Archive for the ‘Press Release’ Category
Canada and U.S. reach agreement on Foreign Account Tax Compliance Act
Canada, Dept. of Finance (5 Feb 2014)
Government of Canada news release on FATCA agreement with United States.
Treasury and IRS issue final regulations to combat offshore tax evasion
U.S. Dept. of the Treasury (17 Jan 2013)
“The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today issued comprehensive final regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA).” A filing version 544 page pdf of the regulations (publication scheduled for 28 Jan 2013) can be found at https://www.federalregister.gov/articles/2013/01/28/2013-01025/information-reporting-by-foreign-financial-institutions-and-withholding-on-certain-payments-to.
Finance Minister applauds U.S. government decision to help dual citizens with their foreign tax obligations
Department of Finance Canada (27 June 2012)
“I am happy the U.S. government has listened to our concerns,” says Jim Flaherty, Minister of Finance.
Comment: Too much praise. Partial and uncertain mitigation of some of the concerns.
IRS announces efforts to help U. S. citizens overseas including dual citizens and those with foreign retirement plans
IRS (26 June 2012)
IRS announces new procedures effective 1 September 2012 to (1) “Allow taxpayers who are low compliance risks to get current with their tax requirements without facing penalties or additional enforcement action” (simple tax returns owing $1,500 or less in tax for any of the covered years) (2) “Allow resolution of certain issues related to certain foreign retirement plans (such as Canadian Registered Retirement Savings Plans).” The basic requirement is “to file delinquent tax returns along with appropriate related information returns for the past three years, and to file delinquent FBARs for the past six years.”
Comment: This “help” with compliance could cost many affected individuals thousands of dollars for the specialized paperwork required to demonstrate that no tax is owing.
IRS says offshore effort tops $5 billion, announces new details on the voluntary disclosure program and closing of offshore loophole
IRS (26 June 2012)
IRS Commissioner Shulman updates on OVDI income and disclosures, reporting “the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs. In addition, another 1,500 disclosures have been made under the new program announced in January.”