Ask your questions about FATCA.
This discussion has been continued here: FATCA Discussion Thread (Ask your questions) Part Two
Ask your questions about FATCA.
This discussion has been continued here: FATCA Discussion Thread (Ask your questions) Part Two
@bubblebustin…
Well, if they read Risk.net, they would mention it, but I would probably take odds we will not here the FWhat? word in their risks for 2013.
Time for the FCC to roll out some more Compliance propaganda…
January 07, 2013 04:00 ET
Thomson Reuters Launches FATCA Compliance Solution
Combined Market Leading Content and Technology Reduces Regulatory Burden for Firms
LONDON–(Marketwire – Jan 7, 2013) – Thomson Reuters, the world’s leading source of intelligent information for businesses and professionals, today announced the launch of a solution to help institutions fulfil and comply with their obligations under the forthcoming US Foreign Account Tax Compliance Act (FATCA). Supported with the full power of Thomson Reuters content and solutions assets from its Governance, Risk & Compliance, and Tax & Accounting businesses Thomson Reuters for FATCA Solution, brings together market leading technology already widely used by organizations around the world to solve issues with regulatory compliance, tax documentation and tax reporting. It will enable organisations to identify, maintain and validate their customer records to assist in FATCA compliance.
It is estimated that tax avoidance by US citizens and entities using offshore bank accounts and other vehicles held at foreign financial institutions (FFIs) is costing the US government around $500 billion a year. Under FATCA rules, which become effective on 1 January 2013, all FFIs will be required to collect, manage and report all information that could reasonably point to individual’s liability for US taxation to the Internal Revenue Service (IRS) — a process estimated to cost foreign banks, with more than 25 million accounts, at least US$250 million (US$10 per account) to implement, according to the European Banking Federation and the Institute of International Bankers.
“The real costs for FATCA compliance, on an individual firm basis, will vary based on the state of the client account data in question and the technology and systems framework in place to store that data,” said Virginie O’Shea, analyst, Aite Group. “Those with a more robust legal entity or client data management framework or anti-money laundering (AML), or Know Your Customer (KYC) assessment scheme in place are likely to be better positioned to tackle the challenge.”
The impact of FATCA will be widely felt across the financial industry with banks, investment funds, insurance companies, mutual funds, broker-dealers, custodians, intermediaries, and private equity firms all having to comply. FATCA places significant reporting requirements on firms to identify US account holders. This will create significant operational and systemic pain points, particularly around on-boarding, classifying and documenting new clients, and in gathering sensitive data from a variety of structured and unstructured sources.
Thomson Reuters for FATCA Solution comprises modules for On-Boarding, featuring US indicia search; Self-Assessment, featuring W-8 and W-9 form preparation and collection; and Tax Information Reporting, featuring forms 1042, 1042S and 1099. The solution also features configurable regulatory and management reporting. It is designed to integrate easily with organisations existing processes and technology and is offered as an installed or hosted solution.
“FATCA compliance will require a multi-disciplinary approach that will touch many points across an organization,” said Laurence Kiddle, commercial director, FATCA, Thomson Reuters. “Thomson Reuters has brought together a number of leading tried and tested technologies, spanning governance, risk, compliance, tax and accounting to enable compliance with this new direction in taxation regulation. This approach makes us uniquely placed to provide a full, and modular, solution that can help institutions fulfil and comply with the obligations they are under and supports every stage of the challenges they will face as a result of FATCA.”
Thomson Reuters
Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, go to: http://thomsonreuters.com
Have you seen this Globe and Mail article by Don Whiteley? “IRS wants Canada to nab U.S. tax cheats: Why we should care“
A Must Read!!!
http://www.theglobeandmail.com/commentary/irs-wants-canada-to-nab-us-tax-cheats-why-we-should-care/article6994760/comments/
Great article. Just one thing missing: as always they fail to mention the impact on Canadian citizen living in the US. Anyone knows an approximate number of Canadian expats in the US? It seems there would be many as well. Maybe someone can add a comment about that, as I don’t have an account with the globe.
@Christophe, According to the US census, there are about 800,000 Canadians in the US.
http://www.census.gov/prod/2012pubs/acs-19.pdf
An excerpt from opinion piece by Conrad Black in Saturday’s National Post mentions:
“The other good point is that Canada is now, for the first time in its
history, receiving significantly more immigration from the United States
than it is losing. There are rewards for having managed our affairs
better, and having avoided federal and current account deficits.”
http://fullcomment.nationalpost.com/2013/01/05/conrad-black-the-positive-side-of-americas-new-malaise/
Globe and Mail: IRS wants Canada to nab U.S. tax cheats: Why we should care
A great article from Don Whitely:
http://www.theglobeandmail.com/commentary/irs-wants-canada-to-nab-us-tax-cheats-why-we-should-care/article6994760/
Bangkok Post: The land of the free?
The US Fatca law will likely affect both Americans in Thailand and financial institutions that deal with any Americans
http://www.bangkokpost.com/business/economics/329549/the-land-of-the-free
Marketwire.com: Thomson Reuters Launches FATCA Compliance Solution
http://www.marketwire.com/press-release/thomson-reuters-launches-fatca-compliance-solution-1742615.htm
The FATCA Compliance Complex grows, there’s money to be made rooting out them thar expats.
@all or Arrow…. We need to get that Don Whitey Article headlined! 🙂
@John Brown Saw that! How ironic that a private company has come out and solved the IRS’ problem for them faster, and now will be charging banks fees to implement a process that is doomed but will be enforced anyway?
@Christophe… Easy to create an account at The Globe and Mail and ask your question in the comments.
@Bubblebustin. Regarding http://eurasiagroup.net Well, no mention of FATCA But, were you surprised?
http://www.thedailybeast.com/galleries/2013/01/07/10-things-to-freak-out-about-in-2013.html
@Just Me
I was hoping FATCA might turn up under Red Herrings: Global Protectionism, but no.
@all. The Don Whitey Globe and Mail article is now headlined here.
Two subjects : 1. Credit union compliance to FATCA – Desjardins’ letter to IRS and Treasury
2. Deloitte’s resumé FATCA compliance and account thresholds
Hi folks! While Googling around I found two docs that could be useful. The accounting firm Deloitte’s Irish branch has published a succinct easy-to-read presentation of foreign financial institutions’ «obligations» for reporting. Notice they claim that institutions do not have to revise their know-your-customer proceedures even for new customers Especially interesting is their statement that birthplace should be checked IF a passport is submitted as ID. For those of us who are lucky enough to be not too well-off, the account thresholds indicated at the beginning are encouraging Note that Petros, Duke and other kind folks on this sîte had already given me this info, but I find it useful to have it presented this way. Also, some things, like the compliance dates are already dated.
As to the other, it shows how one of our credit union groups is trying to get automatic compliance recognition. If Desjardins can succeed, others should be able as well. Their letter is on the server of what appears to be their Washington DC lawyers.
Here are the links:
dated…http://www.deloitte.com/assets/Dcom-Ireland/Local%20Assets/Documents/financial%20services/FATCA_Your%20Questions%20Answered%20v1%200.pdf
http://bsmlegal.com/PDFs/Desjardins.pdf
65% OF FINANCIAL INSTITUTIONS EXPECT FATCA CLIENT IDENTIFICATION TO BE MODERATELY OR EXTREMELY DIFFICULT
Of course, these apologist have a ready answer for this problem. Buy our service and pour more money down a rat hole.
@Just me
In the words of Roger Conklin: and for the remaining who think it’s easy, they’re not doing it right.
Subject : FATCA IGA plans
I posted some overly verbose questions on the <i> Expat taxes and FBAR </i> thread that proabably should have gone here.
Briefly, does it look like the proposed Intergovernmental agreement that Ottawa is negotiating will include enforcement and collection? And would reporting criteria remain the same?
I worry about the CRA being put into the situation of enforcing using the IRS’s crazy notions about the effective date of relinquishment.
@Old&Simple
The model IGA agreements don’t speak to this, so I doubt that there would be anything additional in this area. The annexes only allow for the FFIs exceptions and special provisions. Collections / enforcement would be in normal Tax Treaties, I would think, but must admit I have not read, so speaking totally out of school here.
There’s that case in Israel where $250000 were seized in a man’s account after the IGA….mentionned on this site.I wonder if this was overenthusiasm by the bank or considered authorized by Israel’s IGA.
@Old&Simple
Israel and the US have not yet signed an IGA. I have to assume that this was over enthusiasm by the bank or other reasons not understood, yet!
@Old&Simple, Just Me
Not scientific but whole thing smelt kind of fishy to me. Do you get the same impression?
With every unintended consequence and collateral damage, comes another’s opportunity to profit.
FATCA’s A Business Opportunity, Say Wealth Managers
http://www.haaretz.com/weekend/anglo-file/irs-ramps-up-audits-of-taxpayers-in-israel-1.426788
IRS ramps up audits of taxpayers in Israel Accountants warn financial reviews by U.S. authority here are at an all-time high.
Americans filing their tax returns from Israel are being audited by the U.S. Internal Revenue Service with a frequency that industry professionals have never seen before, according to several certified public accountants.
While some of the accountants who spoke with Haaretz are not convinced Americans living in Israel are being singled out for audits more than other Americans living abroad, some maintain that the IRS has given indications it will pay more attention to Israel, Hong Kong and Singapore.
Now we know who to praise for the FATCA IGAs… Send your congratulatory messages to Treasury.
Treasury’s Manal Corwin Recognized As Finalist for 2012 Tax Notes Person of the YearBy: Anthony Reyes 1/8/2013
Manal Corwin, Treasury’s Deputy Assistant Secretary for International Tax Affairs, was recognized as one of ten finalists in consideration to be named the 2012 Tax NotesPerson of the Year. She was honored for her office’s work implementing the Foreign Account Tax Compliance Act (FATCA). Corwin officially represents the Administration’s tax policy interests in international settings. She is the reporting authority for the Office of the International Tax Counsel and provides advice and counsel to Assistant Secretary for Tax Policy Mark Mazur related to international tax policy and tax treaties.
Two months ago, Treasury announced that the United States is now engaged with more than 50 countries and jurisdictions around the world to improve international tax compliance and implement the information reporting and withholding tax provisions in FATCA. The building of this broad coalition of foreign governments to efficiently and effectively implement provisions that target noncompliance by U.S. taxpayers using foreign accounts has marked an important milestone in establishing a common intergovernmental approach to combating tax evasion.
Tax Notes noted how Deputy Assistant Secretary Corwin “has surely racked up frequent flier miles,” working with her international counterparts on FATCA and its related bilateral intergovernmental agreements (IGAs). As the U.S. signatory, she has already succeededin reaching agreements with six countries and has created a framework for many more to come. Two model IGAs published by Treasury serve as a basis for concluding bilateral agreements with interested jurisdictions and enable effective work with foreign governments.
Last November, the International Tax Review also recognized Michael Plowgian, an Attorney Advisor in the Office of the International Tax Counsel, as one of the top 50 influential people and organizations in global tax for 2012 for his work on FATCA which it called “arguably the biggest story in international tax in the last 12 months.”
Treasury and the IRS will finalize the regulations implementing FATCA in the near future. Visit the Treasury FATCA website for updates and further information on the continuing progress.
Anthony Reyes is the New Media Specialist at the U.S. Deparment of the Treasury.