ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…its various settlement initiatives with the foreign banks as well as the Foreign Account Tax Compliance Act (“FATCA”). Indeed, one of the criteria for identifying potential U.S. persons under the…

US passport and green-card has lost its glamour

- By : Parag Patel

A US passport or green-card is losing its glamour and appeal. Some people are surrendering their prized green cards because of the US Foreign Account Tax Compliance Act (FATCA), which…

US Entities with foreign assets have more information reporting

- By : Parag Patel

…effective immediately, are linked to the Foreign Account Tax Compliance Act (FATCA). When FATCA was enacted in 2010, the new Section 6083D was added to the Internal Revenue Code requiring…

New Leak of Offshore Accountholders Highlights the Need to Clean Up

- By : Parag Patel

…with other countries under the Foreign Account Tax Compliance Act (FATCA) have cracked open access to bank information previously held in secret in other countries. If a foreign bank refuses…

IRS Collects $10 Billion From Voluntary Disclosures of Foreign Assets

- By : Parag Patel

…Compliance Act, or FATCA, as part of the HIRE Act. The legislation requires foreign financial institutions to report on the holdings of U.S. customers or else face stiff penalties of…

Offshore Compliance Programs Generate $8 Billion; IRS Urges People to Take Advantage of Voluntary Disclosure Programs

- By : Parag Patel

…including the offshore program and streamlined procedures, to come back into full compliance with their tax obligations.” Under the Foreign Account Tax Compliance Act (FATCA) and the network of intergovernmental…

IRS Announces New Investigative Units

- By : Parag Patel

…leads from information received through the Swiss Banking Program, the Foreign Account Tax Compliance Act (FATCA) and the Panama Papers investigation, among other sources. The effort is also clearly intended…

A solution in a tough tax season: the IRS Streamlined Offshore Procedures

- By : Parag Patel

…the risk/reward for each taxpayer. Regardless, as FATCA continues to go fully online (and the cooperating bank list grows), the cost and risk of doing nothing has gone up exponentially….

IRS Announces Penalty Mitigation for Smaller US Taxpayers Living Abroad

- By : Parag Patel

…the US tax laws, including FATCA with increased criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax…

Analysis of the new 2012 Offshore Voluntary Disclosure Program (OVDP)

- By : Parag Patel

…Account Tax Compliance Act (FATCA) and Foreign Financial Asset Reporting (Form 8938 and new IRC § 6038D) become effective. It is likely that the U.S. government will require foreign financial…

IRS expands use of Subpeonas

- By : Parag Patel

…the banks’ clients who came clean and disclosed their previously undeclared offshore accounts. With new data expected from the FATCA initiative, which forces financial institutions worldwide to report U.S. taxpayer…

How to Defend Against FBAR Penalties

- By : Parag Patel

…pursuant to Deferred Prosecution Agreements) and using recent FATCA legislation, which starting this year will force many foreign banks to disclose their U.S. account holders or be subject to a…

IRS announces new Streamlined Filing Compliance Procedures

- By : Parag Patel

…determine the most advantageous route in light of these new rules. As FATCA continues to go fully online, the cost and risk of doing nothing seems to have gone up…

New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures

- By : Parag Patel

The United States’ IRS is moving to entice more taxpayers to disclose their unreported assets and income just weeks before implementation of the U.S. Foreign Account Tax Compliance Act (FATCA)….

New offshore voluntary disclosure program (OVDP) changes expected to be favorable to taxpayers

- By : Parag Patel

…modifications. Koskinen predicted that more details about the OVDP are expected to be available in coming weeks as the July 1 FATCA implementation date approaches. So stay tuned. In the…

The IRS Large Business and International division (LB&I) has announced a new Offshore Private Banking enforcement campaign

- By : Parag Patel

…activities, otherwise, they are subject to penalties and possible criminal prosecution. Via FATCA and subpoenaed bank records, the IRS is in possession of records that identify taxpayers with transactions or…

IRS collects over $5 billion in its its offshore voluntary disclosure programs

- By : Parag Patel

…specific financial institution. Our law firm expects unabated aggressive enforcement of the US tax laws, including FATCA with increased criminal prosecutions and civil audit examinations. We have been advising our…

OVDP Ineligibility Possibility Increases

- By : Parag Patel

…there is no stated deadline) because of the IRS’ continuing investigation of foreign banks. Our law firm expects unabated aggressive enforcement of the US tax laws, including FATCA with increased…

U.S. Taxpayers at New Risk of Audit from OVDP Declines and Withdrawals Campaign

- By : Parag Patel

…pre-clearance applications and Offshore Voluntary Disclosure Letters. Foreign Account Tax Compliance Act (FATCA) reporting is not expected to be a source of identification at this time. According to the Service,…

Watch Out for PFIC Status

- By : Parag Patel

…be used to offset capital gains on other investments. Due to the Foreign Account Tax Compliance Act (FATCA), which forces every single financial institution to submit information on their American…

Beware of Overlooked Common Overseas Tax Forms

- By : Parag Patel

…on June 30, with no extension possible. Form 8938: This form, also known as the FATCA form, is used to report Specified Foreign Financial Assets and the income derived from…

Protective Filing of Information Returns

- By : Parag Patel

…30, with no extension possible. A U.S. person with an ownership interest in foreign accounts may also need to file a Form 8938. This form, also known as the Fatca

Information Sharing of Account Holder Information Officially Begins

- By : Parag Patel

The IRS has begun receiving information regarding tax year 2014 from nations around the world who have agreed to comply with FATCA. Some of those countries negotiated reciprocal agreements to…

New IRS guidance Announced for IRS Streamlined Offshore Procedures.

- By : Parag Patel

…Regardless, as FATCA continues to go fully online (and the cooperating bank list grows), the cost and risk of doing nothing has gone up exponentially. In summary, taxpayers with undisclosed…

Internal Revenue Service again issues annual reminder to US persons to report foreign accounts and foreign income

- By : Parag Patel

…first year of the form. Form 8938 resulted from the Foreign Account Tax Compliance Act, known as “FATCA.” The filing thresholds are much higher for this form than for the…

Avoiding and Defining Willfulness

- By : Parag Patel

…not disclose such offshore accounts and assets. In addition, many U.S. taxpayers, both domestic and international, are facing pressure from foreign banks to disclose their U.S. taxpayer status (via FATCA

New Form Updates for Foreign Accounts

- By : Parag Patel

…obtain an employer identification number. All of the above forms are related to taxpayers’ compliance with foreign accounts, which is under great scrutiny after passage of the US FATCA law….

IRS Releases New IRS Form W8-BEN: U.S. persons beware of completing such form at the request of a third party

- By : Parag Patel

…been driven by the changes in the law under FATCA. The new IRS Form W-8BEN and its instructions are accessible here. Importantly, no U.S. citizen can legally sign and certify…

New Unreported Offshore Assets case: Bad facts leads to bad results

- By : Parag Patel

…than $10,000, by filing a FBAR, or Foreign Bank Account Report. Enforcement of this law increased after the signing into law of the Foreign Account Tax Compliance Act, or FATCA,…

Run to the Door: IRS Terminates Offshore Voluntary Disclosure Program (OVDP) effective September 28, 2018

- By : Parag Patel

…Act (FATCA) and the ongoing efforts of the IRS and the Department of Justice to ensure compliance by those with U.S. tax obligations have raised awareness of U.S. tax and…