1 / 7

FATCA Puts Pressure On Foreign Financial Institutions & Taxp

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.

freemantaxlaw
Download Presentation

FATCA Puts Pressure On Foreign Financial Institutions & Taxp

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FATCA Puts Pressure On Foreign Financial Institutions & Taxpayers Freeman Tax Law (855)935-5945

  2. What Is FATCA? 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. Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com

  3. FATCA Updates So now that many jurisdictions and institutions are on board with the new tax laws and have agreed to this heightened level of banking transparency, they need to stay current with updates and deadlines that are coming this year. Here is a brief list of important dates to note in 2015: Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com

  4. March 31st, 2015 – This is the deadline for foreign financial institutions within non-IGA jurisdictions and those in Model 2 IGA agreements to submit their first reports to the IRS. American taxpayers can expect their bank or employer to request information regarding these reports and should consult with their tax attorney if they have questions about how to respond. May 31st, 2015 or June 1st, 2015 – This is usually the first reporting deadline for financial institutions within Model 1 IGA jurisdictions. At this time, information must be reported to the IRS regarding U.S. account holders. June 30th, 2015 – This is the deadline for reviewing pre-existing high-value accounts (over $1m USD). Again, if taxpayers have questions or concerns on how to respond or prepare for these reports, they should consult a tax attorney. FATCA Updates Continued Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com

  5. What Can We Expect In The Future? As time goes on and we move further into the year, we can expect to see more and more jurisdictions sign an IGA agreement. Furthermore, global efforts to develop a standard tax information sharing process are in place and will only continue the move towards greater financial transparency throughout the world. For this reason, it is important to ensure you are in full compliance with tax payments and reporting requirements. This affects taxpayers and financial institutions abroad alike. Failing to disclose information will lead to strict penalties and even the possibility of criminal charges for individuals and hefty financial penalties for financial institutions. To avoid these issues, now is the time to hire a professional tax law firm that can put your mind at ease by helping you navigate this ever-changing process. Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com

  6. Our Locations Atlanta, Georgia Austin, Texas Birmingham, Michigan Boston, Massachusetts Charlotte, North Carolina Chicago, Illinois Cleveland, Ohio Dallas, Texas Denver, Colorado Greenwich, Connecticut Houston, Texas Irvine, California Las Vegas, Nevada Los Angeles, California Miami, Florida New York, New York Palo Alto, California Phoenix, Arizona Pleasanton, California San Antonio, Texas San Diego, California San Francisco, California San Jose, California Short Hills, New Jersey Tampa, Florida Washington DC International Locations: Basel, Switzerland Bern, Switzerland Geneva, Switzerland Zurich, Swizterland Freeman Tax Law  (855) 935-5945 info@freemantaxlaw.comwww.freemantaxlaw.com

  7. Freeman Tax Law About Freeman Tax Law Freeman Tax Law is a boutique tax law firm with national exposure equipped to handle all domestic and international tax law matters. At Freeman Tax Law, the attorneys and professional staff have vast experience with foreign tax compliance, international tax planning, and resolving tax controversies involving offshore banking matters. Freeman Tax Law helps taxpayers and foreign entities become in compliance with laws such as Foreign Account Tax Compliance Act (FATCA) and Offshore Voluntary Disclosure Program (OVDP). In addition to handling complex tax controversies, the Freeman Tax Law team has extensive expertise in assisting clients with wealth management and estate planning. Freeman Tax Law  (855) 935-5945  info@freemantaxlaw.com  www.freemantaxlaw.com

More Related