In an effort to combat a series of international crimes, the U.S. Government has recently enacted a series of laws specifically design to detect the financial assets held outside the U.S. by foreign criminal organizations. Using the powers granted by these new laws, the U.S. Treasury Department and the IRS are imposing stringent reporting requirements to U.S. Citizens, Green Card Holders, business organized under U.S. law and foreign entities conducting business in the U.S. The penalties for not complying with the reporting requirements of these new laws are very severe. Unfortunately, one of the unintended consequences of these new set of laws is imposing to law abiding citizens the obligation of continually having to report to the U.S. Government the nature, value and location of their personal assets held outside the U.S. In other words, as a result of these new laws, almost every U.S. citizen and green card holder living outside the U.S. is now subject to the information filing requirements created by the new legislation. Making the average U.S. Expat very susceptible to fall out of compliance, without even
Caribbean CPA is a full-service U.S. public accounting firm; specifically designed to serve the foreign financial reporting needs of American Expats living in the Dominican Republic. In order to serve our clients better, we have divided our practice around the foreign financial reporting requirements of a typical U.S. Expat residing in the D.R. Foreign Services are designed to take care of your foreign financial reporting obligations while making sure you don’t fall out of compliance with these new and complex laws. Our Foreign Services are divided in the following two main areas:
FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts, by forcing foreign financial institutions to report the taxpayer information of their U.S. clients to the IRS without the U.S. account owner’s knowledge nor consent.
In an effort to combat criminal tax evasion by U.S. citizens and green card holders using foreign financial accounts, the U.S. Congress enacted a law titled: The Foreign Account Tax Compliance Act of 2010 (FATCA). This law was designed to obtain information illegally hidden from the IRS by U.S. citizens and green card holders.
To target FATCA non-compliance, the U.S. Government demands (under penalty of sanctions) from Foreign Financial Institutions (FFI) around the world to report to the IRS account ownership information of financial accounts held by U.S. citizens and green card holders, or by foreign entities in which the U.S. citizens and green card holders hold a substantial ownership interest. FATCA also imposes on certain U.S. citizens and green card holders who have foreign assets valued at $50.000.00 or more the obligation to file a “Statement of Specified Foreign Financial Assets” along with their U.S. Federal Income Tax Returns. The information filed by U.S. citizens and green card holders in their tax returns is compared with the information reported by the Foreign Financial Institutions (FFI). Any inconsistencies are identified for further investigation.
Penalties for not filing or for filing incorrect FATCA information on your tax return are very harsh and the IRS is attacking non-compliance vigorously. FATCA Services are designed to keep you in compliance with your FATCA filling obligations. If you are not sure if you have FATCA filing requirement, please contact us, free of charge.
If you are a U.S. Citizen or Green Card Holder and you do not report your foreign financial accounts to the U.S. Government, you are violating U.S. law and the U.S. Government eventually will find out. Foreign Financial Institutions are reporting your taxpayer information to the U.S. Treasury Department without your knowledge.
In an effort to combat money laundering, the U.S. Congress enacted a law titled: The Bank Secrecy Act of 1970 (BSA). This law has been amended several times, always with the intention to grant the U.S. Government more power to investigate and prosecute multiple crimes, including: drug trafficking, tax evasion and (recently) sponsorship of international terrorism.
To implement this law, the U.S. Government demands (under penalty of sanctions) from U.S. citizens and green card holders (regardless of where they live) who have a financial interest in or signature authority over a foreign financial account(s) with $10,000.00 or more at any time during the year the obligation to file a “Report of Foreign Bank and Financial Accounts (FBAR)” directly with the U.S. Treasury Department. The $10,000.00 amount is an aggregate value, not a per account balance.
Penalties for not filing or for filing an incorrect FBAR can be extremely harsh and the IRS is attacking non-compliance vigorously. FBAR Services are designed to keep you in compliance with your BSA filling obligations. If you are not sure if you have an FBAR filing requirement, please contact us, free of charge.