Overseas Americans Financial Access Act
Bill: H.R.5799 | Sponsor: Rep. Maloney, Carolyn B. (D-NY)
Policy area: Taxation

Summary:
Overseas Americans Financial Access Act
This bill modifies tax reporting requirements that apply to foreign financial institutions and individuals with foreign financial assets to create exceptions for the foreign accounts of certain U.S. residents or citizens living abroad.

To amend the Internal Revenue Code of 1986 to provide an exception from 
certain reporting requirements with respect to the foreign accounts of 
                      individuals who live abroad.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Overseas Americans Financial Access 
Act''.

SEC. 2. EXCEPTION TO CERTAIN REPORTING REQUIREMENTS APPLICABLE TO 
              FOREIGN FINANCIAL INSTITUTIONS WITH RESPECT TO CERTAIN 
              INDIVIDUALS WHO LIVE ABROAD.

    (a) In General.--Section 1471(d)(1) of the Internal Revenue Code of 
1986 is amended by redesignating subparagraph (C) as subparagraph (D) 
and by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Exception for certain individuals who live 
                abroad.--
                            ``(i) In general.--Unless the foreign 
                        financial institution elects to not have this 
                        subparagraph apply, such term shall not include 
                        any depository account maintained by such 
                        financial institution if each holder of such 
                        account is--
                                    ``(I) a natural person, and
                                    ``(II) a qualified individual with 
                                respect to a foreign country in which 
                                such foreign financial institution is 
                                licensed to conduct business.
                            ``(ii) Qualified individual.--For purposes 
                        of this subparagraph, an individual is a 
                        qualified individual with respect to any 
                        foreign country if such individual would be a 
                        qualified individual under section 911(d) if 
                        the only foreign country taken into account 
                        under such section were such foreign 
                        country.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Modification of agreements.--At the request of any 
        foreign financial institution, the Secretary of the Treasury 
        (or the Secretary's delegate) shall, as promptly as is 
        practicable, modify any agreement which is in effect between 
        the Secretary and such foreign financial institution under 
        section 1471 of the Internal Revenue Code of 1986 to take into 
        account the amendments made by this section.

SEC. 3. EXCEPTION FOR CERTAIN INDIVIDUALS WHO LIVE ABROAD TO CERTAIN 
              REPORTING REQUIREMENTS APPLICABLE TO INDIVIDUALS WITH 
              FOREIGN FINANCIAL ASSETS.

    (a) In General.--Section 6038D of the Internal Revenue Code of 1986 
is amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Exception for Certain Financial Accounts of Individuals 
Living Abroad.--
            ``(1) In general.--In the case of a qualified individual 
        with respect to any foreign country, subsection (a) shall not 
        apply to such individual for any taxable year if such 
        individual would not be required to provide any information 
        under such subsection for such taxable year if the qualified 
        foreign accounts in which such individual holds an interest 
        were not taken into account as specified foreign financial 
        assets for purposes of this section.
            ``(2) Qualified foreign account.--For purposes of this 
        subsection, the term `qualified foreign account' means, with 
        respect to any qualified individual, any account described in 
        subsection (b)(1) which is maintained by a financial 
        institution which is licensed to conduct business in the 
        foreign country with respect to which such individual is a 
        qualified individual.
            ``(3) Qualified individual.--For purposes of this 
        subsection, an individual is a qualified individual with 
        respect to any foreign country if such individual would be a 
        qualified individual under section 911(d) if the only foreign 
        country taken into account under such section were such foreign 
        country.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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