Arnstein's Tax Partner Shares New Rules for Offshore Foreign Accounts

Arnstein's Tax Partner Shares New Rules for Offshore Foreign Accounts
March 11, 2015

 

Tax season is upon us, and Arnstein & Lehr's Chicago partner Robert McKenzie helps shed some light on new rules for offshore foreign account filing. The Foreign Account Tax Compliance Act's (FATCA) was passed in 2010 after Congress discovered the large number of Americans hiding their money in offshore accounts. The law states that every year, all foreign banks, worldwide, must send an information document on all Americans to the IRS. If a bank does not comply, the IRS can require American banks to withhold 30% of transactions between them. Listen to Bob McKenzie's audio commentary here.

 

The IRS has several programs in place, including the Offshore Voluntary Disclosure Program. Even those who intentionally hid their money overseas are allowed to confess to the IRS and correct their taxes for eight years. Listen to Mr. McKenzie's audio commentary here.

 

Not everyone is intentionally doing something wrong when it comes to filing taxes. In some cases, it is simply a lack of understanding of U.S. rules and regulations. If an immigrant has been in the U.S. for 180 days, they are required to report to U.S. authorities that they have a foreign account and become subject to U.S. taxation. Listen to Mr. McKenzie's audio commentary here.

 

Engage with Knowledgeable Tax Professionals

Seek the advice from a competent tax official who knows the rules and penalties. Mr. McKenzie is part of Arnstein & Lehr's Tax Law Group. Our tax attorneys are proficient in helping businesses minimize their risk from a tax standpoint and maximize their business and financial goals.

Contact Bob McKenzie for more information.

[caption id="attachment_2184" align="aligncenter" width="85"] Bob McKenzie[/caption]