Wednesday, July 23, 2014

Israel Will Transfer Detailed Information on American Held Financial Accounts to The U.S. Tax Authorities!




On Tuesday, April 1, 2014 we posted "IRS Targets Americans Living In Israel!" where we discussed that according to The Jewish Daily Forward, this upcoming tax season could entail some unpleasant surprises for United States citizens who either live in Israel or who hold bank accounts there.
Filing requirements for these Americans have become more rigorous and the odds of being audited by the Internal Revenue Service are higher than they’ve ever been.
 
“I’ve seen more audits in the past year or two than I’ve seen in the previous 30 years combined,” said Philip Stein, an American CPA working in Israel. “It created a difficult atmosphere both for honest tax preparers and for honest families filing their returns.”
Now the stakes have been raised as Israel will transfer detailed information on American-held financial accounts to U.S. tax authorities by Sept. 30, 2015, under the first phase of an accord to implement the Foreign Account Tax Compliance Act.


In the case of Israel with respect to each U.S. Reportable Account of each Reporting Israeli Financial Institution:
  1. The name, address, and U.S. TIN of each Specified U.S. Person that is an Account Holder of such account and, in the case of a Non-U.S. Entity that, after application of the due diligence procedures set forth in Annex I, is identified as having one or more Controlling Persons that is a Specified U.S. Person, the name, address, and U.S. TIN (if any) of such entity and each such Specified U.S. Person;
  2. The account number (or functional equivalent in the absence of an account number); 
  3. The name and identifying number of the Reporting Israeli Financial Institution;  
  4. The account balance or value (including, in the case of a Cash Value Insurance Contract or Annuity Contract, the Cash Value or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the account was closed during such year, immediately before closure; in the case of any Custodial Account:  
(A) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account) during the calendar year or other appropriate reporting period; and
 
(B) the total gross proceeds from the sale or redemption of property paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the Reporting Israeli Financial Institution acted as a custodian, broker, nominee, 
or otherwise as an agent for the Account Holder;

 
(6) In the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar year or other appropriate reporting period; and

 
(7) In the case of any account not described in subparagraph 2(a)(5) or 2(a)(6) of this Article, the total gross amount paid or credited to the Account Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the Reporting Israeli Financial Institution is the obligor or debtor, including the aggregate amount of any redemption payments made to the Account Holder during the calendar year or other appropriate reporting period.

 

Have unreported income from an Israeli Bank? 
 
Felling a Bit Faclept?
 
Contact the Tax Lawyers at 

Marini & Associates, P.A.

for a FREE Tax Consultation at: 
Toll Free at 888-8TaxAid ((888) 882-9243)


Source:

No comments:

Post a Comment