On November, 14 2013, the US and France signed a bilateral agreement to implement the Foreign Account Tax Compliance Act (FATCA). The agreement is based on the Model 1A treaty and requires French financial institutions to report US account holders to the French government, which will then report those accounts to the US. Similarly, US financial institutions are required…
DetailsOn October 29, the IRS published Notice 2013-69 (the Notice) which provides guidance to Foreign Financial Institutions (FFI’s) seeking to enter into FFI Agreements with the Internal Revenue Service (IRS) to comply with their Foreign Account Tax Compliance Act (FATCA) obligations. While the majority of the Notice is dedicated to providing a draft FFI Agreement,…
DetailsThe United States imposes different types of taxes, including income and estate and gift taxes. An individual’s tax liability to the US government depends on whether the individual is a US citizen or resident or a nonresident alien. US citizens and residents are taxed on their worldwide income for US income tax purposes and on…
DetailsFlott & Co. recently had the opportunity to discuss our proposal for changes to the existing IRS “noisy” disclosure programs (Offshore Voluntary Disclosure Program – OVDP – and the Streamlined Filing Compliance Procedure for Non-Resident US Taxpayers – Streamlined Process) with representatives of the Service. The discussion focused on encouraging the IRS to create a…
DetailsFlott & Co. recently had the opportunity to discuss our proposal for changes to the existing IRS “noisy” disclosure programs (Offshore Voluntary Disclosure Program – OVDP – and the Streamlined Filing Compliance Procedure for Non-Resident US Taxpayers – Streamlined Process) with representatives of the Service. The discussion focused on encouraging the IRS to create a…
DetailsOur suggestion for a new compliance procedure for non-resident, dual national, delinquent us taxpayers is as follows: This compliance procedure is only available to US persons who are also nationals of another country and (1) have resided continuously outside the United States for more than ten years as of January 1, 2013 and continue to…
DetailsDEAR MR. HORTON: The Service’s approach to tax and FBAR compliance by US citizens who are dual nationals and long-term residents of other countries needs to change. The existing compliance programs do not reflect the demonstrable reality that there are many genuinely innocent delinquent US taxpayers living overseas. Enclosed with this letter is a proposal…
DetailsThe Affordable Care Act requires that all US taxpayers have health care that provides minimum essential coverage (MEC) after the 2013 calendar year. If a US taxpayer does not have the required MEC, the US taxpayer will be assessed a penalty for each month they do not have the required coverage. Most US taxpayers living…
DetailsOn July 12, 2013, the US Treasury Department issued Notice 2013-43 which extended the implementation deadline of most FATCA rules for an additional six months. This has moved the general implementation deadline for FATCA from January 1, 2014 to July 1, 2014. Still, US persons holding foreign accounts will be impacted by FATCA sooner rather…
DetailsRodriquez v. Commissioner, No. 12-60533 (July 5, 2013), aff’g 137 T.C. 14 (2011) ruled recently on whether inclusion of income under sections 951 and 956 (951 Inclusions) of the Internal Revenue Code (IRC) may qualify for the preferential tax treatment afforded to qualified dividends, as defined by section 1(h)(11) of the IRC. The Fifth Circuit…
Details