Half-way through 2013 most of the provisions of FATCA went into effect, yet many people are still not aware of how this legislation can affect them and/or their business.
Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 as part of the comprehensive Hiring Incentives to Restore Employment (HIRE) Act. FATCA legislation requires financial institutions to perform extra due-diligence to discover US citizens who have investments in non-US financial accounts or in non-US entities. FATCA was enacted to prevent US citizens from hiding income and/or assets in overseas accounts.
Financial institutions based outside the US need to change in significant ways as far as their process and technology goes in order to properly comply with FATCA. Due to the complexity of the changes and the possible negative consequences of non-compliance, many financial institutions took steps in advance of the deadline to ensure their compliance in time.
There are many ways to learn more about FATCA and what US citizens and financial institutions need to do to comply. A recorded webinar, written collaboratively by Marnin Michaels, Richard Weisman and Paul F. DePasquale, all of the global law firm Baker & McKenzie, deals with several FATCA issues, such as:
• What is FATCA? Who is impacted?
• FFI Agreements and administrative procedures
• What are the withholding requirements under FATCA
It is highly recommended that anyone with overseas accounts or international business dealings look into the facts behind FATCA and be prepared.