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Tag Archive for Section 7206

Responsible Officers: Removal of Penalty of Perjury Declaration

TaxConnections Blog Post Removal of Penalty of Perjury Declaration regarding FATCAIt had been expected that a Responsible Officer (RO) would be required to certify, under penalty of perjury, as to compliance with FATCA. The original post describing the possible consequences to a Responsible Officer making a false certification under FATCA can be found here.

Recently, the Internal Revenue Service opened the FATCA registration system and published additional guidance. There is not a full length “FFI Agreement” as the IRS had previously stated would be published in a Revenue Procedure before the opening of the registration site; instead, the Agreement is more of a broad and open-ended certification by the RO that the FFI will comply with FATCA. This is similar to that provided in a recent draft of Form 8957. The specific certification is as follows:

Financial Institution – Agreement

I, Joe Smith, as RO for the Financial Institution, certify that, to the best of my knowledge, the information submitted above is accurate and complete and agree that the Financial Institution (including its branches, if any) will comply with FATCA obligations in accordance with the terms and conditions reflected in regulations, intergovernmental agreements, and other administrative guidance to the extent applicable to the Financial Institution based on its status in each jurisdiction in which it operates. Read more

Responsible Officers Certifications Under FATCA

TaxConnections Blogger Jim Calvin Posts about FATCAWhat could be the consequences to a Responsible Officer making a false certification under FATCA?

It is expected that participating FFIs will be required to identify a Responsible Officer who will be required to certify, under penalty of perjury, as to compliance with FATCA (Chapter 4 of the Internal Revenue Code). The proposed regulations describe several certifications by Responsible Officers and by others. Implementation will likely require that subordinate certifications and documentation from other persons will be required to support the certification made by the Responsible Officer.

The Internal Revenue Service may criminally prosecute a false document case under more than one statute. Only one of those possibilities is discussed below – that is, section 7206 of the Internal Revenue Code – because it is the one most likely to be invoked, and, in fact, it is the most frequently charged criminal tax violation. It applies where a “return, statement or other document…contains or is verified by a written declaration that it is made under penalties of perjury.” In addition, civil sanction may, and almost always does, follow a criminal investigation.

Sometimes referred to as the false-statement, tax perjury or fraud statute, section 7206 aptly illustrates the serious consequences of a false certification. Consider those consequences: Any person who willfully makes Read more

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