United States is one of the few countries in the world in its Citizen-Based-Taxation format. This means that no matter where you live, you need to be current on your U.S. tax filing if you are a U.S. Citizen or Green Card Holder. You are known as an Expatriate or Expat (for short) if you are a U.S. citizen or green card holder living outside the United States. Read more
Tag Archive for FATCA
This is one more in a series of posts discussing the FBAR rules. The FBAR rules were born in 1970, laid virtually dormant until the 2000s and then were then unleashed in their full “ferocity” on U.S. persons.
Mr. FBAR has not visited Canada, but he has visited Canadian citizens Read more
HMRC has reminded financial institutions that the deadline for reporting their clients’ accounts under the Automatic Exchange of Information rules falls in less than a week’s time. Returns must be submitted by May 31, 2017, including reportable accounts for the U.S. Foreign Account Tax Compliance Act (FATCA), Crown Dependencies and Overseas Territories agreement, and the first year for the OECD’s Common Reporting Standards.
U.S. taxpayers who have foreign bank and/or financial accounts should be watching the clock. The window to voluntarily report foreign accounts in order to mitigate IRS penalties may be ending after 2017.
If you have been reading our blogs, we have been chronicling the tax legislative process through the House Ways and Means Committee. (If not, you can click here to read the previous blogs in the process.) We have also been looking at the impact of FATCA.
These are of note because today, there will be live hearings looking at the tax filing season and the unintended consequences of FATCA.
The Government has added another Financial Advisor since October of 2016, Michael A. Behr, (effective 1/25/17) to their list of Offshore Banks and Foreign Financial Advisors which are turning over the names of their US Account Holders, who are now subject to a 50% (rather than 27.5%) penalty in the IRS’s Offshore Voluntary Disclosure Program (OVDP). This penalty is based on the highest account balance measured over up to eight years.
TaxConnections Member Professor William Byrnes examines whether it is prudent for taxpayers to trust the governments of the 117 countries that scored a fifty or below on Transparency International’s corruption index. The complete information system invoked by the Foreign Account Tax Compliance Act (FATCA) encourages, even prolongs, the bad behavior of black hat governments by providing fuel (financial information) to feed the fire of corruption and suppression of rivals. Professor Byrnes recommends that the United States leverage a “carrot-stick” policy tool to incentivize bad actors to adopt best tax administration practices.
Article download at https://ssrn.com/abstract=2916444
The IRS released Revenue Procedure 2017-21, which contains the updated withholding foreign partnership (WP) agreement and withholding foreign trust (WT) agreement.
The revenue procedure provides information on submitting an application or request for renewal of a WP or WT agreement.
The Internal Revenue Service today reminded non-U.S. citizens who may have taxable income, such as international students and scholars who may be working or receiving scholarship funds, that they may have special requirements to file a U.S. tax return.
The IRS also reminded withholding agents — such as payroll professionals or universities — that accurately filed Forms 1042-S help speed any refunds due to their non-U.S. citizen taxpayers. Errors on forms or returns could result in some refunds being delayed.
The Internal Revenue Service today said avoiding taxes by hiding money or assets in unreported offshore accounts remains on its 2017 list of tax scams known as the “Dirty Dozen.”
Since the first Offshore Voluntary Disclosure Program (OVDP) opened in 2009, there have been more than 55,800 disclosures and the IRS has collected more than $9.9 billion from this initiative alone.In addition, another 48,000 taxpayers have made use of separate streamlined procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately $450 million in taxes, interest and penalties.