Blog for John Sweeney - Elder, Wills, Estates, Trusts, Special Needs, Business, & Tax Lawyer in CT and NY

FATCA Enforcement Begins

Posted by John Sweeney | Jul 03, 2014 | 1 Comment

Tomorrow, there will be a 30% withholding penalty on any overseas payments to financial institutions that don't share information with the IRS.

So far, 77,000 financial institutions have agreed to share information and the IRS has entered into information sharing agreements with 80 countries.

The result is you will have to use a financial institution that gives your account information to the IRS or pay a 30% withholding tax.  Neat way to get enforcement.

In the past, offshore enforcement has been poor.  No more.  In addition, if the IRS finds unreported offshore accounts, you are facing large fines and criminal issues.  So far, the US has charged more than 70 U.S. taxpayers and three dozen bankers, lawyers and advisers with tax evasion.

The IRS has had a voluntary disclosure program since 2009 that allowed you to bring your money onshore legally at a reduced tax and no criminal violation.

This is the dreaded FATCA Act finally becoming effective.

Some people are renouncing their citizenship (2013 was the highest number on record) and running rather than pay the US tax.

Bloomberg has a good article on this if you would like more information.

About the Author

John Sweeney

John is an experienced lawyer who helps you solve your problems. He practices Elder, Wills, Estates, Trusts, Special Needs, Business, & Tax Law in Fairfield County CT and Westchester County New York. He brings a wealth of experience in law, business, tax, insurance, and finance to arrive at practical solutions with compassion and care. Honest, direct and practical, he is focused on you and your problems. He also brings a wealth of personal experience from his own large family and aging parents.


Yancy Reply

Posted Mar 15, 2015 at 03:03:34

Medicare only pays for a maximum of 100 days of nnrsiug home care, and many nnrsiug homes do not accept Medicare, or you have to pay a deductible. Medicaid only provides emergency medical care for the indigent.You have an annuity. You would have to use all of your resources before you could obtain any taxpayer-paid assistance. If you do not cash in and use your annuity and all other resources first, they will take your annuity in full, put a lien on your house if you don’t sell it and use the proceeds, etc. They also claim first dibs on any future income, inheritance, or any actual or potential source of funds as well as claiming your estate if you die.Use your own resources. The taxpayers are broke. States are already stopping payment on their bills because they have no money.

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Elder, Wills, Estates, Trusts, Special Needs Tax & Business Law; Attorney John Sweeney

Sweeney Legal, LLC, provides legal, practical, and business counsel to Seniors, families, and businesses in the Fairfield, Connecticut area, including the communities of Bridgeport, Bethel, Brookfield, Danbury, Darien, Easton, Fairfield, New Canaan, Newtown, Norwalk, Redding, Ridgefield, Stamford, Weston, Westport and Wilton. John is also licensed in New York serving Westchester County including the towns of Bedford, Lewisboro, Mount Kisco, North Salem, Pound Ridge, and Somers.