Americans abroad join their fellow citizens and those of all nationalities in grieving the loss of seven space pioneers in the explosion of the space shuttle Columbia on February 1st.

No matter where you live, count on AARP to be your voice in the U.S. on the issues that matter most. Log on to the AARP Webplace for information about health and finance, or advice on voter registration and absentee ballots in your state. Learn more about our long-distance caregiving assistance programs and AARP travel discounts in the U.S. and abroad. Staying connected is easy when you've got AARP. Visit www.aarp.org/worldwide or call +1 202 7379860.

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The US Census Bureau (www.census.gov) has announced plans to conduct test censuses in France, Kuwait and Mexico in 2004 as a first step toward determining the feasibility of counting Americans overseas in the 2010 Census. These countries were chosen "for their geographic diversity, as well as for the large numbers of American retirees, students and business people residing in large and small towns within their borders."

The Census Bureau plans to mount a publicity campaign in each country through partner organizations (such as ACA) and English-language media. Those with "insider" knowledge of how to reach out to Americans-at-large in any of these three countries please share suggestions with ACA.

Also available on the Census Bureau's website is the 1993 Technical Paper 62 by Karen M. Mills, "Americans Overseas in U.S. Censuses", outlining the varying attention given to overseas Americans by the Census Bureau since the inception of the Census. See: www.census.gov

ACA has been continuously active on this issue, often in collaboration with other organizations of Americans abroad, for close to a decade, raising awareness levels at home and among overseas citizens, campaigning, appearing before Congress and quizzing Census Bureau chief Kincannon in person during 2002 Overseas Americans Week in Washington.

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Once again in 2003, American Citizens Abroad will be stumping around Washington, voicing your concerns and those of other overseas Americans to members of Congress, the Administration and influential groups in the Capitol. The dates are not firmly fixed, but are likely to be in the first half of May.

OAW is an exhausting, exhilirating, self-funded opportunity to look eyeball-to-eyeball with Washington decision-makers and attempt to convey to them that Americans abroad care their nation -- and hope to be cared about by it.

If you as an individual or as representative of a relevant association are interested in participating, if you have issues you want pressed, if you can volunteer ideas or contact names, write ACA (acage@aca.ch), Attention: OAW/Andy Sundberg.

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EXCHANGE RATE PREDICTIONS? R.A. in Portugal feels that, instead of overviews of potential tax legislation (January issue): "Far more important to Americans abroad is the currency issue.... Those of your readers who have substantial and mobile dollar assets would be well served by a discussion of what the next two years might bring in the way of changes in exchange rates." Readers with crystal balls are particularly encouraged to respond.

TRICARE FOR LIFE. Reader L.R. fears that the press release copied in our December 2002 issue, entitled "US Federal Court of Appeals Ruling Against Military Retirees," may lead to a misunderstanding. News Update editor Norm Burgo (himself retired career military) points out that medical coverage for military retirees remains assured under the government programs Tricare for Life and Tricare Senior Pharmacy Benefits.

The class action lawsuit (www.classact-lawsuit) is being pursued to procure for military retirees and their dependents lifetime FREE medical care in military medical facilities. Current requirements mandate enrollment in Medicare Part B, for which the veterans must pay. At time of recruitment, the standard oral promise to recruits was assurance of free care for life after 20 years of service.

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With international political tensions currently on the rise, the US State Department has been issuing a series of warnings and advisories aimed at Americans abroad. The best way to keep abreast of most recent circulars is by checking the Department of State's website at www.travel.state.gov Browse while you are at the sight for background information on individual countries, tie-ins to American embassies worldwide, and a details on a wealth of other subjects related to being abroad.

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Volunteer Embassy and Consulate Tax Assistance (VECTA) programs at many consular posts worldwide place IRS-trained volunteers at the disposal of Americans with queries as to how to prepare their tax returns. These individuals are NOT tax preparers; but they can help individuals who have questions as to whether to and how to prepare their own tax returns.

An excellent listing is given, for example, in the American Citizens Service e-bulletin for Germany (obtain by request to Germany acs@state.gov).

You can check with the American Citizens Services unit of your local consulate or embassy, or with one of the seven regional IRS offices worldwide (Berlin, London, Mexico City, Paris, Rome, Singapore, Tokyo) as to whether/when VECTA volunteers will be available in your area. IRS international offices are listed at: www.irs.gov/localcontacts, then click on "international filing".

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Don't forget all dependents must have either a SSN (Social Security Number) or an ITIN (Individual Taxpayer Identification Number) to be listed as dependents on your federal income tax. Obtaining either of these numbers can take several months; although overseas filers have until 15 June to file their US income taxes, it is time to start planning already! NOTE ALSO, if a request for an ITIN is filed for a dependent who does not qualify to obtain a SSN, only the most recent (December 2002) revision of Form W-7 will be accepted. Forms can be downloaded via the IRS website: www.irs.gov

A handy list of tax exchange rates 1998 - 2002 is available via the IRS Paris website. For 2002, the euro rate is 1.0612 to the dollar.

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2003 is the quarter-century mark for American Citizens Abroad (founded in Geneva in 1978), and it is a real tribute to the vitality of the organization that so many of its early members remain active within it -- joined by a steadily growing number of new adherents. We would like to hear from people who were involved with the ground-breaking and the first year's growing pains. How did you hear about it? What prompted you to join? Did you think it would last? What are the highlights you remember of the first year? Drop us a line to rossowa@aol.com for the 25th anniversary special News Report. Put ACA Anniversary in the subject line.

ACA would like to remind you that it is an independent, grass-roots organization, run by volunteers and with no governmental ties and no major corporate funding. This means EACH OF US is reponsible for caring and contributing to its continuation. YOU CAN HELP -- by joining and encouraging others to do so; -- by advertising and/or purchasing from our advertisers, dropping ACA's name along the way (for example, by purchasing from amazon.com via the ACA website); -- by donating for/purchasing from ACA's annual FUNdraiser on 14 March 2003; -- by volunteering your time: we need editors for the News Update, volunteers at the office in Geneva, new Country Contacts, people to write book reviews, to research and write on issues, to participate in Overseas Americans Week ... and more, more, more!

Contact ACA's office (acage@aca.ch) if you are interested, and see how quickly we can put you to work!

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O n the home sale front, efforts to make an exception to the 2-out-of-5 year occupancy rule for Americans overseas, the military and Foreign Service personnel failed dismally. A bill in the Senate that would have addressed this problem died in committee. Then, to make it perfectly clear to all Americans overseas just how little voice they have, the IRS issued regulations specifically disallowing an exception based on absence from your home due to overseas job commitments or military duty. What this means is that, if you want to sell your home and exclude up to $500,000 of gain (if you are married, filing jointly), you must own and occupy the house for 2 of the 5 years preceding sale. If you live overseas and your house is rented out, the rental time is not considered time that you "occupy" the house-regardless of circumstances that may make it impossible to occupy the house for 2 years prior to sale.

What makes these regulations particularly troubling is the fact that the IRS notes that "commentators proposed a special exception to the occupancy requirement for taxpayers who are absent from the home for an extended period of time due to employment or are members of the uniformed services and the United State Foreign Service." In rejecting this recommendation from commentators, the IRS says only, "The final regulations do not adopt these comments because there is no specific authority under section 121 to provide exceptions to the use requirement except in cases of property of a deceased spouse. Moreover, section 1034 contained a special rule for members of the Armed Forces, which Congress did not include in enacting section 121."

Clearly, the IRS has put the burden back on Congress to provide relief for Americans overseas that want or need to sell their homes. In the meantime, those considering a sale of rental property that once was their home should look very carefully at the tax consequences.

This item contributed by Jane A. Bruno, J.D.
Jane Bruno is a tax attorney and consultant with Bruno American Tax Services (www.americantaxhelp.com). She can be contacted at: jabruno@americantaxhelp.com or jabruno@mindspring.com.

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