Banks and certain other financial institutions located outside the United States that have U.S. account holders must achieve full compliance with the U.S.'s Foreign Account Tax Compliance Act (FATCA) by 1 January 2020. As a result, U.S. taxpayers with assets in foreign accounts may see those accounts closed or frozen in the new year.
The OECD and IMF have reported recently that global economic momentum has faltered and is likely to remain slow. Inhibiting factors include trade tensions, corporate and government debt, disruptive technologies and more. Corporate leaders are well aware of the trend. As one Harvard Business Review article puts it, “Many C-suite executives are already anticipating recession in the next few years and quietly gearing up for it.”
As a multinational business expands it becomes more complex and difficult to manage. Whether your organization has grown organically and/or through acquisition, just keeping track of your legal entities can become challenging, to say nothing of understanding why they were established and if you still need them. Just as important is understanding and fulfilling your compliance obligations in all your countries of operation. Each entity will have its own set of local corporate filing deadlines, director requirements, bank account considerations and more. Even if you eventually get control over these obligations, one or more of your countries of operation will change an existing regulation or add a new one, leaving you scrambling to comply.
On September 5, the IRS published proposed regulations related to Sections 451(b) and 451(c) of the Internal Revenue Code, providing long-awaited guidance for taxpayers that use an accrual accounting method and have an applicable financial statement and/or receive advance payments.
Brexit will have profound effects on businesses exporting from the UK and those with UK-based customers, regardless of where those businesses are located. Affected businesses will face new challenges related to data protection, supply chains, immigration and more. The precise nature of many of these challenges remains uncertain, and the hard truth is that many Brexit-related uncertainties will persist long after the UK leaves the EU.
Leaders from the G7 countries concluded their annual three-day summit yesterday. A storyline involving France, the U.S., digital taxation and wine tariffs illuminates some of the most important economic issues of our time.
If you’re a U.S. taxpayer with a bank account outside the country, you may need file an FBAR, which is used to report foreign account information to the U.S. government. Failure to file can result in severe penalties, with fines as high as $100,000 or 50% of the account's balance.