Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Global Tax Evasion Compliance Deadline Nears
Author: Scarinci Hollenbeck, LLC
Date: July 11, 2013
Key Contacts
Back
In one of the largest coordinated global tax evasion strategies in history, the United States is on pace to open up registration to foreign financial firms that service U.S. clients on July 15, 2013.
The financial industry continues to lobby for more time and the Internal Revenue Service has not yet released registration procedures and guidelines. However, the U.S. government is still set to begin enrolling investment companies, banks, and insurance groups in its registry in an effort to further the Foreign Account Tax Compliance Act (FATCA) of 2010 and significantly cut down on multimillion-dollar tax law violations, Reuters reports. Foreign financial institutions are required to complete registration by October 25 to avoid penalties that will be levied beginning on January 1, 2014.
Many financial institutions and industry professionals argue that registration may be severely stunted, however, if the U.S. Treasury fails to put up guidelines and further instruction immediately. Some anticipate registration backlogs as a result of these delays, and others contend that the IRS may be forced to delay the implementation of penalties if they don’t put up instructions quickly enough, Reuters reports. The Treasury Department – which delayed FATCA requirements in the past – has not yet said whether it plans to postpone the upcoming deadline.
Separately, it appears that many Americans with foreign accounts are withdrawing funds at faster rates ahead of the new law. For example, Israeli banks estimate that American clients have withdrawn roughly $4 billion from their institutions over the last two years, a move they attribute to tighter tax scrutiny, Israeli news source Globes reports.
“The blow is not just in the drop in assets, but also in the drop in investments,” a banking source told Globes. “Some of these customers, especially the wealthy ones, use the money to make investments and acquisitions in Israel. There is now little chance that they will make these investments, after they moved the money back to the U.S.”
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.