The New Year marked an important FATCA deadline for registering with the IRS and causes some Americans living abroad to face unwelcome consequences.
January, 2015 – Foreign Account Tax Compliance Act (FATCA) regulations are continuing to cause unrest among Americans living abroad. December 31st, 2014 marked the deadline for foreign financial systems to register with the IRS in order to comply with FATCA requirements. In the past weeks, the pressure to register was high due to impending financial penalties for non-compliant institutions. Unfortunately, the many Americans were forced to face negative consequences due to the new laws. This is because some banks chose to simply close accounts with US ties rather than muddle through the compliance regulations of FATCA. Similarly, some companies abroad are passing over American applicants for work or investment opportunities to avoid being held to FATCA standards.
There are now over seven million United States citizens living abroad in all corners of the world so the far-reaching implications of FATCA are unprecedented. As financial jurisdictions work to understand the requirements of the laws and weigh the benefits and costs of complying, Americans in the middle are left in a vulnerable position. Meanwhile, individual taxpayers themselves are also responsible for reporting foreign accounts, income, and investments.
“We encourage taxpayers living abroad to seek professional support for navigating the compliance requirements of FATCA,” shares Jeffrey S. Freeman, J.D., LL.M. “Freeman Tax Law helps both foreign financial institutions and U.S. financial institutions stay compliant with these requirements and withholding tax obligations.”
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