Parent Trap: Disclosure requirements of children with signatory authority over foreign accounts

While it is uncommon for parents in the US to grant their minor children signatory authority over  bank accounts, in other countries it is common practice to avoid inheritance, transfer taxes, or for other reasons. While this is generally not a problem, it can become an issue when the Internal Revenue Service (IRS) becomes involved.…

Details

FATCA: final regulations clarify the definition of depository accounts

The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions and US persons who hold certain foreign accounts to report these accounts to the US. One of the most common types of account that must reported is the depository account. However, the definition of depository account changed significantly from the proposed regulations to the final regulations.

Details

Defining Intellectual and Intangible Property

Before delving headfirst into the taxation of intellectual property, it is important to understand what constitutes intellectual property and how it relates to intangible property. Intangible property is any property that has no physical substance, and intellectual property is intangible property created by individual(s). While these terms are often used interchangeably, some types of intangible…

Details

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:…

Details

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…

Details

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…

Details

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…

Details