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
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
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
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.