In 2010 -the World Becomes Smaller and Is Now Tax Transparent


On March 18, 2010, the Foreign Account Tax Compliance Act (FATCA) was enacted into law. The scope of FATCA is extremely broad. Almost every foreign financial institution is within reach of this new law.  FATCA requires any foreign financial institution that holds any business contacts in the United States or holds property in the United States to search their databases for the names of U.S. account holders (mostly U.S. Citizens and green card holders).  Beginning in 2013, FATCA requires that these foreign financial institutions disclose the names of U.S. account holders to the Internal Revenue Service (IRS) or face significant penalties including seizure of income and assets in the United States.

If you hold an interest in a foreign account that has not previously been disclosed to the IRS, the IRS will discover your previously undisclosed account in the very near future, because of both foreign government reporting as well as foreign institution reporting.  If the IRS discovers your foreign account before it is properly disclosed, you could be subject to criminal penalties of up to $500,000 and many years of imprisonment. You could also be subject to very significant civil penalties that greatly exceed the value of the account.

If you are the holder of a foreign account that has not been disclosed on your U.S. tax returns, you are invited to speak with Tax Attorney Stephen Moskowitz to discuss your options to legally disclose your foreign account to the IRS before the IRS discovers your account.  Mr. Moskowitz has been a practicing tax attorney for over 30 years. Mr. Moskowitz will address the strategies and tips for making a successful disclosure to the IRS. Please contact us today for a consultation and we will work to arrange an affordable solution for your case.

Leave a Reply

Your email address will not be published. Required fields are marked *