Hello and welcome to Sherayzen Law Office Video Blog. My name is Eugene Sherayzen; I’m an international tax attorney and owner of Sherayzen Law Office Ltd.
And today we are continuing our series of blogs from Czech Republic and we are in Karlovy Vary; a very famous resort where high-net worth individuals come to rest, to cure their diseases, to drink mineral water, but some of these individuals are also US Tax Residents. And unfortunately one of the problems US Tax Residents face is compliance with very extensive and intrusive US Tax Reporting Requirements.
One of these requirements is FATCA. Now FATCA is a huge piece of legislation that was passed in 2010, that revolutionized the entire legal landscape around the world with respect to information exchange and tax compliance.
There are three parts of FATCA which have relevance for ordinary individual and corporate tax, US Taxpayers. One of them is the requirement for foreign financial institutions to report foreign accounts owned by US Persons; the second one is a tax withholding requirement of 30% on the gross transactions if the foreign financial institution is not tax compliant, same by the way, applies by the way to US Taxpayers with foreign accounts which have not been disclosed to the IRS or for which the US Taxpayers refused to give the permission to the foreign institutions to disclose. And finally the third requirement is form 8938. Now form 8938 is part of the internal revenue code now and it should be filed with your US Tax Return. Failure to file form 8938 may have grave consequences, including the extension of the Statute of Limitations, the imposition of civil and even criminal penalties.
If you would like to learn more about your US Tax Reporting Requirements, you should contact me directly at [email protected] or call me at (952) 500-8159. Thank you for watching; until the next time.