Canada and US sign FATCA tax deal where banks to share information with IRS

- By : Parag Patel

…signed an intergovernmental agreement (“IGA”) with the US regarding the US Foreign Account Tax Compliance Act (“FATCA”). FATCA requires U.S. financial institutions to impose a 30 percent withholding tax on…

Trinidad and Tobago and the United States sign new agreement to exchange of information under FATCA

- By : Parag Patel

Last week Trinidad and Tobago and the United States signed an agreement to facilitate automatic exchange of information under the US Foreign Account Tax Compliance Act (FATCA). FATCA, enacted by…

HSBC Payment of Largest Penalty and FATCA Encourages Taxpayers to Disclose

- By : Parag Patel

…be seen through bilateral agreements such as the adoption of the Foreign Account Tax Compliance Act (FATCA) between the United States and the UK, Denmark, Mexico, and many other nations….

Citizenship renunciation fee increases as American expatriates flee FATCA

- By : Parag Patel

…rise in renunciations triggered by the US Foreign Account Tax Compliance Act. FATCA forces foreign banks and other institutions to report their US clients’ financial doings to the Internal Revenue…

Top myths of US tax compliance for Foreign Accountholders

- By : Parag Patel

FATCA is not a tax. FATCA does not focus on income, tax rates, or tax liability. FATCA seeks to identify U.S. investors with foreign financial interests, making it easier for…

Internal Revenue Service announces new International Data Exchange Service: The Beginning of Information Sharing

- By : Parag Patel

…complying with FATCA can be found at FATCA – Archive. The fact that 145,000 banks have registered and are providing government help to the IRS means that no foreign account…

India and the US have agreed to collaborate on offshore tax evasion

- By : Parag Patel

…believed to have foreign contacts for a FATCA Compliance Certificate. Technically, there is no FATCA Compliance Certificate, per se. Practically speaking, a FATCA Compliance Certificate simply refers to that indicates…

Common Issues for US-India Tax Reporting

- By : Parag Patel

…financial institutions such as mutual funds or fixed deposits, need to file a FATCA self-certification form. The FATCA certification form WILL LEAD to disclosure to the US government. So know…

Beware: IRS Reminds Taxpayers of FBAR Deadline

- By : Parag Patel

…Compliance Act, or FATCA, phases in and other international compliance efforts have raised awareness among taxpayers with offshore assets, the IRS noted. The IRS is encouraging taxpayers with foreign assets,…

Watch Out for Letters From Your Foreign Bank Requesting Information On Your U.S. Residency

- By : Parag Patel

…they are required to obtain such personal information pursuant to the U.S. Foreign Account Tax Compliance Act (“FATCA”) FATCA requires that foreign banks submit information to the United States government…

IRS Announces Major New changes to the Offshore Voluntary Disclosure Program

- By : Parag Patel

…United States. The agency says the changes are anticipated to provide thousands of people a new avenue to come into compliance with their U.S. tax obligations. They come as FATCA

How Will the IRS Find Out By Your Foreign Account? Let’s Count the Dozens of Ways

- By : Parag Patel

1. FATCA (Foreign Account Tax Compliance Act of 2009) requires disclosure of your account information. A. July 1, 2014 FATCA withholding began. B. FATCA requires a 30 percent withholding tax…

More Tax Complexity: New Form 8938

- By : Parag Patel

…been labeled the “Foreign Account Tax Compliance Act”. FATCA is part of the Hiring Incentives to Restore Employment (HIRE) Act, which was designed to enforce higher tax compliance among U.S….

Beware of U.S. tax consequences to a foreign trust with a U.S. beneficiary

- By : Parag Patel

FATCA Entity Reporting: FATCA imposes a 30% withholding tax on payments to “foreign financial institutions” (“FFIs”) that do not comply with certain disclosure requirements about their U.S. account holders. A…

New Report: Delinquent Taxpayers Could be Identified at US Border Crossings

- By : Parag Patel

…taxpayers asking them to provide information required under FATCA. The failure to provide the information will result in the taxpayers being place on a FATCA “recalcitrant” list. The financial institutions…

New voluntary disclosure program for offshore accounts in 2011

- By : Parag Patel

…Act (“FATCA”) ensures that more information about foreign accounts will become available to U.S. enforcement authorities. FATCA will make it much more likely that any foreign financial institution, and non-financial…

IRS announces two new intriguing targeted enforcement campaigns

- By : Parag Patel

…for not reporting foreign accounts. In 2011, in response to the Foreign Account Tax Compliance Act (FATCA), the IRS announced a new amnesty program called the 2011 Offshore Voluntary Disclosure…

Foreign Account Tax Compliance Act – Traps for the Unwary

- By : Parag Patel

For anyone who has clients or family members that live and work abroad, the new Foreign Account Tax Compliance Act (FATCA) is a real problem. Although this Act is supposed…

Becoming Un-American: Record number of US citizens renounce their US citizenship

- By : Parag Patel

FATCA requires individuals to report certain foreign assets and banks to disclose all foreign accounts held by Americans. Key FATCA disclosure rules take effect this year that will make avoiding…

Swiss Government and US Government Announce New Program for Cooperation and Disclosure by Swiss Banks

- By : Parag Patel

…Act (FATCA) as implemented by Switzerland and the United States in the Swiss-US Intergovernmental Agreement (Swiss IGA). The New Program, similar to the OVD Initiatives, will provide the US with…

New Law’s Reporting Requirements Make It Very Likely That the IRS Will Now Know About Your Foreign Account

- By : Parag Patel

Under the recently enacted Foreign Account Tax Compliance Act (“FATCA”), foreign financial institutions (“Financial institutions” is broadly defined to include banks, mutual funds, funds of funds, exchange-traded funds, hedge funds,…

50% Penalty for Taxpayers Who Hold Accounts at a Bank Under Investigation

- By : Parag Patel

…the list may grow as FATCA is implemented, the current list of those banks include: HSBC India • UBS AG • Credit Suisse AG, Credit Suisse Fides, and Clariden Leu…

Benefits and consequences of entering or failing to enter the Offshore Voluntary Disclosure Initiative program

- By : Parag Patel

…Involuntary Discovery as a result of FATCA and Mutual Information Sharing Treaties Criminal Prosecution Lengthy comprehensive audit examination of tax returns 1-5 years’ jail sentence (based on magnitude of un-reporting)…

The IRS Large Business and International division (LB&I) has announced a new Post OVDP Compliance enforcement campaign

- By : Parag Patel

…Foreign Account Tax Compliance Act (FATCA), the IRS announced a new amnesty program to take the place of the 2009 program; the official title was the 2011 Offshore Voluntary Disclosure…

The IRS is Hiring: Expect New Enforcement

- By : Parag Patel

…Account Tax Compliance Act (“FATCA”). A basic comparison of FATCA data and taxpayers’ filing data could yield many thousands of instances of noncompliance. In other words, the IRS will be…

Bank Leumi: Another Foreign Bank Recommends the IRS Voluntary Disclosure Program

- By : Parag Patel

…to the U.S. government after admitting to similar wrongdoing with its private bank. The bank provided more than 4,400 names of U.S. account holders to U.S. authorities. FATCA requires foreign…

What if You Missed the OVDI Deadline?

- By : Parag Patel

…of discovery by the IRS, and the attendant increased penalties and criminal exposure, is the Foreign Account Tax Compliance Act (FATCA) recently passed by Congress. Under FATCA, which goes into…

2 recent IRS developments that will impact Indian Americans

- By : Parag Patel

FATCA (Foreign Account Tax Compliance Act) now almost imminent, the IRS is soon going to get more details about foreign financial accounts. Most experts agree that there is going to…

One Month Countdown: The Deadline is Nearing for U.S. Taxpayers with Undisclosed Accounts to Come Forward

- By : Parag Patel

…the failure to file an administrative form,” says Mr. Patel. Starting in 2014, the U.S. Foreign Account Tax Compliance Act (FATCA) will require Canadian financial institutions to disclose information about…

Caution: Foreign Businesses Require Additional Reporting

- By : Parag Patel

…may find that their U.S. connection brings unwanted U.S. reporting requirements and scrutiny. Aside from the CFC rules discussed above, the new FATCA (Foreign Account Tax Compliance Act) requires ownership…