by Fresh Start Tax | Mar 24, 2014 | Tax Help
Outsource Payroll Duties, Pay Attention to these Tax Tips
Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers and reporting agents. It is a great way to save money and reduce business costs.
Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities.
Though most of these businesses provide very good service, there are, unfortunately, some who do not have their clients’ best interests at heart. Remember, they are in business for themselves.
Over the past few months, a number of these individuals and companies around the country have been prosecuted for stealing funds intended for the payment of payroll taxes.
If you own a business you should also be aware of the trust fund recovery penalties found under 6672 of the Internal Revenue Code.
Like employers who handle their own payroll duties, employers who outsource this function are still legally responsible for any and all payroll taxes due.
This includes any federal income taxes withheld as well as both the employer and employee’s share of social security and Medicare taxes.
This is true even if the employer forwards tax amounts to a PSP or RA to make the required deposits or payments.
Here are some steps employers can take to protect themselves from unscrupulous third-party payers.
- Enroll in the Electronic Federal Tax Payment System and make sure the PSP or RA uses EFTPS to make tax deposits. Available free from the Treasury Department, EFTPS gives employers safe and easy online access to their payment history when deposits are made under their Employer Identification Number, enabling them to monitor whether their third-party payer is properly carrying out their tax deposit responsibilities. It also gives them the option of making any missed deposits themselves, as well as paying other individual and business taxes electronically, either online or by phone. To enroll or for more information, call toll-free 800-555-4477or visit www.eftps.gov.
- Refrain from substituting the third-party’s address for the employer’s address. Though employers are allowed to and have the option of making or agreeing to such a change, the IRS recommends that employers continue to use their own address as the address on record with the tax agency. Doing so ensures that the employer will continue to receive bills, notices and other account-related correspondence from the IRS. It also gives employers a way to monitor the third-party payer and easily spot any improper diversion of funds.
- Contact the IRS about any bills or notices and do so as soon as possible. This is especially important if it involves a payment that the employer believes was made or should have been made by a third-party payer. Call the number on the bill, write to the IRS office that sent the bill, contact the IRS business tax hotline at 800-829-4933 or visit a local IRS office. See Notices for Past Due Tax Returns on IRS.gov for more information.
- For employers who choose to use a reporting agent, be aware of the special rules that apply to RAs. Among other things, reporting agents are generally required to use EFTPS and file payroll tax returns electronically. They are also required to provide employers with a written statement detailing the employer’s responsibilities including a reminder that the employer, not the reporting agent, is still legally required to timely file returns and pay any tax due. This statement must be provided upon entering into a contract with the employer and at least quarterly after that.
- Become familiar with the tax due dates that apply to employers, and use the Small Business Tax Calendar to keep track of these key dates.
Also remember if payroll taxes are not paid, the IRS can collect individually from corporate officers or individuals responsible for both filing and paying quarterly tax reports to the Internal Revenue Service.
If you have a payroll tax problem with the IRS contact us today for immediate resolution.
by Fresh Start Tax | Mar 24, 2014 | Tax Help
FATCA: The Truth About Treasury’s Effort To Combat Offshore Tax Evasion
FATCA is here to stay for good simply because of the sheer volume of revenue it brings into the pocket book of the US government.
At the end of the day, it is all about the money.
The following is a article from Robert Stack is the Deputy Assistant Secretary for International Tax Affairs at the U.S. Department of the Treasury to clear up facts from fiction.
It is important for people to understand that the United States government is extremely serious about FATCA/FBAR.
If you have a situation that you need to speak about or need effective defense representation contact us today for a free initial conversation that is covered under the attorney-client privilege.
When calling our office you will need to ask to speak to one of our tax attorneys directly.
FACTA – The Foreign Account Tax Compliance Act – Fact from Fiction
The Foreign Account Tax Compliance Act (FATCA) is rapidly becoming the global standard in the effort to curtail offshore tax evasion.
This month’s G-20 communique marked another important milestone highlighting the importance of global tax transparency and a renewed commitment to work towards an international standard for the exchange of tax information.
With the Internal Revenue Service collecting over $5 billion the first three years in the international effort to collect back taxes on foreign bank accounts you can believe that the US government will be hot on the heels of all those not in compliance.
The Tax Gap
There has been concern about the tax gap, that is the difference between the tax dollars that are owed under the law, and those that are actually collected.
Offshore tax evasion is a significant contributor to the tax gap.
FATCA establishes a process for foreign financial institutions (FFIs) to report information about U.S. account holders to the IRS.
The US Treasury developed intergovernmental agreements (IGAs) to implement FATCA effectively.
These IGAs will require all of the relevant FFIs in a jurisdiction to report information about offshore U.S. accounts, a reporting obligation that will help the IRS catch tax evaders.
Yet despite the clear, positive benefits of FATCA, many continue to make misleading claims about its implementation and impact per Robert Stack.
Here are the facts on FATCA:
Myth #1:
Many claim it is overly costly and burdensome due to complex regulations and difficult to meet reporting requirements.
The truth off the matter the Treasury and the IRS have designed our regulations in a way that minimizes administrative burdens and related costs.
The regulations were intentionally designed to appropriately balance the scope of entities and accounts subject to FATCA with due diligence requirements, while also phasing in the related obligations over several years.
Many cases, FFIs are permitted to rely on information that they already must collect for local anti-money laundering and know-your-customer rules.
Many of these cost-saving simplifications were the result of comments received from affected financial institutions and foreign governments, which helped us to tailor the rules to achieve the policy objectives of the statute without imposing undue burdens or costs.
Myth #2.
Some claim that U.S. citizens living overseas will become outcasts in the international financial world.
Fact: FATCA withholding applies to the U.S. investments of FFIs whether or not they have U.S. account holders, so turning away known U.S. account holders will not enable an FFI to avoid FATCA.
Most of the governments implementing FATCA through IGAs will require their financial institutions to identify and report on all non-resident account holders, not just U.S. account holders.
Those governments agree with FATCA’s policy objectives, and want to facilitate the collection of information about the offshore accounts of their own residents.
For example, 19 countries have already announced a pilot project to exchange account information about each other’s residents that will be collected by the governments in line with FATCA’s due diligence and reporting procedures.
FATCA is quickly becoming the global standard for automatic information exchange and we expect the number of jurisdictions that choose to implement the same reporting procedures for all offshore accounts to continue to grow.
Fact# 3:
Some claim that Americans living abroad will give up their U.S. citizenship because of liabilities and burdens created by FATCA.
FATCA provisions impose no new obligations on U.S. citizens living abroad. FATCA’s withholding obligations fall on institutions making payments to FFIs, and the due diligence and reporting requirements fall on the FFIs themselves.
U.S. taxpayers, including U.S. citizens living abroad, are required to comply with U.S. tax laws.
Individuals that have used offshore accounts to evade tax obligations may rightly fear that FATCA will identify their illicit activities.
Yet a decision to renounce U.S. citizenship would not relieve these individuals of prior U.S. tax obligations, and might well create additional U.S. tax obligations for certain citizens and long-term residents who give up citizenship or residency.
Myth# 4:
Some claim that countries are opposed to FATCA, in part because the legislation could force foreign banks to violate laws in their own countries.
The Treasury’s decision to implement FATCA through IGAs that are respectful of the individual laws and customs of partner jurisdictions has contributed to the significant international interest in participating in FATCA compliance efforts.
The two FATCA model IGAs incorporate a two-pronged approach: under the first model, FFIs report to their respective governments who then relay that information to the IRS; or, under the second model, they report directly to the IRS to the extent the account holder consents or such reporting is otherwise legally permitted, supplemented by government-to-government cooperation to facilitate reporting on non-consenting accounts.
These model IGAs offer alternative frameworks for information sharing that abides by local laws.
The success of this approach is evidenced by the international response to this legislation.
To date, Treasury has signed 9 IGAs and has reached 15 agreements in substance, including with Malta, Bermuda, and the Cayman Islands. We are also engaged with over 70 additional countries and expect to conclude negotiations with several others soon.
In September 2013, G-20 leaders committed to the automatic exchange of information as the new global standard, and endorsed the development of a single model for this exchange, which is expected to be based on the FATCA IGAs.
Myth #5:
Some claim that FATCA will generate a backlash from foreign governments who view this as an overreach of U.S. law.
FATCA has received considerable international support because most foreign governments recognize how effective FATCA, and in particular our intergovernmental approach, will be in detecting and combating tax evaders. G-8 leaders recently acknowledged the central role of tax information exchange, stating in their June 2013 communiqué:
“A critical tool in the fight against tax evasion is the exchange of information between jurisdictions,” and urging that “[t]ax authorities across the world should automatically share information to fight the scourge of tax evasion.”
Myth# 6:
Some claim that FATCA will unfairly expose FFIs to heavy penalties before they have the necessary mechanisms in place to comply.
Recently announced a six-month extension to our withholding and account due diligence requirements because we recognize that FFIs need sufficient time to register for, understand, and implement their due diligence and reporting processes.
Those requirements will now start on July 1, 2014.
This extension exemplifies our commitment to ensuring that foreign jurisdictions and FFIs have sufficient time to properly prepare so that the law can be implemented effectively.
Myth #7.
Some claim that FATCA aims to use foreign banks as an extension of the IRS.
Individuals making this claim have confused reporting responsibilities with actual enforcement.
The objective of FATCA is the reporting of foreign financial accounts held by U.S. persons or certain entities with U.S. owners.
This law only requires FFIs to share information about financial accounts held by U.S. taxpayers, similar to what is already required of U.S. financial institutions; it does not include an enforcement component for those FFIs.
Myth#8.
Many individuals who call our offices believe they will not get caught.
While this is been true for the first three years, however due to many of the treaties that have been recently signed between governments, many if not all will start to comply.
At a point in time the US government will no longer be as lenient as they were in the beginning because the word has got out about the requirements of filing and registration.
We will expect to see a sharp rise in criminal prosecution. The bottom line here to anyone reading this blog is to find the government before they find you.
If you have a situation that you need to speak about or need effective defense representation contact us today for a free initial conversation that is covered under the attorney-client privilege.
When calling our office you will need to ask to speak to one of our tax attorneys directly.
The Truth about FACTA – Defense Representation – Attorneys, Lawyers – New York, Los Angeles, Chicago.
by Fresh Start Tax | Mar 24, 2014 | Tax Help
Offshore Tax Evasion – Attorneys, Lawyers – Criminal, Civil Representation
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The Treasury and IRS Issued Final Regulations to Combat Offshore Tax Evasion
Treasury Advances Efforts to Secure International Participation, Streamline Compliance, and Prepare for Implementation of the Foreign Account Tax Compliance Act.
The U.S. Department of the Treasury and the Internal Revenue Service issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act.
Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign accounts. The US government will be hot on the heels of tax cheats.
The issuance of the final regulations marks a key step in establishing a common intergovernmental approach to combating international tax evasion.
These final regulations provide additional certainty for financial institutions and government counterparts by finalizing the step-by-step process for :
- U.S. account identification,
- information reporting, and
- withholding requirements for foreign financial institutions (FFIs), other foreign entities, and U.S. withholding agents.
The final regulations issued today:
The Treasury Department has collaborated with foreign governments to develop and sign intergovernmental agreements that facilitate the effective and efficient implementation of FATCA by eliminating legal barriers to participation, reducing administrative burdens, and ensuring the participation of all non-exempt financial institutions in a partner jurisdiction.
In order to reduce administrative burdens for financial institutions with operations in multiple jurisdictions, the final regulations coordinate the obligations for financial institutions under the regulations and the intergovernmental agreements.
Phase in the timelines for due diligence, reporting and withholding and align them with the intergovernmental agreements.
The final regulations phase in over an extended transition period to provide sufficient time for financial institutions to develop necessary systems.
In addition, to avoid confusion and unnecessary duplicative procedures, the final regulations align the regulatory timelines with the timelines prescribed in the intergovernmental agreements.
Expand and clarify the scope of payments not subject to withholding. To limit market disruption, reduce administrative burdens, and establish certainty, the final regulations provide relief from withholding with respect to certain grandfathered obligations and certain payments made by non-financial entities.
Refine and clarify the treatment of investment entities.
To better align the obligations under FATCA with the risks posed by certain entities, the final regulations:
- (1) expand and clarify the treatment of certain categories of low-risk institutions, such as governmental entities and retirement funds;
- (2) provide that certain investment entities may be subject to being reported on by the FFIs with which they hold accounts rather than being required to register as FFIs and report to the IRS; and
- (3) clarify the types of passive investment entities that must be identified and reported by financial institutions.
Clarify the compliance and verification obligations of FFIs. The final regulations provide more streamlined registration and compliance procedures for groups of financial institutions, including commonly managed investment funds, and provide additional detail regarding FFIs’ obligations to verify their compliance under FATCA.
Progress on International Coordination, Including Model Intergovernmental Agreements
Since the proposed regulations were published on February 15, 2012, Treasury has collaborated with foreign governments to develop two alternative model intergovernmental agreements that facilitate the effective and efficient implementation of FATCA.
What do the model serve as:
These models serve as the basis for concluding bilateral agreements with interested jurisdictions and help implement the law in a manner that removes domestic legal impediments to compliance, secures wide-spread participation by every non-exempt financial institution in the partner jurisdiction, fulfills FATCA’s policy objectives, and further reduces burdens on FFIs located in partner jurisdictions.
Seven countries have already signed or initialed these agreements.
Treasury announced for the first time that:
Norway has joined the United Kingdom, Mexico, Denmark, Ireland, Switzerland, and Spain as countries that have signed or initialed model agreements.
The Treasury is engaged with more than 50 countries and jurisdictions to curtail offshore tax evasion, and more signed agreements are expected to follow in the near future.
Additional Background on the Model Agreements
On July 26, 2012, Treasury published its first model intergovernmental agreement (Model 1 IGA). Instead of reporting to the IRS directly, FFIs in jurisdictions that have signed Model 1 IGAs report the information about U.S. accounts required by FACTA to their respective governments who then exchange this information with the IRS.
Treasury also developed a second model intergovernmental agreement (Model 2 IGA) published on November 14, 2012.
A partner jurisdiction signing an agreement based on the Model 2 IGA agrees to direct its FFIs to register with the IRS and report the information about U.S. accounts required by FATCA directly to the IRS.
These agreements do not offer an exemption from FATCA for any jurisdiction but instead offer a framework for information sharing pursuant to existing bilateral income tax treaties.
Under both models, all financial institutions in a partner jurisdiction that are not otherwise excepted or exempt must report the information about U.S. accounts required by FATCA.
Therefore, the IRS receives the same quality and quantity of information about U.S. accounts from FFIs in jurisdictions with IGAs as it receives from FFIs applying the final regulations elsewhere, but these agreements help streamline reporting and remove legal impediments to compliance.
Background on FATCA
FATCA was enacted in 2010 by Congress as part of the Hiring Incentives to Restore Employment (HIRE) Act. FATCA requires FFIs to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
In order to avoid withholding under FATCA, a participating FFI will have to enter into an agreement with the IRS to:
Identify U.S. accounts,
Report certain information to the IRS regarding U.S. accounts, and
Withhold a 30 percent tax on certain U.S.-connected payments to non-participating FFIs and account holders who are unwilling to provide the required information.
Registration will take place through an online system. FFIs that do not register and enter into an agreement with the IRS will be subject to withholding on certain types of payments relating to U.S. investments.
Treasury and IRS will continue to work closely with businesses and foreign governments to implement FATCA effectively.
Offshore Tax Evasion – Attorneys, Lawyers – Criminal, Civil Representation
by Fresh Start Tax | Mar 22, 2014 | Tax Help
Attorneys, Lawyers Representation – Offshore Banking Issues
Our Tax Team has been in private practice since 1982 and we are comprised of Tax Attorneys, Tax Lawyers, Certified public accountants and former IRS agents and managers who were employed as Internal Revenue Service for a combined 60 years.
Because of our years of experience at IRS, we know the IRS system, the protocols, and the settlement theories so we can act as your best tax defense for any IRS issues that you may have.
Regarding FBAR
The Federal Government especially the IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs).
Some of these taxpayers have recently become aware of their filing obligations and now seek to come into compliance with the law.
The IRS is announcing a new procedure for current non-residents including, but not limited to, dual citizens who have not filed U.S. income tax and information returns to file their delinquent returns.
Big Change, Note: On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website. The system allows the filer to enter the calendar year reported, including past years, on the online FinCEN Form 114.
Description of proposed new procedure:
While more details will be forthcoming, taxpayers utilizing the new procedure will be required to file delinquent tax returns, with appropriate related information returns, for the past three years and to file delinquent FBARs for the past six years.
All submissions will be reviewed, but, as discussed below, the intensity of review will vary according to the level of compliance risk presented by the submission.
For those taxpayers presenting low compliance risk, the review will be expedited and the IRS will not assert penalties or pursue follow-up actions.
Submissions that present higher compliance risk are not eligible for the procedure and will be subject to a more thorough review and possibly a full examination, which in some cases may include more than three years, in a manner similar to opting out of the Offshore Voluntary Disclosure Program.IRS will explore these cases on a individual basis.
Tax, interest and penalties, if appropriate, will be imposed in accordance with U.S. federal tax laws based on a review of the submission.
There are conditions in which penalties and interest can and will be abated.
Retroactive relief for failure to timely elect income deferral on certain retirement and savings plans where deferral is permitted by relevant treaty will be available through this process.
The proper deferral elections with respect to such arrangements must be made with the submission.
Compliance Risk Determination:
The IRS will determine the level of compliance risk presented by the submission based on certain information provided on the returns filed, and based on certain additional information that will be required as part of the submission.
Low risk will be predicated on simple returns with little or no U.S. tax due.
Absent high risk factors, if the submitted returns and application show less than $1,500 in tax due in each of the years, they will be treated as low risk. Wow, what a break.
The risk level will rise as the income and assets of the taxpayer rise, if there are indications of sophisticated tax planning or avoidance, or if there is material economic activity in the United States.
Additional risk factors include any additional history of noncompliance with United States tax law and the amount and type of United States source income.
Additional information regarding the specific factors the IRS will use to assess the level of compliance risk, and how information regarding those factors should be presented in the submission, will be released prior to the effective date of the new procedure.
How taxpayers will be able to take advantage of the new procedure:
Taxpayers wishing to use the new procedure will be required to submit:
- (1) delinquent tax returns, with appropriate related information returns, for the past three years,
- (2) delinquent FBARs for the past six years, and
- (3) any additional information regarding compliance risk factors required by future instructions. Payment of any federal tax and interest due must accompany the submission. More information about the application process including where submissions should be sent, will be provided prior to the effective date.
Any taxpayer seeking relief for failure to timely elect deferral of income from certain retirement or savings plans where deferral is permitted by relevant treaty will be required to submit:
1. a statement requesting an extension of time to make an election to defer income tax and identifying the pertinent treaty position;
2. for relevant Canadian plans, a Form 8891 for each tax year and description of the type of plan covered by the submission; and
3. a statement describing:
a. the events that led to the failure to make the election,
b. the events that led to the discovery of the failure, and
c. if the taxpayer relied on a professional advisor, the nature of the advisor’s engagement and responsibilities.
Other considerations or factors involved:
Worried about Criminal Prosecution
Taxpayers who are in a situation where they are concerned about the risk of criminal prosecution should be advised that this new procedure does not provide protection from criminal prosecution if the IRS and Department of Justice determine that the taxpayer’s particular circumstances warrant such prosecution.
Taxpayers concerned about criminal prosecution because of their particular circumstances should be aware of and consult their legal advisers about the Offshore Voluntary Disclosure Program (OVDP), announced on January 9, 2012, which offers another means by which taxpayers with undisclosed offshore accounts may become compliant.
It should be noted, however, that once a taxpayer makes a submission under the new procedure described in this document, OVDP is no longer available.
It should also be noted that taxpayers who are ineligible to participate in OVDP are also ineligible to participate in this procedure.
Anyone interested in using this procedure should be aware that all tax returns must have a valid Taxpayer Identification Number (TIN). For U.S. citizens, a TIN is a Social Security Number (SSN).
For individuals that are not eligible for an SSN, an Individual Taxpayer Identification Number (ITIN) is a valid TIN. Tax returns filed without a valid SSN or ITIN will not be processed.
Feel free to contact us to speak directly to our tax attorneys or tax lawyers regarding any offshore banking issues you may have.
All calls are maintained under attorney-client privilege.
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Attorneys, Lawyers – Offshore Banking Issues * Representation * Defense – Individuals, Institutions – FATCA, FBAR Experts
by Fresh Start Tax | Mar 21, 2014 | Tax Help
Attorneys , Lawyers, Since 1982 – FBAR/FATCA – Expert Defense Representation 1-866-700-1040 Free Consult!
With tax treaties being signed be all countries there will soon be nowhere to hide and it is in your very best interest to hire a taxpro worth there grain of salt to represent your best interest.
If you have not been contact yet, they will soon be coming. This is not a scare warning but a new reality.
Why???
There is just to much tax money at stake and the government want there fair share and believe me, they are going to get it.
How will they collect it?
Through fear of criminal prosecution and cooperation with other government agencies because of international tax treaties.
Last three years results
In the last three years there was over $5 billion collected and reports by some government agency officials report there’s another $450 billion yet to collect.
That is the number they believe the existing tax gap is between filers and non-filers.
How will they get your information
How are they going to collect, through the implementation of SCHEMA, the new International Data Exchange.
The New International Data Exchange Service:
The IRS is finalizing requirements for a Data Exchange service to allow for Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs) to automatically exchange FATCA data with the United States. This is bad news!
The Service will also allow the United States to make reciprocal exchanges where called for by an IGA that is in force.
The International Data Exchange Service: What is it?
1. Is based on business requirements collected by a multilateral working group
2. Serves as a single point of FATCA information delivery for both FIs and HCTAs
3. May be used for automatic exchange with all FATCA jurisdictions
4. Is based on readily-available mature technology
5. Requires both the file being sent (in the Intergovernmental FATCA XML Schema) and the transmission pathway to be encrypted, ensuring the security of tax data
6. Can be accessed either through a Browser-Based or a Scheduled Bulk Data Transfer environment.
What is FBAR – Report of Foreign Bank and Financial Accounts (FBAR)
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, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing electronically a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
Current FBAR Guidance FinCEN introduces new forms
On September 30, 2013, FinCEN posted, on their internet site, a notice announcing FinCEN Form 114, Report of Foreign Bank and Financial Accounts (the current FBAR form). FinCEN Form 114 supersedes TD F 90-22.1 (the FBAR form that was used in prior years) and is only available online through the BSA E-Filing System website.
The system allows the filer to enter the calendar year reported, including past years, on the online FinCEN Form 114. It also offers an option to “explain a late filing,” or to select “Other” to enter up to 750-characters within a text box where the filer can provide a further explanation of the late filing or indicate whether the filing is made in conjunction with an IRS compliance program.
On July 29, 2013, FinCEN posted a notice on their internet site that introduced a new form to filers who submit FBARs jointly with spouses or who wish to have a third party preparer file their FBARs on their behalf.
The new FinCEN Form 114a, Record of Authorization to Electronically File FBARs, is not submitted with the filing but, instead, is maintained with the FBAR records by the filer and the account owner, and made available to FinCEN or IRS on request.
Filing deferral for certain individuals with signature authority only, effective through June 30, 2015
FinCEN Notice 2013-1 extended the due date for filing FBARs by certain individuals with signature authority over, but no financial interest in, foreign financial accounts of their employer or a closely related entity, to June 30, 2014.
Foreign Account Tax Compliance Act (FATCA)
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.
- FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
- FATCA focuses on reporting:
1. By U.S. taxpayers about certain foreign financial accounts and offshore assets
2. By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.
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