“Reasonable Cause” When Dealing with the IRS
On November 5, 2020, the IRS removed the Delinquent Information Submission Procedure Program from its Offshore Compliance Options Menu. Before the removal of this program, a US Taxpayer could file a “delinquent” international information tax return with what is known as a Reasonable Cause Statement from which the IRS could waive non-compliance penalties if a […]
What can I do if I made a willful mistake and willfully failed to comply with my tax obligations?
Voluntary compliance is the foundation of the US tax system. Although the majority of US Taxpayers voluntarily comply with their obligations, some fail to do so (willful mistake). Submitting a voluntary disclosure via the Voluntary Disclosure Practice may resolve a Taxpayer’s non-compliance and limit exposure to criminal prosecution The Voluntary Disclosure Practice (VDP) is managed […]
IRS Commissioner Hylton sends an important message to high income non-filers
On December 3, 2020, the IRS published “How the IRS prioritizes compliance work on high income non-filers through national and international efforts” in the Closer Look. It addresses how the IRS is in pursuit of high-income non-filers as an important service and gives its respect to many Americans who pay their taxes. The IRS’s sentiment […]
Is your Financial Institution Maintaining Continuous Compliance with FATCA?
Participation in FATCA is not an option, it is here to stay, and it is part of a global initiative. FATCA is complicated, and for the bankers, it has implied learning new terminology and understanding thousands of pages of a regulation that is written for a person that specializes in the tax laws of the […]
“Complexity will not hide crime from law enforcement,” California U.S. Attorney on Brockman Indictment
The U.S. Department of Justice (DOJ) 39 count indictment charging Robert T. Brockman, with tax evasion, wire fraud, money laundering, and other offenses, demonstrates that the DOJ is committed to the investigation and prosecution of the costliest and most sophisticated tax crimes in the US. The DOJ stated that “IRS Criminal Investigation aggressively pursues tax […]
Beware of FATCA Notices of Default After FATCA Certification Deadlines!
Under FATCA, an Event of Default (EOD) will occur if an Entity fails to perform required material obligations with respect to the due diligence, verification, withholding, or reporting FATCA requirements, or if the IRS determines that the entity has failed to substantially comply with its FATCA requirements. After the deadline for submitting the FATCA Certifications, […]
GAFILAT Identifies Money Laundering/Terrorist Financing Emerging Threats
GAFILAT (Financial Action Task Force of Latin America) published a Second Update to the Money Laundering Regional Threat Report (2017-2018) that includes: ANNEX VI: THREATS RELATED TO THE COVID-19 PANDEMIC. Considered to be a regional money laundering threat analysis, the report’s section related to Covid-19 highlights how criminals are taking advantage of this difficult situation […]
Erroneous FACTA Withholding?
What if a U.S. Withholding Agent of a Foreign financial Institution (FFI) erroneously applies a 30% Internal Revenue Code (IRC) Chapter 4 FATCA Withholding to a payment to the FFI? What can be done to recover the funds? Who is a Withholding Agent? You are a withholding agent for purposes of Chapter 4 if […]
Did you know that the IRS is Involved with Investigating and Prosecuting Bribery?
In 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits an offer, payment, promise or the authorization of a payment of money or anything of value (a/k/a bribery) to a foreign official for the purpose of obtaining or retaining business. Moreover, it prohibits individuals and businesses from knowingly falsifying books […]
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 […]
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 […]
