Tag Archives: HIRE

FACTA – Penalty for Failure to Report

January 04, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

The minimum amount of penalty for failure to report information or file returns for foreign trusts is increased to $10,000. If any notice or return required to be filed under IRC §6048 is not filed on or before the due date, or does not include all the information that is required, or includes incorrect information, then the person […]

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FATCA – Reporting Requirements for U.S. Persons Treated as Owners of a Foreign Trust

January 03, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

A U.S. Person who is treated as the owner of any portion of a foreign trust under the grantor trust rules, must submit any information required by the IRS with respect to the foreign trust (in addition to the current requirement that such U.S. Persons are responsible for insuring that a foreign trust complies with […]

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FATCA – Uncompensated Use of Foreign Trust Property

January 03, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

The uncompensated use of foreign trust property by a U.S. Grantor, a U.S. Beneficiary, or a U.S. Person related to either of them is treated as a distribution by the trust for non-grantor trust income tax purposes (which also includes the loan of cash or marketable securities by a foreign trust or the use of […]

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FATCA – Foreign Trusts Treated as Having U.S. Beneficiaries

January 03, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

For purposes of treating a foreign trust as a grantor trust, there is a rebuttable presumption that the trust has a U.S. beneficiary if a U.S. Person transfers property to the trust. An amount is treated as accumulated for a U.S. Person even if that person has a contingent interest in the trust. A foreign […]

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FATCA – Six Year Statute of Limitations

January 02, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

Under the new law, the statute of limitations is extended to six years if there is an omission of gross income in excess of $5,000 and the omitted gross income is attributable to a foreign financial asset. Taxes are generally required to be assessed within three years after a Taxpayer’s return was filed, whether or […]

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HIRE Foreign Account Tax Compliance: 40% Penalty

December 31, 2012  |   Posted by :   |   FATCA/FBAR   |   0 Comments

The HIRE Act gives the IRS assessment and collection remedies unavailable with respect to the FBAR penalty. A 40% accuracy-related penalty is imposed for underpayment of tax attributable to transactions involving undisclosed foreign financial assets.  Undisclosed foreign financial assets include foreign financial assets that are subject to information reporting but the required information was not […]

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FATCA – Foreign Financial Assets

December 31, 2012  |   Posted by :   |   FATCA/FBAR   |   0 Comments

U.S. Taxpayers who hold any interests in specified foreign financial assets during the tax year must attach their tax returns for the year certain information with respect to each asset if the aggregate value of all assets exceeds $50,000. An individual who fails to furnish the required information is subject to a penalty of $10,000. […]

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FATCA – Summary of HIRE and Foreign Account Tax Compliance Act

December 28, 2012  |   Posted by :   |   FATCA/FBAR   |   0 Comments

On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (“HIRE”) Act (P.L. 111-147) (The “Act”) which included the Foreign Account Tax Compliance Act containing new foreign account tax compliance rules. Under the Act, new reporting and disclosure requirements for foreign assets will  be phased in between 2010 – 2013: 1. Foreign […]

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FATCA – Withholding Agents

December 28, 2012  |   Posted by :   |   FATCA/FBAR   |   0 Comments

The Foreign Account Tax Compliance Act (The “Act”) expands withholding rules and additional reporting requirements for foreign financial institutions and non-financial foreign entities. Under U.S. tax law, a withholding agent must deduct or withhold a tax equal to 30% on any withholdable payment (e.g., interest, dividends, rents, salaries, wages, premiums, annuities, compensations, and other fixed […]

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