Small business of-interest, need-to-know and news-to-watch.
Excerpt: Taxpayers with foreign accounts will want to take note of an agreement recently developed by the U.S. and several other countries, including France, Germany and the U.K. The “model intergovernmental agreement” is intended to implement FATCA, or the Foreign Account Tax Compliance Act. FATCA requires foreign financial institutions to report to the IRS information on accounts or insurance or annuity contracts with values above set amounts, and that are held by U.S taxpayers, or by foreign entities in which U.S taxpayers hold a substantial ownership interest.
The goal of FATCA, which was signed into law in 2010, is to reduce the risk that U.S. taxpayers use accounts outside the U.S. to evade taxes. The recent agreement “marks an important step in establishing a common approach to combating tax evasion based on the automatic exchange of information,” the Treasury says.
Read full article via New Intergovernmental Agreement to Support FATCA | Business Finance.
Need to keep up to date on the latest FATCA ……the IRS is offering a subscription to news updates here. News
Excerpt……..Prepared by the Large Business and International division (LB&I), the FATCA News and Information list provides information on the latest IRS news, guidance, regulations and other public information related to the Foreign Account Tax Compliance Act (FATCA) including information that affects:
Individuals with foreign accounts
Foreign financial institutions registration, reporting and withholding requirements
Non-Financial Foreign Entities
Tax and compliance professionals interested in the implementation and requirements of FATCA
Subscribe to news updates from IRS on FATCA here…….via Subscribe to the FATCA News and Information List. From IRS
Small business need-to- know………and news to watch.
Excerpt………proposed regulations implementing sections 1471 through 1474 of the Internal Revenue Code (commonly called “FATCA”).  The proposed regulations would impose reporting and withholding obligations on “foreign financial institutions” (or “FFIs”) that enter into an “FFI agreement.” Under the proposed regulations, starting in 2014, FFIs that do not enter into an FFI agreement would be subject to a 30% withholding tax on U.S.- source interest, dividends, and other types of passive income (“FDAP income”). The proposed regulations defer imposition of a withholding tax on gross proceeds from the sale of property producing U.S.-source dividends and interest until 2015
Read full article…….via Impact of the FATCA Proposed Regulations on Capital Markets Transactions — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
You do need to register and the webcast is March 13, 2012…. Small business need-to-know
Excerpt……..Join Ernst & Young’s global FATCA team to discuss the IRS’s recently released FATCA regulations
Register here……..via Thought Center – FATCA: discussion of proposed regulations and the business and operational impact on your company. From Ernst & Young
Accounting and governance.
Excerpt………This paper provides:
An overview of pre-existing account, new account, withholding, and reporting requirements as outlined in the provision
Possible implications for U.S. and foreign financial institutions
Steps to consider in addressing FATCA compliance
Download the PDF to learn more.
Read introduction and download paper here…….via Deloitte | FATCA | A Practical Guide for Analyzing and Implementing the Newly Proposed Foreign Account Tax Compliance Act.
Small business need-to-know and news to watch….. Accounting and tax
Excerpt…….The U.S. Treasury Department and IRS recently released nearly 400 pages of proposed regulations that detail their plans to implement the Foreign Account Tax Compliance Act (FATCA), which becomes effective on January 1, 2013. The proposed rules are intended to prevent U.S. taxpayers who hold financial assets in non-U.S. financial institutions and other offshore accounts from avoiding their tax payment obligations.
Read full article……via Deloitte | FATCA | Six Takeaways from Proposed FATCA Rules Issued by the U.S. Treasury Department and IRS.