The Foreign Account Tax Compliance Act (FATCA) imposed a worldwide financial disclosure information regime on every financial institution in the world, it is an international nightmare.
The Foreign Account Tax Compliance Act (FATCA) imposed a worldwide financial disclosure information regime on every financial institution in the world, it is an international nightmare.
There are several major problems with FATCA which are widely discussed and debated. Read more
Form 8621 Calculator Dramatically Reduces Preparation Time For Tax Professionals!
As the Internal Revenue Service (IRS) steps up efforts to find delinquent taxpayers around the world, U.S. expats are being forced to complete more and more forms to comply with the U.S. tax obligations. The introduction of the Foreign Account Tax Compliance Act (FATCA) has provided even more strength to the Read more
The Internal Revenue Service announced the exchange of financial account information with certain foreign tax administrations, meeting a key Sept. 30 milestone related to FATCA, the Foreign Account Tax Compliance Act.
To achieve this, the IRS successfully and timely developed the information system infrastructure, procedures, and data use and confidentiality safeguards to protect taxpayer data while facilitating reciprocal automatic exchange of tax information with certain foreign jurisdiction tax administrators as specified under the intergovernmental agreements (IGAs) implementing FATCA.
“Meeting the Sept. 30 deadline is a major milestone in IRS efforts to combat offshore Read more
An Ohio federal judge said that Senator Rand Paul, R-Ky., and others do not have standing in a challenge to the offshore financial account tax enforcement measures enacted in the Foreign Account Tax Compliance Act and they were not likely to succeed on the merits in the case. The case is Crawford v. U.S. Dep’t of Treasury, S.D. Ohio, No. 3:15-cv-00250, 9/29/15.
The U.S. District Judge Thomas M. Rose said in his September 29, 2015 order denying preliminary injunctive relief that the harms claimed by the plaintiffs are “remote and speculative harms, most of which would be caused by third parties, illusory, or self-inflicted.” He rejected Paul’s assertion that he would suffer injury under his claim that the executive branch isn’t adhering to the law. Read more
The Australian Taxation Office (ATO) has undertaken its first ever automatic sharing of bank information with the United States (US) Internal Revenue Service (IRS).
Details of over 30,000 financial accounts worth over $5 billion are being provided to the US under the new powers of the US Foreign Account Tax Compliance Act (FATCA).
The information provided on US citizens and tax residents with Australian bank accounts is the first step in a wave of transparency measures being implemented globally by Governments and tax administrations. Beginning in 2017, close to 100 countries will be sharing non-resident data under the OECD Common Reporting Standard (CRS).
In return the ATO will receive data from the IRS about Australians with financial accounts in Read more
If you are a regular reader of my blog ~ you know the tax geek that I am, I write a lot about tax compliance for foreign bank account holders and the effect of the FATCA. FATCA stands for Foreign Account Tax Compliance Act. Calling a spade a “large digging instrument”, we know this law is one-sided and forces other countries to enforce US tax laws. And if they fail to comply, they are effectively locked out of US markets and the US dollar ~ the “world currency” for now.
Countries that sign the FATCA Agreement or Inter Governmental Agreement (IGA) are considered tax compliant. This means the banks/ foreign financial institutions (FFI) in these countries send information as demanded by the IRS to their own tax authorities which is then shared with the IRS. This is “Model 1”. Read more
Kentucky Senator and 2016 Republican Presidential hopeful Rand Paul recently announced that, in partnership with Republicans Overseas and five others, he would head to court to stop the vile Foreign Account Tax Compliance Act crackdown. At the risk of comparing the noted Republitarian/Libripublican figure with a certain single-cell cartoon villain, the effort may turn out like the video below.
The lawsuit, which was filed in an Ohio federal court, actually contains some pretty good arguments. In any other environment, this lawsuit might go somewhere. But they say that timing is everything, and the timing is just all wrong.
Well, so much for honor among thieves, at least as the U.S. government defines the t-word. Swiss bankers felt they had no choice but to violate the two greatest things in life (select “Read More” to see video clip). But this time, the allegations were quite a bit more serious than selling cigarettes without a retail permit, and there was no grinning mob lawyer to make the whole thing go away. They compiled a list of alleged tax violators and then published that list, both in the Swiss federal newspaper and on the Internet.
Since 1934, Switzerland’s banking privacy law has made it a magnet for foreign accounts and a story element in countless film noires. But judges and lawmakers have been chipping away at the law for a number of decades, and according to some observers, near-relentless pressure from the government’s six-year Foreign Account Tax Read more
We previously posted on April 6, 2015, FATCA Guidance Clarifies Form 8966 Filing Requirements discussing that the IRS has added new frequently asked questions (FAQs) concerning Foreign Account Tax Compliance Act (FATCA) reporting to its website. Specifically, the new FAQs clarify certain aspects of the requirement and deadline for filing Form 8966 (FATCA Report) for certain filers.
Now the IRS has set deadlines and offered taxpayers instructions on how to get extensions and waivers for filing Form 8966, FATCA Report.
The Internal Revenue Service said that it is giving taxpayers until June 29, 2015 to request an additional extension of time to file the Form 8966 for tax year 2014. They Read more
After the IRS shouted “Dracarys” in 2010, the Foreign Account Tax Compliance Act (FATCA) breathed fire on American taxpayers, causing more chaos than the destruction immortalized in the Rains of Castamere. The law mandates that U.S. citizens, including those residing outside the country, report their financial accounts outside the U.S. The IRS didn’t stop there; using its network of spiders, the IRS is compelling global non-U.S. financial institutions to report any U.S. persons on their books to the U.S. Treasury.
As you can see, there’s no way out of this mess. However, some people try tricking the IRS, Read more
Individuals who are required to report interests in foreign financial assets to the IRS got guidance on the process in the form of final regulations on Thursday (T.D. 9706). The regulations finalize temporary regulations (T.D. 9567) issued in 2011, with some changes.
Sec. 6038D, enacted as part of the Foreign Account Tax Compliance Act, requires individuals to report interests in specified foreign financial assets (SFFAs) when filing their federal income tax returns for tax years beginning after March 18, 2010, using Form 8938, Statement of Specified Foreign Financial Assets. SFFAs include, among other things, interests in:
• Foreign bank and financial accounts; Read more
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 Read more
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