We've moved to a new office. As of 21 May 2001 our address is no longer "5 bis" just 5 by itself. We've moved to a different place in the same building at 5 rue Liotard in Geneva. Our phone, fax and email remain the same. If you have trouble reaching us during the next few days, just be patient; everything should be fine starting in June.

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Barbara Frew, author of Personal Finance for Overseas Americans, again draws from her book to offer ACA readers advice on Social Security benefits.

For US citizens living abroad, getting US Social Security benefits may not be a simple matter. The US bans or restricts payments to a small number of countries, e.g., Cuba and North Korea. And even if you live in a non-restricted country, there may be logistical problems to receiving your US Treasury check if the postal system in your country is not reliable.

Once the check is in hand, processing the check can be both time-consuming and costly as a foreign bank cannot process a US check on its own. One option is to have your S.S. check directly deposited into a financial institution in the US and then transfer the money to your foreign bank account as needed. Transfers involve fees (which vary widely from bank to bank), but they can be kept to a minimum by making few transfers of larger amounts. Withdrawal of funds via an ATM machine overseas is another option, but come with the standard, and often costly, fees.

At last, direct deposit of your S.S. check to your foreign account is an option in some countries. The US Federal Reserve Bank of New York and several central banks around the world have agreed to provide an international direct deposit service (also called electronic benefit transfer) free of the various charges; the Social Security Administration picks up the tab. The countries currently participating are: Argentina, Australia, Canada, France, Germany, Ireland, Italy, Norway, Portugal, Spain, Sweden, and the United Kingdom. For other countries, check with the Social Security Administration about other forms of electronic transfer.

For details about social security payments while you are outside the US, obtain a copy of Social Security Administration Publication No. 05-10137, ICN 480085 by mail from the SSA or at your nearest US Embassy or Consulate or from their website: www.ssa.gov.

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ACA will be hosting its seventh annual Thomas Jefferson Award and is now accepting nominations. The award acknowledges outstanding service to American citizens overseas by a US State Department employee. Individual Americans and American Clubs, chambers of commerce, schools and groups around the world are invited to submit nominations for the award. Nominations for the award should include:

1. One or more letters of recommendation. Each letter should explain why the candidate should be chosen for the award, citing anecdotes and examples of service to the local community.
2. A curriculum vitae, and
3. A recent photograph of the candidate - if possible, showing him or her among members of the local community that he or she is serving or has served.
4. Those submitting nominations should also provide their own name, organization and phone/fax/email numbers.

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On 17 April 2001, a three-judge panel unanimously dismissed Utah's complaint that the state lost a Congressional seat to North Carolina because the Census Bureau did not count Utah residents who were Mormon missionaries overseas, which number 11,176. The judges of the United States Court of Appeals for the 10th Circuit, in Denver, ruled that the missionaries represented only a fraction of the Americans overseas and that counting them would give Utah a huge advantage over other states. Mark Shurtleff, the state's attorney general, said he would appeal the decision to the Supreme Court.

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The alternative minimum tax (AMT) was created by Congress to ensure that at least a minimum amount of income tax is paid by high-income taxpayers who reap large tax savings by making use of certain tax deductions and exemptions. Without the AMT, some of these taxpayers might be able to escape income taxation entirely. In essence, the AMT functions as a recapture mechanism, reclaiming some of the tax breaks that were thought to be primarily available to high-income taxpayers, and represents an attempt to maintain tax equity. However, as the AMT has been applied over the years, an ever increasing number of taxpayers of even modest means, particularly those living abroad and also paying foreign taxes, have been subjected to the AMT.

A taxpayer's AMT for a tax year is the excess of his tentative minimum tax over his regular tax and must be paid in addition to his year-end regular tax liability. Thus, if a taxpayer's tentative minimum tax for a tax year is $50,000 while his regular tax is $30,000, he must pay an AMT of $20,000 in addition to his regular tax. The computation of the tentative minimum tax, which must be done on IRS Form 6251, is extremely complex and beyond the scope of this article.

Unfortunately for Americans abroad, when they calculate the foreign tax credit for foreign taxes paid or due, they must also calculate an AMT foreign tax credit. And even worse, this credit has limits, so that they may find themselves having to pay an AMT even though they would not otherwise have to pay a tax. Essentially the AMT foreign tax credit limitation is that the credit can be applied to only 90% of the foreign taxes paid. The result is that in some cases there is double taxation - both foreign and US - of at least part of a taxpayer's income.

The good news is that on 26 April 2001, Representative Amo Houghton, R-N.Y., and 19 Democratic and Republican Representatives introduced legislation (H.R. 1600) that would do away with this aberration. The bill would amend the Internal Revenue Code of 1986 to repeal "the limitation on the use of foreign tax credits under the alternative minimum tax." While the abolition of the AMT altogether would be even better news, the adoption by Congress of H.R. 1600 would be a significant step in easing the tax burden on many American taxpayers abroad.

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Note: ACA News Update 88a included a piece on the efforts of Democrats Abroad to reform overseas voting. Below is a statement from Republicans Abroad which has just been made available to ACA. ACA would like to reiterate the hope that both DA and RA bring strong involvement and support to help ensure that rapid progress be made in allowing overseas Americans to exercise the constitutional right to vote in Federal Elections.

"With the support of the Bush administration and the Republican majorities in Congress, Republicans Abroad is working in close conjunction with its elected government officials and appointees (including Secretary Tommy Thompson, Rep. John Cooksey, and Rep. Bob Barr, all long-time supporters of RA initiatives) to:

1. Standardize and improve the entire absentee-voting process for Federal elections;
2. Insure that overseas Americans are afforded their constitutional right to be included in the next Federal census in 2010;
3. See that American taxpayers are able to benefit from government services (such as Medicare, no matter where their place of residence) which are provided for by their hard-earned tax dollars; and
4. Fashion a fair tax system in line with the rest of the 28 OECD countries, which tax on the basis of residence rather than citizenship, and which encourages and promotes American entrepreneurship overseas rather that hindering it, as the current system does.

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Last March 23rd, ACA had its Eighth Annual Gala Fundraiser Auction. The drinks and the entertainment were appreciated by all and the auction went well with many donated items going for bargain prices. Here we see Anne Hornung and Andy Sundberg saying "going, going, gone!" for this lamp.

Among the many supporters and donors we would like to especially thank:

• The Hôtel Richemond, Geneva
• Lufthansa Airlines
• Dupont International
• International Herald Tribune
• Lee Bishop Godden, pianist
• Elite Rent-A-Car
• Christa Etienne Bijoux, Geneva
• Elm Bookstore, Geneva
• Hotel Plaza Athenée, Paris
• Domaine de Châteauvieux, Geneva
• Hotel Sofitel, Strasbourg
• La Vieille Enseigne, Strasbourg
• Harbor Inn, Syros Island, Greece
• Hostellerie de Valrugues, Saint Remy de Provence
• "Do No More," County Cork, Ireland
• Château de Moncaud, Provence
• Athenaeum Hotel & Apts., London
• The Diplomat B&B, Bamaka, Mali
• Hotel Splügenschloss, Zürich
• Seiler Hotels, Zermatt
• Hotel de la Paix, Geneva
• Cookies Direct
• Alpenrose Mineral Water
• Alliance Gourmande, Geneva
• American Market
• InterSource Limited, Geneva
• American Library, Geneva
• William Pitt, singer
• Aereau Loisirs
• Marilynn Geiger, guided tours, Geneva
• Kenneth Linsner, Appraiser
• Olga Suter, Classical Dance
• Maria Anderson, artist
• Marianne Domec, Fine Papers
• Fisba Handkerchiefs
• Emery Antiques and Interior Decorating, Etoy
• Services Industriels de Genève

As you know, all US citizens and residents who live abroad, including those with dual citizenship and those who hold green cards must file their US tax forms every year. The US Consular Agency of Geveva is running one-on-one tax help sessions up to 15 June 2001. Call for an appointment at Geneva number (+41 22) 8405161.

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