Our Latest Blog Posts
Cost of Compliance Rises under OVDP
The cost of compliance for many people is growing. Those U.S. persons with bank accounts in foreign jurisdictions who have yet to come into compliance with U.S. tax filing requirements have very little time. In addition to the increased amount of data being sent to the U.S., last week the US government announced that it added 47 more "facilitators" to a list of banks and
New Jersey to repeal estate tax
Last week, the New Jersey legislature announced its plan to repeal estate tax by January 2018. The New Jersey estate tax is presently one of the highest in the nation. For state residents the estate tax exemption would be increased from its current level of $675,000 to $2 million per person by January 2017. Then in January 2018, the estate tax will be repealed altogether.
Substantially Completed Form 5471 is Required to be Filed
IRS has recently released a new International Practice Unit (IPU) providing guidance to its examiners on the monetary penalties applicable if certain categories of U.S. shareholders fail to comply with the reporting requirements on Form 5471 (Information Return of U.S. Persons With Respect To Certain Foreign Corporations). Referencing prior rulings and other guidance, the IPU
New FATCA Enforcement Expected
The IRS has tightened its enforcement of the Foreign Account Tax Compliance Act (“FATCA”). FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs), i.e., foreign banks, to report to the Internal Revenue Service (“IRS”) information about financial accounts held by U.S.