FATCA is a United States law that requires financial institutions in cooperating nations to provide U.S. government with U.S. taxpayers information.
Shanghai, China (PRWEB) October 15, 2014
As of June 30, 2014 China has signed Model 1 IGA (Intergovernmental Agreement) in cooperation with FATCA (Foreign Account Tax Compliance Act). While FATCA is a U.S. law, individuals and institutions internationally are subject to more necessary tax compliance. The American Chamber of Commerce in Shanghai will hold a Spotlight Session on October 17th with Jeffrey S. Freeman, Esq. speaking about FATCA and its impact on individuals and institutions around the world.
Foreign banking has been under intense scrutiny over the past several years and the recent roll out of the Foreign Account Tax Compliance Act (FATCA) provides a new complexity that account holders and financial institutions are still working to understand. Offshore bank account holders are required to stay in compliance with the IRS regarding existing accounts and assets. Having a foreign bank account or assets that have not been properly disclosed could expose you to large civil and criminal fines and penalties.
What is FATCA?
FATCA is a United States law that requires financial institutions in cooperating nations to provide U.S. government with U.S. taxpayers information. With FATCA, the IRS is able to track the opening and closings of foreign accounts and more. Under FATCA, U.S. taxpayers’ offshore accounts and assets must be reported on tax returns.
The Impact Of Keeping Foreign Bank Accounts Open
Although this is a U.S. law, FATCA often conflicts with International laws and regulations. Primary entities outside the United States have intergovernmental agreements with the United States to share information.
For expatriates, U.S. taxpayers with offshore accounts, financial institutions and all others prosecutable under FATCA, addressing the law is becoming increasingly important. Failing to comply with FATCA will result in strict penalties with the United States Department of Justice. It’s important to have a partner equipped with the necessary intelligence and comprised of a team of lawyers, accounting professionals, and technology consultants.
Individuals, financial and non-financial institutions should participate in the Spotlight Session to learn about FATCA and compliance issues arising from the Model 1 IGA.
Foreign bank accounts cause a headache at tax time, requiring additional filing procedures depending on the amount held in the foreign account. With the exposure of many Swiss banks aiding Americans in evading their tax responsibilities, foreign accounts are under more scrutiny than ever before. Is the headache and stress worth having funds outside of the United States?
There are many instances where it is advantageous to have foreign assets. FATCA is changing the degree of secrecy associated with foreign funds and banks have increased responsibility to verify that clients are correctly reporting their foreign funds in their US tax returns. Whether or not to keep offshore bank accounts and foreign assets is a complicated decision. Learn as Jeffrey S. Freeman tackles this perplexing question.
Full Disclosure And Compliance Of Foreign Bank Accounts To The United States IRS
With FATCA the IRS is able to track the opening and closings of foreign accounts. Hiding from them is no longer an option. If funds are moved from one bank to another or new funds appear the IRS will be looking into where those funds were located. At this free webinar, Freeman will discuss determining whether to keep funds offshore or move them back to the United States, and options regarding the various tax implications associated with foreign bank account disclosures. Understanding the options can save stress, financial challenges, and possibly an untimely audit in the long run.
Join the Spotlight Session
As a seasoned tax lawyer Jeffrey S. Freeman has expertise in international banking and is thoroughly versed in the ever-changing tax laws. Please join the discussion to learn about FATCA and its impact on individuals and institutions in China.
Date: Friday October 17, 2014, 09:00 – 11:00
Registration: RSVP online with The American Chamber of Commerce in Shanghai here. For more information, please contact Kelly Deng at (+86 21) 6279-7119 ext. 4580 or email kelly.deng(at)amcham-shanghai(dot)org
Location: AmCham Shanghai Conference Center
Suite 568, Shanghai Centre, 1376 Nanjing Road West
About Jeffrey S. Freeman J.D., LL.M.
Jeffrey S. Freeman, Esq., senior partner of Lipson Neilson Freeman PLLC, has personally represented and counseled hundreds of clients with regard to their tax matters. During his early career, Mr. Freeman worked for a large international tax firm specializing in international tax issues. He has extensive experience representing Fortune 100 clients and high net worth families. By combining large firm training and attention to detail, with a boutique firm approach and a personal focus on resolving complex tax matters efficiently, creatively and strategically, Mr. Freeman’s priority is always to provide his clients with the highest level of representation.
Mr. Freeman holds a Masters of Law in Taxation (LL.M.) from Georgetown University Law Center in Washington, D.C. and Juris Doctor, Cum Laude, from the Detroit College of Law at Michigan State University and a Bachelor of Arts in Accounting, with honor, from Michigan State University.
Jeffrey S. Freeman, Freeman Tax Law