I 
118TH CONGRESS 
1ST SESSION H. R. 5432 
To create a short form tax return to simplify the return process for certain 
taxpayers living abroad, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2023 
Mr. BEYER (for himself, Mr. DAVIS of Illinois, Mr. TRONE, Mr. NADLER, and 
Ms. TITUS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To create a short form tax return to simplify the return 
process for certain taxpayers living abroad, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Simplification for 
Americans Abroad Act’’. 
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SEC. 2. SHORT FORM FOR CERTAIN TAXPAYERS LIVING 
ABROAD. 
(a) IN GENERAL.—The Secretary of the Treasury (or 
the Secretary’s delegate) shall make available a form for 
use by specified individuals to file the return of tax im-
posed by chapter 1 of the Internal Revenue Code of 1986. 
Such form shall replace Internal Revenue Service Forms 
1040, 2555, 1116, 8938, 5471, 3520, 3520A, 8621, 8858, 
8865, 926, 708, FinCEN Form 114, and other forms for 
disclosing income, assets, deductions, and offsets, and 
shall be as similar to Form 1040–EZ as it existed in 2017, 
except that the form shall be sufficient to allow an indi-
vidual to, with respect to a taxable year— 
(1) demonstrate that such individual is a quali-
fied individual under section 911(d)(1) of the Inter-
nal Revenue Code of 1986, 
(2) declare foreign income described in section 
911 of such Code, 
(3) characterize income based on source, includ-
ing— 
(A) wages, 
(B) self-employment income or business in-
come, 
(C) contract income, 
(D) foreign government benefits, 
(E) pension and other retirement income, 
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(F) scholarships and fellowship grants, 
(G) interest, 
(H) dividends, and 
(I) capital gains, 
(4) claim the standard deduction and, if appli-
cable, the child tax credit, 
(5) declare foreign taxes paid or accrued, and 
(6) declare United States source income from 
retirement, pension and Social Security benefits to 
be treated as sourced from treaty income where tax 
has been paid upon distribution. 
(b) SPECIFIED INDIVIDUAL.— 
(1) IN GENERAL.—For purposes of this section, 
the term ‘‘specified individual’’ means, with respect 
to a taxable year, an individual— 
(A) who is a qualified individual under sec-
tion 911(d)(1) of the Internal Revenue Code of 
1986, and 
(B) who declares— 
(i) a gross income of not more than 
$400,000, and 
(ii) a tax liability of $0. 
(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning after 2024, the $400,000 
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amount in paragraph (1)(B)(i) shall be increased by 
an amount equal to— 
(A) such dollar amount, multiplied by 
(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) of the Internal 
Revenue Code of 1986 for the calendar year in 
which the taxable year begins, determined by 
substituting ‘‘2023’’ for ‘‘2016’’ in subpara-
graph (A)(ii) thereof. 
(c) EFFECTIVE DATE.—The form required by sub-
section (a) shall be made available for taxable years begin-
ning one year after the date of the enactment of this Act. 
SEC. 3. EXPANSION OF INCOME ALLOWED AS FOREIGN 
EARNED INCOME. 
(a) IN GENERAL.—Section 911 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (b)(1)(B), by striking clause 
(i) and by redesignating clauses (ii) through (iv) as 
clause (i) through (iii), respectively, 
(2) in subsection (b)(1)(A), by striking ‘‘attrib-
utable to services performed by such individual’’ and 
inserting ‘‘attributable to services performed by such 
individual or benefits received by such individual’’, 
(3) in subsection (d)(2), by striking ‘‘wages, 
salaries, or professional fees’’ and inserting ‘‘wages, 
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salaries, professional fees, pensions, scholarships, fel-
lowship grants, distributions from retirement funds, 
or payments received by the taxpayer with respect to 
disability, unemployment, family medical leave, or 
childcare’’, and 
(4) in subsection (e)(2), by striking ‘‘Except 
with the consent of the Secretary, any taxpayer who 
makes such a revocation for any taxable year may 
not make another election under this section for any 
subsequent taxable year before the 6th taxable year 
after the taxable year for which such revocation was 
made.’’ 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 4. INFORMATION RELATING TO SPECIFIED FOREIGN 
FINANCIAL ASSETS. 
(a) IN GENERAL.—Section 5314 of title 31, United 
States Code, is amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) SPECIFIED FOREIGN FINANCIAL ASSETS.— 
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‘‘(1) IN GENERAL.—If a person makes a trans-
action that would require reporting under subsection 
(a), and such transaction involves a specified foreign 
financial asset, the reporting requirements described 
in subsection (a) shall— 
‘‘(A) only apply if the transaction involves 
an amount that exceeds the aggregate value 
threshold set forth in section 6038D of the In-
ternal Revenue Code of 1986; and 
‘‘(B) be satisfied by attaching to such per-
son’s return of tax for such taxable year the in-
formation required under section 6038D of the 
Internal Revenue Code of 1986. 
‘‘(2) SPECIFIED FOREIGN FINANCIAL ASSET.— 
For purposes of this section, the term ‘specified for-
eign financial asset’ has the meaning given the term 
in section 6038D(b) of the 2211 Internal Revenue 
Code of 1986.’’. 
(b) INFORMATION WITH RESPECT
TO SPECIFIED 
FOREIGN FINANCIAL ASSETS.—Section 6038D of the In-
ternal Revenue Code of 1986 is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘For purposes of this sec-
tion,’’ and inserting ‘‘Except as provided in 
paragraph (2), for purposes of this section,’’, 
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(B) in paragraph (2), by redesignating 
subparagraphs (A), (B), and (C) as clauses (i), 
(ii), and (iii), respectively, 
(C) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
(D) by striking ‘‘For purposes’’ and insert-
ing: 
‘‘(1) IN GENERAL.—For purposes’’, and 
(E) by adding at the end the following new 
paragraph: 
‘‘(2) CERTAIN ACCOUNTS EXEMPT FROM FINAN-
CIAL REPORTING.—An account is exempt from the 
reporting requirement under subsection (a) if it is 
an account— 
‘‘(A) the maximum balance of which does 
not exceed $600 for the entire duration of the 
taxable year, 
‘‘(B) the usage of which is limited to a sin-
gle merchant, or 
‘‘(C) the type of which is listed as an ex-
empt account in Annex II of the Foreign Ac-
count Tax Compliance Act Intergovernmental 
Agreement in effect between the United States 
and the country in which such account is 
held.’’, 
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(2) by redesignating subsections (f), (g), and 
(h) as subsections (g), (h), and (i), respectively, and 
(3) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year after 2024, the $50,000 amounts in subsection 
(a) and subsection (e) shall be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2023’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any dollar amount in-
creased under paragraph (1) is not a multiple of 
$100, such dollar amount shall be rounded to the 
nearest multiple of $100.’’. 
(c) FURNISHMENT OF INFORMATION BY FOREIGN 
FINANCIAL INSTITUTIONS
TO OWNERS
OF SPECIFIED 
FOREIGN FINANCIAL ASSETS.—Section 1471(c) of such 
Code is amended by adding at the end the following new 
paragraph: 
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‘‘(4) REQUIREMENT TO PROVIDE INFORMATION 
TO ACCOUNT HOLDERS.—If a foreign financial insti-
tution submits a report under this section, such in-
stitution shall provide account holders with a copy of 
such report within 15 days of such submission.’’. 
(d) DISCLOSURE OF SPECIFIED FOREIGN FINANCIAL 
ASSETS TO THE FINANCIAL CRIMES ENFORCEMENT NET-
WORK.—Section 6103(l) of such Code is amended by add-
ing at the end the following new paragraph: 
‘‘(23) DISCLOSURE OF SPECIFIED FOREIGN FI-
NANCIAL ASSETS TO THE FINANCIAL CRIMES EN-
FORCEMENT NETWORK.—The Secretary may, upon 
written request, furnish to the proper officers and 
employees of the Financial Crimes Enforcement 
Network such return information with respect to 
specified foreign financial assets as is attached to 
tax returns pursuant to section 6038D, but only to 
the extent necessary in investigating suspected 
money laundering or the financing of terrorism.’’. 
(e) EFFECTIVE DATE.— 
(1) The amendments made by subsection (a) 
shall apply to reports filed with respect to calendar 
years beginning after the date of the enactment of 
this Act. 
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(2) The amendments made by subsections (b), 
(c), and (d) shall apply to returns filed with respect 
to taxable years beginning after the date of the en-
actment of this Act. 
Æ 
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