FATCA Lawyer: Connection Between UBS Case and FATCA

Hello, and welcome to Sherayzen Law Office video blog; my name is Eugene Sherayzen and I’m an international Tax Attorney and owner of Sherayzen Law Office, Ltd.

Today, we are continuing our blog from Zurich, Switzerland and as you can see, we have UBS in the background; this is the UBS headquarters (in Switzerland). What I would like to talk about today, is what happened after UBS caved in to the IRS demands to turn over the names of US taxpayers who own accounts at UBS.

This happened in 2008. What happened next is quite remarkable. Basically, once one of the largest Swiss banks admitted that it can be bullied into submission by the IRS, the rest of the banks started to follow suit. The influence of the US Government grew enormously from that point on. The next thing that happened after the UBS defeat was the creation of the 2009 Offshore Voluntary Disclosure Program or OVDP. During the program, which was extremely successful, the IRS has collected an enormous amount of information about Swiss banks sufficient for it to make the next step and the next step was the enactment of FATCA.

FATCA is a huge topic. Let’s just say that FATCA revolutionized the entire legal landscape of International Tax Compliance. FATCA pretty much put an end to unlimited bank secrecy that existed prior to the 2008 UBS case. Next time, we will discuss more of what FATCA meant for International Tax Compliance and then we’ll also talk about the 2011 OVDI Program and the 2012 OVDP with it’s successor, the 2014 OVDP Program.

Thank you for watching, until the next time.

US Tax Reporting of Foreign Investment Accounts | FBAR Lawyer

Hello, and welcome to Sherayzen Law Office video blog; my name is Eugene Sherayzen and I’m an international Tax Attorney and owner of Sherayzen Law Office, Ltd.

Today, we’re continuing our series of blogs from Zurich, Switzerland and in fact, we are standing in front of Swissquote. This is the company that trades Swiss stocks and the reason why it’s important is because there are still a lot of taxpayers with Swiss stocks who do not realize that even if they disclose their Foreign Bank Accounts, they also have to disclose their Foreign Stock Trading Accounts and Foreign Mutual Funds. All of this has to be disclosed to the IRS.

Now, how do you disclose it? There are two main forms that you need to worry about: FBAR, the Foreign Bank and Financial Accounts Report or Form 8938 which is attached to your tax return. Also, if you are investing in Foreign Mutual Funds, e.g. Swiss Mutual Funds through Swissquote, you also need to disclose them on Form 8621, which is quite complex.

If you would like to learn more about what you need to do in order to stay in US Tax Compliance, with respect to your Foreign Investment Accounts, you can contact me directly at (952) 500-8159 or you can email me at [email protected]

Thank you for watching, until the next time.

Foreign Accounts & US Tax Residency | International Tax Lawyer United States

Hello, and welcome to Sherayzen Law Office video blog; my name is Eugene Sherayzen and I’m an international Tax Attorney and owner of Sherayzen Law Office, Ltd.

Today, we’re continuing our series of blogs from the Czech Republic. I would like to talk to you about persons who are US Taxpayers and who have Undisclosed Bank Accounts and other Foreign Assets in the Czech Republic.

What is it that they need to do once they find out about their prior tax noncompliance? First of all, we need to figure out who is a US Tax Resident. “US Tax Resident”, is a broad category; it includes all US Citizens, all US Permanent Residents and everyone who satisfied the Substantial Presence Test.

Now this definition, in its pure form, applies only to the income tax return. When we talk about forms like FBAR, Form 8938 and other similar US International Information Returns, the definition changes. It doesn’t change much but it does change a little bit. For FBAR purposes we’re talking about US Persons; if we are talking about Form 8938, we’re talking about Specified Individuals and Specified Domestic Entities.

The difference between these definitions, as I said, is very small, but there are differences. In some instances, you can be a non-resident alien for income tax purposes and still have to file FBAR. Similarly, you may have to file FBAR but you don’t have to file Form 8938. It is the job of your International Tax Attorney to determine which form applies to you, whether you are a US Tax Resident for a certain form and a non-resident with respect to an income tax return.

The most important thing is if you fall into any of the categories that I’ve mentioned, you are a US Tax Resident for income tax purposes. So, whether you are US Citizen, a US Permanent Resident or you satisfied the Substantial Presence Test, if you satisfy any of these requirements, then you have to disclose your Foreign Accounts and if you have not disclosed your accounts, then at that point you need to contact an International Tax Attorney; that’s the first step that you need to do.

Contact me in order to determine what your penalty exposure is and what the best way is to conduct your Voluntary Disclosure.

You can call me at (952) 500-8159 or you can email me at [email protected]

Thank you for watching!