Off Shore Compliance – IRS procedures relating to FBAR, FATCA, and OVD
By: Stuart Sobel & Steven Mopsick
- The cornerstone of the American system of tax administration: the citizenry can be trusted to voluntarily report.
- FATCA and FBAR's: the citizenry cannot be trusted to self-report; , therefore full disclosure of foreign financial assets is required regardless of the existence of a taxable event;
- The goal of FATCA , enacted five years ago, is to establish a virtual international, financial and banking data base of both US persons, as well as FATCA partners, which can be accessed at will by the US and its FATCA partners.
- The United States taxes its people on the basis of its citizenship as opposed to residence based taxation which is the system in place in the rest of the civilized world. From this arises all the issues with withholding, foreign tax credits, tax treaties, international information gathering
- FATCA requires every bank in the world whose business involves, even indirectly, the movement of U.S. source income, to register electronically with either the IRS itself or its own government which has already agreed to turn over to the IRS, report the names of all their depositors which show some signs of being American.
- A foreign financial institution which fails to register with the IRS triggers a 30% mandatory withholding tax on all its US sourced income.
Steven Mopsick, Attorney has 40+ years of tax expertise working for the IRS and in private practice. He has held many high level positions in government, authored many professional treatises, and is an expert in IRS offshore compliance. This unique course shares his wisdom and simplifies many challenging concepts.
- How FATCA works
- IRS filing requirements
- Avoiding withholding requirements
- Non-financial foreign entities
- Bank Secrecy Act – not part of Internal Revenue Code
- Overview of new IRS Manual provisions
- Foreign bank reporting
- Introduction to FBAR
- Who is a US person
- Determining values of accounts
- Signature authority
- Filing exceptions
- Options available for non -disclosed foreign assets by US taxpayers
- Understand IRS Offshore compliance techniques
- Provide clients with improved representation
- Avoid or appeal IRS pennaltiew
- Reduce chances of IRS malpractice claims by clients
NASBA & IRS Field of Study: Taxes
CPE Credit: 1 hour
Advance Preparation: None