Foodman CPAs & Advisors Newsletter
MARCH / APRIL 2016

In This Issue

  • FATCA Alerts
  • FAQs
  • FATCA Facts
  • Tax Transparency Initiatives

For more information on

FOODMAN'S QI  Program
(Qualified Intermediary)

Please click here

For more information on
FOODMAN'S FATCA
Program please click on offerings listed below:
The Foodman Philosophy
and Approach
 
FATCA Help Desk(USFIs and FFIs)
FATCA Due Diligence Flow Charts for FFIs

 

Foodman FATCA Training Workshops for USFIs and FFIs including two new workshops on:
  • Certification Forms Training (W9, W8 and W8BEN-E)
  • FATCA Reporting - Form 8966 and Instructions
Implementation Advisory Services

 

FATCA Internal Audit Support

 

Intermediation with the IRS

 

Annual FATCA Update

 

Dear Colleagues:
 
The path towards Global Tax Transparency is gaining momentum:
  • 2002: the OECD published the first TIEA Model Agreement (Tax Information Exchange Agreement) to promote the exchange of information in tax matters(upon request). By 2011 there were over 500 TIEAs executed world wide; many of which form the framework for the automatic exchange of Tax Information under FATCA and/or the OECD CRS.
  • 2010: FATCA is signed into Law. Implementation became effective on the 1st of July 2014. There are now more than:
    • 190,000 Foreign Financial Institutions participating Globally in FATCA; and
    • 110 Countries signed up, or in the process of executing, FATCA Intergovernmental Agreements (IGAs) with the U.S. Treasury
  • 2016 - 2017: At least 100 countries are registered as early adopters of the OECD CRS (Common Reporting Standard). The first group will commence the automatic exchange of fiscal information in 2017 (2016 activity) and the second group a year later.
All of the above programs are re-enforced by multiple other initiatives and media ex pos├ęs:
  • Multiple OECD Countries are carrying out Base Erosion Pricing Projects (BEPS) to combat Transfer Pricing Abuses.
  • New legislation is being introduced in many jurisdictions for elevating Tax Evasion to a "Criminal Offense" and to enhance "Beneficial Ownership" Due Diligence standards.
  • Countries are encouraging non-compliant tax payers worldwide to regularize their tax compliance with local amnesty programs.
  • Multiple Tax Authorities are pursuing rigorous investigations of non compliant individuals, entities and "Facilitating Financial Institutions".
  • Publication of the "Panama Papers" has focused unprecedented scrutiny on the use of Offshore Structures and Tax Havens for Tax abuses.
This is a cultural transformation in the Global Financial Community.  FATCA Implementation is now being thought of as one of the key initiatives underway for protecting a Financial Institution from being used by clients who are evading taxes and from the risks  of being identified by International Tax Authorities as a "Facilitating Foreign Financial Institution".

Finally, the "Crime of Tax Evasion" is beginning to take it's place side by side with the "Crimes of AML and ATF" in terms of significance and priority.

Best Regards,

Stanley Foodman
Foodman CPAs & Advisors
(305) 365-1111 - info@foodmanpa.com


FATCA ALERTS

Recent Warnings /Alerts 
 

 

 
Beware fraudulent requests for W-8Ben Substitute Form Recertification Requests. These are not from the IRS and you must not fill these out. They are generally not addressed specifically to anyone and and are being received by Foreign Financial Institutions via a general email address. They are attached to a General Note that appears to be from the IRS but the return email provided is fake. DO NOT RESPOND!!!

If you are in doubt, please refer to Foodmanpa for confirmation of authenticity before responding:  

info@foodmanpa.com

Fincen published the Final Beneficial Ownership Ruling which will become effective 60 days after its publication date of May 11th, 2016. 

For more information go to: 

 


FATCA FAQs

Q:
 I am an American citizen living abroad and my Foreign Bank is requesting my Social Security Number, do I have to comply and if so, why?


 
A:  Due to the implementation of FATCA, foreign banks are required to document all U.S. persons and report certain financial information to the Internal Revenue Service. A U.S. citizen choosing not to provide their Tax Identification Number ("TIN") (often a Social Security Number) may result in the Foreign Bank closing their accounts or applying withholding on any payments made to the U.S. Person

FATCA FACTS (as of April 30, 2016)

  • Countries with signed IGA 1: 75
  • Countries with signed IGA 2: 8
  • Countries with
    Substantially Agreed IGA 1: 24
  • Countries with
    Substantially Agreed IGA 2:  6
  • Total Number of Registered Participating FFIs: 193,451
 Tax Transparency News
 
Justice Department's First FATCA Prosecution Yields Guilty Plea


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