President Obama unveiled a plan in 2009 that he said would restore some fairness to the US tax code. It would require overseas banks to issue 1099 forms to US Citizens and making the foreign income reportable and taxable. Obama says his proposal removes tax incentives for US companies to ship their jobs overseas. He also wants to hire 800 Full Time IRS agents to help enforce these regulations.
Unfortunately the consequences for American individuals Overseas have been catastrophic; resulting in people renouncing, banks turning American clients away, costly filing requirements and the IRS going after innocent people. We sincerely hope the US will change it’s taxation system to a residence based system.