The U.S. Department of the Treasury has released new guidance to foreign institutions to help them comply with the new U.S. anti-tax evasion law, most commonly referred to as the Foreign Account Tax Compliance Act (FATCA).
Many foreign banks, investment firms and other financial agencies have expressed some concern over the lack of clarity and guidance provided by the U.S. that is essential for helping them comply, and the Treasury Department’s most recent instruction is designed to help these institutions avoid penalties under the tax law. For instance, the guidance provides a draft agreement for participating institutions directly engaging in agreements with the Internal Revenue Service and those reporting through a intergovernmental agreement. The notice also provides foreign institutions with advance notice prior to the beginning of FATCA withholding and account due diligence requirements on July 1, 2014.
“The agreement and forthcoming guidance have been designed to minimize administrative burdens and related costs for foreign financial institutions and withholding agents,” said Deputy Assistant Secretary for International Tax Affairs Robert Stack. “Today’s preview demonstrates the Administration’s commitment to ensuring full global cooperation and a smooth implementation.”
FATCA is designed to detect Americans who try to hide assets overseas to avoid paying U.S. taxes. While most foreign institutions have announced their intent to participate in the new tax evasion initiative – or avoid being frozen out of U.S. financial markets – there has also been a great deal of frustration from institutions about the lack of timely guidance from the government. Many are concerned that they will inadvertently violate compliance guidelines, simply because they have not been given sufficient information. Foreign institutions that fail to comply with the law face a potential 30 percent withholding tax on their U.S. income, which could greatly jeopardize their global standing and ability to enter into meaningful financial agreements with other countries.
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
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!
