1.\u00a0\u00a0\u00a0\u00a0\u00a0 FATCA (Foreign Account Tax Compliance Act of 2009) requires disclosure of your account information.<\/p>\n
A.\u00a0\u00a0\u00a0\u00a0 July 1, 2014 FATCA withholding began.<\/p>\n
B.\u00a0\u00a0\u00a0\u00a0 FATCA requires a 30 percent withholding tax on any “withholdable payment” made either to an FFI (foreign financial institution, e.g. an offshore bank) or certain other entities if it fails to comply with new reporting, disclosure, and related requirements.<\/p>\n
C.\u00a0\u00a0\u00a0\u00a0 FATCA reporting of specific account information is effective for accounts open as of January 1, 2014, and the reports are due March 15, 2015.<\/p>\n
D.\u00a0\u00a0\u00a0\u00a0 FFIs are required to:<\/p>\n
a.\u00a0\u00a0\u00a0\u00a0\u00a0 Obtain information from each account holder as is necessary to determine which accounts are “U.S. accounts”<\/p>\n
b.\u00a0\u00a0\u00a0\u00a0\u00a0 Comply with verification and due diligence procedures with respect to the identification of U.S. accounts<\/p>\n
E.\u00a0\u00a0\u00a0\u00a0\u00a0 Report annually certain information related to any U.S. account maintained by such institution<\/p>\n
F.\u00a0\u00a0\u00a0\u00a0\u00a0 Deduct and withhold 30 percent on certain pass thru payments made to the benefit of an account holder that refuses to provide the required information (a “recalcitrant account holder”)<\/p>\n
G.\u00a0\u00a0\u00a0\u00a0 Attempt to obtain a waiver in any case in which any foreign law would (but for a waiver) prevent reporting of information under the provision related to any U.S. account maintained by such institution and, if a waiver is not obtained, to close the account.<\/p>\n
H.\u00a0\u00a0\u00a0\u00a0 File a 1099 with the IRS, or provide detailed information about the foreign account, e.g. Name and address, Account Balance, Gross Receipts and Gross withdrawals.<\/p>\n
2.\u00a0\u00a0\u00a0\u00a0\u00a0 IRS Investigations of numerous banks, including Credit Suisse, Julius Baer, HSBC, Basler Kantonalbank, Bank Leumi, Bank Hapoalim, and numerous others. The banks were required to disclose of your account information.<\/p>\n
3.\u00a0\u00a0\u00a0\u00a0\u00a0 Swiss Bank Program where Swiss Banks seek non-prosecution agreements and were required to disclose of your account information. The Swiss Bank Program provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise US DOJ by December 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared United States-related accounts.<\/p>\n
A.\u00a0\u00a0\u00a0\u00a0 106 Swiss Banks signed up<\/p>\n
B.\u00a0\u00a0\u00a0\u00a0 Information regarding the accounts held by the bank that existed as of Aug. 1, 2008 must be turned over to the IRS as part of the non-prosecution agreements (NPA)<\/p>\n
C.\u00a0\u00a0\u00a0\u00a0 June 30, 2015 is the deadline for Swiss banks to submit data to US DOJ<\/p>\n
D.\u00a0\u00a0\u00a0\u00a0 Make a complete disclosure of their cross-border activities;<\/p>\n
E.\u00a0\u00a0\u00a0\u00a0\u00a0 Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;<\/p>\n
F.\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0Cooperate in treaty requests for account information;<\/p>\n
G.\u00a0\u00a0\u00a0\u00a0 \u00a0Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;<\/p>\n
H.\u00a0\u00a0\u00a0\u00a0 Provide assistance to any state law enforcement agencies to authenticate documents to be used in state civil or criminal tax proceedings against individuals<\/p>\n
I.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Close all recalcitrant (noncompliant) accounts;<\/p>\n
J.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Demonstrate controls to prevent employees from assisting recalcitrant accountholders in further acts of concealment;<\/p>\n
K.\u00a0\u00a0\u00a0\u00a0\u00a0 Use best efforts within term of the NPA to close dormant accounts; and<\/p>\n
L.\u00a0\u00a0\u00a0\u00a0\u00a0 Retain all records for 10 years from the termination date of the NPA.<\/p>\n
4.\u00a0\u00a0\u00a0\u00a0\u00a0 Whistle Blowers disclose of your account information in exchange for payment or non-prosecution.<\/p>\n
A.\u00a0\u00a0\u00a0\u00a0 Disgruntled Bank Employees<\/p>\n
B.\u00a0\u00a0\u00a0\u00a0 Bank Employees Under Indictment<\/p>\n
C.\u00a0\u00a0\u00a0\u00a0 Advisors and\/or facilitators<\/p>\n
D.\u00a0\u00a0\u00a0\u00a0 Ex-Spouses<\/p>\n
E.\u00a0\u00a0\u00a0\u00a0\u00a0 Ex-employees<\/p>\n
F.\u00a0\u00a0\u00a0\u00a0\u00a0 Ex-business partners<\/p>\n
5.\u00a0\u00a0\u00a0\u00a0\u00a0 IRS Activity<\/p>\n
A.\u00a0\u00a0\u00a0\u00a0 John Doe Summons, e.g., HSBC Summons for account information<\/p>\n
B.\u00a0\u00a0\u00a0\u00a0 Information submitted by more than 50,000 taxpayers participating in OVDP\/OVDI as of January 2015, possibly including your banker, advisor or facilitator (who in turn is investigated and interviewed for information)<\/p>\n
C.\u00a0\u00a0\u00a0\u00a0 Sometime in 2012 Credit Suisse turned over client information to IRS pursuant to a treaty request<\/p>\n
D.\u00a0\u00a0\u00a0\u00a0 Guilty Plea by Wegelin Bank<\/p>\n
E.\u00a0\u00a0\u00a0\u00a0\u00a0 Swiss Bank Clariden Leu turned over client information to IRS in late 2011<\/p>\n
F.\u00a0\u00a0\u00a0\u00a0\u00a0 Ongoing negotiations with the Swiss government and Fourteen Swiss Banks who are under investigation by IRS and Department of Justice<\/p>\n
G.\u00a0\u00a0\u00a0\u00a0 110 clients turned over to IRS by Swisspartners<\/p>\n
If you have\u00a0risk of discovery of tax non-compliance, you\u00a0must seek the advice of a tax legal professional. Failure to do so can result in significant civil penalties or a referral for criminal tax prosecution. Patel Law Offices can explain your legal situation and present potential solutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
1.\u00a0\u00a0\u00a0\u00a0\u00a0 FATCA (Foreign Account Tax Compliance Act of 2009) requires disclosure of your account information. A.\u00a0\u00a0\u00a0\u00a0 July 1, 2014 FATCA withholding began. B.\u00a0\u00a0\u00a0\u00a0 FATCA requires a 30 percent withholding tax on any “withholdable payment” made either to an FFI (foreign financial institution, e.g. an offshore bank) or certain other entities if it fails to comply […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[20,23,24,52,68,25,26,88,27],"class_list":["post-1329","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization","tag-asset-protection","tag-fbar","tag-foreign-account","tag-offshore","tag-ovdp","tag-penalties-and-interest","tag-sdop","tag-streamlined-filing-compliance-procedures","tag-voluntary-disclosure"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=1329"}],"version-history":[{"count":0,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1329\/revisions"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=1329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=1329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=1329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}