The Department of Treasury and the Internal Revenue Service issue Final FATCA Regulations

On January 17, 2013, the Department of Treasury and the Internal Revenue Service (IRS) announced the release of the final FATCA regulations (Regulations). The Regulations become effective on January 28, 2013, and diverge significantly from the current temporary regulations. While there are numerous changes in the Regulations, we highlight just some of the significant changes:…

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United States and Spain sign Protocol to Bilateral Income Tax Treaty

The US Department of Treasury announced that the US and Spain signed a Protocol to their bilateral income tax treaty (the Treaty).  The Protocol includes twenty-six pages of addenda and revisions to the Treaty.  The Department of Treasury highlighted some of the Protocol’s changes to the Treaty: 1)       the Protocol provides for “exclusive residence-country” taxation…

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FATCA Timeline Guide

The Foreign Account Tax Compliance Act (FATCA) and its subsequent regulations have created a dizzying array of implementation deadlines for taxpayers, financial institutions, and withholding agents. The accompanying chart organizes the key dates related to FATCA implementation. Please note that because of the complexity of FATCA it was not practical to include all implementation dates…

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FinCen further delays FBAR filing requirement for certain accounts

After publishing final rules regarding people reporting their signature authority over foreign financial accounts, the Financial Crimes Enforcement Network (FinCen) received questions and comments about reporting for certain types of accounts. In response FinCen delayed the reporting requirement for individuals with signature authority over these types of accounts until June 30, 2012.  The most problematic…

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Relinquishment Success!

Recently, Flott & Co. assisted a client apply for a Certificate of Loss of Nationality of the United States (“CLN”) based on his relinquishment of US citizenship in 1984. He has now succeeded in obtaining an official CLN from the US Department of State, showing that he ceased being US citizen as of March 1984.…

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IRS Moves Forward with FATCA Implementation

The Internal Revenue Service (IRS) announced on November 19, 2012, that the US and Denmark have reached an agreement for information sharing to improve tax compliance and implementation of the Foreign Account Tax Compliance Act (FATCA).  This development fits with the Treasury’s earlier announcement that it is negotiating similar agreements with more than 50 countries.  The…

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What FATCA Means to US Citizens Living Abroad

These publications do not constitute legal advice.  Further information regarding this notice. As of 2009, the Internal Revenue Service (IRS) estimated that more than 7 million US citizens live outside of the US. However, according to the IRS’s 2006 data only 669,701, a fraction of the citizen living abroad, filed tax returns claiming exclusion for…

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Better Department of State Guidance Needed for Contested Certificate of Loss of Nationality Applications

Flott & Co. recently contacted the Department of State, suggesting that Volume 7 (Consular Affairs) of the US Department of State Foreign Affairs Manual (“FAM”) be revised.  Specific guidance is needed for cases when former US citizens living abroad wish to establish that they relinquished their US citizenship at a date in the past and a Consular…

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