James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Government Issues Final Rules on FATCA
Author: James F. McDonough
Date: February 11, 2013
Key Contacts
Back
Foreign financial institutions that shelter Americans’ offshore funds will now be required to comply with the final rules on FATCA issued by the U.S. Department of Treasury and the Internal Revenue Service.
The federal officials announced that they have finalized regulations relating to U.S. tax law compliance and offshore accounts. The groups said that many of the rules relating to the Foreign Account Tax Compliance Act did not differ from those outlined in 2012, but that they took constructive criticism from foreign governments and financial institutions into account, after concerns arose that FATCA was too extensive and would only complicate reporting.
“These regulations give the administration a powerful set of tools to combat offshore tax evasion effectively and efficiently,” said Neal Wolin, the deputy Treasury secretary.”The final rules mark a critical milestone in international cooperation on these issues, and they provide important clarity for foreign and U.S. financial institutions.”
The final rules will require U.S. and foreign entities to phase in timelines for due diligence, reporting and withholding and align them with the intergovernmental agreements, and also refine and clarify the treatment of investment entities. The new rules also seek to expand and clarify the scope of payments not subject to withholding, and outline the compliance and verification obligations of foreign financial institutions. Additionally, the rules require that countries sign intergovernmental agreements that better facilitate cooperation between countries.
Many nations have already forged agreements with the U.S. to prevent future incidences of tax evasion. For example, Norway recently joined six other countries – Denmark, Ireland, Mexico, Spain, Switzerland and the United Kingdom – in reaching an agreement with the U.S. on implementing FATCA. In some countries, banks will provide information on U.S. accounts to their own governments, while financial institutions in other nations will report directly to the IRS.
- Practices: Tax and Trusts & Estates, International Law & Trade
- 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
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
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.