bought one, because dryers simply were not available. Later, in the early 80s, we got a separate washer and dryer. My neighbor couldn't see the need for a dryer. (Well, she did have a yard, and I was in an apartment and had four young children!) After her first trip abroad, to Canada, she came home and ordered a dryer. Of course, by this time, the US was no longer exporting appliances, so it was just the concept we were importing.
Back to the children. Back in the 1960s and 70s, when Phyllis and some others created AARO the battles were to have our children become American citizens and to be able to vote: "Totally ignorant of the actual workings of the legislative process, we really believed that if Congress could be made to recognize that these young people would grow up able to work and live with ease on both sides of the Atlantic, changes in the law would inevitably follow. Our government would recognize their potential value and, ceasing to reject them, welcome them as valuable elements of the postwar generation." (Phyllis Michaux, The Unknown Ambassadors: A Saga of Citizenship, Aletheia Publications, 1996)
We learned how Congress works. Today, a child born to an American parent abroad is an American. In order to get the child a US passport, one has to report the birth of a US citizen abroad at the embassy or consulate, but even if one neglects to register the birth, never gets the passport, never travels to the US, the child is still an American. Most of us, though, were quite happy to go to the Embassy and get that first passport. We were happy and even anxious to speak English and feeling very guilty if we didn't. We took the kids to AAWE parties for American-style festivities. Many of the children went on to college in the US. They took their other language and other culture to the States, thus enriching life, there. Some fell in love and or got a job in the US; they stayed on. One could almost see a cycle of coming and going.
What is happening, now? The United States has a most unique tax system: citizenship-based taxation. That means that even if you don't live there, you must file your US tax return every year and include your worldwide income and report all foreign (non-US) accounts to the Treasury. Many non-US residents misunderstood or didn't even know about it. Some in the US conjectured that the US was missing out on a lot of income tax from overseas income, so they came up with FATCA, the foreign account tax compliance act, even though most who do file from abroad owe no tax. This requires financial institutions to ferret out all their US customers and report on them. The banks are doing it and either shutting the accounts held by the US customers or requesting them to fill out forms and such. This has alerted many who were unaware of their obligations that they do have such obligations. The penalties for non-filing are very severe, whether tax is due, or not. For many, the solution is to not be an American, to renounce. Renunciation comes at a price (a $2300 renunciation fee plus the cost of doing several years back tax returns and account reports if one hadn't done them plus a lawyer or qualified C.P.A. to help out). The ones most likely to renounce are the American children born abroad and the accidental Americans, the ones born in the US to foreign parents and who never really lived in the US. The US only sees their potential as taxpayers, none other, so the country will lose them as potential ambassadors. In addition, the country will lose those of us who followed our hearts and chose to live and work almost our entire adult lives elsewhere.
Saturday, March 15, 2014
Making appointments for March
First of all, here's a picture of one of the Magnolia trees on our street, taken about 10 days ago, still at the beginning of the month! And in the States, it's still freezing! Unfortunately, that blue sky has disappeared in a haze of yellow smog. The sun comes through, but the sky is ugly. Details at any distance are blurry. The other day, from the library, just a block over from the Eiffel Tower, the tower was not clear.
High school mate, C, was in town last week and after work, she went off to tango. I accompanied her one evening, even though I don't dance; I watched the feet go by and was entranced. Another evening, she invited my friend R and me to come to the studio to observe the dubbing work. (I love that -- never get bored!) Then she and R went off to tango and I came home. They had a fair dance lesson, not great, but really hit it off and didn't end their evening of gabfest until almost midnight.
AARO has the first of its two tax seminars during the week. I didn't need to go to 101, but because I am one of the event organizers, I did go. I always learn something, anyway. It motivated me to finish up my FBAR form, which I did just before opening the blog post. This year the FBAR must be done on the pdf form one downloads from the site. You can then fill it out on your computer, without being on line. I got out last year's FBAR so that I had all the bank info ready and I had already gotten the highest balance during the year figure onto my spreadsheet and converted into USD, so I was ready to fill it out. It still took almost an hour. Once it's filled out properly, you click on the "Home" tab of the file and it connects to the website for e-filing. You get a confirmation notice, which I printed up, as I also printed out my file. I don't know why I actually printed them -- old habits die hard -- I have the file and the confirmation saved on my hard drive. So, that's done. Next step is to try to get an estimate on my taxes, because I will owe more for 2013. I get an automatic extension for filing but still have to pay (overpay) by April 15, so I don't get stuck with a penalty.
During the week, I had to tackle the appointments for Overseas Americans Week. I was asked to hold off to start with, so I feel I got a late start. I wasn't as free as I had been earlier. I'm frustrated, because next week, it should be done -- then we go!
I'm getting excited about the trip. I won't see T&B immediately, during OAW, but will get a chance on the return leg. I'm staying an extra week in order to go up to Pittsburgh, family visit there, and then back to DC. J tells me we may get to go to the Pirates' season opening home game. I hope we can get tickets. And they've got tickets for the opera the next evening! Sounds great.
Saturday, March 1, 2014
Spring seems to be here already!
We had our trees pruned last fall, so we don't see much of anything on the branches in our yard, but across the street, the fruit trees are in bloom. Our yard has turned to moss; I'd guess it's 80% moss, now, and I don't see the primeveres (primula), but I do spot them in the neighborhood. Forsythia is in bloom and the magnolia trees are budding. The roses have sprouted new leaves and I guess the buds will be coming, soon. My parsley didn't die this winter, and we've had fresh parsley a lot. I'm thinking I should do some preparation work on the vegetable garden boxes, but I can't help but think that a freeze could come.
Here, we had a wonderful visit by Claire, Aurelia, and Constance from England and Emma from the Tarn-et-Garonne. It was a short week, but the aunts, uncle, and cousin had a chance to meet Constance. Of course it rained a lot, so it was not great for going outside and doing things. I did take Aurelia to the library with Sacha. Aurelia got to use the umbrella and Sacha didn't complain when I put the plastic bubble on the stroller. We went to pick him up and took the long bus ride to the library, singing "The Wheels of the Bus..." and "I had a tiny turtle..." all the way, to the delight of Sacha. Then, we sang again on the ride back after the "lap-sit". The whole family gathered for a pizza party at Louis and Gwen's.
Other than that, it was a wet and windy month of very mild temperatures and not much activity.
I wanted to get rid of my US tax declaration, but many French institutions and administrations don't post their year-end statements until March or April, or even May. Some have come dribbling in, but I'm still waiting for others, so it's not worth opening the software to do only partial work. I think I can finish the FBAR, though. Get that out of the way, at least. I'll have to do it before April 15th, just to have an idea of what I may owe, so I can send in a check. I'll have to take the automatic extension (allowed to those who live abroad) to figure out the final figure, though.
AARO is having two tax seminars, again, this year. March 13, for those who are new to filing their US taxes (newcomers overseas, new to filing, or thinking of doing it yourself for the first time...) and March 17 for more experienced filers, who need to learn what's new this year or who have complicated returns. We hope a lot of new, young people will come. They are often unaware of their filing obligations because they owe no tax. If you know any Americans in or near Paris, let them know of these events.
Here, we had a wonderful visit by Claire, Aurelia, and Constance from England and Emma from the Tarn-et-Garonne. It was a short week, but the aunts, uncle, and cousin had a chance to meet Constance. Of course it rained a lot, so it was not great for going outside and doing things. I did take Aurelia to the library with Sacha. Aurelia got to use the umbrella and Sacha didn't complain when I put the plastic bubble on the stroller. We went to pick him up and took the long bus ride to the library, singing "The Wheels of the Bus..." and "I had a tiny turtle..." all the way, to the delight of Sacha. Then, we sang again on the ride back after the "lap-sit". The whole family gathered for a pizza party at Louis and Gwen's.
Other than that, it was a wet and windy month of very mild temperatures and not much activity.
I wanted to get rid of my US tax declaration, but many French institutions and administrations don't post their year-end statements until March or April, or even May. Some have come dribbling in, but I'm still waiting for others, so it's not worth opening the software to do only partial work. I think I can finish the FBAR, though. Get that out of the way, at least. I'll have to do it before April 15th, just to have an idea of what I may owe, so I can send in a check. I'll have to take the automatic extension (allowed to those who live abroad) to figure out the final figure, though.
AARO is having two tax seminars, again, this year. March 13, for those who are new to filing their US taxes (newcomers overseas, new to filing, or thinking of doing it yourself for the first time...) and March 17 for more experienced filers, who need to learn what's new this year or who have complicated returns. We hope a lot of new, young people will come. They are often unaware of their filing obligations because they owe no tax. If you know any Americans in or near Paris, let them know of these events.
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