IRS updated Publication 5118 -Foreign Account Tax Compliance Act (FATCA) User Guide (Rev. December 2013) to reflect changes since its initial publication in the summer of 2013. The User Guide is over 100 pages and provides instructions for completing the registration process online, including the information required, how registration will vary depending on the type…
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FATCA Picking Up Momentum & US Gives Foreign Banks More Time to Register
Under the Foreign Account Tax Compliance Act (FATCA), foreign banks, insurers and investment funds must send the Internal Revenue Service information about Americans' and U.S. permanent residents' offshore accounts worth more than $50,000. Institutions that fail to comply could effectively be frozen out of U.S. markets. "Since the 2012 release of the Model 1 and…
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IRS to Amend Rules for So that a US Person is Not Deamed to Own PFIC Stock Held By Their Tax Exempt Entity!
In Notice 2014-28, 2014-18 IRB, IRS has announced that it will amend the regs under Code Sec. 1291 to provide that a U.S. person that owns stock of a passive foreign investment company (PFIC) through a tax-exempt organization or account will not be treated as a shareholder of the PFIC. Code Sec. 1291 imposes a…
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IRS Reminds Those with Foreign Assets of U.S. Tax Obligations
The Internal Revenue Service reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2013, that they may have a U.S. tax liability and a filing requirement in 2014. The filing deadline is Monday, June 16, 2014, for U.S. citizens and resident aliens…
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