What is being done to improve the Communication with Non-U.S. Users of FATCA and QI Systems?
On November, 2019, the Internal Revenue Service Advisory Council (IRSAC) published its Public Report. The purpose of IRSAC is to serve as an advisory body to the Commissioner of the IRS and to organize a public forum between IRS officials and public representatives for discussing tax administration issues. The IRSAC is required to hold a […]
Is the “FinCEN Query” a Gateway to Convergence?
FinCEN’s (a bureau of the U.S. Department of the Treasury) primary purpose is protecting the financial system from illicit use, combating money laundering, and promoting national security through the collection, analysis, and dissemination of financial intelligence and the strategic use of financial authorities. Its core activity is to “follow the money”. Its duties and responsibilities […]
An Interagency Statement from Regulators and a FinCEN Statement provide clarity Regarding Enforcement Actions
On August 13, 2020, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency issued a JOINT STATEMENT ON ENFORCEMENT OF BANK SECRECY ACT/ ANTIMONEY LAUNDERING REQUIREMENTS. Five days later, on August 18, 2020, FinCEN, as administrator […]
Violating the FCPA may Trigger other U.S. Laws such as the Travel Act
There are other U.S laws that intersect with the FCPA. A violation of the FCPA may also constitute a violation of the characteristics of another U.S. Law – in this case the Travel Act. If the conduct of an Entity or an Individual intersects the FCPA’s antibribery or accounting provisions, the conduct of an Entity […]
Financial Institutions Continue to have CDD Questions and FinCen Responds
On August 3, 2020, FinCEN issued responses to three frequently asked questions (FAQs) regarding Customer Due Diligence (CDD) requirements for covered financial institutions. FinCEN’s responses were done in consultation with federal regulators. Under the Bank Secrecy Act (BSA), FinCEN issued a “Fifth Pillar” in the Final CDD Rule on May 2016. The covered financial institutions […]
Are Financial Institutions Creating a Corporate Governance Strategy to handle to End of Libor?
The London Interbank Offered Rate (LIBOR) expires at the end of 2021. Used since the early 1980s, LIBOR is the most referenced global short-term interest rate, and a “standard benchmark”. It is the pricing benchmark for an estimated $350 Trillion in financial transactions worldwide that include: credit cards home loans and mortgages company loans […]
Scammers Continue to Ruin the Good Deeds of the Small Business Administration
Government officials are warning the public concerning fraud schemes related to economic impact disaster programs offered by the U.S. Small Business Administration (SBA) during the COVID-19 pandemic. At the same time, Scammers/Fraudsters continue to “up their game” with respect to the SBA PPP (Payroll Protection Program) and EIDL (Economic Impact Disaster Loan) loan programs via […]
What do you do if you are a Financial Institution with COVID-19 Loan Accommodations near the end?
On August 3, 2020, the Federal Financial Institutions Examination Council (FFIEC) issued a Joint Statement on Additional Loan Accommodations Related to COVID-19 regarding loans that are near the end of an initial loan accommodation period. The FFIEC defines a loan accommodation as “any agreement to defer one or more payments, make a partial payment, forbear […]
Treasury and IRS are Aiming to Provide Greater Clarity on International Tax Reporting
On July 14, 2020, the US Treasury Department and the IRS released a proposed redesigned partnership form for tax year 2021 (filing season 2022). The two proposed forms SCHEDULE K-2 (Form 1065) and Schedule K-3 (Form 1065) are designed to provide “greater” clarity to partnerships on how to compute their US income tax liability with […]
U.S. Financial Institutions and FATCA
Little is written regarding FATCA and U.S. Financial Institutions (FI). That said, U.S. Financial Institutions have FATCA responsibilities. In the absence of permitted exceptions, FATCA requires U.S. FIs that make payments of most types of U.S. source withholdable income to non-U.S. persons to withhold a 30% tax on that income. This requires U.S. Financial Institutions […]
How does IRS Identify Cases with Audit Potential?
Understanding how the IRS identifies cases that have audit potential can be learned from the CONGRESS OF THE UNITED STATES (CONGRESSIONAL BUDGET OFFICE) Report released on July, 2020: Trends in the Internal Revenue Service’s Funding and Enforcement. This report addresses IRS trends in funding, staffing and detailed views of tax law enforcement. IRS Enforces Tax […]
What happens when Taxpayers try to tell the IRS that it is not “Mea Culpa”?
According to the IRS Manual, reasonable cause for abating penalties is based on all the facts and circumstances of a Taxpayer’s situation. IRS will consider reasons which establish that a Taxpayer used all ordinary care and prudence to meet required Federal tax obligations but were nevertheless unable to do so. So, when Taxpayers attempt to […]
