31/08/2026
Sell or remortgage your home in London, Paris or Berlin and the IRS can tax you on a profit you never made.
You bought in local currency. You sold in local currency. If the dollar moved in between, the code can treat that swing as a capital gain. A phantom gain. Real bill, imaginary money.
The fix was Section 203 of the TAS Act. The Senate Finance Committee stripped it out on July 30.
What survived still matters. Americans abroad would get 120 days to respond before the IRS issues late-filing penalties on FATCA and foreign trust forms, and Treasury would gain the authority to fix the March 15 filing deadline that catches so many people out.
The bill cleared committee 26 to 1. It is the furthest any tax bill written specifically for Americans abroad has ever advanced in Congress. Not this session. Ever.
It dies on January 3rd if the full Senate and House do not act.
Call your senators and your representative.
https://www.democratsabroad.org/tas_act_update_20260831
Democrats Abroad strives to provide Americans abroad a Democratic voice in our government and elect Democratic candidates by mobilizing the overseas vote.