IRS Announces That Tax Rules for Overseas Banks Will See Light Enforcement In the Next 2 Years!

IRS Notice 2014-33 announces that calendar years 2014 and 2015 will be regarded as a transition period for purposes of IRS enforcement and administration with respect to the implementation of FATCA by withholding agents, foreign financial institutions (FFIs), and other entities with chapter 4 responsibilities, and with respect to certain related due diligence and withholding provisions under chapters 3 and 61, and section 3406.

This notice also announces certain intended amendments to the regulations under sections 1441, 1442, 1471, and 1472, including amendments providing that a withholding agent or FFI may treat an obligation (which includes an account) held by an entity that is opened, executed, or issued on or after July 1, 2014, and before January 1, 2015, as a preexisting obligation for purposes of sections 1471 and 1472, subject to certain modifications set out in the notice. 

Taxpayers may rely on Notice 2014-33 regarding these proposed amendments to the regulations prior to their issuance.


Notice 2014-33 will be published in Internal Revenue Bulletin 2014-21 on May 19, 2014.

Do You Have Unreported Foreign Income?

 

 

Contact the Tax Lawyers at

Marini & Associates, P.A.  

for a FREE Tax Consultation

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid ((888) 882-9243)

Source:

Notice 2014-33

IRS Provides New FATCA Guidance for Branches & Disregarded Entities

The Internal Revenue Service has provide new guidance in Issue Number:2014-11 on how branches and disregarded entities need to register for the Foreign Account Tax Compliance Act, with changes that come as a surprise for many foreign financial institutions. 

ALERT #4 indicates that New FATCA Frequently Asked Questions (FAQs) and Answers have been posted to the FATCA Website.  Topics include Responsible Officers,  Branches/Disregarded Entities and a Registration Update.  

Here is the link to the latest set of FAQs:  Latest FAQs.
  

Do You Have Unreported Foreign Income?

 

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.  

for a FREE Tax Consultation

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid ((888) 882-9243)

Source:

IRS

52 Fatca Agreements ... Israel Reached & Australia Signed FATCA Agreements

On Thursday, April 24, 2014, we posted "51 Fatca Agreements and Growing!"  where we discussed the IRS' Announcement 2014-17  which provides that countries that have FATCA agreements "in substance" with the United States will be seen as complying with the law, even if the agreements are not finalized by Dec. 31, 2014. 

Since then, Australia signed and Israel  Reach Agreement on  their FATCA agreement, bring the  total to 51 Countries with US FATCA Agreements!

31 nations with agreements:

1. Australia
2. Bermuda
3. Bahamas 
4. Canada
5. Cayman Islands
6. Chile
7. Costa Rica
8. Denmark
9. Finland
10. France
11. Germany
12. Gibraltar
13. Guernsey
14. Hungary
15. Honduras 
16. India
17. Ireland
18. Isle of Man
19. Italy
20. Japan
21. Jersey
22. Luxembourg
23. Malta
24. Mauritius
25. Mexico
26. Netherlands
27. Norway
28. Slovak Republic
29. Spain
30. Switzerland
31. United Kingdom

With 21 nations treated as having an agreement, that are "in the process" 

1. Austria
2. Belgium
3. Brazil
4. British Virgin Islands
5. Croatia
6. Czech Republic
7. Estonia
8. Israel
9. Jamaica
10. Kosovo
11. Latvia
12. Liechtenstein
13. Lithuania
14. New Zealand
15. Poland
16. Portugal
17. Qatar
18. Slovenia
19. South Africa
20. South Korea
21. Romania

 See Below For Types of FATCA Agreements signed by each country and Links to the actual Agreements.

Do You Have Unreported Foreign Income?

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.  

for a FREE Tax Consultation

at: www.TaxAid.us or www.TaxLaw.ms or

Toll Free at 888-8TaxAid ((888) 882-9243egin_of_the_skype_highlightingREE end_of_the_skype_highlighting)

Type of Agreement and Links to Agreements.

Model 1 IGA

• Canada (2-5-2014)
• Cayman Islands (11-29-2013)
• Costa Rica (11-26-2013)
• Denmark (11-19-2012)
• Estonia (4-11-2014)
• Finland (3-5-2014)
• France (11-14-2013)
• Germany (5-31-2013)
• Guernsey (12-13-2013)
• Hungary (2-4-2014)
• Honduras (3-31-2014)
• Ireland (1-23-2013)
• Isle of Man (12-13-2013)
• Italy (1-10-2014)
• Jersey (12-13-2013)
• Luxembourg (3-28-2014)
• Malta (12-16-2013)
• Mauritius (12-27-2013)
• Mexico (4-17-2014)
• Netherlands (12-18-2013)
• Norway (4-15-2013)
• Spain (5-14-2013)
• United Kingdom (9-12-2012)

Model 2 IGA

• Bermuda (12-19-2013)
• Chile (3-5-2014)
• Japan (6-11-2013)
• Switzerland (2-14-2013)

Jurisdictions that have reached agreements in substance and have consented to being included on this list (beginning on the date indicated in parenthesis):

Model 1 IGA

• Australia (4-2-2014)
• Bahamas (4-17-2014)
• Belgium (4-2-2014)
• Brazil (4-2-2014)
• British Virgin Islands (4-2-2014)
• Bulgaria (4-23-2014)
• Columbia (4-23-2014)
• Croatia (4-2-2014)
• Czech Republic (4-2-2014)
• Cyprus (4-22-2014)
• Gibraltar (4-2-2014)
• India (4-11-2014)
• Jamaica (4-2-2014)
• Kosovo (4-2-2014)
• Latvia (4-2-2014)
• Liechtenstein (4-2-2014)
• Lithuania (4-2-2014)
• New Zealand (4-2-2014)
• Poland (4-2-2014)
• Portugal (4-2-2014)
• Qatar (4-2-2014)
• Slovak Republic (4-11-2014)
• Slovenia (4-2-2014)
• South Africa (4-2-2014)
• South Korea (4-2-2014)
• Romania (4-2-2014)

Model 2 IGA

• Austria (4-2-2014)

This is a complete list of joint FATCA statements between the United States and other countries.

Source:

IRS 

 

 

 

 

 

 

 

U.S., Israel Reach FATCA Agreement, Treasury Confirms

Posted May 01, 2014, 1:53 P.M. ET

The U.S. has reached an intergovernmental agreement with Israel to implement the Foreign Account Tax Compliance Act, the Treasury Department said May 1.

A Treasury spokeswoman told Bloomberg BNA the two countries have reached a Model 1 agreement in substance.

Enacted in 2010, FATCA requires foreign financial institutions to report U.S.-owned accounts to the Internal Revenue Service or face, in some cases, a 30 percent withholding tax on their U.S.-source income. IGAs allow FFIs to give information about theses accounts to their own governments, which then would share the data with the IRS. Model 1 agreements call for reciprocal information exchanges between nations.

 

 

FATCA – Australia signs IGA

Australia has signed a reciprocal Model 1 agreement with the USA to implement the US Foreign Account Tax Compliance Act (FATCA). Australian financial institutions now have until next Monday to register with the US Internal Revenue Service as FATCA-compliant and avoid withholding taxes on US-sourced investment income.

Australian Treasury Department

Treasury (text if IGA, PDF)

Reuters
Thorn Law