Beware of FATCA Letters

- By : P. Patel

FATCA letters (sometime called Self Certification letters) are going out from banks around the world to millions of US expats in readiness for reporting their financial information to the Internal Revenue Service (IRS). If you are one of the 8 million US expats subject to the Foreign Account Tax Compliance Act (FATCA), what do you

Received a FATCA Letter from Your Foreign Bank?

- By : P. Patel

If you have any US connections and have a non-U.S. bank account, you may have recently received a letter from your bank asking for your tax information. This may seem odd or new to you but lately banks everywhere want to know if you are compliant with the IRS. Basically, the entire world is helping

FATCA Noncompliant Accounts may be Frozen or Blocked

- By : P. Patel

Many of our clients with foreign accounts have received FATCA letters.  The letters seek personal information regarding the account holder in order to comply with the US FATCA law. In recent weeks, government authorities in a few foreign countries have announced that account holders that have received FATCA letters and have not responded with the

New FATCA Enforcement Expected

- By : P. Patel

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. taxpayers,

What is a “FATCA Compliance Certificate”?

- By : P. Patel

Many foreign banks and financial institutions have recently been asking customers for a “FATCA Compliance Certificate”.  The reason for the request is that your country and the US probably signed an agreement to implement the Foreign Account Tax Compliance Act (FATCA), which will allow automatic exchange of tax information between the two countries this year. FATCA is an important

What FATCA Means to You and Your Investments

- By : P. Patel

You may have recently received a letter from your financial institution or investment firm asking for some of your personal details.  Typically the letter requests many personal, tax and residency details, such as your country of birth, the country in which you live, tax identification numbers, and whether you pay taxes in any other country,

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

- By : P. Patel

Numerous foreign banks are sending letters to their customers demanding personal information to ascertain whether the customer is a U.S. citizen or a U.S. resident. The foreign banks typically state 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 on

Avoiding and Defining Willfulness

- By : P. Patel

U.S. taxpayers with unreported foreign accounts or assets are in a challenging position. The IRS has repeatedly announced that it is devoting resources to finding and penalizing taxpayers who do 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

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

- By : P. Patel

The Internal Revenue Service’s collection efforts need to be improved to make sure that delinquent taxpayers residing in foreign countries comply with their U.S. tax obligations, according to a new government report. The report, from the Treasury Inspector General for Tax Administration (TIGTA), comes amid the implementation of many of the requirements of the Foreign Account

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

- By : P. Patel

Last year, the US Treasury Inspector General for Tax Administration (TIGTA) released a report which assessed how well that IRS was managing the Offshore Voluntary Disclosure Program (OVDP). OVDP is one of the programs taxpayers may use to become compliant if they previously had failed to report offshore income on their tax returns and file