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Tag Archive for FFI

Haydon Perryman And WIlliam Byrnes’ June 2015 FATCA GIIN Update

The FFI GIIN List Update (Lists from June 1, 2014 through June 1, 2015)

On 1 June 2015 the IRS published its thirteenth FATCA GIIN list of “approved FFIs” (a list of the financial firms that have registered on the IRS FATCA portal).  Total approved FFIs reached 165,461, and increase of only 2,851 during the month of May.  This FATCA registration trend since January has been described as lethargic, with April’s increase just 2,600 additional firms joining, 3,734 additional during March, and 2,479 in February.  But when compared to what was forecast by the IRS, by industry, and by the UK, it’s a troubling low figure. Read more

Don’t Mistake Gin For “GIIN,” Or You May Suffer From More Than Just a Hangover!

In a recent blog entitled, “FATCA GIIN January 2015 FFI Registration Analysis … by the numbers,” Professor William Byrnes provides a brilliant commentary on the IRS’s publication of its first FATCA GIIN list of the new year (published on New Years Day!). The FATCA GIIN list is a list of “approved FFIs (Foreign Financial Institutions)” that have registered on the IRS FATCA portal by December 23, 2014.

For those who have never heard of a “GIIN” and who may have initially confused it with a certain type of drink that mixes exceptionally well with tonic, GIIN stands for “Global Intermediary Identification Number.” A Foreign Financial Institution (FFI) that registers on the “FATCA Registration Website,” upon approval, receives a Global Intermediary Identification Number (GIIN) from the IRS (unless the FFI is treated as a Limited FFI). The GIIN is a Read more

Don’t Believe The Seven Deadly Myths Of FATCA Non-Enforcement

This May Be Your One Last Opportunity to Avoid Criminal Prosecution and Increased Civil Penalties!

Since July 1, 2014, the most feared U.S. legislation regarding international tax enforcement – Foreign Account Tax Compliance Act (“FATCA”) – is being implemented by most banks around the world. As part of this compliance, foreign banks from around the world are sending letters to account holders that they believe have, or had, a U.S. tax nexus (or other U.S. connection) requesting information to determine whether such account holders have disclosed their foreign bank accounts to the IRS. The letters from foreign banks generally require an account holder to disclose whether the account has been declared to the IRS through the filing of a Report of Foreign Bank and Financial Accounts (commonly known as Read more

The New American Expat: More Collateral FATCA Damage

As I reported in a previous article, the Department of Justice (DOJ) and the IRS instantly began to drool in anticipation when The Foreign Account Tax Compliance Act was passed in March of 2010. This gives them enforcement tools to make foreign countries and banking institutions play by our rules whether they like it or not. The Department of Justice has gone even further thinking it has been given the power to make foreign treaties without the constitutionally required Senate ratification. The Senate so far doesn’t seem to mind, but some other countries and taxpayers are taking offense.

FATCA Basics

FATCA gets its teeth from two provisions: Read more

Getting It Right On FATCA

In the words of the famous fictional character, Homer Simpson, “D’oh!” I made a mistake.  And I’m not going to waste any time in fixing it. This isn’t the first time I have made a mistake and it most likely won’t be the last.  While no one likes to make mistakes, I’ve learned from my experience as an improviser and performer on an “improv” team that “mistakes” are often times gifts.

This makes me think of the famous quote by John C. Maxwell:

“A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them.”

The mistake I’m referring to appeared in a recent blog I authored on TaxConnections Read more

Foreign Entities Subject to Reporting Rules On Financial Accounts of U.S. Persons

The IRS has instated some very aggressive rules to force Foreign Financial Institutions and Non-Financial Foreign Entities to enter into FATCA agreements and fully comply with new strict reporting requirements on the assets and financial accounts of US persons. While the rules and strategies in this area of tax law have undergone a number of changes in the past few years, this is an area of tax law that I have been working in since the 1980’s under various offshore voluntary disclosure programs and initiatives as a San Diego tax attorney.

Under the rules governing the international tax reporting obligations of foreign entities with financial accounts of U.S. person, a “withholding agent” paying U.S. source interest, dividends, rents, royalties or making a “withholdable payment” in any other form to a Read more

The IRS Gives Foreign Financial Institutions Additional Time to Register for FATCA

Under one of the provisions of the Foreign Account Tax Compliance Act (“FATCA”), withholding agents are required to withhold 30% of certain payments to a foreign financial institution (“FFI”) unless the FFI has entered into an agreement with IRS to report certain information with respect to U.S. accounts in an effort to bring an end to international tax evasion. Recently, in Notice 2013-43 and Notice 2013-31 IRB 113, the Treasury Department and the IRS extended the deadline for certain FFIs to implement certain FATCA requirements.

What is FATCA?

FATCA is an IRS initiative aimed at preventing U.S. citizens and taxpayers from avoiding paying income tax on their foreign investments and accounts. The law was enacted Read more

IRS Releases Final FATCA Form W-8BEN-E

The Internal Revenue Service has released the new 2014 Form W-8BEN-E (2-2014) that coincides with FATCA (Foreign Tax Compliance Act) and QI entity classification reporting requirements.

The newest version of Form W-8BEN-E must be used by entities that are beneficial owners of a payment, or of another entity that is the beneficial owner. The form has thirty parts, whereas the draft form only had twenty-seven.  All filers will complete Parts I and XXIX.

Part I of the form requires general information, the QI status, and the FATCA classification of the filer.  Question 4 of Part I requests the QI status. If the filer is a disregarded entity, partnership, simple trust, or grantor trust, then the filer must complete Part III if the entity is Read more

20 Jurisdictions Treated as Having an IGA in Effect and 10 Day Extension for FFI Registration Granted

Foreign financial institutions (FFIs) and US withholding agents (USWAs) have presented compliance concerns to Treasury and the IRS about the status of FFIs in jurisdictions that are known to be in an advanced stage of concluding an IGA, but have not yet signed such agreement.  Treasury has signed IGAs with 26 jurisdictions and has reached agreements in substance or is in advanced discussions with many others.

Treasury and the IRS have on April 2, 2014 issued Announcement 2014-17 to provide some level of comfort to FFIs in such jurisdictions that already have reached an IGA in substance and to USWAs paying agents.

Moreover, the IRS has also granted an extension of 10 (ten) days, previously April 25 but Read more

FATCA Update – Final FFI Agreement Just Released by IRS

The Internal Revenue Service has just issued Revenue Procedure 2014-10 which provides guidance to foreign financial institutions (FFIs) entering into an FFI agreement with the IRS for FATCA (Foreign Account Tax Compliance Act) purposes. The final version of the FFI agreement is set forth in meticulous detail in the Revenue Procedure. The final FFI agreement contained in the Revenue Procedure contains a number of changes to provisions of the draft FFI agreement set out in an earlier IRS Notice (Notice 2013-69 2013-46 I.R.B. 503), on October 29, 2013.

Who Should Sign the FFI Agreement?

FFIs signing the FFI agreement will be treated as “participating FFIs”. Generally, these are Read more

IRS Releases 50 Pages of FATCA Guidance!

TaxConnections Picture - IRS Magnifying GlassThe Internal Revenue Service released today (10/29/13) Notice 2013-69 that provides guidance for foreign financial institutions (FFIs) entering into an FFI agreement with the IRS to be treated as a participating FFI or Reporting Model 2 FFI under the provisions commonly referred to as FATCA.

This notice includes a draft copy of the FFI agreement, which will be finalized before December 31, 2013.

This notice also provides guidance to FFIs and branches of FFIs treated as reporting financial institutions under an applicable Model 2 intergovernmental agreement (IGA) on complying with the terms of an FFI agreement, as modified by the IGA.

Section III of this notice provides a description of the general responsibilities of participating FFIs and reporting Model 2 FFIs and some of the intended updates to the regulations and related forms.

Section IV of this notice describes the procedures for FFIs to register for participating FFI or reporting Model 2 FFI status. Read more