What Does the Shutdown Mean for FATCA?
The federal government shutdown has stalled the United States in its Herculean efforts to negotiate intergovernmental agreements (IGA’s) with other countries implementing FATCA. Even though FATCA was enacted in 2010, it is being implemented in stages and the implementation plan has been delayed twice. The way things are looking, further delays will be inevitable.
The most controversial portion of the law will require foreign financial institutions to report to the IRS information about Americans’ offshore accounts worth more than $50,000. That portion is scheduled to take effect in July 2014. In order to implement FATCA on a worldwide basis the United States Treasury Department has been negotiating IGAs with over fifty countries. The IGAs are critical to implementing FATCA since they would provide foreign financial institutions some leeway to report information that if revealed, might otherwise be in violation of local data protection or other laws. The IGA is designed to provide the institutions with a road map for compliance, giving them more certainty about what is required to comply with FATCA. Click here for a complete listing of joint statements and jurisdictions treated as having an IGA in effect.
In accordance with Circular 230 Disclosure
Virginia La Torre Jeker J.D., has been a member of the New York Bar since 1984 and is also admitted to practice before the United States Tax Court. She has 30 years of experience specializing in US and international tax planning as well as international commercial transactions. She has been based in Dubai since 2001; prior to that time she worked in Hong Kong for 15 years as a US tax consultant for international law firms, major banks (including HSBC) international accounting firms (Deloitte) and trust companies. Early in her career she worked in New York with the top-tier international law firm, Willkie Farr & Gallagher.
Virginia is regularly asked to speak at numerous conferences and seminars for various institutes and commercial organizations; publishes a vast array of scholarly works in her area of expertise, been interviewed by CNN and is regularly quoted (or has her articles featured) in local and international publications. She was recently appointed to the Professional Tax Advisory Council, American Citizens Abroad, Geneva, Switzerland. She was a guest lecturer at the University of Hong Kong, LL.M Program (Law Department) and served as an adjunct Business Law professor at the American University of Dubai and at the American University of Sharjah where she also taught the legal / ethical aspects of internet law and internet based transactions.
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