FATCA: YOUR
INTERNATIONAL BUSINESS AND ASSETS
What You Absolutely Need
To Know
Published In: The
Internationalist Page Blog
Related Article Published
In: The
Global Futurist Blog
| The provisions commonly known as the Foreign Account Tax
Compliance Act (FATCA) became law in March 2010. If you are a
U.S.-domiciled individual or entity with assets or accounts
outside of the U.S., or if you are a non-U.S. individual or entity
with assets or accounts in the U.S., you must be in compliance
with FATCA or risk the imposition of civil and potentially
criminal penalties. The Internal Revenue Service is charged with
enforcing compliance and its (the IRS') reach is international by
fiat. While FATCA purports to target individual taxpayers,
entities are affected (based upon their ownership by individuals
subject to FATCA), and the author believes that the issuance of
actual regulatory reporting requirements for non-financial
entities will be required in the near future. Here are the stated objectives of FATCA: |
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If you are an individual:
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Third-party reporting: Foreign financial institutions may provide to the IRS third-party information reporting about financial accounts, including the identity and certain financial information associated with the account, which they maintain offshore on behalf of U.S. individual account holders.
Application to domestic entities: The IRS anticipates issuing regulations that will require a domestic entity to file Form 8938 if the entity is formed or used to hold specified foreign financial assets and the total asset value exceeds the appropriate reporting threshold. Until the IRS issues such regulations, only individuals must file Form 8938. For more information about domestic entity filing, see Notice 2013-10.
If you are a financial
institution, or if you are simply an entity (either within or outside
of the U.S.) which issues payments to individuals or other entities
internationally, it might be advisable for you to “play it safe”
- conduct a Google search [
https://www.google.com/#q=us+withholding+agents+fatca
]
for some basic background
information regarding any reporting or other compliance requirements
to which you may be subject (especially if you may be deemed a “U.S.
Withholding Agent”) and follow your initial research with a
consultation with competent legal and tax counsel in order to be
certain that you are in compliance with the law.
Some additional
informational resources follow. While these resources may indeed be
helpful, they may be outdated (in some cases, as the regulations and
interpretations are constantly changing) and cannot be used or
construed as a substitute for professional legal and tax advice. The
author does not endorse any of the firms providing the information
which follows:
As always, thank you for
reading me.
Labels, Tags, Categories,
Keywords And Search Terms For This Article:
FATCA, Foreign Account Tax
Compliance Act, international business, import/export, international
trade, the Internal Revenue Service, offshore and overseas accounts
and assets, U.S. Withholding Agents, regulatory compliance, The
Global Futurist Blog, The Internationalist Page Blog, Douglas E.
Castle
NOTE:
THE INFORMATION CONTAINED IN THIS ARTICLE SHOULD NOT BE CONSTRUED BY
THE READER AS BEING LEGAL, FINANCIAL, TAX, ACCOUNTING, ECONOMIC OR
INVESTMENT ADVICE. NO OFFERING OF SECURITIES OR OTHER INVESTMENT
INTERESTS OF ANY TYPE IN ANY ENTITY IS MADE HEREBY, NOR IS A
SOLICITATION FOR THE PURCHASE OF SECURITIES OR OTHER INVESTMENT
INTERESTS OF ANY TYPE IN ANY ENTITY MADE HEREBY. THIS ARTICLE IS
INTENDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND REPRESENTS THE
VIEW OF THE AUTHOR ONLY.
THIS
ARTICLE IS COPYRIGHT 2015 BY DOUGLAS E. CASTLE, WITH ALL RIGHTS
RESERVED. ANY REPRODUCTION, TRANSMITTAL OR DISTRIBUTION OF THIS
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IMAGES AND LINKS IN THE ARTICLE REMAIN INCLUDED AND “LIVE.”
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