Legal Update
Jun 19, 2006
The Tax Prevention and Reconciliation Act of 2005
The Tax Prevention and Reconciliation Act of 2005 (signed into law on May 17, 2006) retroactively increases taxes for Americans living abroad. The new tax law includes tax year 2006 and changes the way in which taxes are calculated on subsidies, such as housing allowances, given to Americans living abroad by their employers to protect them from high taxes.
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