Thursday Thoughts
from Mary
at Matriarch Expat Tax
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Hi Reader,
Summer is coming to a bittersweet end, and it’s back-to-school time. Education isn’t just for kids, though. With the recently enacted One Big Beautiful Bill Act (OBBBA), we all have a little to learn! So, let’s chat about some updates, highlights, and articles to help you and your business stay “in the know” 🧐 and keep you updated on any important tax updates 💡 and news worldwide that may affect your expat life.
And in case you don't already follow Matriarch ....👇
AI, FATCA, and Foreign Banks: Why the IRS Has Its Eye on You (Literally)
The IRS is using AI to flag mismatches in offshore disclosures and US expats are high on its radar. With foreign banks reporting under FATCA and advanced audits on the rise, this post explains how AI-driven enforcement could affect Americans abroad and how to stay compliant.
➡️ Read the full blog here!
One Big Beautiful Mess
President Trump signed the One Big Beautiful Bill Act (OBBBA) into law on July 4, 2025, marking the most significant US tax legislation since 2017. This sweeping reform extended previous tax cuts, introduced new deductions, and made various other changes that could impact your tax situation.
For those wanting to dive into the details, here are two comprehensive summaries with key before-and-after comparisons of the OBBBA tax updates:
Read Holland & Knight OBBBA Analysis ➡️ here
Read CRI OBBBA Before & After Summary ➡️ here
Of course, if you'd rather not spend your time deciphering complex tax legislation, you can always work with a professional (like me) to interpret these changes and explain exactly what applies to your specific situation.😉
Will the new tax legislation lead to more renunciation?
This article argues that the July 2025 "One Big Beautiful Bill Act" represents a final disappointment for US expats, as it failed to address the burdensome citizenship-based taxation system that requires Americans abroad to file complex returns and report worldwide income annually. The author contends that, given the rarity of significant tax reform and the potential worsening of some issues, renunciation of US citizenship has become the most viable solution for expats seeking to escape costly compliance obligations and tax complications.
➡️ Read the full article here: Moodys
Uncertainty about the economy? You’re not alone
The August 2025 AXA report paints a complicated picture. U.S. job growth has slowed to a near standstill, dragging down consumer confidence and spending. Meanwhile, new tariffs have pushed import costs to levels not seen since FDR was in diapers (1934, to be exact), which is great news if you enjoy paying more for everything and watching business margins get squeezed like a tube of toothpaste.
While GDP growth might look steady on the surface, much of it is being driven by trade distortions, not real demand. In truth, domestic consumption is cooling off, leaving many business owners unsure of what’s ahead.
To make matters murkier, the recent dismissal of the Bureau of Labor Statistics chief has raised questions about the reliability of official economic data. When political interference clouds the numbers, strategic planning becomes more challenging for everyone involved.
At Matriarch, we know how overwhelming this kind of uncertainty can feel — especially when your family, business, and financial future are all tied together. If you're rethinking your plans or looking for a second set of eyes on your strategy, we’re here to help you navigate with clarity and confidence.
➡️ Read the full article here: AXA Investment Managers
That's all for today...
See you next month!
Mary 💗
