FATCA Is Officially Underway

We’ve been talking about it for months and according to the IRS, FATCA is now officially underway. The Foreign Account Tax Compliance Act is live and the IRS is actively exchanging information with several other countries that have signed on. So what does that mean for you and your information if you have funds in a foreign bank account? Is your information now subject to the IRS?

According to the nation’s top tax agency, at this time it is only sharing information in reciprocal exchanges that meet the agency’s strict requirements and security standards. FATCA was first passed in 2010, but most of the law didn’t take effect until this year. Any foreign institution that doesn’t comply stands to be frozen out of the all-important U.S. markets. In other words, compliance really isn’t an option.

The IRS is now offering a searchable financial institution list, as well as a downloadable tool, plus a user guide. All foreign financial institutions that have signed up with FATCA have to disclose names, addresses, account numbers and information and U.S. ID numbers. Taxpayers also need to be aware that reporting their foreign account information with FATCA is not enough. They must still file their FBARs, and a Form 8938 might also be necessary.

Make sure you don’t overlook these forms or you will wind up paying penalties: civil and possibly criminal. Sometimes the civil penalties, or the financial fines, could actually exceed the amount in your foreign account. While FATCA is really just getting started, you better not wait to get in compliance. GROCO can help you prepare for FATCA, as well as with your FBARs and your Form 8938. Click here to contact us or call us at 1-877-CPA-2006.

Posted in

8 Golden Techniques To Get People To Love The Rules

8 Golden Techniques To Get People To Love The Rules By Joseph Plazo Different things motivate different folks. Some people are motivated to enhance their appearance while others are motivated by prestige or conquest. Others are motivated by money. When it comes to work, many people are not motivated to do much of anything except…

HOW TO PREVENT, DETER AND DETECT FRAUD IN YOUR BUSINESS

How to Prevent, Deter and Detect Fraud in Your Business

How to Prevent, Deter and Detect Fraud in Your Business “Fraud has a direct impact on your company’s bottom line. It also threatens your company’s hard-earned reputation.” We have seen it all and we can help you become more savvy about preventing fraud and detecting it. Overview: What is Fraud? What are some warning signs…

Employer’s Quick Guide to Avoiding Sexual Harassment Liability

By Myron Curry Employers can be held liable for any sexual harassment that occurs in the workplace. However, if they take reasonable care to prevent and correct harassment, they will not be liable. The following article looks at the elements of reasonable care that will greatly reduce the risk of sexual harassment liability. Written Policy.…

Ten Tips to Create an Effective Blog

Ten Tips to Create an Effective Blog

Ten Tips to Create an Effective Blog By Greenstein, Rogoff, Olsen & Co., LLP Updated: 10/18/2011 In a world of rapid technology growth and development, it has become not only important but essential to submerge yourself in this ever changing world. According to job search site, Indeed.com, the top 10 fastest-growing job trends of 2010…