FACTA and the IRS Voluntary Offshore Disclosure Program: What to do now to mitigate negative effects
The Foreign Account Tax Compliance Act (“FATCA”) was enacted into U.S. law in 2010. The purpose of the law is clear - to encourage increased tax compliance for U.S. persons (citizens, green card holders, and other resident aliens) holding undeclared offshore accounts. The law was designed to be phased in over a number of years with a key aspect of FATCA to take effect beginning July 1, 2014. On that date, U.S. financial institutions and other payors of passive income will be required to withhold 30% of such payments to recipient financial institutions that are not in compliance regardless of the intended recipient of the payments.
Posted by Robert A. Solomon 2014-05-15 16:26:42