The I.Q.D. Team Connection
  • Welcome
  • Iraq News Current
  • PRE & POST RV Information
  • Market Place
  • Twitter Feed
  • Join Our Mailing List
  • Future Of Iraq Project & Other Links
  • The IQD Team Connection Blog & Announcements
  • Quick Links
  • Conf Calls: Recordings
  • Contact Us
  • Financial Planning
  • How to Choose A Financial Advisor
  • Private Bankers: Contacts & Websites
    • Private Bankers - Articles of Interest
  • Computer Security
  • Dinar Dealer & Exchange Info
  • Public Record Sites - Background Checks FREE
  • Real Estate
    • Landlord Tenant Laws & Information
  • Documents: Gifting
  • In Loving Memory of Tim
  • Health & Wellness Blog
  • Health Wellness Products
  • In Loving Memory of Linda

IRS Focuses on Wealthiest Americans in Foreign Bank Account Reporting Plan

10/5/2011

0 Comments

 
IRS Focuses on Wealthiest Americans in Foreign Bank Account Reporting Plan

The Internal Revenue Service is focusing on the wealthiest Americans with money overseas as it develops regulations that will require foreign banks to give the government more information about those customers.

In new guidance released today, the IRS said it will direct foreign banks to spend less time identifying and monitoring accounts of people with less than $50,000 and more effort focusing on U.S. account holders with more than $500,000 and with private banking relationships.

The information provided today should help financial institutions figure out the process of identifying U.S.-linked accounts, even though the IRS didn’t answer every question that companies have raised, said Barbara Angus, a partner at Ernst & Young LLP in Washington.

“It has operational impacts on financial institutions, on all aspects of their business, on IT systems, on the account opening process,” she said. “That kind of impact, again, is sort of why information is needed, and needed as soon as possible.”

The requirements, passed by Congress last year, take effect in 2013. They force foreign banks to tell the IRS about U.S. account holders as part of the agency’s effort to combat offshore tax evasion. Banks based outside the U.S. face 30 percent withholding on certain payments from inside the U.S. if they fail to share information with the IRS.

Implementing the Rules

An overall goal of the regulatory process is to get information to stakeholders as quickly as possible, according to a Treasury Department official who spoke on condition of anonymity to describe the agency’s approach. The administration is working on the regulation and knows that financial institutions are anxious to know how to implement the rules by the effective date, the official said.

Financial institutions from around the world, including Allianz SE (ALV), Aegon NV (AGN) andCommonwealth Bank of Australia (CBA), filed comments with the IRS after the agency released its first set of guidance on the law last August.

The rules are part of a broader effort by the U.S. government and the IRS to combat offshore tax evasion. Commissioner Douglas Shulman has made the issue one of his top priorities.

Voluntary Disclosure

Separately, the IRS is operating a voluntary disclosure initiative, which encourages taxpayers with undeclared accounts and income to come forward, pay penalties and likely avoid prosecution. The deadline for entering that program is Aug. 31.

About 15,000 taxpayers came forward during a similar program in 2009, and the IRS has been using the information it gleaned during that process to pursue others, Shulman said April 6. Yesterday, the agency asked a court for a summons that would require HSBC Holdings Plc (HSBA) to disclose information about its U.S. clients with accounts in India.

The information released today deals largely with foreign financial institutions and doesn’t address other questions attorneys have about how the new law will work, said Charles Kolstad, an attorney at Venable LLP in Los Angeles who represents the owners and beneficiaries of trusts.

The law, he said, imposes new reporting requirements on beneficiaries of foreign trusts, even in cases where the beneficiaries may not know trust details. That’s an area where the IRS will need to release future guidance.

“This really doesn’t answer most of the questions that people have,” Kolstad said.

LINK


http://www.bloomberg.com/news/2011-04-08/irs-focuses-on-wealthiest-in-foreign-bank-account-reporting-plan.html
0 Comments



Leave a Reply.

    Health Products Favs
    Health Books
    Picture
    filterfluoride
    IGNITEChewable Energy
    Get younger skin the natural way with Chews-4-Healthâ„¢
    Picture
    Picture
    Liquid Zeolite
    Health Books
    Health Products FAV
    Picture
    Get 50% off Vetisse Jimin Ointment

    Categories

    All
    Articles Of Interest
    Automobile
    Banking
    Banking Laws
    Banking Tools
    Books
    Budget Tips
    Business Start Up
    Calculators
    Calling Help Google
    Cashing In
    Cashing In Info
    Cdars
    Changing State Residency
    Charities
    Check Authenticity Of Dinars
    Computer Security
    Con Men
    Credit
    Credit Cards
    Currency Classifications
    Currency Exchange
    Currency Trading Forex
    Debt
    Delarue
    Dinar Dealers - Check Out License
    Dinar Information
    Email Accounts Set Up
    Entities
    Entities Help
    Fair Debt Collection Practices Act
    Financial Planning
    Financing
    Fincen
    Forex & Currency Converters
    Fractional Banking
    Free
    Free Calling
    Fun
    Gifting
    Health & Wellness
    Home Ownership Help
    Home Safety
    Identity Protection
    Insurance
    Internet Crime Center
    Investing
    Iraq Investing
    Iraq News
    Iraq Stock Exchange Isx
    Lop
    Misc
    Modern Money Mechanics
    Money
    Money Financial Planning
    Money. Financial Planning
    Mortgage Scams
    Mr Anonymous
    Music & Inspiration
    News Sources
    Phone Security
    Post Rv Checklists
    Preparedness
    Pre & Post RV Daily Postings
    Privacy
    Private Banking
    Questions To Ask Professionals
    Real Estate
    Retirement
    Rfid Be Aware
    Safes
    Scam & Fraud
    Scam & Fraud
    Security
    Self Help
    Sent In By Our Listeners
    Shopping
    Straight Talkin Mike
    Sudden Wealth
    Tag Account
    Taxes
    Telephone
    Travel
    Twitter
    Veterans Assistance
    Words Of Wisdom

    Garden of Life