A new article recently published by the New Jersey State Bar Association Business Law Section and written by KRS CPAs partner Jerry Shanker, CPA/ABV, MST, presents an overview of U.S. reporting requirements for foreign financial accounts and investments and the penalties for noncompliance.
U.S. Reporting Requirements for Foreign Financial Accounts and Investments: What Businesses and Business Owners Need to Know was published in the October 2016 edition of the NJSBA Business Law Section newsletter. It discusses the Foreign Tax Compliance Act (FATCA), which became law in March 2010 and targets tax non-compliance by U.S. individual taxpayers with foreign financial accounts and other foreign assets.
“The requirements, rules and definitions are complex, and compliance requirements are fact-sensitive,” says Shanker. “Any U.S. taxpayer investing in foreign financial assets or businesses should consult a tax professional to determine compliance requirements. The penalties for failure to comply are substantial.”