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Fresh Start Tax L.L.C . has over 206 years a professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.

We have been in private practice since 1982.

What is the BUZZ about SCHEMA

It is the new  New Intergovernmental Program that will rock the financial institutions.

The IRS has finalized the format for automatically exchanging FATCA data with IGA jurisdictions.

The Intergovernmental FATCA XML Schema (version 1.1):

•   Is a standard format developed in close cooperation with the OECD

•   Captures required information for reporting of FATCA data from both Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs)

•  Will be used for automatic exchange with all FATCA jurisdictions

•   Uses elements from existing reporting schemas used by the OECD and the European Union to reduce burden on reporting entities

•   Uses XML to allow for easier modifications down the road in the event of legislative or regulatory changes in reporting rules

•   Will facilitate safe and secure electronic data transmission using the  International Data Exchange Service

Alert, Please Note:

The .xsd files that comprise the Intergovernmental FATCA XML Schema can be viewed using a web browser such as Internet Explorer or Chrome.

The file is also viewable using a text editor such as Microsoft Notepad, or an XML tool such as XMLSpy or XML Notepad.

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.

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:

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.

OTHER NEWS

The Internal Revenue Service today announced that its offshore voluntary disclosure programs have exceeded the $5 billion mark and released new details regarding the voluntary disclosure program announced in January, including tightening the eligibility requirements.

IRS offshore voluntary disclosure programs have so far resulted in the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.

In addition, another 1,500 disclosures have been made under the new program announced in January.

The voluntary disclosure programs are part of a wider effort by the IRS to stop offshore tax evasion and ensure tax compliance. This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act ( FATCA).

The IRS also closed a loophole that’s been used by some taxpayers with offshore accounts. Under existing law, if a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the appeal.

The IRS said that if the taxpayer fails to comply with this law and does not notify the U.S. Justice Department of the foreign appeal, the taxpayer will no longer be eligible for the Offshore Voluntary Disclosure Program ( OVDP).

The IRS also put taxpayers on notice that their eligibility for OVDP could be terminated once the U.S. government has taken action in connection with their specific financial institution.

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