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Specified Domestic Entity Seminar | International Tax Lawyer & Attorney

On August 17, 2017, the owner of Sherayzen Law Office, Mr. Eugene Sherayzen, conducted a seminar on the new FATCA reporting requirement concerning Form 8938, specifically the new filing category of Specified Domestic Entities (the “Specified Domestic Entity Seminar”). Mr. Sherayzen is a highly experienced attorney who specializes in U.S. international tax compliance, including FATCA Form 8938. The Specified Domestic Entity Seminar was organized by the International Business Law Section of the Minnesota State Bar Association.

The Specified Domestic Entity Seminar commenced with the historical overview of FATCA. Then, it continued to analyze the three principal parts of FATCA (as relevant to the seminar), including Form 8938.

The next part of the Specified Domestic Entity Seminar focused on the filing requirements of FATCA, including the definition of the Specified Foreign Financial Assets. Mr. Sherayzen devoted considerable time to the exploration of various categories of Form 8938 filers and their respective filing thresholds. He explained to the audience that Form 8938 was previously required to be filed only by Specified Individuals. The tax attorney then stated that, starting tax years after December 31, 2015, a domestic corporation, partnership or trust classified as a Specified Domestic Entity was required to file Form 8938.

Having finished the review of the background information, Mr. Sherayzen proceeded to analyze the definition of Specified Domestic Entity. At this point, the Specified Domestic Entity Seminar turned very technical and analytical.

After stating the general definition of Specified Domestic Entity, the tax attorney divided the definition into various parts and analyzed each part in detail. In particular, the Specified Domestic Entity seminar covered the following topics: definition of “domestic” (as defined specifically for the purposes of domestic trusts and domestic business entities), Specified Foreign Financial Assets and the phrase “formed or availed of”.

As part of the analysis of the latter, Mr. Sherayzen discussed the Closely-Held Test and the Passive Tests with their varying applications to domestic trusts and domestic business entities. The tax attorney also discussed the highly unusual attribution rules within the context of the Closely-Held Test.

After the explanation of the Form 8938 filing threshold for Specified Domestic Entities, Mr. Sherayzen concluded the Specified Domestic Entity Seminar and opened the Q&A session.

Belarus-Spain Tax Treaty Approved | FATCA Lawyer News

On December 19, 2017, the Belarusian Council of the Republic, which is the upper chamber of the Belarusian parliament, approved a law on the ratification of the pending Belarus-Spain Tax Treaty. The Belarus-Spain Tax Treaty will cover both income and capital gain taxes and is meant to prevent the double taxation of the same income in both countries. This development comes after both countries signed the Belarus-Spain Tax Treaty in Madrid, Spain, on June 14, 2017.

The exact text of the treaty is not yet known. There are reasons to believe, however, that it includes an article on the automatic exchange of tax-related information in compliance with the OECD standard. The exchange of information under the Belarus-Spain Tax Treaty is reported to be quite extensive.

The Belarus-Spain Tax Treaty will enter into force within three months after all of the ratification procedures are completed. Once in force and effective, the Belarus-Spain Tax Treaty will replace the agreement signed between the former Soviet Union and Spain on March 1, 1985.

The Belarus-Spain Tax Treaty is just the latest example of the recent rise in the number of tax treaties signed between various countries. It appears that the web of treaties between various countries is growing increasingly wider and diverse as a result of the global preference for bilateral negotiations over the multilateral ones.

Similarly, as a result of FATCA and CRS, there has been an explosion of the agreements concerning automatic exchange of certain tax-related information, including those related to foreign accounts and beneficial ownership of foreign corporations. Again, the general trend toward bilateral negotiations, led by FATCA implementation treaties (which are bilateral treaties between the United States and other countries), can be clearly observed from these developments.

This trend toward bilateral negotiations reflects the underlying complex historical processes of moving to an increasingly multipolar world. This, of course, offers little consolation to US taxpayers as well as taxpayers of other countries who are increasingly caught between the ever demanding tax compliance requirements of various countries. The recent Belarus-Spain Tax Treaty will make but a modest contribution to this burden; yet, it is definitely part of this trend.

Sherayzen Law Office will continue to observe and analyze these trends and developments, including the progress of the new Belarus-Spain Tax Treaty.

Seattle FATCA Lawyers

There are two definitions of who qualifies to be Seattle FATCA lawyers. First, Seattle FATCA lawyers are lawyers who are work in Seattle and who specialize in helping U.S. taxpayers and/or foreign financial institutions with FATCA compliance.

The second type of international tax attorneys who can qualify as Seattle FATCA lawyers became possible as a result of the development of modern communication technologies. These are the lawyers who reside outside of Seattle (e.g. in Minneapolis) and help clients who live and work in Seattle, Washington. Sherayzen Law Office is a good example of such Seattle FATCA lawyers – the firm’s founder, Mr. Sherayzen resides in Minneapolis but provides FATCA-related services to his clients in Seattle.

The residence of Seattle FATCA lawyers does not matter due to the fact that FATCA is federal law and any international tax lawyer who is licensed to practice in any of the fifty states of the United States can help his clients wherever they reside. Modern technologies (such as Internet, email, video Skype conference, et cetera) allow a Minneapolis lawyer to provide at least the same quality of service in Seattle as other Seattle FATCA lawyers. The necessary documents are usually supplied via email, flash drives (or other similar digital storage devices) and regular mail.  If a document needs to contain an original signature (e.g. amended tax return), then it is sent to client either by email or mail, the client signs the document at his home without the need of going to the lawyer’s office then mails it back to his lawyer.

The quality that should really matter to clients who are looking for Seattle FATCA lawyers is that their lawyers have deep knowledge of FATCA, foreign accounts disclosure and the U.S. international tax law in general. The knowledge of U.S. international tax compliance obligations is especially important for Seattle FATCA lawyers, because FATCA is merely a part (though, a very important part) of a much larger set of U.S. international tax laws. All of these laws are related to each other and their interaction creates real tax consequences for U.S. taxpayers, including those who reside in Seattle. This is why it is important for Seattle FATCA lawyers to know the entire U.S. tax structure, not just FATCA itself.

Contact Sherayzen Law Office If You Are Looking for Seattle FATCA lawyers

If you are looking for Seattle FATCA lawyers, you should contact Sherayzen Law Office, Ltd., an international tax law firm that specializes in FATCA compliance, offshore voluntary disclosures and U.S. international tax compliance in general.

Contact Us Today to Schedule Your Confidential Consultation!

UK FATCA Letters

While the United Kingdom signed its FATCA implementation treaty in 2014, UK FATCA letters (i.e. FATCA letters from UK financial institutions) continue to pour into the mailboxes of U.S. taxpayers. In this article, I would like to discuss the purpose and impact of UK FATCA Letters.

UK FATCA Letters

UK FATCA Letters play an integral role in the FATCA Compliance of UK financial institutions. Under the Foreign Account Tax Compliance Act (FATCA), the UK foreign institutions are obligated to collect certain information regarding U.S. owners of UK bank and financial accounts and provide this information to the IRS. The collected information must include the name, address and social security number (or, EIN number) of U.S. accountholders.

In order to collect the required information and identify who among their clients is a US person for FATCA purposes, the UK financial institutions send UK FATCA Letters to their clients, asking them to provide the information by the required date. If there is no response within the required period of time (which may be extended), the UK financial institutions report the account to the IRS with the classification as a “recalcitrant account”.

UK FATCA Letters and Undisclosed UK Bank and Financial Accounts

While UK FATCA Letters are important to FATCA compliance of UK financial institutions, they also may have important impact on U.S. taxpayers with undisclosed bank and financial accounts in the United Kingdom, particularly on the ability of such U.S. taxpayers to timely disclose their foreign accounts.

Once a U.S. taxpayer receives UK FATCA Letters, he should be aware that the clock has started on his ability to do any type of voluntary disclosure. This is the case because UK FATCA Letters demand a response within certain limited period of time. Then, the UK financial institutions will report the account to the IRS, which may prompt IRS examination which, in turn, may deprive the taxpayer of the ability to take advantage of any type of a voluntary disclosure option.

Furthermore, UK FATCA Letters start the clock for the taxpayers to do their voluntary disclosure in an indirect way. If the taxpayers do not complete their voluntary disclosure within reasonable period of time (which may differ depending on circumstances) after they receive the letters, the IRS may proceed based on the assumption that prior noncompliance with U.S. tax requirements by the still noncompliant taxpayers was willful.

Finally, UK FATCA Letters may impact a U.S. taxpayer’s legal position with respect to current and future tax compliance, because UK FATCA Letters can be used by the IRS as evidence to prove awareness of U.S. tax requirements on the part of noncompliant U.S. taxpayers. This is particularly relevant for taxpayers who receive these letters right before the tax return and FBAR filing deadlines.

Contact Sherayzen Law Office if You Received UK FATCA Letters

If you received one or more UK FATCA Letters from foreign financial institutions, you should contact Sherayzen Law Office as soon as possible. Attorney Eugene Sherayzen is one of the world’s leading professionals in the area of offshore voluntary disclosures and he will personally analyze your case and create the appropriate voluntary disclosure strategy. Then, under his close supervision, his legal team will implement this strategy, including the preparation of all required tax forms.

Call Us Today to Schedule Your Confidential Consultation!