Broad Regulations for Foreign Financial Asset Reporting

more+
less-

On December 14, 2011, the U.S. Department of the Treasury (Treasury) issued temporary and proposed regulations relating to information reporting of certain foreign financial assets required under Section 6038D of the Internal Revenue Code of 1986, as amended. These regulations may trigger increased reporting obligations for certain specified persons.

Section 6038D, enacted as part of the Foreign Account Tax Compliance Act (or FATCA) contained within the Hiring Incentives to Restore Employment Act of 2010 (or the HIRE Act, P.L. 111-147), requires individuals holding specified foreign assets in excess of certain thresholds to attach detailed information to their tax returns concerning such assets. For those familiar with Form TDF 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), the information required by FATCA is separate and distinct from the FBAR and covers a far broader range of foreign assets than the FBAR. To date, Treasury guidance concerning FATCA has focused on the obligations of foreign financial institutions with respect to U.S.-owned accounts maintained by such institutions and how such obligations are to be implemented. The regulations focus on the other major aspect of FATCA, which concerns the reporting obligations of the individuals who own such foreign financial accounts.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morgan Lewis | Attorney Advertising

Written by:

more+
less-

Morgan Lewis on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×