Jan 15, 2007: Update on U.S. Expat Housing Allowance Limitation Income Tax Increase

	January 15, 2007 Moscow
	Update on the U.S. Expat Housing Allowance limitation income tax increase
	Members and Friends of the American Chamber of Commerce in Russia,

On December 21, I met in Washington with Treasury’s Assistant Secretary for International Tax Policy, Eric Solomon. I presented new Moscow housing cost data to supplement AmCham’s housing market study provided previously to Treasury. The data reconfirms that private-sector housing costs in Moscow are significantly higher than the revised State Department housing allowance figure of $90,900. (For background see my November 30 letter to Treasury Secretary Henry Paulson on the AmCham website). Assurances were given that resolving the expat Housing Exclusion Limitation issue is of high priority at Treasury, and that the new Moscow housing data would be given serious study.

On December 27, Ambassador Gil Robinson, AmCham’s Washington representative, wrote to IRS Commissioner Mark Everson on our behalf, and early this month received a response assuring him that the matter was under serious review and would be resolved.

AmCham is encouraged by progress and serious attention given by U.S. government officials to this critical issue. I will of course keep you posted on developments.

Best regards,