INTERNATIONAL BUSINESS AND ASSETS
Internationalist Page Blog
Global Futurist Blog
|The provisions commonly known as the Foreign Account Tax
Compliance Act (FATCA) became law in March 2010. If you are a
U.S.-domiciled individual or entity with assets or accounts
outside of the U.S., or if you are a non-U.S. individual or entity
with assets or accounts in the U.S., you must be in compliance
with FATCA or risk the imposition of civil and potentially
criminal penalties. The Internal Revenue Service is charged with
enforcing compliance and its (the IRS’) reach is international by
fiat. While FATCA purports to target individual taxpayers,
entities are affected (based upon their ownership by individuals
subject to FATCA), and the author believes that the issuance of
actual regulatory reporting requirements for non-financial
entities will be required in the near future.Here are the stated objectives of FATCA:
Alert: The reporting requirement for Form 8938 is separate
from the reporting requirement for the FinCEN Form 114, Report
of Foreign Bank and Financial Accounts (“FBAR”)
(formerly TD F 90-22.1). An individual may have to file both forms
and separate penalties may apply for failure to file each form. See
of filing requirements for further information.
Third-party reporting: Foreign financial institutions may provide
to the IRS third-party information reporting about financial
accounts, including the identity and certain financial information
associated with the account, which they maintain offshore on behalf
of U.S. individual account holders.
Application to domestic entities: The IRS anticipates issuing
regulations that will require a domestic entity to file Form 8938 if
the entity is formed or used to hold specified foreign financial
assets and the total asset value exceeds the appropriate reporting
threshold. Until the IRS issues such regulations, only individuals
must file Form 8938. For more information about domestic entity
filing, see Notice
institution, or if you are simply an entity (either within or outside
of the U.S.) which issues payments to individuals or other entities
internationally, it might be advisable for you to “play it safe”
– conduct a Google search [
information regarding any reporting or other compliance requirements
to which you may be subject (especially if you may be deemed a “U.S.
Withholding Agent”) and follow your initial research with a
consultation with competent legal and tax counsel in order to be
certain that you are in compliance with the law.
informational resources follow. While these resources may indeed be
helpful, they may be outdated (in some cases, as the regulations and
interpretations are constantly changing) and cannot be used or
construed as a substitute for professional legal and tax advice. The
author does not endorse any of the firms providing the information
Keywords And Search Terms For This Article:
Compliance Act, international business, import/export, international
trade, the Internal Revenue Service, offshore and overseas accounts
and assets, U.S. Withholding Agents, regulatory compliance, The
Global Futurist Blog, The Internationalist Page Blog, Douglas E.
THE INFORMATION CONTAINED IN THIS ARTICLE SHOULD NOT BE CONSTRUED BY
THE READER AS BEING LEGAL, FINANCIAL, TAX, ACCOUNTING, ECONOMIC OR
INVESTMENT ADVICE. NO OFFERING OF SECURITIES OR OTHER INVESTMENT
INTERESTS OF ANY TYPE IN ANY ENTITY IS MADE HEREBY, NOR IS A
SOLICITATION FOR THE PURCHASE OF SECURITIES OR OTHER INVESTMENT
INTERESTS OF ANY TYPE IN ANY ENTITY MADE HEREBY. THIS ARTICLE IS
INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND REPRESENTS THE
VIEW OF THE AUTHOR ONLY.
ARTICLE IS COPYRIGHT 2015 BY DOUGLAS E. CASTLE, WITH ALL RIGHTS
RESERVED. ANY REPRODUCTION, TRANSMITTAL OR DISTRIBUTION OF THIS
ARTICLE, EITHER IN WHOLE OR PART, IS UNAUTHORIZED AND MAY BE
UNLAWFUL, UNLESS FULL ATTRIBUTION IS GIVEN TO THE AUTHOR AND ALL
IMAGES AND LINKS IN THE ARTICLE REMAIN INCLUDED AND “LIVE.”
- Bulgarian cabinet approves deal with US on foreign account tax compliance (sofiaglobe.com)
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- Top Red Flags That Trigger an IRS Audit (turbotax.intuit.com)
- IRS says it’s using technology from JFK’s time (local10.com)
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