San Francisco CA – October 26, 2011 – The United States (“U.S.”) and Korean Governments have entered into SCIP to combat tax evasion in the partnering countries. The agreement between the U.S. and South Korea will allow the IRS to obtain records from South Korea’s National Tax Service (NTS) to verify and compare information reported by South Korean Americans to both agencies. The NTS is focused on monitoring illegal schemes by South Korean businesses and individuals that move funds abroad, avoid taxes offshore and participate in money laundering schemes.
The IRS is interested in the actions of U.S. taxpayers centered in South Korea, particularly South Korean investors, who invest money illegally through affiliates in other countries. SCIP mandates that Foreign Bank Account Holders (“FBA”) properly report their assets. Since 2009, South Korea has entered into information-sharing agreements with 14 regions and countries including the British Virgin Islands, Costa Rica, The Cayman Islands, Malaysia, Panama and, now, the United States.
Woori Bank, the oldest continuously operating bank in Korea, in response to SCIP, will call upon tax attorney Steve Moskowitz to help South Koreans comply with disclosing overseas holdings to the IRS. Two seminars addressing SCIP and IRS programs will be held at the Domain Hotel in Sunnyvale, CA on November 3, 2011 and the Walnut Creek Marriott Hotel in Walnut Creek, CA on November 4, 2011.
Mr. Moskowitz, with over three decades of experience in tax law will address The Report of Foreign Bank and Financial Accounts (“FBAR”) and a proven course of action, among other tax concerns for South Koreans.
“The IRS is targeting South Koreans living in the United States, who are suspected of tax evasion, and has every right to request financial information from the South Korean government regarding Korean-Americans living in the United States,” says Steve Moskowitz. “This could include real estate records, bank account information, tax returns and other pertinent information. Many South Koreans living in the United States are nervous because they may have an inheritance from parents, have amassed funds prior to immigrating to the United Sates or possess investment funds and are unsure about reporting these assets,” he adds.
Woori Bank is headquartered in Seoul, Korea and includes the former Commercial Bank of Korea, Hanil Bank and Peace Bank. Steve Moskowitz is the founding partner of Moskowitz LLP, and routinely provides advice regarding Offshore Accounts, Amnesty Programs, Passive Foreign Investment Companies (“PFIC”), Qualified Electing Funds (“QEF”), market-to-market calculations, informational returns, compliance and all other tax issues.
For more information, contact Moskowitz, LLP.