The Foreign Account Tax Compliance Act, usually shortened to FATCA, was passed in 2010 and provides for increased cooperation and information sharing between the US government and foreign financial institutions. Since the law was first passed, several countries have signed FATCA agreements with the US, and every month it seems new countries are added to that list.
The Treasury Department has recently announced two new FATCA agreements, these with Costa Rica and the Cayman Islands. The Caymans have long been held as an iconic tax haven, but with this new agreement in place, that status will soon be a thing of the past.
The IRS offers a program for taxpayers with previously undisclosed offshore assets and income to voluntarily disclose those assets, pay reduced penalties, and avoid criminal prosecution. If the IRS has already begun an investigation into a taxpayer’s offshore accounts, however, they are ineligible for the voluntary disclosure.
Horowitz Law Offices represents persons in connection with the IRS Offshore Voluntary Disclosure Program (OVDP). You are welcome to contact us at 312 787 5533 or email@example.com .