Best Compliance Practices for the Foreign Account Tax Compliance Act (FATCA): An Update
Passed into law in March of 2010, the HIRE Act is famous in part for introducing the Foreign Account Tax Compliance Act (FATCA), an information reporting regime designed to seek out undeclared foreign accounts held by US persons. FATCA requires Foreign Financial Institutions to perform substantial due diligence and reporting functions with respect to their account base or suffer 30% punitive withholding.
In addition to FATCA, this federal law requires all U.S. taxpayers (including US citizens living outside the states) to annually report their non-US financial accounts to the IRS. In fact, there are two separate reporting regimes: 1)FinCEN Form 114 (known colloquially as FBAR reporting) and 2) Form 8938 which is included with a taxpayer’s individual income tax return. Failure to file will result to a minimum penalty of $10,000 but may arise to as much as 40% of the value of the asset or account.
The unprecedented scope of FATCA dramatically changed the obligations of US withholding agents and foreign financial institutions, and triggered a sea change with regard to the automatic exchange of information between jurisdictions. Following FATCA, the United Kingdom implemented its own version, known as UK-CDOT, and the OECD released its Common Reporting Standard with over 100 participating jurisdictions. Understanding this tax reporting environment is crucial for taxpayers, particularly those acting as US withholding agents or involved in the financial industry, to be fully aware of the reporting requirements and compliance considerations that will help avoid future risks and financial loss.
In this LIVE Webcast, a panel of thought leaders and professionals assembled by The Knowledge Group will provide the audience with a comprehensive updates on the Foreign Account Tax Compliance Act, UK-CDOT, and CRS, highlighting relevant differences and commenting on what withholding agents and financial institutions should be doing right now.
Key topics include:
- Foreign Account Tax Compliance Act (FATCA) – Legal Framework
- Common Risks and Pitfalls
- Reporting Requirements
- Tax and Compliance Considerations
- Impact and Implications to U.S. Taxpayers
- Recent Trends and Developments
Timothy Evans, Manager
- FATCA - key topics overview
- Due diligence
- Reporting Requirements
- Discussing reporting under UK version of FATCA
- Tax documentation – increased burden on person completing the form
- Challenges of the withholding agents
- Qualified intermediary agreement revisions
Josh Gelernter, Manager
Grant Thornton LLP
- April 2016 revisions to the form W-8BEN-E
- FATCA vs. CRS – are there any practical differences and what do FFIs need to do now for CRS
- Reporting on the Cayman portal – an in-depth walk through of the Cayman AEOI
Who Should Attend:
- Tax Attorneys
- Tax Compliance Officers
- Tax Directors
- Tax Preparers
- Tax Consultants
- Tax Executive
- Finance Executives
- Financial Industry Analysts
- Senior Management
- Foreign Financial Institutions
- Executives and Senior Officers of Banks, Thrifts, Credit Unions and other Financial Institution
Josh is an senior manager in Grant Thornton's New York office. Josh has over 9 years of experience advising some of the largest multi-national companies on numerous cross-border transactions and multi-country tax planning opportunities, including inbound investment into the United States. Josh has assisted a Fortune 100 company on a multi-national tax efficient supply chain management restructuring. He also managed a multi-billion dollar spin-off, assisting the new company with its tax registrations in Europe, Asia and South America. He has also assisted a large retail company with its global tax compliance. Josh has advised a variety of clients on their FATCA obligations and due diligence requirements. He has performed entity classification analyses, registered FFIs on the IRS FATCA portal, analyzed payments to foreign payees to determine whether withholding was required and at what rates and prepared and reviewed withholding tax certifications.
Prior to joining Grant Thornton, he was a manager in Ernst & Young’s international tax practice in the New York office for 6 years before transferring to the New Jersey international tax practice. Josh is a member of the New York state bar association.
Josh received his Juris Doctor degree from Fordham University School of Law. He also received his B.A. Accounting degree from City University of New York - Queens College.
Josh is an senior manager in Grant Thornton's New York office. Josh has over 9 years of experience advising some …
Timothy is a Manager with WeiserMazars’ Financial Services and Tax Controversy Groups. Joining the firm in January, 2013, he has since been immersed in the Foreign Account Tax Compliance Act (“FATCA”), a focus since expanded to include additional information reporting regimes such as UK-CDOT and the OECD’s Common Reporting Standard. Timothy has extensive experience assisting a variety of clients across the financial services sector, including foreign banks, U.S. broker dealers, hedge funds, private equity, and insurance companies. Working on implementation projects from inception to conclusion, Timothy has extensive experience in FATCA registration matters, including Chapter 4 classification, as well as experience with identification of Chapter 3 gaps and the development of procedures to bring an entity into full Chapter 4 compliance. Timothy has also advised on, and performed reporting for, FATCA and UK-CDOT in various jurisdictions and conducted FATCA and CRS training sessions and seminars.
In addition to working with FATCA, Timothy has experience in tax controversy, interfacing with the tax authorities at the Federal, State, and local levels on a wide variety of matters, including audit, penalty, and collection issues.
Prior to joining WeiserMazars, Timothy gained experience working with Judge Rachel Adams in New York State Supreme Court, Kings County, and with the New York City Tax Appeals Tribunal.
Timothy received his Bachelor of Arts from the State University of New York at Albany; his J.D., awarded magna cum laude, from New York Law School, and his L.L.M. in Taxation from New York University School of Law.
Timothy is a Manager with WeiserMazars’ Financial Services and Tax Controversy Groups. Joining the firm in January, 2013, he has …
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About Grant Thornton LLP
Founded in Chicago in 1924, Grant Thornton LLP (Grant Thornton) is the U.S. member firm of Grant Thornton International Ltd, one of the world’s leading organizations of independent audit, tax and advisory firms. Grant Thornton has revenue in excess of $1.3 billion and operates 57 offices across the United States with more than 500 partners and 6,000 employees.
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About WeiserMazars LLP
WeiserMazars LLP provides insight and specialized experience in accounting, tax and advisory services. Since 1921, our skilled professionals have leveraged technical expertise and industry familiarity to create customized solutions to overcome client challenges. As the independent U.S. member firm of Mazars Group, we have a global reach of 17,000 professionals in more than 75 countries. Locally and internationally, we build lasting relationships with our clients by addressing their particular needs, creating value and optimizing their organizational performance.