The Internal Revenue Service is one step closer to strengthening an international community devoted to fighting tax evasion and sharing information about potential tax cheats.
After several stops and starts, the agency announced it has unveiled a new online registration for American and foreign financial institutions that need to comply with the Foreign Account Tax Compliance Act.
The move represents one of the last steps the tax agency needed to take to get its FATCA implementation off the ground by July 2014. Although financial institutions are not required to comply with FATCA and distribute information about account holders who may be evading federal tax law, they may face significant reputational damage and find it more challenging to compete in an international economy.
Under existing rules, U.S. taxpayers with more than $50,000 in foreign accounts must report information on those accounts. Individuals who fail to file these reports face penalties of up to $50,000, in addition to other penalties for underpayment. The rules also enable U.S. banks that are receiving funds transfers from overseas to withhold 30 percent of the cash for Americans who fail to comply with the regulations. The penalty could essentially freeze foreign institutions that disregard the rules out of U.S. financial markets.
“FATCA is an actual reality now for most banks who assumed that FATCA deadlines would continue to be pushed,” Reetu Khosla, a global director at risk, fraud, and compliance at software provider Pegasystems, told American Banker. “More and more banks will need to ramp up to meet next year’s deadlines to implement their rules, processes and technology to meet FATCA requirements.”
The IRS will begin approving firms’ registrations in 2014, as banks and institutions must register by April 25, 2014, to avoid FATCA’s withholding penalties. In June 2014, the agency will publish a list of all the firms complying with FATCA, according to Reuters.
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
