A recent study reveals that FATCA is causing unexpected increases in budget costs for many foreign institutions.
Foreign banking institutions are realizing significant increased costs due to the Foreign Accounts Tax Compliance Act as the year draws to a close and the final costs are being calculated. According to a recent Thompson Reuters study, foreign institutions have reported higher than anticipated costs in connection with reporting and compliance expenses for FATCA.
Three hundred institutions were surveyed by Thompson Reuters. Of those, 55% have stated that they expect to exceed their budget for FATCA compliance by the end of the year. This means over half of the institutions underestimated the mounting costs of documentation and reporting procedures tied to FATCA compliance. Unfortunately, these extra costs end up causing a significant strain on each institutions budget. Consequently, these institutions are seeking professional help to navigate FATCA regulations in a more effective way to reduce costs while still ensuring compliance.
Where to Turn?
When it comes to understanding the nuances of FATCA reporting and documentation procedures, there is professional assistance available. Law firms like Freeman Tax Law specialize in representing financial institutions and US financial institutions so they can stay compliant with FATCA requirements and withholding tax obligations.
Here to Stay
It is important for financial institutions to plan for effective FATCA compliance because for the time being, it looks like FATCA is here to stay. Just recently, 51 countries joined with the Common Reporting Standard (CRS) which will require additional reporting on even more customers. Transparency and increased reporting seem to be the way of the future, so it is best for banking institutions to make it a top priority to implement efficient, organized, and cost-effective reporting processes.
Freeman Tax Law is uniquely qualified to support and represent financial institutions seeking to stay compliant with FATCA. Jeffery S. Freeman J.D., LL.M. has an extensive background working with accounting firms and with international tax law. This history gives him the unique capabilities necessary to help clients navigate FATCA requirements and to file the necessary documents and paperwork to meet their tax obligations. Services are available nationwide, by phone, or online. Additionally, Freeman Tax Law implements innovative technology to streamline the reporting process and optimize communication and organization. Clients have access to a team of accounting and legal professionals to collaborate on each project.
About Freeman Tax Law
Freeman Tax Law (FTL) is a boutique law firm consisting of a multi-disciplinary team of tax professionals including tax attorneys, CPAs and a professional staff that have vast experience with foreign tax compliance and regulatory matters for financial institutions. FTL consults with both FFIs and USFIs with regard to Foreign Account Tax Compliance Act (FATCA) and related regulatory matters and assists them developing procedures on how to comply with these laws. FTL provides a multidisciplinary approach for filing offshore voluntary disclosures. Working to help clients prevent future tax headaches we offer a complete wealth management and estate planning team. As an experienced firm with wide reach, Freeman Tax Law provides immediate assistance to our clients planning for and resolving all tax related challenges.
Freeman Tax Law