Foreign Accounts Tax Compliance Act (Currently Unavailable)

Author: Miles Hutchinson

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

FATCA was enacted by Congress in 2010 as part of the HIRE Act. It attempts to restore tax fairness by focusing on foreign financial assets of US Citizens that are not being properly reported and taxed.

Publication Date: August 2015

Designed For
Business professionals who need a quick explanation of the new regulations along with clear "how tos" and detailed references to help you and your staff ramp up to comply with the details of this complex body of regulations.

Topics Covered

  • What is FATCA
  • Who is affected — there is more to this than just the FFI's
  • Briefing on the two Model Intergovernmental Agreements
  • Explanation of the impacts of FATCA on forms 1099, 8938, TD F 90-22.1 (FBAR),
  • Useful tables and charts for determining the definitions of foreign financial assets requiring reporting under FATCA
  • Exceptions to Reporting
  • Penalty risks for noncompliance, including the extended statute of limitations
  • Case study — a tale of two offenders with significantly different outcomes
  • References to additional resources to help you keep up-to-date

Learning Objectives

  • Illustrate simplified charts and tables to help you determine the steps to full compliance
  • Identify practical instruction and guidance for applying FATCA and will identify the key issues that will help you avoid potential penalties for noncompliance
  • Recognize the final regulations and how it relates specifically to withholding under the Foreign Account Tax Compliance Act (FACTA)
  • Identify which FFIs are not exempt from registering with the IRS, obtaining a Global Intermediary Identification Number (GIIN) and from reporting certain information on U.S. accounts to the IRS to avoid being withheld upon
  • Differentiate which of the payments to foreign entities are treated as withholdable
  • Recognize which new version of Form W-8 was released by the IRS in February 2014 which requires corporations (entities) to distinguish themselves from individuals
  • Describe which foreign financial assets does not require FBAR reporting
  • Identify which foreign financial assets requiring FATCA reporting
  • Describe what an entity that is not the beneficial owner of payments may be referred to as
  • Recognize what individuals reporting information about certain foreign financial accounts and offshore assets must do
  • Identify the components of why the IRS postponed the Foreign Accounts Tax Compliance Act (FATCA) 30% withholding with Notice 2014-33 (only for obligations held by entities), and extended the time-line to 12/31/14 related to due diligence, withholding and reporting
  • Describe reporting purposes, if the account is either a U.S. account held by a passive NFFE that is a U.S. owned foreign entity or an account held by an owner-documented FFI, the following form(s) must be used
  • Evaluate how to make an election to report on Form 1099
  • Recognize what FFIs entities include
  • Identify the preferred approach with respect to handling Form W8 with foreign payees/vendors
  • Describe which service the reporting of information from foreign entities works through
  • Recognize what the acronym stands for FinCEN under a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering and other financial crimes
  • Identify which examples of "best practices" as it relates to dealing with FFIs/NFFEs

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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