The Association of Accidental Americans (AAA) has cancelled a fundraising exercise mere days after its launch.
The association aimed to raise $50,0000 (£42,400, €50,251) to finance a lawsuit against the US to challenge the legality of the Foreign Account Tax Compliance Act (Fatca).
But after International Adviser’s coverage on the decision, the move sparked criticism on social media.
Many questioned the need to sue the US over Fatca considering that a lawsuit to challenge the country’s citizenship-based taxation system was already under way.
The AAA said that it aimed to incorporate the taxation suit with the Fatca suit, but this did not go down well on social media either.
Twitter users claimed that, if successful, the taxation suit would automatically get rid of Fatca since scrapping the US taxation model would, in turn, abolish the legislation which impacts US citizens overseas.
On the other hand, the Fatca lawsuit would have only managed to overturn the legislation rather than the entire taxation system had it won in the US courts.
As a result, and after consulting with its lawyer Marc Zell, the AAA announced it will no longer need to raise funds as it will only move forward with the lawsuit against citizenship-based taxation.
