Tax compliance is a serious issue, and with the recent FATCA updates, the government is more thorough than ever before in identifying non-compliant taxpayers among individuals who live overseas. In past years, taxpayers who were suspected of fraud were primarily targeted for investigation on an individual basis. Now however, the IRS is going after entire groups of people who are suspected of non-compliance. IRS Targets Groups of Taxpayers In Connection With Non-Compliance from freemantaxlaw
The number of countries and jurisdictions that have now signed an agreement with the United States under the Foreign Account Tax Compliance Act (FATCA) has now exceeded one hundred. While this number grew slowly at first, more and more countries are climbing on board as the world realizes banking transparency is becoming a thing of the past. Over 100 Jurisdictions Effected by FATCA Regulations In 2015 from freemantaxlaw
Ever since the implementation of the Foreign Account Tax Compliance Act (FATCA), the IRS has spent increased time and resources in seeking out undisclosed income and assets among U.S. citizens living abroad. FATCA now requires foreign financial institutions including banks, investment groups, insurance programs, and employers to report information on American account holders. Over 100 countries have already signed agreements with the United States and more are in discussions with the IRS. Because of this new widespread financial transparency, taxpayers living abroad are now in the spotlight. Trouble With FATCA When Keeping Quiet About Undisclosed Offshore Assets from freemantaxlaw
FATCA, the Foreign Account Tax Compliance Act was passed in 2010, and has since gone into effect as of 2014. The law requires all foreign financial institutions to report information to the United States government regarding U.S. account holders. Those institutions that fail to do so face penalties of up to a 30% sanction on funds transfers from the United States. With such steep penalties on the table, many foreign financial institutions have already signed up to comply with the law. In fact, over 100 countries have signed an Intergovernmental Agreement (IGA) to comply with FATCA requirements. FATCA Puts Pressure On Foreign Financial Institutions & Taxpayers from freemantaxlaw
What does a Non Prosecution Agreement mean for you? What you need to know and do if your Swiss bank has entered into a Non-Prosecution Agreement Jeffrey S. Freeman, J.D., LL.M Swiss banks are in clean up mode and over 100 banks have opted to enter into a Non-Prosecution Agreement (NPA) with the Department of Justice (DOJ). In doing so the banks are admitting that they may have violated U.S. tax laws and will receive a lesser penalty while resolving any compliance issues.
Did you receive a letter from your Foreign Bank? Well… it might be your last chance to clean up the mess! Foreign banks and foreign financial institutions are rapidly sending letters to account holders that are U.S. persons requesting information to determine whether such account holders have disclosed their foreign accounts to the Internal Revenue Service ("IRS") and have complied with the appropriate U.S. laws. The receipt of these letters creates fear, anxiety, and questions for those that have received them.