The Foreign Account Tax Compliance Act ("FATCA")
Summary: If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service.
The IRS takes non-filing, tax fraud, identity theft and FBAR issues very seriously and can pursue criminal charges if it thinks it is appropriate. If you find yourself in the middle of a criminal tax investigation, it's wise to contact a tax attorney immediately. We are here to help guide and advise you with these serious matters. Our practical, ethical and professional approach will allow you to rest confidently in our representation of your legal tax matter.
The Foreign Account Tax Compliance Act (FATCA) contains a number of provisions that are intended to make it more difficult for US taxpayers (individuals, partnerships, trusts, corporations) to use non-US accounts to shelter income from US taxation. FATCA also imposes new requirements on certain non-US taxpayers with US investments. Many FATCA provisions are now supported by final regulations that were issued in January of 2013. As a result, taxpayers with international activity could be subject to increased reporting requirements for financial accounts and increased “know your customer” requirements to avoid being obliged to withhold from payments to non-US vendors and suppliers, even though the taxpayer is already US tax-compliant and not part of the targeted group. Although many of the new requirements are not immediately effective, affected taxpayers should be aware of them so that the taxpayer does't find itself in non-compliance.
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