FATCA: How to Comply with Minimal Withholding, Tax, & Penalty Impact (Currently Unavailable)

Author: Miles Hutchinson

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. With the announcement of final regulations in February, 2013, the US Department of the Treasury and the IRS have been busy designing, implementing and executing intergovernmental agreements, new and revised forms, and instructions to force US Citizens and foreign financial institutions into compliance. Don’t be the last one to learn of your reporting and withholding obligations and don’t fall victim to the huge penalties that can accrue for noncompliance. Join us for this complicated law and how to comply with your withholding and reporting obligations.

Publication Date: October 2017

Designed For
Tax Officers, CFO’s, Compliance Officers, and Risk Managers of international businesses or dealing with U.S. persons abroad, Foreign Financial and Non-financial Institutions, U.S. Financial and Non-financial Institutions with foreign business activities or affiliates, and advisers of U.S. persons with assets located in foreign countries.

Topics Covered

• What is FATCA
• Who is affected?
• Case Study
• Briefing on the two Model Intergovernmental Agreements
• Timeline for withholding, registration, & reporting compliance
• Registration process
• Explanation of the impacts of FATCA on forms 1099, 8938, FinCEN 114
• Useful table sand charts for determining the definitions of foreign financial assess requiring reporting under FATCA
• Exceptions to Reporting
• Penalty risks for noncompliance, including the extended statute of limitations
• References to other rich resources to help you keep up-to-date

Learning Objectives

• Differentiate reporting and withholding obligations
• Avoid falling victim to huge penalties that can accrue for noncompliance
• Recognize how to comply with your withholding and reporting obligations
• Describe proper statements with respect to the final FACTA Regulations
• Identify IRS postponement characteristics of the FATCA withholding deadline
• Differentiate types of entities required to provide an FFI Agreement Renewal
• Identify an exempt FFI
• Identify the filing threshold for joint U.S. taxpayers living abroad anytime during the tax year
• Describe an FBAR
• Identify the primary focus of the FATCA reporting objectives
• Describe which test was eliminated based on the final FATCA regulations
• Recognize the form U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets
• Differentiate between an FFI as opposed to an exempt FFI
• Identify IRS forms affected by the new FATCA regulations relates specifically to nonresident aliens
• Identify a best practice with respect to handling form W-8 with foreign payees/vendors
• Recognize the FATCA report Form 8966 is required to be filed for the 2016 calendar year
• Identify the FinCEN Form 114 reporting threshold with respect to the total value of assets
• Differentiate required reporting for foreign financial assets with respect to FATCA

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None